Choosing a proper location for a business can often be one of the most important decisions a business owner can make. The right location gives consumers access to their products and helps business boom. On the other hand, the condition of the building and the location could also be what turns customers away.
That is why it is so critical for business owners to complete their due diligence when they are considering a commercial real estate opportunity.
Things to consider when looking for the right property
There are a few elements of due diligence that business owners can complete before even purchasing a property. While searching for the right location, business owners should consider:
- Researching the zoning ordinances of the area
- Having an official inspection done of the property
- Determining what building codes are in place
- Assessing how much money they might need to invest in the property
Business owners understand the importance of making a smart and strategic purchase. And these tips of due diligence can help business owners choose the right property for them.
A guide to due diligence after a purchase
However, business owners must be aware of their due diligence after the purchase as well. To avoid risk and reduce liability, it is essential to fulfill several tasks, including:
- Obtain all of the important documents from the seller, including:
- The most recent title
- A copy of the most recent lease
- Blueprints and plans of the property
- Environmental reports
- Past service reports
- Evidence of zoning compliance
- Ensure the title is transferred correctly
- Secure all necessary permits to own and sell at this location
- Request all relevant financial information, such as rent and tax information
Purchasing the right real estate can involve an overwhelming number of tasks and steps to complete. Fulfilling these tasks while maintaining a successful business can be complicated. However, an experienced real estate attorney can help guide business owners through the process effectively and efficiently.