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How Boundary Disputes Impact Commercial Real Estate Deals in 2025

Boundary disputes remain a significant challenge in commercial real estate, often leading to costly delays, legal battles, and lost opportunities. In 2025, as commercial properties grow more complex and high-value transactions become the norm, resolving boundary disputes through accurate land surveys is more critical than ever.

This blog explores the impact of boundary disputes on commercial real estate deals and how professional surveys can prevent these issues from derailing your investment.

Understanding Boundary Disputes

A boundary dispute arises when neighboring property owners disagree over the exact location of property lines. These disputes often occur due to:

• Inaccurate or outdated property descriptions.

• Encroachments, such as fences, buildings, or driveways crossing property lines.

• Conflicting claims of ownership based on unclear deeds or records.

For commercial real estate, boundary disputes can complicate transactions, delay development, and even reduce property value.

How Boundary Disputes Impact Real Estate Deals

1. Delayed Transactions

Boundary disputes must be resolved before a property can change hands, causing delays in closing. These delays can disrupt investment timelines, particularly for time-sensitive projects.

Example:
A developer in Houston faced a three-month delay when a neighboring property owner contested the boundary line of a commercial lot. The dispute was resolved through a boundary survey, but the delay increased holding costs and pushed back the project timeline.

2. Increased Legal Costs

Boundary disputes often lead to legal proceedings, which can be both time-consuming and expensive. Legal fees, court costs, and potential settlements can significantly impact an investor’s budget.

Example:
An investor in Austin spent thousands in legal fees to resolve a boundary dispute over a parking lot encroachment. An accurate survey conducted during due diligence could have avoided the issue altogether.

3. Reduced Property Value

Unresolved boundary disputes can deter potential buyers or tenants, reducing the property’s marketability and value. Investors may need to lower their asking price or invest in resolving the dispute to attract interest.

Example:
A retail property in San Antonio sat on the market for months due to an unresolved boundary dispute, forcing the seller to accept a lower offer.

4. Complications in Development

Boundary disputes can halt or complicate development plans, especially if the disputed area includes key infrastructure, such as access roads or utility connections.

Example:
A mixed-use project in Fort Worth was delayed when a neighboring property owner claimed that a portion of the planned driveway encroached on their land. Resolving the dispute required redesigning the site layout, increasing costs and delaying construction.

How Land Surveys Resolve Boundary Disputes

Professional land surveys are the most effective way to prevent and resolve boundary disputes. By providing precise measurements and legal documentation, surveys establish clear property lines and eliminate ambiguity.

Types of Surveys Used:

1. Boundary Surveys: Define exact property lines based on legal descriptions and physical markers.

2. ALTA/NSPS Surveys: Provide detailed property data for commercial transactions, including boundaries, easements, and encroachments.

3. Topographic Surveys: Map the land’s physical features to ensure accurate boundary delineation.

Why Surveys Work:

• Provide legally recognized evidence of property boundaries.

• Resolve disputes before they escalate to legal proceedings.

• Offer a basis for negotiation and settlement.

Technology Advancements in 2025 for Boundary Surveys

Modern surveying technology makes resolving boundary disputes faster and more accurate than ever. Key advancements include:

• LiDAR Technology: Captures highly accurate elevation and terrain data, even in complex or overgrown areas.

• Drones: Provide aerial imagery for large properties, identifying encroachments and boundary markers.

• GIS Mapping: Combines survey data with zoning and infrastructure overlays for comprehensive analysis.

• 3D Modeling: Visualizes boundary lines and encroachments in an interactive format, simplifying dispute resolution.

Preventing Boundary Disputes During Due Diligence

The best way to handle boundary disputes is to prevent them from occurring in the first place. Investors and developers should incorporate professional land surveys into their due diligence process to identify and address boundary issues early.

Steps to Take:

1. Commission a Boundary Survey: Confirm property lines before purchasing or developing land.

2. Review Title and Deed Records: Ensure all legal descriptions match the survey data.

3. Resolve Encroachments Quickly: Work with neighboring property owners to negotiate settlements or adjust plans.

Example:
A retail investor in Dallas used a boundary survey during due diligence to identify a minor encroachment by a neighboring property’s fence. The issue was resolved amicably before closing, avoiding delays and legal costs.

Case Study: Resolving a Boundary Dispute in Texas

A commercial real estate investor in San Antonio planned to acquire a 10-acre property for a warehouse development. During due diligence, a boundary survey revealed:

• An encroachment by a neighboring property’s retaining wall.

• Conflicting property descriptions in the deed records.

The investor worked with the surveyor and the neighboring property owner to negotiate a boundary agreement, allowing the project to proceed without delays. The proactive approach saved the investor thousands in legal fees and ensured a smooth transaction.

Why Choose South Texas Surveying for Boundary Disputes?

At South Texas Surveying, we specialize in resolving boundary disputes for commercial real estate investors and developers. Our team uses advanced technology and local expertise to deliver precise, legally compliant surveys that eliminate uncertainty and protect your investment.

Whether you’re buying, selling, or developing commercial property, we’re here to help you navigate boundary issues with confidence.

Final Thoughts

Boundary disputes can have a significant impact on commercial real estate deals, causing delays, legal challenges, and financial losses. By investing in accurate land surveys, you can prevent disputes, resolve existing issues, and ensure your project stays on track.

If you’re facing a boundary dispute or planning a commercial transaction, contact South Texas Surveying today. Let us help you protect your investment with precision and expertise.