When considering a commercial real estate purchase, a real estate attorney in Hauppauge New York is part of the due diligence process. He or she can provide a checklist of things to look for when conducting a transaction of this nature. A real estate attorney in Hauppauge New York may suggest the following as part of a due diligence checklist:
Title and Zoning
The buyer should have the title carefully reviewed in order to avoid any possible title clouds. The transaction should not be completed until it is known that there is nothing that would preclude the buyer from acquiring a clean title.
If there are any existing tenants in the property, their leases should be carefully reviewed since the purchase will be made subject to the lease. Additionally, the buyer should review the number of units that are occupied and those that are vacant.
The buyer should also review the purchase contract, corporate authorizations, escrow agreements and other documents ancillary to the purchase.
Additionally, a buyer should carefully review insurance policies that are currently in place. He or she should get insurance quotes before the closing date so that it is known what these expenses will consist of.
A buyer should also determine whether the building is subject to environmental or other regulatory actions.
Due diligence also requires a careful review of the commercial site’s financial performance, including review of accounting forms and capital improvement expenses.