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Due Diligence when Purchasing Commercial Real Estate

Posted on in DuPage County Real Estate Attorney

Illinois purchasing commercial real estate, DuPage County Real Estate AttorneyOne of the most exciting steps a small business owner can take is purchasing a piece of commercial property in order to expand his or her business. Whether the purchase is because the business is expanding and needs a bigger facility or the business is generating more than enough income to go from renting commercial space to owning it, the excitement can be akin to a person purchasing their first home. However, it is critical for any business owner to do due diligence on any commercial property they are considering buying.

The first step a potential buyer should take is to hire a title company to ensure the property has a clean title. A title company search can reveal actual owners, any liens, any covenants, any easements, or other restrictions which could hinder plans for the property.

It is also important to hire an independent company to perform a survey of the property. Establishing boundary lines, right-of-way easement, and access roads is a critical step in due diligence.

An owner of a property is legally responsible for any cleanup costs of all environmental contamination, even if that contamination was caused by a previous owner. Obtaining an environmental condition report will reveal whether or not the property has any lead-based paint, mold, underground storage tanks, or any other factors which could cause contamination.

Depending on what the property is currently being used for, or what the buyer's plans are, checking with the municipality to make sure that all plans meet its zoning laws is another important step. It may even be prudent to consider having third-party prepared zoning report done.

Other crucial factors included when performing due diligence on a potential piece of real estate are investigating any current leases which may be in place, as well as certificate of occupancies. Also, make sure to check current tax certificates of the property. The property must additionally be compliant with the Americans with Disabilities Act and any other state or municipal accessibility codes.

Purchasing commercial property—or any kind of property—can sometimes feel overwhelming when trying to ensure that you are covering all the bases in due diligence of the property. That is where an experienced DuPage County real estate attorney can help. Call Stock, Carlson & Duff LLC at 630-665-2500 today.

Source:

http://newsok.com/article/5492161

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