Are you about to purchase a piece of property? If it is for commercial use, you may notice something different about the process.
The commercial real estate industry is subject to far less government oversight than the residential market. One detail that you’ll notice as you navigate you embark upon the commercial real estate sales or purchase transaction process involves very few disclosures compared to those for residential real estate. Herein lies potential liability issues that can cause disputes to arise.
Due diligence issues commercial buyers should be aware of
Commercial buyers often neglect to have inspectors assess for costly flaws or defects or whether contractors complied with local building codes. They don’t often find out about this until long after taking ownership of their property. They might only discover problems when they attempt to secure a building permit necessary to make modifications or find themselves facing an Americans with Disabilities Act (ADA) non-compliance fine.
It’s also not uncommon for commercial buyers to offer to pay more for a property that exceeds what similar offerings are going for in the area or what they can afford. How long a property has been on the market and whether there’s any competition for it may impact whether you make an offer above the asking price. What you’re able to offer for the real estate may be contingent upon what your lender approves. That offer may depend on the building’s age, condition, comparable properties in the area and your credit.
Another factor that can result in unexpected costs is if your lender requires you to have their vendor perform property or environmental inspections or allows you to select someone yourself. You may find that a third-party’s services are much more affordable than your lender’s. You may need to reduce your offer if you find that you must use your lender’s more expensive inspectors instead of your own.
The role attorneys can play in real estate transactions
Commercial real estate attorneys serve many purposes. They can help with contract negotiation by reviewing it to ensure that it reflects all contingencies. Your Naples lawyer can conduct a title search, counsel you and help you address any issues that arise. They can also review your closing statement to make sure everything adds up. All of this can protect your rights and keep you from unnecessarily exposing yourself to legal liability here in Naples.