If your business needs to invest in a piece of commercial real estate, you might feel like you are somewhat out of your element. After all, while you have honed your business model, you have little experience with buying commercial property.
A real estate dispute has the potential to cause your organization to suffer exceptional harm. Indeed, in addition to having to deal with the dispute itself, you might experience lost productivity and profits. You can take steps to stop real estate disputes before they arise, though.
Perform a comprehensive title search
Arguably, the biggest risk when purchasing commercial real estate comes from title issues. Indeed, the seller might not have the complete right to transfer the property, or the property might come with unacceptable encumbrances. To better understand and mitigate the risk, you should perform a comprehensive title search before closing.
Draft an airtight contract
When purchasing commercial real estate, it is imperative for the contract to have unambiguous and precise language. There is no need to be fancy, though. According to Adobe, the contract should be clear enough that both the buyer and seller know exactly what their obligations are. To avoid expensive litigation, the contract also should include all legally required elements, of course.
Even though there are many potential pitfalls when purchasing a piece of commercial real estate, many purchases are successful and come without any litigation at all. Ultimately, rather than having to react to unforeseen issues, you should try to solve them before they become problems.