With any deal, there are potential hurdles to overcome before it is closed. Sometimes, if no agreement can be reached, they can derail the deal. This holds true in commercial real estate deals. Here are some possible roadblocks.
Environmental Concerns
You never quite know what may be under the soil of a property when you are negotiating. Once you start due diligence, you may learn that there is possible contamination that could have high remediation costs. This lowers the value of the property, and the seller may be unwilling to cut the sales price.
Title Issues
The owner must own the property free and clear of liens. Otherwise, they cannot convey a full interest in the property. Buyers must investigate the title before they purchase the property. Sellers cannot complete the deal if they do not fully own the property.
Building Defects
When the buyer inspects the building, they may learn of defects in construction or other structural problems that have arisen since the building was constructed. This reduces the value of the property and could even endanger tenants. The buyer may need to pay to fix these, so they may try to reduce the purchase price.
Zoning Issues
When someone is buying a property, they expect to use it for certain purposes. When they do further research, they may learn that it is not zoned for their expected uses. Zoning approvals are a heavily bureaucratic process that takes time to get, if you can even get them at all.
Consult with an Atlanta Commercial Real Estate Lawyer
One way to help smooth the commercial real estate transaction process is to hire an attorney early. Battleson Law LLC can help you. Contact us online or call us today at 470.766.0811 to get an attorney on your side who can help you make deals happen.