Purchasing a commercial building or acquiring land for development is an expensive undertaking for any growing business. Therefore, you must ensure that there are no legal problems which will arise after settling and closing the deal. If you are not cautious, you could end up losing significant capital, or your business might face bankruptcy. Here are some essential guidelines for handling the common legal issues of commercial property purchase.
Understand the Sales Process
You should understand the sales process which must be adhered to during the purchase of the commercial property. In simple terms, there are different terms and conditions which are imposed depending on your area of residence and even the form of transaction. A simple oversight can cause significant losses. So, you should be diligent in researching the details. For example, most private treaty sales will have a cooling-off period while auction sales might not offer the same freedom. Also, the exact cooling-off period will depend on your state or territory of purchase.
Evaluate the Title Carefully
You should be keen when checking the legal details of your selected property and examining the title. In addition, you must confirm that the information provided by the seller is the same as the data presented in the legal title. You should note that there are different types of titles available for the various forms of commercial properties in the market. Moreover, each of these titles has their unique legalities, benefits and restrictions. Therefore, you should conduct research on the laws governing the specific title systems before making your decision on the purchase.
Search and Inspect
Finally, you should perform building inspections and property searches before closing the deal. If you purchase the building or land before confirming its status, you will be responsible for the problems which may be concealed. Therefore, you should protect your investment by making sure that the property will not become a liability. Inspections should confirm that a commercial building is structurally sound and that elements such as plumbing and electricity are performing as expected. Searches are essential in ensuring that the land on sale does not present any risks such as flooding, pollution and future government developments.
Commercial property purchase can be a complicated process with numerous legal challenges. If you are not cautious or knowledgeable in the field of property law, you could fall into contract pitfalls inadvertently. Therefore, you should hire a solicitor or a property lawyer to help you navigate the sales process for optimal success.
