Exploring Land Rights and Acquisition Activity in Texas
Specializes in providing actionable insights into the commercial real estate space for investors, brokers, lessors, and lessees. He covers quarterly market data reports, investment strategies, how-to guides, and top-down perspectives on market movements.
History tells us clearly the story of finding opportunities in faraway places. In the past, Texas was considered one of those far away places, full of mystery and opportunity alike. Thankfully, a trip to Texas doesn’t require five horses and a journey reminiscent of the Oregon Trail. A car ride or a plane trip can move you from opportunity to opportunity.
To buy land in Texas is a great opportunity that shouldn’t be overlooked in haste.
The best reason to consider Texas? Land. Looking at the current acquisitions across Texas, land continues to be in high demand. Since the country is making new people but not new land, chances are good that the demand for land will continue to grow.
For example, the Embry Group just snagged land to build their next single-family housing project, which will showcase 126 units of one and two-story homes.
Elon Musk needs no introduction; he can simply let mega-land deals like this eye-watering $100M land grab in Austin speak for him. If that doesn’t hold up the theory that there’s an opportunity, nothing will.
Why Land Purchases Are Heating Up
Land purchases aren’t considered the most thrilling type of asset type in the world of commercial real estate. It doesn’t move, it doesn’t come with a lot of bells and whistles, but it does deserve full attention.
Below are a few points about why land purchases are truly becoming one of the most interesting acquisitions to watch.
Land Is the Ultimate in Terms of Flexibility
Why do people rave about tofu? Because it takes on the flavors of whatever else the chef decides to put into the dish. This is the same concept behind why land is in such high demand: the options are virtually endless.
People want forested land for hunting and camping, clear fields for agriculture and agritourism, and even rugged land for adrenaline seekers looking to climb cliffs just for fun.
The point here is that land gives people options, and what would America really look like without options? America doesn’t just run on Dunkin; it runs on options, opportunity, and action. Having a solid idea of what should go on a piece of land is ideal for both business and financing purposes, but when in doubt, start with the land and move up from there.
Incentives for Development Are On the Rise
Texas knows that incentives are part of the long game, and they play accordingly: there are local, state, and federal incentives in play to entice businesses to pick up commercial property. Land is also considered CRE, and those acquisitions form the foundation for just about every single project you can think of.
Development companies need land in order to build all of those lovely multifamily units, as well as new senior care facilities. Senior care expenses are growing, and the healthcare industry has to keep up with those demands as the population not only ages but their health declines dramatically.
Land Comes With Rights
Some land rights may sound pretty familiar, but others are pretty wacky. Still, they all fall under the “bundle of rights” that are automatically transferred to the buyer after the sale of land is finished. Here are a few of the different rights that are part of land ownership:
- Subterranean rights. Have you ever wondered what would happen if you found something valuable on your land? It automatically becomes your property; you don’t have to try to find the original owner or their descendants.
- Riparian rights. If you were to buy land in Texas that includes a waterway, you have the right to access that waterway.
- Air space rights. While the government does put some limitations, landowners still have the right to the air above the land and all of the structures on the property. This has been tested in the courts with drones frequently.
- Surface rights. This is the right that’s the easiest to understand: the owner has the right to occupy the surface of the property.
These rights just scratch at the surface; entire books are devoted to land law specifically. Any real estate attorney specializing in commercial real estate can also give advice on land specifically. It truly is a great investment.
Understanding the Limits
Federal, state, and local limitations do come into play when the topic of land acquisition comes up. Buying land in Texas means being aware of legal issues, but those are best handled by the legal professionals within your team.
Despite the limitations, the right to generate income from purchased land is automatic, and there are plenty of laws around the idea of land sovereignty and
How are land disputes handled?
What’s a boundary worth? It can become a huge legal headache when boundary disputes come up. Think commercial real estate is the nerdiest subject out there? Think again: there are professional articles around riparian boundary disputes. After all, how do you enforce a boundary when it moves by nature, the way lakes, shores, and bodies of water can?
Land disputes are typically handled by examining surveys as a preliminary step before any type of court action takes place. It’s far easier to try to work things out peacefully than handle things through litigation.
Unfortunately, sometimes it does take going before judge and jury, which means there’s a chance the outcome will not go in your favor. Having a very experienced real estate attorney is key to handling land boundary disputes.
Here’s another wild land boundary dispute case, one that is reminiscent of the Hatfield and McCoy rivalry. Next time someone says that boundaries don’t matter, be sure to show them this case.
Want land in Texas? Prepare accordingly.
Do you find the opportunities of Texas calling you? Taking the steps to buy land in Texas could lead to your next big opportunity. There’s no need to rush like somebody just found a new vein of gold in the mountains, but you also don’t want to wait forever to put together a good strategy.
Buying land is a long-term investment in many ways, and every land market is different. However, with so many big players making waves in Texas land acquisition records, it makes sense to start looking at how to get in on the action.
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