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What steps should I take when buying commercial property?

On Behalf of | Jan 4, 2020 | Business & Commercial Law

Purchasing commercial property in Arizona is often more challenging than purchasing a residential home. The more prepared you and your legal team are for the transaction, the less likely it is you will run into issues down the line. Here are a few important steps to take when buying commercial real estate.

Have financing in order

Are you positive you could secure financing if you happened upon your dream property? Instead of leaving it to chance, seek out lenders before you ever inquire about the status of a property and its sale price. You should also have a few different options at your disposal so you will remain covered if the first one does not go throw. When financing is left until the last minute, you run the risk of missing out on a perfect property for your needs. Not only is this a waste of time, it can also cost precious money in legal and administrative fees.

Perform a title search

There could be problems associated with the title of a property that you are unaware of. This can include liens on the real estate for unpaid repairs and maintenance, or there could be an ownership dispute that you were not privy to. In any case, title problems become your responsibility as soon as you are the owner of the property. Knowing about these issues beforehand will spare you a massive headache.

Know the risks

All commercial property purchases entail some level of risk. From the condition of the building to its intended use, you should know about any possible issues before deciding to buy. Due diligence is key in this case, and you can learn a lot by looking at a property’s history, including things like taxes or utility costs.