What to Know Before Buying Commercial Property

A commercial property purchase can become complicated long before closing. Legal issues that are overlooked can create costly problems after the deal is complete. Our real estate attorneys in Harrisburg can help uncover these issues before they interfere with your transaction. 

Key Legal Issues to Review Before Buying Commercial Property in Harrisburg

Commercial real estate can represent a significant financial investment, making careful due diligence an important part of the purchasing process. With experienced legal guidance, you can move forward with a clearer understanding of the property you are acquiring and the obligations that come with it. It is important to carefully evaluate several key areas, including:

Purchase and Sale Agreements

These agreements set out the main terms of the deal, such as:

• The purchase price
• Deposits
• Inspection period
• Conditions that must be met before closing
• What happens if either party fails to meet their obligations

Commercial buyers should also not rely solely on what a seller says about a property’s legal condition. Buyers should carefully review the representations and warranties in the purchase agreement to understand what the seller is promising and whether the agreement assigns responsibility for any specific property conditions.

Title and Ownership

Buyers should also make sure the seller actually owns the property and that there are no legal issues that could affect ownership. A title search can uncover:

• Mortgages
• Liens
• Easements
• Restrictions
• Judgments

Any problems with the title should be addressed before the sale is completed.

Zoning and Permitted Uses

Buyers should check the property’s zoning rules to make sure their planned business, development, or other use is allowed. Zoning restrictions may limit what can be built on the property or how the property can be changed or used.

Environmental Concerns

Environmental review can be especially important for properties that were previously used for industrial, manufacturing, storage, or other commercial purposes. Past uses of the property may have caused contamination or other environmental problems. 

Buyers should review available environmental records and assessments and determine whether there are any restrictions or cleanup costs they could become responsible for.

Existing Leases and Occupants

If the property has tenants, buyers should carefully review the existing leases and understand the rights and responsibilities of both the landlord and tenants. This includes looking at:

• Rent
• Security deposits
• Renewal options
• Maintenance responsibilities
• Any changes made to the original leases

These agreements can affect how much income the property generates and how the buyer can use the property after the purchase.

Closing Documents and Obligations

Depending on the transaction, these may include the deed, title documents, financing documents, assignments, and other paperwork. Reviewing these documents ahead of time helps ensure that all closing requirements are met and that the transaction can be completed properly.

Get Legal Support From Our Real Estate Attorneys in Harrisburg, PA

Mette Attorneys at Law helps Pennsylvania buyers address the legal considerations that can arise before purchasing commercial property. To schedule your consultation with one of our Harrisburg real estate lawyers, call our firm today at 717-232-5000 or contact us through our online contact submission form.