Buying commercial real estate requires an extremely responsible approach. Just one mistake or incorrectness can lead to serious negative consequences. Regardless of the complexity of the transaction, the purchase of commercial real estate in Moscow requires special care and strict adherence to certain rules and an algorithm of actions.
How to buy an office?
The most profitable method of investing in commercial real estate in our country today is the acquisition of objects in the capital and the neighboring region. The owner of the premises is the winner. He can get a stable profit from the commissioning of an object under a lease. In addition, in the market today you can find a large number of successful companies that express a desire to purchase office space. They are mainly interested in non-residential facilities that are suitable for commercial activities.
Finding the right office space can take a long time. However, if you finally found a suitable object, new questions arise. How is the purchase of commercial real estate? How to draw up a contract? What features should be considered when making a deal? This and much more will be discussed in this article.
Legal subtleties: ownership
Fortunately, the times of raider attacks and other scenarios of illegal actions have long passed. But here people who specialized in such activities, work to this day. Often they are attracted to solve various issues. In times of economic crisis, the risk of fraud is higher than ever, so business owners should be careful and alert.
How is the purchase of commercial real estate? Pitfalls that you can expect when you make a deal are very diverse. Particular care should be taken if you know that the seller of the property is in a difficult financial situation. In modern legal practice, there are many examples of how the original owner of the premises, drawing up a contract for the purchase of commercial real estate, left loopholes that allowed to maintain ownership. Such dishonest sellers after solving financial issues due to the transaction could require the return of the object.
Thus, we can conclude that the purchase and sale of commercial real estate will be successful only if the transaction is framed legally clean. The key factors in this matter are the correctness and correctness of the contract. Only in this case you can protect yourself from the risks associated with the loss of property and the presentation of unreasonable financial claims by the seller. That is why for most buyers the most important aspect is the acquisition of legally clean premises.
Buying commercial property on an IP (individual entrepreneur) has many risks that can lead to lengthy litigation. As a result, you can not only spend time and energy, but also lose your premises.
The main risks of the buyer
The purchase of commercial real estate may be accompanied by the following risks:
- the seller does not have ownership of the object;
- rights to the premises may be challenged by third parties;
- rights to the property may not be issued correctly;
- vindication of the object;
- the purchase of an object may be accompanied by a number of additional costs;
- the appearance of third parties requiring a return of debts or compensation for losses associated with the use of the facility.
Thus, if you do not pay due attention to the transaction, such an acquisition can lead to dire financial consequences. This is especially true in cases where a loan is taken to purchase commercial property. The fact is that large banks employ specially trained specialists whose task is to act in the interests of the organization. The lack of thorough verification of the purchase and sale transaction, non-compliance with the basic safety rules and the absence of the main legal documents can lead to raider seizure of the acquired property.
Registration of transactions
The development of documentation in the case when an individual purchases commercial property is carried out on the basis of standard forms. They may not take into account all the features of a particular room. Most contracts are executed using standard conditions and common phrases. In addition, the buyer may not think well of the likely scenarios and the plan of the transaction. As a result, the purchase of commercial real estate may result in difficulties in obtaining ownership or litigation on any of the items described in the contract.
How to check the purity of the transaction?
This question is of interest to many real estate buyers today. If you do not perform a thorough check, then it is likely that third parties will claim the property. For the buyer, this will only lead to negative consequences: he will have to prove his rights in court, which requires additional costs. In addition, if a loan was taken to purchase commercial real estate, there are more significant problems with the requirements of paying off bank debt.
Legal status of commercial premises
In the case of non-observance of the procedure for registering a purchase and sale transaction, various conflicts may arise with state bodies exercising control. If all the details of the transaction are not thoroughly worked out, it is likely that the buyer will simply be deceived. In this case, you can lose not only the property, but also money.
In order to reduce to zero the probability of negative consequences, you need to carefully check both the object itself and the seller. Try to describe all the terms of the contract as accurately as possible, always taking into account the time the transaction was completed and the period immediately after it. It is better to analyze all possible consequences in advance and determine the preferred strategy of behavior.
With insufficient preparation for the transaction, its basis may be unstable from a legal point of view. In this case, the probability of failure is high. So, if you have decided to purchase a commercial property, the most important priority for you should be qualified legal support.
Hidden risks
When purchasing commercial real estate, the buyer may not have the necessary information about the technical characteristics of the object. Sellers try not to focus on the negative points. As a result, the buyer, even after the transaction is completed, may be faced with the need for significant financial costs required to bring the property into proper condition. For example, when acquiring premises in a new building, the buyer may find some defects that were not identified as a result of the initial inspection. Sometimes there are even cases of non-compliance of the area and layout of the sold premises with the parameters indicated in the official technical documentation.
Expertise
To determine all the parameters and characteristics of the object, it is necessary to conduct a technical examination. Having in your hands the conclusion of the expert commission, you can present quite justified requirements to the developer with a request to correct these or other shortcomings. If the developer refuses to eliminate the flaws made during the construction, the buyer can go to court and uphold his rights there.
When acquiring commercial real estate in old buildings, the main attention should be paid to their depreciation. After all, defects that seem insignificant at first glance can lead to global destruction. To determine the technical condition of the object, you need to perform a thorough inspection of the structure. Developers and real estate agencies are interested in selling the property as soon as possible. It is unlikely that they will want to inform the buyer about all the features of the premises. This is understandable, because if he finds out about all the shortcomings, he will want to reduce the amount of the transaction.
In order not to be a victim of an unclean seller, it is important not only to pay special attention to obvious shortcomings, but also to focus on even the smallest defects. You can demand from the seller either to reduce the cost of the object, or to eliminate all deficiencies free of charge in a predetermined time. If any significant violations are revealed regarding the quality of the commercial property, the buyer may refuse to fulfill the obligations specified in the contract.
Overpriced
How is commercial property valued? Buying with profit will require a thorough assessment of the property.
There are three main approaches:
- Profitable: the gradual payback of the money spent over a certain period of time.
- Comparative: the object is compared with similar premises for sale.
- Cost: calculates the approximate amount of expenses that will need to be spent not on the acquisition of a similar object.
Such an assessment is analytical in nature.
How to correctly assess the value of the object?
The assessment process can be carried out by an independent expert, a realtor or by the seller himself. When real estate transactions are carried out by legal entities, an independent appraiser must be involved. After the work done, the specialist provides a detailed report, which will be an official document.
Realtor after the assessment of real estate does not issue any document. It is also worth considering that most of the realtors who today work in our country are not able to provide a service of such high quality. The assessment will be adequate only if you work with a competent and qualified specialist.
You can also evaluate the property yourself. To do this, it is enough to understand a little about market indicators and analyze other offers. The main thing here is to make an assessment based on many different sources of purchase and sale of objects.
Key Factors Affecting Cost
An important parameter is the location of the property. The prestige of the area has a great influence on the cost of the premises. Convenient infrastructure and transport accessibility are also important. The more accurately you determine the value of the object, the more successful the transaction will be.
If you are going to buy commercial real estate, then be sure to familiarize yourself with all the nuances before making a deal so as not to get into an unpleasant situation and not lose your money.