How to Properly Handle a Real Estate Transaction for Your Expanding Business

Handling a real estate transaction for your expanding business can be a daunting task. There are many things to consider and complete to do it properly. Here is a small list of things you should accomplish on your way to new ownership.

First Things First
First and foremost you must make sure the seller has the authority to sell the property. A call to the title company guaranteeing the property title will clear this up. They also will know if zoning is consistent with the intended use.

Purchase and Sale
Next, the purchase and sale agreement must be made up with several requirements. The document must contain a complete legal description of the property including detailed property boundaries. Any changes to the purchase and sale agreement must be agreed to by both parties. Make sure any defects in the property have been disclosed with a specific plan to correct them. If necessary, hire an engineer to inspect the property and disclose any items needing replacement or repair. Separate from the house inspection is a pest inspection to uncover any wood-destroying insect infestation. Financial institutions will generally decline to finance a property transaction until this condition is remedied. At this point the purchase price can be renegotiated to include those corrections.

Repairs and Removals
Include a detailed list of what the seller will remove from the property. If repairs or removals pass the date of closing, make sure there is language covering that issue in the purchase and sale agreement, perhaps with escrow funding set aside to insure it. The seller should provide an environmental audit including flood exposure.

Financial Details
If the property is financed, the finalized purchase and sale agreement containing all terms of finance must be attached to the deed of trust. At this point in the transaction, the buyer should pay earnest money to be held in escrow showing intent to complete the sale. At closing, a title policy is obtained as a legal safeguard of property ownership.

Property Turnover
The last thing to do before attending the closing and receiving the keys is to do a final walk-through to insure there has been no last minute damage or items removed that was included in the purchase. Make sure the seller vacates the property upon closing or agrees to a vacate date and carries adequate insurance to cover liability and other issues.

Optional Steps
An optional step to help your transaction go smoothly is to hire a law firm like Carter West that specializes in real estate transactions. Even with a complete checklist, a real estate law firm will understand the documents passing before you and where to look for potential problems.

Conclusion
Following these logical steps with everything in writing, your real estate transaction will go according to plan. Property transfer may seem like a daunting and endless task but feel confident in the fact that you have done your research and everything in your power to make your real estate transaction go smoothly, quickly and efficiently for your expanding business.