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What legal issues should I be aware of when purchasing a commercial property?

Picture of Chris Battis By   ·  1 minute read

Legal Issues to Consider When Purchasing a Commercial Property

When purchasing a commercial property, there are several legal issues that need to be taken into consideration. These issues include:

  1. Zoning and land use regulations: It is important to ensure that the property is zoned for the intended use and that any necessary permits or approvals have been obtained. Failure to comply with zoning regulations can lead to fines and legal action.
  2. Environmental regulations: The property must comply with all state and federal environmental regulations. This may require an environmental assessment or remediation work.
  3. Title and survey issues: It is essential to conduct a thorough title search and obtain a survey to ensure that there are no outstanding liens or disputes over the property boundaries.
  4. Lease agreements: If the property is leased, it is important to review the existing lease agreements to determine if they are transferable and if they are in compliance with current laws.
  5. Financing and mortgage agreements: The terms of any financing or mortgage agreements should be carefully reviewed, including interest rates, payment terms, and any prepayment penalties.
  6. Property taxes: It is important to review the property's tax history and assess any potential property tax liabilities.
  7. Insurance: Adequate insurance coverage should be obtained to protect against any potential liability or damage to the property.
  8. Maintenance agreements: Any existing maintenance agreements should be reviewed to ensure that the property is being properly maintained and that the obligations of the parties are clear.

In addition to these issues, it is important to seek legal advice from a licensed attorney who can assist with reviewing and negotiating the purchase agreement and any related documents. Limited exceptions or limitations to this advice may include specific state or local laws and regulations that vary from jurisdiction to jurisdiction. For further action, it may be necessary to engage in additional due diligence or seek expert opinion or advice. In sum, a thorough and comprehensive assessment of the legal issues involved in purchasing a commercial property requires a multi-faceted approach and careful attention to detail.