Most investors show a lot of interest in buying suitable commercial properties for reasonable prices. Unfortunately, most of them are not aware of the legal requirements they need to comply with when purchasing these properties. Experts say they should hire the services of reliable attorneys specializing in purchase, sale, or transfer of commercial properties for the above task. These legal professionals will take a close look at various aspects of these potential commercial real estate deals and advise investors in the field.
Ron Cadman – What legal aspects should investors consider when buying a commercial property?
Ron Cadman is a successful Canadian entrepreneur and real estate developer living in Phoenix, Arizona. He has over 20 years of valuable experience in the purchase and sale of all kinds of real estate properties. He currently manages and operates two prominent real estate investment funds in Arizona with his brother Travis. These are the Arizona Acquisition Fund and The Valley of The Sun. He is also the co-founder of many popular real estate companies in Arizona. These businesses include Chestermere Lands Development Corporation, Arizona Investar, and CBI Investment Group.
Mr. Cadman states investors need to understand that buying commercial properties is not the same as acquiring residential homes. The authorities lay down a separate set of laws to govern the purchase and sale of these properties. They need to be aware of these legal guidelines even if they do hire an attorney to look into such matters. Above all, they should keep in mind the following three tips:
- Determine which commercial real estate sector to invest in
Investors need to understand that the commercial real estate market consists of 3 main sectors. These include industrial, office apartments, and retail. They need to determine which sector attracts their interests. Only then can these investors look for suitable commercial properties to purchase in this sector. After doing so, their attorney will inform them of the legal requirements that they need to follow when buying these properties.
- Assessing environmental regulations governing the purchase of commercial properties
Various states across America and Canada issue stringent environmental guidelines regarding the purchase of commercial properties in industrial areas. Investors need to be aware of these legal requirements at the time of entering the transaction to acquire these properties. Taking this step ensures the investors do not end up incurring a liability that they can easily avoid.
- Being aware of laws relating to the transfer of property title
Investors also have to be aware that different states have their own laws regarding the transfer title of a commercial property. The investors need to understand the process they need to go through to reach owners of real estate. They should instruct their attorneys to carry out a title search of the property they intend to buy. The investors should go ahead with the transaction if there is no defect in the property’s title.
Ron Cadman clarifies purchasing a suitable commercial property for a good price can prove to be a worthwhile business transaction for investors. They can earn an attractive profit by selling it at a price above its actual market value at a later stage. Before purchasing a commercial property, investors need to determine which sector they wish to invest in. Moreover, they should be aware of environment regulation governing the real estate and law relating to the transfer of title of the property correctly.