Are you looking for a good return on your money? A better return than you ever get from a bank or money market investment? Then, why not invest in commercial real estate? Although residential real estate market has pretty much bottomed out throughout most of the United States, commercial real estate market is growing. If you ever wanted to invest in real estate market but you are hesitant about the current residential market, then invest in commercial real estate.
If you invest in commercial real estate, you must understand that there are major differences between commercial and residential real estate. Not just a different market, but also the laws. Due diligence in commercial real estate is different than on the residential market. You still want to ensure that you get an inspection prior to the settlement as well as a survey of the property. You must also ensure that you get any easements include in the sale when they are needed.
Most people think that easements as those that burden the property, like for utilities and sewers. In commercial property, there are often easement that benefit the property. In many cases, to get to a good property people have to drive their vehicles over other property owned by others. In such cases, people who want to buy the commercial real estate will want to ensure that they get the easements needed for parking or entry and exiting. These could be included in the deed or in an easement agreement.
The only way to see if you need easements to get a survey of your property depicting noy just the property but any easements that pertain to the property. Title insurance commitment should also description a legal description of the asements. The tittle company need to search not only the commercial real estate property that you are buying but also any other property that you are recieving an easement. The reason for having this property searched include the following points:
1.You need to know that the person who signed the easement agreement or deed is legally entitled to convey interest in the property;
2.You need to know that there are no burden on the easement property that would prevent you from using it;
3. You must know that the taxes on the easement prperty are current. It would be unfortunate to buy commercial real estate property that is dependent on easement and discover that the property is in a sale tax. Someone who purchases the property could insist that you pay money to use their property, they can even erect a fence to prevent you from using the land.
When you invest in commercial real estate, make sure that you have an experienced lawyer when it comes to commercial real estate, not just for residential real estate. Commercial real estate is totally different than residential real estate, and your lawyer must have knowledge in the aspects of the real estate industry.