If you're in the market for commercial real estate, you're probably looking forward to the day when you finally make a purchase. As excited as you may be, it's critical to pay attention to the many details associated with your transaction.
Here are four important questions to answer before closing on commercial real estate:
- Did an attorney review the contract and closing documents? Even if you have experience buying commercial real estate, you should still have a legal professional review all applicable documents.
- Is the title clear? You should never assume that the title is clear. Also, don't take the seller's word for it. Upon receiving a full title report, review it in detail to ensure that the title is clear. If there's any gray area, ask for an explanation before proceeding.
- What's the zoning code? If you're interested in buying commercial real estate, make sure you're actually doing so. If the property isn't zoned for commercial use, you'll be extremely disappointed with your purchase.
- Are there any issues with the building? The best way to answer this question is to hire a commercial property inspector. Your inspector can provide a full report on the property, including major areas of concern.
Answering these questions before closing will give you peace of mind. Not to mention the fact that doing so will help you prevent a mistake that costs you time and money.
If you run into any issues before or during the closing process, stop what you're doing and learn more about your legal rights. You should never feel pressured into the proceeding.