What legal requirements do I need to be aware of when purchasing commercial property?
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If you are considering purchasing commercial property, there are several legal requirements that you need to be aware of before making your purchase. Below are some of the key legal requirements that you need to consider:
- Title Search: Before purchasing commercial property, it is important to conduct a thorough title search to ensure that the seller has a clear title to the property. A title search will reveal any liens, encumbrances, or other claims that may affect the property's title.
- Zoning and Land Use Regulations: It is important to ensure that the property is zoned for the intended use. You should also check for any land use regulations that may affect the property's development potential or use.
- Environmental Regulations: Commercial property purchasers must comply with various environmental regulations such as federal and state environmental statutes and regulations, environmental impact assessments, and the Environmental Protection Agency's standards for hazardous materials disposal.
- Building Codes: The commercial property seller has to meet building codes relating to the property. The buyer must inspect the property for compliance with the codes.
- Property Taxes: When you purchase commercial property, you will be responsible for paying property taxes. You need to make sure that you understand the tax appraisal process for the jurisdiction in which the property is located.
- Contracts and Agreements: You should review and carefully consider all contracts, lease agreements, and other agreements for the property. You may want to seek legal advice on drafting or reviewing these documents to ensure that they are in your legal best interest.
- Due Diligence: Perform due diligence on the property beyond the requirements stated in the Purchase Agreement. A pre-purchase risk check, an environmental audit, and a survey of the property should be performed.
It is important to keep in mind that there may be other legal requirements that need to be addressed depending on the specific jurisdiction and circumstances of your commercial property purchase. Consulting with an experienced commercial real estate attorney is recommended to ensure that you understand all legal requirements and are in compliance with all relevant regulations.
