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3 types of commercial boundary disputes you should be aware of

On Behalf of | Mar 25, 2024 | Commercial Real Estate |

Current commercial real estate investments in Michigan have the potential to rake in significant profits for investors due to a thriving economy, strategic location and diverse range of industries. However, investors must perform due diligence before investing in real estate to better ensure that they are aware of potential disputes that could arise.

If you are planning to invest in Michigan, one of the potential real estate complications you should be aware of is boundary disputes. These disputes can arise in various forms and can significantly impact the value and utility of your investment.

Easement disputes

Easement disputes arise when there is disagreement over the rights to use a particular portion of the property. This could involve issues such as access rights, shared driveways or utility easements. For example, if a neighboring property has an easement to use a portion of your property for access to a public road, disputes may arise if the terms of that easement are not clearly defined or if there are disagreements over maintenance responsibilities.

Encroachment/ adverse possession

Encroachment occurs when a neighbor’s structure, such as a fence or building, extends beyond their property line and onto yours. Adverse possession occurs when someone openly occupies or uses a piece of your property without your permission for a certain period of time, often resulting in a legal claim to that land. These disputes can be complex and may require legal intervention to resolve, potentially leading to costly litigation and property value diminishment.

Boundary line disputes

Boundary line disputes occur when there is disagreement or uncertainty regarding the exact location of the property line between adjacent parcels of land. These disputes can arise due to various reasons, including outdated surveys, inaccurate property descriptions or changes in land use over time. Boundary line disputes often involve disagreements over property ownership, use and development rights.

Legal guidance is essential when investing in commercial real estate to ensure that investors understand and mitigate potential risks while maximizing their opportunities for success.