Getting suitable premises when you run a business is crucial, especially in some industries. If you lease, you can always look for a new place if things do not work out. Yet if you are buying a property, getting it wrong will be much more complicated.
Closing is the legal process in which you finalize your purchase. To ensure it goes well, you need to consider a few things:
- Can I pay for it? When you apply for a mortgage, you will need to show business projections and other financial details. As many business owners have recently found out to their cost, things can change at the drop of a hat. You can never guarantee the success of a business, so it pays to be cautious and ensure a safety net to ensure you can keep up with payments if sales drop.
- Do I understand what I am buying? Do not rely on the optimistic wording in the seller’s advert. The attractive, well-located storefront will be far less pleasing to passers-by if you discover fresh paint is covering up a crumbling structure. Its location will not serve you so well if you find out the council has approved a plan to make it a one-way street or changed the zoning laws.
Contingency clauses allow you to back out of a property purchase
Contingency clauses protect you from unexpected final stage surprises, letting you back out without financial penalty. However, they only cover what you write them for, so it is essential to have legal help to draw them up. Otherwise, a court may interpret a weakly written contingency in the sellers’ favor, leaving you committed to buying a piece of real estate you do not want.