Do you intend to purchase a commercial building? You may want to buy an office block or shopping mall. Read the excerpt below for a few tips on how to buy a commercial building.

Type of Title 

What title does the property have? Observe caution when buying a property with a strata, leasehold or company title. For instance, if the property has a strata title, check the strata bylaws to know what activities are restricted on the premises and any debts taken by the owners corporation. If the building has a leasehold title, examine when the lease expires. Do not purchase the property if the lease will expire within a few months.

Zoning Regulations

The property should be situated in an area zoned for commercial buildings. If not, you risk prosecution. Besides, the local council may ask you to demolish the building. Inquire about local planning and development laws. For example, what installations are prohibited? Are you allowed to create extensions? Are there any laws on the colour of the building or the type of fence you should install?

Condition of the Building

Ask your conveyancer to organise a building inspection. The exercise will give a clear picture of the structural condition of the building, the presence of pests, land contamination and any defects on the water, drainage or electric systems. 

The inspection should also examine the buildings safety features. In Australia, commercial buildings should meet fire safety standards. Typically, it should have a fire alarm, emergency exits, fire extinguishers and ventilators. Ask for a fire safety certificate to ensure the building is safe.

You should also be interested in the building's amenities. For instance, what is the available parking space? Does the building have sufficient washrooms? Commercial buildings located close to malls, banks, hospitals and highways will significantly appreciate over time. 

Terms of the Seller

Critically examine the contract of sale. Some of your concerns should include:

• Check the closing date of the contract. It should give you adequate time to conduct a pre-purchase inspection and organise financing.
• The agreement should compel the seller to renovate the building if the inspector finds defects that were not included in the disclosures.
• The contract should prevent the seller from considering bids from other interested parties.
• You should have the right to back out of the deal if you cannot secure financing or if the property has severe defects. 

A conveyancer will guide you as you purchase the property. He or she will ensure the property is reasonably priced. Further, the conveyancer often negotiates the price of the property and the terms of purchase. If you need help with commercial conveyancing, reach out to a conveyancer in your area.