Purchasing commercial real estate in Texas can be much more complex than your standard residential transaction. You can avoid common pitfalls of the process and reduce your financial risk by working with an experienced real estate attorney in El Paso.
Commercial Real Estate Purchase Considerations: Guidance From Your Knowledgeable Real Estate Attorney in El Paso
Comprehensive Due Diligence
The due diligence process allows you to assess the property and determine whether it meets your needs. It could also reveal defects and potentially dangerous conditions that would affect your negotiation.
During this period, your attorney will also review the comprehensive records for the commercial property, including balance sheets, tenant leases, maintenance records, contracts, public records, surveys, and other documents. They’ll advise you on the next steps if due diligence uncovers possible issues with the property.
Purchase Agreement Negotiation
You’ll need to negotiate more than just the purchase price when moving forward with a commercial real estate deal. Your attorney will also help you negotiate other important points of the contract, including:
- Your desired closing date
- The source of funding, whether you plan to pursue seller financing or a conventional commercial mortgage
- Interests the seller may retain in the property
- How the buyer and seller will divide closing costs and other transaction expenses
Title Concerns
Your real estate attorney will ensure the property has a clear title, which means it’s free of third-party liens and claims. They also address any inaccuracies with the ownership history of the building.
Zoning and Land Use
You may need to negotiate a zoning variance when you buy a commercial property. This legal document becomes necessary if you want to use the land for a purpose outside the current zoning ordinances.
You will also need a land survey to establish the legal boundaries of the property and highlight possible issues such as existing easements or discrepancies. If you plan to build on land you purchase, your lawyer can provide information to ensure compliance with height restrictions and other municipal codes in your zone.
Environmental Issues
During due diligence, your attorney will check for possible environmental concerns that could affect your intended use of the property. Examples include the presence of endangered animal or plant species, land contamination, drainage issues, and flood risks.
Independent Consideration
Our El Paso real estate lawyers understand and can help you navigate commercial property laws in Texas. For example, the state requires independent consideration for commercial real estate purchases. Under this law, your purchase agreement must include the payment of nonrefundable earnest money.
You won’t receive a refund of this amount even if you terminate the agreement during due diligence. Without independent consideration, you’ll be unable to enforce the terms of the purchase agreement if a dispute with the seller arises.
Protect your substantial investment in a prospective commercial property with a seasoned real estate lawyer. We can guide a successful negotiation with our extensive knowledge of Texas real estate laws and practical experience. Contact the Law Office of Albert Nabhan, PLLC in El Paso, TX to schedule a consultation with our trustworthy team of attorneys.
Connect with us
