Investing in the right commercial property can be life-changing in a variety of ways. Unfortunately, overlooking due diligence and investing in the wrong property, on the other hand, can haunt you for years to come.
One of the most important critical documents you need to look out for while investing in commercial real estate is the sale deed. Basically, this is a legal document that allows the seller to transfer the ownership of the property to you (the buyer). Until the sale deed is registered in your name, you cannot claim ownership of the commercial property in question. So what do you look for in a sale agreement?
Here are three crucial components of a sale deed:
1. The parties to the sale contract
This should be straightforward. A sale deed must begin by having the details of the parties to the sale contract. It should clearly indicate both parties’ names and contact information. Additionally, both parties must sign the document to validate it.
2. A description of the commercial property on sale
The sale deed must clearly describe the property you are buying. This should include the size of the property, identification number, street address and applicable local and state permits among others. It is equally important that this clause mentions the accurate location of the property.
3. The main details of the sale
The sale deed will also list the payment details, the way that money will be paid, an indemnification clause that releases the buyer from any taxes or loans on the property incurred by the seller and the witnesses present when the deed was signed over.
A real estate transaction is a huge undertaking. Find out how you can avoid costly mistakes when purchasing commercial real estate.