When you engage in a commercial real estate transaction, you have to know what you’re getting. If you can’t trust the process, then you could wind up with a piece of property that fails to suit your business needs, and it can be extremely costly. Although the law typically seeks to protect residential purchasers by requiring sellers to disclose material defects that could affect the use and value of the home in question, the law doesn’t necessarily stretch that far for commercial real estate purchasers.
The importance of due diligence
This is why it is critically important that you perform due diligence before purchasing a piece of commercial real estate. Through this process, you analyze every aspect of the real estate to ensure that it meets your needs and so that you have a full understanding of what repairs or modifications the property may need.
Due diligence is all encompassing, too. Each of the following should be carefully looked at when you’re scrutinizing a commercial property:
- Plumbing and electrical systems
- Floor plans
- Parking lots
- Applicable zoning laws
- Common areas
- Building maintenance
- Accounting records
- Tenant and vendor lists
- Existing insurance policies
- Any existing contracts
- All active permits
- Any pending litigation
Again, this is just a small sampling of what you need to take into consideration before purchasing a piece of commercial real estate. If you fail to perform your due diligence, then you could quickly find yourself at a financial and commercial disadvantage.
Competently navigate your commercial real estate issues
We know that it can be stressful to navigate the commercial real estate market. But you don’t have to face the process alone. Instead, you can work closely with an experienced law firm like ours to increase the chances that you can successfully navigate whatever issue you may be facing and secure the outcome that you desire.