Your commercial real estate purchase has undoubtedly been complex and perhaps even frustrating. At times you may have wondered if it was worth all the aggravation, but of course, you know that it is. Whether you are purchasing a property as an investment or to house your new or expanding California business, owning commercial real estate is often a wise move from which many entrepreneurs reap untold benefits.
Undoubtedly, you are eager to take possession of your new property, either to prepare it for tenants or to start up your business. However, now that you are nearing the date of your closing, you will want to be certain you have everything in order to avoid delays in the transaction process or the risk of legal complications in the future. There are many moving factors in a commercial real estate deal, and keeping them all under your thumb can be a challenging task.
Is everything in order?
If you have little or no experience with the purchase of commercial real estate, you may not even know what questions to ask to ensure your closing will go smoothly. In fact, many in your position rely on professional guidance to review the contracts and other paperwork for legal compliance. This could also increase the chances that the transaction will meet your goals and that your best interests will be protected. Some issues that could complicate closing include the following:
- Missing signatures or initials on contracts and other documents
- Signatures of someone who does not have signing authority
- Zoning issues
- Discrepancies in surveys
- Unresolved liens, taxes, easements or other encumbrances
- Defects with the title, such as errors, forgeries or gaps in ownership
- A deed that does not comply with the proper format for your local jurisdiction
You will also want to be certain you and the seller have met all the contingencies in your sales contract. This includes verifying the square footage, obtaining a thorough inspection of the property and checking that the owner has satisfactorily completed all repairs you requested. You may also have environmental assessments to complete, and the industry in which you work may carry additional obligations.
Before you can close on your commercial property, you should feel free to ask any questions that will confirm everything is in order. Receiving a trustworthy and experienced answer to those questions may mean the difference between a smooth transaction and stressful delays.
