I am about to sign a P & S for commercial property in the South End. What are some of the common pitfalls involving a commercial real estate deal?
First thing I suggest is the buyer find out if there are existing tenants in the building, if so are they subject to lease agreements and for how long and of course what is the rent being collected. A review of all leases is a must, and also a check as to whether the tenants are current with rent, any lawsuits pending or threatened. Check with the City of Boston to be sure all applicable licenses have been issued and that local taxes and fees are not in arrears. An experienced buyer will have already done the math concerning the income from the building versus carrying costs, improvements etc. but if that has not been done, get busy with the financial analysis prior to signing any documents or engaging an attorney.
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