REAL PROPERTY PURCHASES
Despite the increasing prevalence of online shops and virtual storefronts, real property continues to play a vital role in the life cycles of most businesses. Indeed, the purchase and leveraging of real estate can be a lucrative business in itself. Real property is an extremely broad term which encompasses not only lands and buildings themselves, but also items and equipment which are attached to or beneath the land, including valuable natural resources like natural gas, minerals, and oil. In the context of commerce and real estate, the term “real property” typically refers to warehouses, factories, plants and refineries, office buildings, storage facilities, land, investment rental properties and other structures or properties which are owned by a company.
While acquiring real property often proves a tremendous boon, enabling businesses to expand or diversify operations, these transactions can also be difficult to navigate successfully. Unlike private residential leases, which tend to be fairly straightforward, commercial leases and the surrounding transactions are often extremely complex, involving factors like zoning laws, building permits, detailed property inspections, and industrial regulations. When third parties or ambiguous contractual clauses enter the picture, the legal and financial considerations for the company making the acquisition become even more delicate.
Don’t rush into a deal that doesn’t benefit your business as well as it could: get trusted legal advice from the experienced real property lawyers of Bellatrix PC first. To schedule a private consultation, call our law offices at (800) 449-8992 today.
Due Diligence Checklist for Businesses Purchasing Property
Real property benefits your company only if all aspects of that property — including both paper documentation and physical integrity — comply with regulations and meet your expectations. It is therefore critical to perform due diligence, carefully investigating matters such as zoning, financing, surveys, titles, building inspections, environmental inspections, and currently existing leases. For example, consider the following questions:
- Has your building passed inspections completely? Are there any issues with the fire suppression system, HVAC system, or structural integrity?
- Will any title endorsements be necessary?
- Are there any pending changes to zoning?
- Do you and the seller both clearly understand your rights and responsibilities with regard to maintenance?
- Do you need to obtain a liquor license, outdoor entertaining license, or entertainment license?
- What sort of property tax obligations is the property subject to? Is a dramatic increase in tax foreseeable?
- Does your property violate or have the potential to violate any environmental regulations?
- If there are currently existing leases, have you familiarized yourself with the tenants’ rights?
- Are there any climate- or weather-related concerns that could lead to unforeseen expenses?
- Have you considered factors such as drainage, parking, and wheelchair accessibility? Does the deal satisfactorily accommodate these issues?
- Is there a history of liens against the property?
- Does the purchase make sense in the long-term? For example, is the lot you are purchasing large enough to safely contain the structures and employee workforce you envision 10, 15, or 20 years into the future?
During the real property acquisition process, our skilled attorneys will draft or review the purchasing agreement and offer recommendations as to what should be revised and negotiated. We will deliver imaginative, yet practical and cost-effective solutions to any concerns that we may come across during the review process. We also review all title work for your transaction, ensuring that there are no liens or encumbrances that will interfere with the clear transfer of title.
After you consent to proceed with the transaction, our attorneys will handle all of the documentation and paperwork necessary to officially complete the deal. This documentation generally includes mortgage notes, buy-sell agreements, easements, deeds, and restrictive covenants. As the process concludes, our legal team will examine the closing documents and represent you during closing.
Contact Our Commercial Real Estate Attorneys
Before you sign a lease, approve a transaction, or make a major acquisition, it is in your company’s best interests to consult with a respected law firm. The seasoned attorneys of Bellatrix PC work with individual entrepreneurs and group organizations throughout all stages of the real property acquisition transaction process, from the letter of intent all the way through any post-closing concerns. We will meet with your team to get a full understanding of your objectives and risk profile, and provide you with efficient and tailored representation.
It is important to remember that neither your real estate agent nor the title company takes an unbiased interest in your financial well-being — only your attorney will. If you are considering purchasing real property, call Bellatrix PC at (800) 449-8992 to set up a private legal consultation.