Protect Yourself With A Real Estate Attorney When Purchasing Commercial Property
You've spent years envisioning your new business, making detailed plans and securing capital to fulfill your dreams. Now comes the task of securing a location for your business. Don't engage in this process on your own. There are many nuisances that can come along with commercial properties that aren't always present in residential transactions. An attorney can ensure you're protected by reviewing a number of small details.
Legal Liability Risk Factors
When you own property you automatically assume what is known as legal liability. In short, this phrase basically means that you are legally liable for the property, including any damages that it causes. A common area of concern for commercial owners is environmental violations.
If the previous owner installed a faulty drain system that is dumping dirty water into the community, once it is discovered, you will be liable. This is true even though you didn't cause the issue. An attorney will assess the property's legal liability risk factors to see if you are potentially investing in a building that will only end up costing you more money down the line.
Running a business is quite unpredictable. The reality is that you might experience a significant boost in business or your idea might turn out to not be as lucrative as you thought. With each scenario, being able to sell the property is going to be important.
Without the right level of due diligence, you might be able to sell the property, but not at a value that is going to meet your needs. However, an attorney will research the long-term value of the property. With this information, you can get a better idea of the potential value of the property over an extended period to ensure you're comfortable with the purchase.
With a residential property transaction, there is some level of negotiation. However, with commercial properties, the negotiations efforts are often magnified by ten. Negotiating is much more than tossing out figures that sound like a great deal.
This is instead an intricate process that considers factors like current land lease entitlements, land surveys and business valuation reports. If you don't have this information, you could end up paying a lot more than the property's value. An attorney will research all this information to help you negotiate the best deal based on the property's value.
Success in business requires an attention to detail. Make sure you are taking your time when purchasing a property to ensue you are setting yourself up for the greatest chance of success. An attorney can help you with this goal.