Every real estate transaction is grounded in what’s recorded against the property and, therefore, what affects title to the property. Before closing documents are signed and development is commenced, the status of title to the property should be confirmed through a thorough and professional title and survey review. These documents reveal the legal and physical conditions affecting the property, what can or cannot be done with it, and whether the project is indeed viable.
What Title Review Covers
Title review involves a detailed examination of the property’s ownership history, recorded liens, easements, restrictions, deed covenants, pending legal actions, and other encumbrances.. These elements form the legal framework that governs how the land may be used or transferred. A properly conducted review ensures that title is both clear (or as clear as it can be) and marketable. Exceptions in the title report may, and oftentimes do, carry implications for future development, financing, and resale.
Recorded encumbrances, such as easements, access rights, or unexpected covenants and restrictions, often go unnoticed without proper legal review. These restrictions can limit a buyer’s intended development and use of the property or a lender’s collateral. Similarly, liens or claims that have not been properly released can prevent a clean transfer. Verifying the chain of title is also essential for confirming that the seller has legal authority to convey the property without risk of future problems.
The Role of Survey Review
In parallel, the survey identifies the property’s physical boundaries, improvements, and the location of other easements or restrictions on and affecting the property. The survey must be reviewed in detail to confirm that the legal description matches the actual site and that there are no encroachments or discrepancies. A structure crossing a boundary line or a fence installed off-alignment can introduce legal complications that may impair or delay development. The presence of undocumented easements or access points may also indicate prior agreements or use that is not reflected in the title report.
Why Legal Review Matters
Attorneys reviewing title and survey documents bring more than technical knowledge. They apply legal scrutiny to identify risk, propose solutions, and ensure that any issues are timely resolved within all relevant contractual timeframes. This may involve working with the title company to remove or, as applicable, insure over certain exceptions, negotiating indemnities with the seller, or requiring corrective action by the seller or third parties. The review process also informs legal practitioners as to how restrictive covenants or declarations should be addressed in the purchase agreement, or amendments thereto, or subsequent development-related documents. Issues that are not timely identified often cannot be corrected without delay or cost, so timely identifying and resolving them early and in accordance with all contractual timeframes creates leverage and prevents unnecessary exposure and risk.
For sophisticated real estate operators, this level of due diligence is not optional. It is a central part of managing risk and protecting the viability of the transaction. Real estate investors, developers, and lenders all depend on it to confirm that the legal condition of the property aligns with the intended investment and development strategy.
Executive Summary:
Title and survey review are critical components of due diligence in any sophisticated real estate transaction. Title review verifies legal ownership, uncovers encumbrances, and ensures that the seller has the authority to convey a clear and marketable title. Survey review confirms physical boundaries, reveals potential encroachments and other issues, and ensures consistency between legal descriptions and the actual site. Thorough legal review protects against transactional risk, supports development planning, and ensures regulatory compliance. Engaging experienced legal counsel early in the process allows for issue resolution before it becomes a problem and significant project due diligence costs are incurred, and it safeguards long-term project viability.
Mier Law, PLLC regularly conducts comprehensive title and survey reviews for real estate transactions of all types across Texas and nationwide. To speak with an attorney, call (972) 619-6290.