Are you looking to purchase a piece of commercial
real estate? Even if you’re a seasoned investor, there are still some questions you should
have answered before you sign on the dotted line. Is the Title Clear? Make sure you have a full
title report as well as a General Warranty Deed to protect your ownership interests. Does the survey match the described property
lines? Make sure the seller hasn’t built onto a neighbor’s property or vise versa. Is there Insurable Access to the property?
If there is not insurable access, you may encounter problems in the future if you attempt
to develop, finance or sell the property. Does the zoning code allow for your proposed
use? Verify with the city or county that the zoning code permits your intended use of the
property. Are there any environmental concerns? Obtain
a Phase 1 environmental assessment. A Phase 2 environmental assessment may also be required. Are there code enforcement liens, expired
permits, unsatisfied development or easement obligations, or unpaid municipal liens that
may create potential legal liability for you, as the new owner? Having a General Warranty
Deed should help with this, but make sure these concerns are addressed. Are there any major issues with the building?
Knowing the structural integrity of the property as well as the condition of the electrical,
plumbing and roof will let you know of any necessary repairs. Are there tenants? Make sure you carefully
review each lease agreement. If there are tenants, is there a rent roll?
Knowing this will ensure accuracy of accounting moving forward. Is there a detailed record of operating expenses
and other financial records pertaining to the property? Knowing this data will affect
your income projections. Answering these questions is important, but
having an experienced commercial real estate attorney on your side to help you through
this process is equally important. To schedule an appointment at the Law office of Eric L.
Nesbitt, call 303-741-2354 or visit www.nesbittlawoffices.com today!