California Land Acquisition Errors to Avoid
With California encompassing over 100 million acres of land, real estate investors pursue residential spaces, commercial development and agricultural enterprises based on the potential usages individual property parcels allow. To safeguard investments, wise buyers leverage proactive steps avoiding common mistakes crashing closing transactions.
California land acquisition errors to avoid often involve failing to verify purchase property zoning classifications before acquiring deeds. Surprised revelations of restrictions severely limiting intended land uses surface too late destroying project viability. Savvy buyers proactively seek expert land inspections, hazardous materials assessments and zoning confirmations prior to finalizing purchases with clear title contingency rights.
California Land Acquisition Errors to Avoid
Another error involves allowing seller or non-profit land trusts with an interest in the transaction to select and pay for appraisals. This practice jeopardizes the objectiveness of the valuation process.
A key issue for resources-related land acquisitions involves determining fair market value (FMV). Professional appraisers and state resource acquisition agencies generally agree that FMV is the appropriate purchase price. However, it is challenging to obtain good quality FMV data without a thorough property valuation process.
A significant problem involving state-funded resource-related land acquisitions is that there is no clear process to facilitate good quality FMV data for these transactions. Recent legislation (Chapter 708, Statutes of 2004 [AB 1701, Laird]) sought to remedy this by placing additional requirements on selected acquisitions financed with state funds from various resources bonds. For these select acquisitions, the statute requires that an independent appraisal and an independent appraisal review be made available to the public ten days prior to the hearing of the state agency authorizing the acquisition.…