Checking commercial real estate before buying
Purchasing non-residential real estate is a complex process that requires a detailed due diligence to avoid legal and technical risks. It is not enough to assess the price and location of the property. It is necessary to conduct a comprehensive audit to ensure that the transaction is clean.
1. Legal verification of documents
First of all, you need to make sure that the seller has the title to the property. The main documents to check are:
- Certificate of ownership or an extract from the State Register of Property Rights.
- Cadastral number of the land plot, if it is part of the property.
- Technical passport of the real estate.
- Documents confirming the legality of construction or reconstruction: a construction permit, a declaration of readiness for operation.
You should also check the property for encumbrances, arrests or liens through the State Register of Real Property Rights.
2. Checking the compliance of the facility with building codes
It is important to make sure that the facility complies with the building codes. The check includes:
- Compliance with the intended purpose of the building (office, warehouse, store, etc.).
- Availability of appropriate communications: electricity, water supply, ventilation, fire safety.
- Compliance of the actual condition of the building with the technical passport.
3. Assessment of risks of changing the intended use
In case of plans to re-profile the facility, it is necessary to:
- Check the possibility of changing the designated purpose of the land plot in accordance with the State Land Cadastre.
- Assess whether local authorities will allow the reconstruction.
4. Check the location and easements
Make sure that the property has convenient access, especially if it is important for the business.
Find out if there are any restrictions on the use of the land or building (easements).
5. Technical inspection of the property
It is necessary to engage a technical expert to:
- Assessment of the condition of structures (foundation, walls, roof).
- Inspection of engineering networks (heating, sewerage, electricity).
- Identification of possible defects that may affect further operation.
6. Economic feasibility
It is recommended to carry out a market assessment of the object to ensure that the declared value is fair.
How to avoid risks?
All stages of the inspection require a professional approach. Errors or shortcomings can lead to financial losses, litigation, or the inability to use the property for its intended purpose. GlobalBud Ukraine provides comprehensive pre-purchase inspection services for non-residential real estate. Our experienced lawyers and engineers will help you avoid risks and ensure the legality of your transaction.
Learn more about legal support of real estate transactions. Contact GlobalBud Ukraine, because we guarantee quality support and transparency of the process!
