What legal steps do I need to take before selling my commercial property?
By
Selling Commercial Property: Legal Steps to Take
As a lawyer, in order to sell your commercial property, there are several legal steps you need to take to ensure that you are in compliance with the law and protect your interests in the transaction.
- Evaluate your title: The first step is to review your title to ensure that you have clear and marketable title to the property. This may require conducting a title search to ensure that there are no liens, encumbrances or other claims against the property. You may need to obtain a title insurance policy to protect against any defects that may arise.
- Obtain necessary permits: Depending on the jurisdiction, you may need to obtain permits, licenses or other regulatory approvals to sell or transfer your commercial property. This may include zoning or land use permits or environmental permits.
- Prepare and execute a purchase agreement: Once you have evaluated your title and obtained any necessary permits, you will need to prepare and execute a purchase agreement that outlines the terms and conditions of the sale. This typically includes the purchase price, closing date, contingencies, representations and warranties, and closing costs.
- Transfer ownership: Once the purchase agreement has been executed, you will need to transfer ownership of the property to the buyer. This typically involves executing a deed and recording it with the appropriate government office.
- Comply with tax requirements: Depending on the jurisdiction, you may be required to pay transfer taxes or other taxes associated with the sale of commercial property. You should consult with a tax professional to ensure that you are in compliance with all applicable tax requirements.
It is important to note that the legal steps required to sell commercial property may vary depending on the jurisdiction, the property itself, and the specific terms of the transaction. As such, it is recommended that you consult with an experienced real estate attorney to ensure that you are in compliance with all applicable laws and regulations and to protect your interests in the transaction.
