READ THIS BEFORE YOU BUY COMMERCIAL PROPERTY IN VIRGINIA
Our office receives multiple calls every day touching upon some of the issues discussed in this article. Purchasing a commercial property in Virginia is a complex process that often requires the assistance of an experienced Virginia Real Estate Lawyer. Please feel free to call our office to discuss the following issues with respect to the commercial real estate purchase process in Virginia.
The Closing Memorandum. This serves as a road map for the transaction, which lists all the relevant documents and items needed before and at closing, and assigns responsibility for each to the seller, the buyer, the lender, and/or their respective counsel. It is not uncommon for such documents to undergo several revisions as the deal progresses.
The Study Period. The Agreement may contain provision containing a mandatory study period before the closing date. This requires the buyer to complete all due diligence before the closing date, that is, within the study period. The structure how this agreement is made is very important.
Inspections. The buyer of such property may want to negotiate any provisions requiring access to the property for purposes of an inspection. In this case, the exact scope of the inspection remains a point of negotiation between the parties.
Leases and tenants. If the existing property is occupied by renters, then the buyer should negotiate assignments of existing leases and delivery of all current rents due to the buyer (pro-rated at closing). Copies of rent rolls and existing leases should be obtained. The buyer should also insist that each tenant sign and deliver an estoppel certificate, certifying that neither the tenant nor the seller is in default under the lease and that rent has been paid through the specified date.
Zoning. The seller of the property may have had the property rezoned or could have acquired a special permit or a variance prior to this contemplated sale. These may have imposed some conditions of use on the seller with respect to the property that expire upon sale.
Environmental Conditions. These should be specifically negotiated and are often the most complex part of this transaction. Special negotiation should be done with respect to above and under ground storage tanks.