After discovering the many benefits of owning commercial real estate, you are ready to take a big step. Perhaps you are building your investment portfolio with a commercial property, or maybe you want to start or expand your Minnesota business. No matter your goals, owning commercial real estate can be a smart move with lasting rewards.
If you have already found the perfect commercial property, you are likely eager to close and take possession of it so you can get it ready for your company or your new tenants. However, as the date of closing day approaches, are you certain you have everything in order? Even the smallest oversight can lead to frustrating delays now or crop up in the future as costly legal complications. Understanding the most common factors that can stall your closing might help you avoid them.
Dotting every ‘i’
Unless you have prior experience purchasing commercial real estate, you might not know what to expect or how to know what mistakes can cause trouble during your transaction. In many cases, those purchasing commercial real estate will assemble a team of professionals to guide them through the process, especially when it comes to dealing with the reams of paperwork and the complexities of legal compliance. This might improve your chances of avoiding any of the following problems:
- Unresolved zoning issues
- Surveys with critical discrepancies
- Liens, taxes, easements or other encumbrances on the title that take time to resolve
- Other defects with the title, including forgeries, gaps in ownership or transcription errors,
- A property deed that is non-compliant with formatting rules instituted by the local jurisdiction
- Documents submitted without proper signatures
- Unauthorized signatures on contracts or other documents
- Questions related to an environmental assessment of your planned use for the property
- Inaccuracies in the square footage of the building
Your sales contract probably listed certain contingencies the seller was required to meet before closing. It is important that you do not proceed until the seller meets those contingencies to your satisfaction. Among the most important of those contingencies will be a satisfactory inspection of the property and resolution of any issues your inspector may discover. Asking the right questions and obtaining reliable answers can give you peace of mind and improve the chances of experiencing a smooth and successful commercial real estate transaction.