Day: May 19, 2014

Bye Bye Beach House?

Coastal Property Loss DisclosureIn a past life, I’m convinced, I was a sailor. There’s something extraordinarily enticing about the sea: the brisk wind, the smell of salt, the moist air, the screeches of the sea gulls, and, of course, the sense of adventure. For the past few years I’ve toyed with the idea of buying a modest beach house.

Purchasing beach property has risks not associated with inland property. Obvious ones include flooding, storm damage, and increased routine maintenance costs due to the weathering environment. There may also be less obvious risks.

Coastal real estate near a Texas Gulf Coast beach may become located on a public beach because of coastal erosion and storm events. That’s right. Coastal erosion or storms may render some private beach property public. In that case, the State of Texas may also sue you to remove your structure on that property. And you may have to pay for the removal.

With some exceptions, a person selling Texas coastal real estate must disclose these facts to a prospective purchaser. Prospective purchasers are admonished to determine the rate of shoreline erosion in the vicinity of the real estate, and seek the advice of appropriate professionals before consummating the purchase to determine the application of this law and the potential impact on the value of the property under consideration.

Would you buy real estate that you knew had a higher risk of economic loss? Would you pay a premium for that property? Living by the sea may seem ideal, but it may not always be a day at the beach. Do your homework.

In our Just for Fun posts, we underscore certain construction and real estate topics just for the fun of it.