A conveyancer is essential as you purchase commercial property. However, most clients will only hire conveyancers when they experience challenges or make mistakes as they make their purchases. Unknown to them, conveyancers should be hired at the earliest possible opportunity. Below is an extract detailing how conveyancers can assist you to purchase commercial property.
Background Research
Who is selling you the commercial property? You must conduct background research on the seller. After all, your association with them could ruin your business image. Your conveyancer examines the seller to ensure the purchase does not harm your reputation. For instance, if you purchase property from someone with known criminal or terrorist ties, people could associate you with them even though you were unaware of how they made their money.
The conveyancer also examines whether the current property owner followed due process when acquiring the property. For instance, if the property has several subdivisions, do they meet the minimum standards? Is the property susceptible to hazards such as fires and flooding? Do neighbours have any complaints about the property? For example, they could be concerned about balconies overlooking their property or loud noises at night. These assessments are critical since they determine the probability of legal suits after buying the property.
Due Diligence
Does the property comply with the required regulations? Your commercial conveyancer sanctions pre-purchase inspections to determine the property's current structural condition. For instance, some pillars could have exceeded the required structural loads. Moreover, soil movement around the area could have exposed the building to foundation damage. The conveyancer also asks for construction permits and building surveyor certificates that prove the contractor followed the building code during construction.
Your conveyancer also examines the property appreciation rate in the area. Remember, you might want to sell the property for a profit in the future. Moreover, you might want to take a line of credit against the property. If you plan to lease the property to tenants, are rental costs likely to increase or plummet in the next few years? The assessment helps you make a conscious buying decision.
Reviewing Existing Contracts
In some cases, you will be purchasing property occupied by tenants. However, you might want to change the current property use. For example, you might want to convert the building into an office complex for your company. Alternatively, you might want to open a large retail store to serve as an anchor tenant. If this is the case, your conveyancer reviews the current tenancy agreements to determine how soon the tenants can vacate. Moreover, they negotiate with the current owner to know whether you will receive lease payments for the remaining period.
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