What legal documents do I need to have in place when buying a commercial property?
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When buying a commercial property, there are several legal documents that should be in place to ensure a smooth and legally sound transaction. These documents include:
- Purchase Agreement: This document outlines the terms and conditions of the purchase, including the purchase price, payment terms, closing date, contingencies, and other important details. It is typically prepared by the seller's attorney and must be reviewed and approved by the buyer's attorney before signing.
- Title Report: A title report is a document that provides information about the property's title, including any liens, encumbrances, easements, or other restrictions that may affect the buyer's ownership rights. This report is typically obtained from a title company or an attorney.
- Survey: A survey is a document that provides a detailed description of the property, including its boundaries, structures, and other features. It is used to verify that the property is properly located and is in compliance with local zoning and land use regulations.
- Environmental Assessments: Depending on the nature of the property and its intended use, the buyer may need to commission environmental assessments to determine whether there are any environmental hazards or liabilities associated with the property. This may include Phase I and Phase II environmental assessments, as well as other specialized reports.
- Financing Documents: If the buyer is obtaining financing to purchase the property, there will be a variety of financing documents required, including loan applications, promissory notes, deeds of trust, and other legal documents related to the loan.
It is important to work closely with an experienced commercial real estate attorney throughout the purchase process to ensure that all necessary legal documents are in place and that the transaction is completed in compliance with applicable laws and regulations. If you have any concerns or questions about the legal documents required for a commercial property purchase, you should speak with an attorney.
