Have you thought about the advantages of investing in commercial property?
Are you looking to get a high rate of return on your financial investments?
A return better than any you can ever receive from either a bank or a money market fund?
How about giving commercial property investing a try?
Commercial real estate is a great investment opportunity, despite the downward trend of the residential real estate market. If you’ve always had a desire to invest in real estate, but the current residential market makes you feel apprehensive, consider making an investment in commercial real estate.
When investing in commercial real estate, you must understand that commercial real estate and residential real estate are vastly different. There are substantial differences in both the way the market operates and the laws governing these transactions. In commercial real estate, due diligence is not the same as due diligence in the residential market. Prior to the settlement, you’ll still want to be sure to get the property inspected as well as surveyed. You will also need to be certain that any necessary easements will be included in the sale.
When most people think of easements, they think about those that encumber the property, like utility and sewer easements. With commercial real estate, there can actually be easements that are beneficial. In certain circumstances, there are people who must drive their vehicles over one property in order to reach another. The buyer of the property would need to get all of the required easements for entering and exiting the property, and possibly even a parking easement. These easements may be included in the deed or there can be an easement agreement written up.
You will need to obtain a survey of your property and any relevant easements, as this is the only way to confirm whether or not you will require any easements. Legal descriptions of any existing easements should also be included in the title insurance commitment. The title company should search both the property you are buying and any property for which you require an easement.
The purpose of doing a title search on this property is for the following reasons:
1. You must be sure that the person who is signing the easement agreement or deed can legally do so;
2. You must be certain that you would not be prohibited from using the easement property due to any burden on it;
3. You need verify that the taxes on the easement property have been fully paid up to date. If you are purchasing property that is dependent on easements, you do not want to find out the easement property is involved in a tax sale. Someone who buys that property could demand that you pay them for the use of their property, or they could even fence the property in, making it impossible for you to use it.
When you make the decision to purchase commercial real estate, make sure your attorney is very experienced with commercial real estate transactions — not only residential real estate. Commercial real estate is drastically different from residential real estate, and you will be better served by an attorney who understands this specific area of real property law to make sure you get the full advantages of investing in commercial property.
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