18/10/2016 1 Comment
DO YOUR DUE DILIGENCE
By: Cristina M. Ortiz, Esq., Real Estate Lawyer.
Are you planning to purchase or develop any of the following types of commercial or industrial real estate? Shopping center? Gas station? Retail store? Parking lot/parking garage?
As an investor, you should be aware of any material facts that would affect the intended use of the property after closing. A Due Diligence Analysis in a commercial real estate transaction avoids surprises and confirms the subject property can be used for the investor’s intended purpose.
Commercial and Industrial real estate bought for business use or for investment is impacted by various legal, economic and environmental factors that may limit its use and value.
Things to Consider in your Due Diligence:
(Of course, it’s always recommended to hire a real estate professional experienced in commercial transactions to conduct the due diligence).
1. What kind of Property do you believe you’re acquiring? Land? A building?
2. What is your planned use of the Property?
3. What is the physical condition of the Property and will it suit your intended use? Is there sufficient parking? Are there environmental concerns or limitations?
4. What is the current legal use of the Property? Zoning? Liquor license? Is it in compliance with the Americans with Disabilities Act?
5. How much do you expect to pay for the Property?
6. Does the Property have any exiting conditions, such as encumbrances or encroachments that will affect the cost or use of the Property?
7. Is this a property that has current tenants and leases to honor?
8. Who is the Seller and does the Seller have authorization to convey the Property?
Cristina M. Ortiz, Esq. is a real estate lawyer, specializing in residential and commercial transactions in South Florida. Ms. Ortiz believes that you must employ due diligence in any real estate transaction so that you understand both the obstacles and opportunities presented. Visit www.cristinamortiz.com. P: (305) 702-2797.