Top Legal Issues to Check Before Buying Property in Texas

House model with agent and customer discussing

Purchasing commercial property in Texas can be an exciting investment, whether you’re starting a new business, expanding existing operations, or diversifying your real estate portfolio. However, before signing the dotted line, it’s essential to understand the legal landscape surrounding your potential investment. Failing to catch certain legal issues early can result in costly surprises later on. Here are the top legal considerations to keep in mind before purchasing a property in Texas.

Clear Title and Ownership

One of the most important steps in any real estate transaction is confirming that the seller has a clear title to the property. Title defects, such as unknown heirs, unresolved liens, or boundary disputes, can threaten your ownership rights. A title search conducted by a reputable title company or a skilled commercial real estate attorney can help identify any potential issues. Additionally, consider purchasing title insurance to protect yourself against any undiscovered problems that may arise after closing.

Property Liens and Encumbrances

Liens, such as unpaid property taxes, contractor bills, or court judgments, can remain attached to the property even after it changes hands. If not resolved before purchase, the buyer may become responsible for settling these debts. It’s also crucial to identify any encumbrances—like easements or deed restrictions—that could limit how you use the property. Having an attorney review the title report and legal records can help you avoid unpleasant surprises.

Zoning and Land Use Regulations

Zoning laws regulate the use of property, including residential, commercial, industrial, agricultural, and mixed-use properties. If you’re planning to develop, lease, or operate a commercial enterprise on the property, confirm that your intended use complies with local zoning ordinances. In some areas, obtaining a variance or special permit may be required. Working with a commercial real estate attorney can ensure that your plans align with local regulations and that all necessary permits and approvals are obtained in a timely and proper manner.

Survey and Boundary Issues

Unresolved boundary issues can lead to legal disputes, delay development, or derail commercial plans. A current land survey can confirm the exact boundaries of the property and show whether any structures encroach on neighboring land, or vice versa. It also helps identify easements, right-of-way access, and other factors that may affect the use or value of the property. Always request a recent, certified survey before closing.

Environmental Concerns

Environmental issues such as contaminated soil, flood risks, or protected wetlands can significantly impact a property’s usability and marketability. In Texas, properties located in floodplains may require costly flood insurance, and land with environmental contamination may require remediation before development can occur. Depending on the property’s location and history, an environmental site assessment may be recommended.

Contract Terms and Disclosures

In Texas, real estate contracts must comply with specific legal requirements. Both buyers and sellers must also follow disclosure laws. Sellers are typically required to provide a Seller’s Disclosure Notice that outlines known defects or issues with the property. Reviewing the contract with an attorney can ensure that your rights are protected, important deadlines are met, and contingencies (such as financing or inspection) are clearly addressed.

Contact Us Today To Learn More About Buying Property in Texas

Real estate purchases are substantial financial investments, and legal missteps can be costly. Whether you’re a first-time buyer or an experienced investor, working with an experienced Texas commercial real estate attorney can provide peace of mind. At Coleman Jackson, P.C., we help buyers navigate the complex legal issues associated with property transactions. Our team can review contracts, conduct title and legal due diligence, and help you close with confidence.

Note: This law blog is written by the attorneys at Coleman Jackson, P.C., located at 6060 North Central Expressway, Suite 620, Dallas, Texas 75206, for educational purposes only. It does not create an attorney-client relationship between this law firm and the reader. You should consult with legal counsel in your geographic area regarding any legal issues affecting you, your family, or your business.

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