What Are Some Common Risks Involved in a Commercial Real Estate Transaction?

In a commercial real estate transaction there are risks associated with making sure the buyer can afford to pay you, that’s usually the first thing the seller wants to figure out. From a buyer’s standpoint, you want to look at what kind of due diligence do you need to do. Do you need to worry about zoning regulations? Are the environmental hazards that have been on this property? Did there used to be a gas station? What are the title issues? Are there any easements running through it? If you are redeveloping the property you may be putting a new building up. You need to make sure that you have the right to put it where you really want to on that piece of property.

Every transaction is different and every transaction has its hot points. Sellers want to make sure they are getting paid and they know when they are going to close and buyers want to make sure they are really going to be able to use the property the way they want to once they close.

© 2014 Parsonage Vandenack Williams LLC

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