If you’re considering opening a business or expanding to a larger space, you’re probably scouring retail locations in different hotspots to see if one may be the perfect fit for your needs. However, a property that may appear perfect may be hiding some larger problems beneath the surface, and that’s what a title search is designed to protect against. In today’s blog, we explain why comprehensive title searches are so valuable for anyone considering purchasing commercial retail space.
What You Can Learn About A Retail Space From A Title Search
Title searches provide a prospective buyer with an immense amount of information about the retail space. This ensures that you know exactly what you’re buying so that you don’t run into any issues that could compromise your business or your financial future. Some important aspects you can learn from a retail space title search include:
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Ownership Records - You can learn about the property’s ownership history to ensure there are no discrepancies or ownership issues that could compromise the validity of your purchase.
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Easements - Many retails spaces include easement agreements for shared access to roads, driveways and parking structures. Learning about your access rights is essential prior to securing your retail space.
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Potential Liens - Retail spaces, especially those that have had recent improvements or new construction, may have mechanic’s liens or unpaid property taxes associated with the space, and those debts can become your problem if not resolved before closing.
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Zoning Regulations - A title search will uncover how a property is zoned, which ensures that your intended use falls in line with current zoning regulations. If you want to operate a specific commercial business or be open at certain hours of the day, you must ensure a property is zoned to accommodate these wishes.
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Lease Agreements - If the space is leased instead of purchased, a title search will help you understand the rights and obligations you have as a tenant, including your ability to renovate the location if you feel it is necessary for your business.
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Potential Litigation - The title search will also determine if the property is involved in any lawsuits that could complicate your purchase or that must be resolved prior to closing.
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Environmental Survey - If the location had previously been used by a business, a title search can include an environmental survey to look for any potential environmental hazards or contamination.
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Loan And Title Insurance Requirements - Your financial institution and the company providing your title insurance policy typically require a title search to be conducted before they will supply a loan or issue a policy.
Don’t put your business at risk because of an incomplete title search. Let the team of professionals at Commercial Partners ensure the search is performed correctly so that your business and financial future are protected. For more information on how we can assist with this process, or for help with a different aspect of commercial real estate acquisition, reach out to the team at Commercial Partners today (612) 337-2470.