The Importance of Clearing Title for Public Acquisitions

Why It Matters

Undiscovered leases can dramatically increase acquisition costs, cause construction delays, and force agencies into expensive eminent‑domain actions, impacting taxpayers and project timelines.

Key Takeaways

• Riverside USD spent $1M relocating a 19‑year cell‑tower lease
• Title searches missed an existing lease, causing project delays
• Unrecorded leases can trigger costly relocation or eminent‑domain claims
• Comprehensive title review reduces financial exposure for public acquisitions
• Leasehold compensation includes goodwill, improvements, and equipment losses

Pulse Analysis

When public entities acquire land, the focus traditionally centers on price negotiations with owners, often overlooking the deeper layers of title history. A comprehensive title search reveals not only recorded deeds but also unrecorded interests such as long‑term leases, easements, and encumbrances that can bind future use. Failure to identify these interests can expose agencies to hidden liabilities, legal disputes, and schedule setbacks that far exceed the initial purchase price, eroding public trust and fiscal responsibility.

The Riverside Unified School District case illustrates these risks vividly. After securing vacant land for a new elementary school, the district learned that a cell‑tower lease—lasting another 19 years—sat on the property. The lease conflicted with school construction, and while eminent domain could have terminated it, the process would have delayed the project and added compensation costs. Instead, the district opted to spend nearly $1 million to temporarily relocate the tower, a cost that could have been anticipated with diligent title work. This example shows how a single overlooked lease can reshape a multi‑million‑dollar project.

For agencies nationwide, the lesson is clear: integrate exhaustive title examinations into acquisition workflows and allocate resources for uncovering hidden interests early. Leveraging modern title‑search technology, consulting experienced real‑estate counsel, and conducting on‑site inspections can mitigate surprise expenses and keep projects on schedule. By proactively addressing leasehold obligations, public bodies protect taxpayer dollars, avoid construction delays, and maintain momentum on essential infrastructure initiatives.