When you find the perfect commercial real estate space, you may be eager to move in and get your business up and running. However, if you fail to take the necessary precautions before signing the dotted line and investing money in the space, you may soon discover that the building isn’t as perfect as you thought. As such, you must complete the necessary due diligence practices to protect yourself before investing in a real estate transaction. Luckily, if you are unfamiliar with this process, a Texas commercial real estate lawyer can help you through these complex matters. Read on to discover this process and why legal representation is crucial.
What Is Due Diligence?
Due diligence is the practice of inspecting the different factors involved in purchasing or leasing a real estate property to ensure you can reduce the risk of financial troubles. Unfortunately, this process can be incredibly complex, with many things that must be examined, from zoning, leins, inspections, and more.
This process takes place between the offer and closing. This allows you to investigate the property and seller to ensure you are making a smart and fully informed financial decision before investing money into a property.
What Due Diligence Practices Should I Prioritize?
One of the most essential due diligence practices you should perform is to inspect the property. This examines the physical features of the property, like the foundation and structure, as well as the electric and plumbing systems. It’s in your best interest to hire an inspector to perform this examination, as they understand what to look for and when something raises a concern.
Another consideration you should make during this process is investigating the title of the property. Not only does this show who truly owns the property you are about to purchase, but a title search can uncover any liens, claims, or lawsuits the seller failed to disclose. If you purchase the property, you assume these liabilities, which can be an expense legal matter for you following the closing process.
Finally, you’ll want to conduct a land survey, which can help uncover the boundaries of a piece of land. Essentially, this informs you where your property ends and the next begins, which is essential. Failure to properly survey the land before purchasing it can help alert you to legal issues that may arise with neighbors and ensure the property is as large as the seller claims.
How Can an Attorney Help Me During This Process?
As you can see, this process can be incredibly overwhelming if you are unfamiliar with how to proceed. If you do not perform due diligence properly and an issue arises after you’ve signed the contract, it can cost you a considerable amount of money, subsequently impacting your business. That’s why enlisting the assistance of an experienced attorney is critical for this process.
At Dillard Property Law, PLLC, our team understands how critical due diligence is. That’s why we’re ready to guide you through this process to ensure you make the most informed decision about the property before investing. Additionally, we can help you re-negotiate the deal if an issue arises to ensure you are treated fairly during these times. Contact our team today to learn how we can assist you.
