Due Diligence in Commercial Real Estate Transactions

  • September 23, 2022
No Comments

[ad_1]

The acquisition of commercial real estate is often riddled with complex issues. Before closing on any purchase, a buyer needs to be thorough in his/her due diligence. It is imperative that the buyer learn as much as he/she can about the property, existing conditions and restrictions, title issues, zoning ordinances, tenants, existing leases and environmental hazards. Below is a list of 20 items that should be part of any due diligence investigation:

1. Identify any underground or above ground storage tanks;

2. Determine if any materials or substances have been released or disposed of on the property;

3. Determine if asbestos has ever been located on the property; if so, obtain information regarding the removal/disposal process;

4. Obtain test results for radon and any remediation;

5. Obtain test results for drinking water;

6. Determine whether lead paint issues exist;

7. Identify record owners of the property and trace past record owners to insure chain of title;

8. Review leases of tenants;

9. Obtain from seller any plans, surveys or diagrams regarding the property;

10. Investigate property’s compliance with zoning and land use regulations;

11. Conduct physical inspection of the property; obtain copies of any inspection or engineers’ reports from seller;

12. Get up to date rent roll;

13. Obtain copies of last five years property tax bills;

14. Determine necessity for termite and mold inspections;

15. Obtain any service contracts;

16. Evaluate insurance needs;

17. Obtain all necessary approvals and permits for intended use of the property;

18. Review copies of title insurance policies from seller

19. Obtain title commitment/Order judgment and lien searches

20. Have legal representation throughout the transaction.

[ad_2]

Source by Joshua Marks

    About us and this blog

    We are a digital marketing company with a focus on helping our customers achieve great results across several key areas.

    Request a free quote

    We offer professional SEO services that help websites increase their organic search score drastically in order to compete for the highest rankings even when it comes to highly competitive keywords.

    Subscribe to our newsletter!

    More from our blog

    See all posts
    No Comments

      Leave a Comment