Important factors to consider when purchasing commercial property
Photo by Bernard Hermant
There are many reasons that people own property in Georgia. It could be residential property that they use as their home or as a rental property. People and companies also own commercial property for various reasons. It could be for investment purposes and they simply rent the space for profit. Others may be purchasing the commercial property for their own business. Others may own commercial property for both of those purposes.
The purpose people have for purchasing property dictates how the process will go and what factors people need to consider both before they purchase and during the process. For commercial property people need to determine the type of property they want. Then they will need to make determinations about location, zoning, whether the property currently has renters and the length of their leases, financing, partners, how much time they have to put into their property, whether they will need some to manage and act as landlord and many other factors.
After people make all these decisions and find the right property for them, the next step would be preparing and making an offer to the seller. It is important that the offer is done correctly. The process can start by preparing and providing a non-binding letter of intent to give to the seller. This will state the terms of the offer, but allows the terms to change later. Lastly while the final inspections are being completed, there will need to be a neutral escrow agent to keep all the money until the transaction is completed.
Buying commercial property in Georgia can be a very lucrative endeavor, but it is important that it is done correctly. If mistakes are made along the way, buying commercial property can cause people to lose money. There are many important factors to consider throughout the process, but one of the most important is the purchase agreement itself. This will dictate all the terms of the purchase and the responsibilities of both the buyer and seller. So, it is vital that these are drafted correctly and experienced attorneys could help ensure this happens.
Article written by:
Cook & Tolley, LLP
304 E Washington St
Athens, GA 30601