Navigating the sale or acquisition of a commercial property is complex, and there are plenty of risks that can lead to frustration. To help mitigate these risks and keep the commercial process running smoothly, it’s highly recommended that you work with a title service provider. Below, we explore some of the risks that a title company like Commercial Partners can help expose so that you don’t run into any unwelcomed surprises during your commercial acquisition.
Risks During A Commercial Transaction
There are risks associated with any real estate purchase, but a commercial purchase typically has more moving parts. Oftentimes there is more money at play and more participants or investors involved in this transaction, and this can present more opportunities for issues. Here’s a look at some of the risks that a commercial title company can help uncover.
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The Seller - Does the seller actually have the right to sell you the property? With the help of a title search, we can help ensure that the seller actually has the legal authority to sell you the property. During commercial transactions, it’s not uncommon for multiple owners or registered agents to hold rights to the title, and this information is something you’ll want to learn about early in the process.
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Litigation - A title search company will also be able to find out if there is any current litigation taking place that could delay the acquisition. Knowing about pending lawsuits or bankruptcies in the early stages of negotiations can prevent surprises down the road.
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Easements/Property Issues - A title search will also provide clear context of the actual property lines so that you know exactly what you’re acquiring. Zoning or survey issues can be uncovered and addressed with the help of this search, as can any easements, which can dictate who is allowed to come onto the property for different purposes. Easements can help or hurt a property’s value, so it’s important to know about them well in advance of purchase.
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Liens/Judgments - Any lien or judgment connected with a property will need to be settled before a commercial sale can take place. Understanding these liens and requiring their satisfaction prior to closing is essential so that you don’t have to clear any unforeseen liens later on once you’ve acquired the property.
These are just a few of the main risks that you can avoid by working with a title agency, and it can provide you with immense peace of mind throughout the acquisition. We’ll do all of the above and more, like ensuring there are no unknown heirs, determining the authenticity of any official documents and revealing important tax information so that everything runs smoothly with your transaction and there are no major financial surprises right before or after a deal is made. We can save you a significant amount of time and money, whether this is your first or simply your most recent commercial transaction, so don’t move ahead in the process without a title agent by your side.
For more information about a title search or a commercial property acquisition, reach out to the team at Commercial Partners today at (612) 337-2470.