Many people are in the market for new commercial building property. This is a significant investment, and it’s essential to do your research to ensure that you’re getting the best possible deal. Whether you’re looking to relocate your business or expand your operations, there are a few legal things you’ll need to keep in mind during the purchase process. From due diligence to zoning regulations, here are some tips to help make sure your new commercial building purchase goes smoothly.
1. Do Your Due Diligence
Before signing on the dotted line, you must do your due diligence and research the property thoroughly. This includes things like checking for any outstanding liens or judgments against the property and making sure that all the necessary permits have been obtained. You’ll also want to research the property’s zoning regulations to ensure that your intended use for the property is allowed.
You must also check the energy efficiency of the property. This includes an assessment of the energy performance certificate (EPC). A commercial property EPC will indicate how energy efficient the property is and what the running costs are likely to be. It’s important to factor these costs into your decision-making process.
2. Hire a Qualified Real Estate Attorney
While you may be tempted to go through the process without an attorney, we advise against it. A qualified real estate attorney will be able to spot any potential problems with the property and help negotiate favorable terms on your behalf. You’ll also want to have an attorney review the sales contract before you sign it. This will help protect your interests and ensure that you understand all the terms of the agreement.
Additionally, your attorney can help you navigate zoning regulations and obtain the necessary permits for your intended use of the property. Some commercial properties come with special restrictions, so it’s essential to have an attorney familiar with these regulations to help you through the process.
3. Get a Property Survey
A property survey is an essential step in buying commercial property. The survey will provide detailed information about the property, including its boundaries, dimensions, and topography. This information is vital for several reasons. It will help you determine if the property is the right size for your needs, better understand the property’s layout, and help you avoid any potential boundary disputes down the road.
When getting a property survey, you should hire a licensed surveyor. This will ensure that the survey is accurate and up to date. Avoid using an unlicensed surveyor, as the county or state may not accept their surveys. You should also avoid using a surveyor who is unfamiliar with the area, as they may not be aware of any potential zoning issues that could affect your use of the property.
4. Get Insurance Coverage in Place
As with any major purchase, you must have adequate insurance coverage before closing on a commercial building property. In addition to standard property insurance, you may also want to consider obtaining flood or earthquake insurance depending on where the property is located. This will help protect your investment in the event of any unforeseen damage.
You should also make sure that you’re adequately covered for any business activities that you will conduct on the property. This includes things like product liability insurance and workers’ compensation insurance. Speak with your insurance agent to ensure you have the right coverage.
5. Plan for Future Expansion
If you’re planning on growing your business at some point down the road, it’s essential to factor that into your decision when buying a commercial building property. Make sure that there’s enough land available to add to the existing structure if necessary, and check to see if there are any zoning restrictions that would prevent you from expanding in the future.
It would be best if you also considered the future needs of your business when choosing a location. For example, if you’re planning on eventually expanding into other markets, you’ll want to select a location that’s centrally located and easily accessible. This will make shipping products or conducting business in other areas easier. It would be best if you also considered the long-term viability of the area when making your decision. Make sure to research and choose a location you think will still be thriving years down the road.
Purchasing a commercial building is a big undertaking, but following these simple tips can help ensure that the process goes smoothly from start to finish. And if you have any questions, don’t hesitate to contact a qualified real estate attorney for guidance. They can help you navigate the process and protect your interests every step of the way.