Commercial property legal obligations are always a hassle, and no one truly wants to go out of their way to oblige, but as investors, we must.
There are several legal requirements and obligations when it comes to not just purchasing but investing in commercial property.
To ensure a smooth process for your commercial property journey and to develop a good understanding of what you are undertaking, it is advisable to know your legal requirements.
Doing your due diligence
This includes reviewing the property’s title and any existing liens, as well as completing environmental assessments.
If the property is leased, it’s important you review the lease agreement. To make sure that it’s fair and that there aren’t any hidden costs that will impact your short and long-term returns.
Permits and approvals
It’s dependent on the property and its intended use, but you might need to obtain permits from appropriate statutory authorities..
If you need to finance a property, you’ll need to work with a lender to obtain a loan and complete all paperwork that is necessary.
Is there any risk of site contamination that may impact future redevelopment of the property or have an adverse impact to occupiers and surrounding neighbors. Consulting with a specialist Environmental Consultant is essential.
When purchasing a commercial property, you must pay any applicable transfer taxes, property taxes, and stamp duty taxes that may be associated with the purchase of the property.
These points are a general guide of what to expect when it comes to legal requirements when purchasing a property. Although location is an important factor that will change some aspects of the legal requirements.
The main takeaway point is to be aware of your legal responsibilities and requirements when getting into commercial property.