Business Property Investments
Business Property Investments
Want to make sure your money goes a long way? More profit than you would obtain from investing in the bank or money market? One possible investment option is commercial real estate. Even if most of the country's residential real estate markets have hit rock bottom, commercial real estate is booming. Commercial real estate is a good bet for those who have always been interested in investing but are wary of the residential market right now.
Investors in commercial real estate would do well to familiarize themselves with the key distinctions between this type of property and residential real estate. The rules are also different, and the market is too. Commercial real estate due diligence differs from residential real estate due diligence. Obtaining a survey and inspection of the property before settlement is still a good idea. It is your responsibility to ensure that any necessary easements are included in the sale as well.
When most people think of easements, they picture those that encroach on private property, such sewer and utility lines. It is common for commercial properties to have beneficial easements. Sometimes, people's vehicles have to drive over other people's property only to reach their own. The buyer of the business property in this situation should be careful to get the necessary easements for parking and access. Easement agreements or the deed can contain these.
Obtaining a survey of your land that includes not just the property but also any easements that are relevant to it is the only method to determine if easements are necessary. A legal description of the easements should also be included in the title insurance agreement. In addition to the commercial property you are buying, the title company should investigate any easements that may be granted to you. Here are some reasons why this property has to be searched:
The easement agreement or deed signatory must have the legal right to transfer interest in the land;
The easement property must not be burdened in any way that would prohibit your use of it;
Third, make sure the easement property's taxes are up-to-date. It would be a shame to buy business property reliant on easements only to find out it is up for auction. Possibilities include the buyer erecting a fence to keep you off their property or demanding payment before allowing you to use it.
Having an attorney that specializes in commercial real estate, as opposed to merely residential real estate, is crucial when investing in commercial property. Your lawyer should have extensive experience in commercial real estate, as it is significantly different from residential real estate.
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