Common Issues in Buying or Selling Commercial Property

As a lawyer, when buying or selling commercial property, there are common issues that may arise, including:

1. Zoning issues: It is important to ensure that the intended use of the property is permitted by the local zoning regulations. Otherwise, the property may not be used in the intended manner, and the investment may be compromised. Zoning regulations may limit the type of business that operates on the property and the construction that is allowed on the property.
2. Environmental concerns: Environmental contamination can be a significant issue when buying or selling commercial property. Parties may be liable for environmental damage caused by previous owners or operations, which can be costly to remediate.
3. Title issues: It is important to ensure that the title to the property is clear and marketable. Any liens or encumbrances on the property can negatively affect the value of the property.
4. Lease agreements: If the property has tenants, their lease agreements should be reviewed to ensure compliance with lease conditions and the law. Any outstanding maintenance or repair issues should be identified, and any necessary disclosures should be made to prospective buyers.
5. Financing issues: Both the buyer and seller need to be able to obtain financing to complete the transaction. Financing issues may arise where the property is over-valued or where the buyer does not have sufficient creditworthiness.

To address these common issues, parties should engage experienced legal professionals to assist them in the transaction. These professionals can conduct due diligence to identify any concerns, draft customized agreements and contracts, and facilitate communication between the parties. In some cases, parties may need to renegotiate the sale or purchase price to account for identified issues or seek alternative financing options.