Your commercial real estate transaction will typically involve much more than the transfer of a piece of land with a building on it. A standard commercial transaction will involve several layers of tangible and intangible assets, access rights, contractual obligations and more. Let’s look at some of these aspects that may need to be clearly defined in your property description:
- The Land - Let’s start with the basics. A description of the land, beyond just a simple address, will need to be outlined in a property description. This includes information about the surface area and any subsurface rights that may be of value or interest.
- Access Rights - Any access rights will also need to be spelled out clearly in the property description or sale agreement. This includes any existing easements, access rights or licenses that private individuals or businesses may have in order to legally use the property.
- Additional Buildings - There may be a number of different buildings, outbuildings, storage facilities, garages, driveways, fences, access roads or parking areas on a property, and you can expect these to be laid out in a property description. Nobody wants to learn that part of a property that they believed was theirs actually belongs to a neighbor after the sale has been completed.
- Any Contract Rights - If the property has leases, contracts or service agreements with tenants, all of these contractual obligations will be outlined thoroughly in the property description or purchase contract.
- Tangible and Intangible Personal Property - Finally, the property description of the purchasing contract may also explain what tangible and intangible personal property that buyer may be acquiring as part of the sale. Physical property that the seller doesn’t want to take with them, or intangible items like developmental rights, phone numbers associated with the business or a website are all items that may be described in the sale in order to ensure a smooth transition from the seller to the buyer.
Work with a Commercial Title Company
If you are looking for help with your next commercial transaction, contact the experts at Commercial Partners Title Company. We have decades of experience in the industry and can help you with the details of your next transaction.