Navigating Commercial Real Estate
In any real estate transaction, assembling the right team of advisors before you commence your property search is crucial for success.
Key advisors in this context include legal experts, accountants, financial advisors, commercial real estate agents, and potentially inspectors or environmental consultants.
A lawyer plays a pivotal role, in offering assistance in reviewing the purchase and sale agreement before making an offer, ensuring it encompasses all necessary conditions. They aid in negotiations, perform due diligence once the offer is accepted, assist with establishing a corporate entity for the acquisition if required, and provide counsel on the tax, legal, and financial nuances of owning commercial real estate.
Essential due diligence activities typically cover:
Zoning compliance
Heritage designations
Building permit requirements (If Applicable)
Surveys
Title clarity, including any liens
Access rights or property ownership specifics
Easements or other title-impacting instruments
Additionally, your lawyer will scrutinize other pertinent documents such as status certificates (if relevant), tenant leases, maintenance and management agreements, and insurance policies. They can also evaluate loan or mortgage documents prepared by your financial advisor or bank for added insight.
Understanding the terms of your loan is vital, including the interest rate, repayment options, and your responsibilities.
With the support of your lawyer and other advisors, you can make more informed decisions, optimizing the ownership and utilization of commercial real estate while steering clear of common obstacles.
Contact us today to set the foundation for a successful commercial real estate purchase!
Author:
Firoozeh Rose Bahrami B.Sc. LL.B.
Senior Partner