Legal Tips for Purchasing Office Space
Sept. 1, 2013
When you no longer want to rent office space and have made the decision to purchase your own commercial property instead, many details need to be taken into consideration.
Perhaps the most important aspect of a business is its location, as location can make or break a business. Unfortunately, buying a property at an optimum location requires a fair amount of capital. However, when a business owner is lacking the capital for the down payment on a property, he may be eligible for government assistance.
The Small Business Administration’s 504 loan plan will allow a business owner to pay a significantly reduced down payment on commercial real estate with most borrowers only having to pay ten percent cash up front. The reduced down payment is possible because the Small Business Administration (SBA) covers forty percent of the loan while the bank covers the other fifty percent.
When looking for office space, make sure you plan for future needs. Should you fail to buy a large enough property, you will have to search for new office space down the road when your business grows. Planning now for future growth will save you money and headaches in years to come.
Another important consideration when looking for office space is resale value. This again comes down to location. In the future, should you decide to sell, you want to be in a prime location that will enable you to sell your property for a sizeable profit.
In your search for a business location, make sure you check into zoning restrictions where the different properties are located. Your business needs and uses need to be compliant with the rules in the surrounding neighborhood.
When looking to purchase office space, an experienced real estate attorney can assist in all the legal details of purchasing a commercial property. Negotiations regarding transactions that involve the purchase of commercial real estate can be quite complex. A knowledgeable real estate attorney will review and assemble the legal documents, will ensure the title to the property is free and clear of liens, judgments, easements and other encumbrances, and will ensure that a client understands all terms of the transaction. After the purchase is completed on your office space, the attorney will then record the deed and mortgage to your new property.