Real Estate Due Diligence
For Buyers And Renters
Just because a business property is available doesn’t mean that you’ll be allowed to use it for your intended purpose. The first step in any commercial real estate deal usually should be to independently check local zoning laws and any other applicable ordinances that may restrict which businesses can operate at the property. Someone must also check the availability of utilities with the necessary capacities, including electricity, water, sewer, and high-speed Internet. If lines or these services are not already in place – or worse, are unavailable – the value of the property will be directly, and often substantially, affected. A title search should be conducted, and the property should be checked for liens and back taxes owed to determine whether the buyer or renter will be receiving the bargained-for rights to the property.
For Sellers And Landlords
In commercial deals, verifying the ability of a prospective tenant to pay rent or a buyer to obtain financing for a purchase is not always easy. Landlords, who are taking on financial risk, either in anticipation of future rent or by making or paying for tenant improvements, should carefully vet prospective tenants. Before taking their property off the market by entering into a purchase agreement or an option, sellers should consider whether the buyer has the financial ability to complete the transaction, even when there is no financing contingency in the deal.
If you are ready to begin the due diligence process for a commercial real estate deal, contact Silvestri Law, P.A., today.