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What legal steps do I need to take when purchasing a commercial property?

Picture of Chris Battis By   ·  1 minute read

When purchasing a commercial property, there are several legal steps that need to be taken. Some of these steps include:

  1. Conducting Due Diligence: Before purchasing any commercial property, it is important to conduct due diligence to ensure that the property is legally sound. This includes reviewing the property's title, zoning regulations, environmental reports, lease agreements, and any other relevant documents. This is important to ensure that there are no liens, easements or other encumbrances on the property that might prohibit its intended use or affect its value.
  2. Negotiating the Purchase Agreement: Once you have identified a suitable property, the next step is to negotiate the purchase agreement. This includes setting the purchase price, outlining the terms of the purchase, and securing financing. It is important to work with an attorney who has experience in drafting purchase agreements to ensure that your interests are protected and that you understand all of the terms of the purchase agreement.
  3. Conducting a Property Inspection: Before finalizing the purchase, it is important to conduct a property inspection to ensure that the building and its systems (plumbing, electrical, HVAC, etc.) are in good working condition. It is important to retain a professional inspector for this purpose.
  4. Closing the Transaction: Once all of the due diligence has been conducted, the purchase agreement has been negotiated and the inspection has been completed, it is time to close the transaction. This involves transferring the title to the property, signing a deed, and transferring funds to the seller.
  5. Recording the Deed: After the closing, it is important to record the deed with the local county recorder's office. This officially transfers ownership of the property to the buyer.

In addition to these steps, it is important to work with an attorney who has experience in commercial real estate transactions. They can provide guidance throughout the process and ensure that all legal requirements are met. It is also important to obtain title insurance to protect against any unforeseen issues with the property's title.