Commercial Real Estate Agents – Get the Legal Facts in Listing
When looking at a commercial, industrial, or retail property for the first time and preparing for a potential listing, many things should be questioned. Some of them will likely impact the property’s marketing and price.
This then says that you should not give a comment as an agent on a property until you know all the facts that could impact the marketing and inspection process. Will the client tell you everything about the property? Some clients will, and others will not; you must be careful. Asking the right questions and taking notes is essential to the listing process and any conversations you have with clients and prospects.
property Listing checklist
Here are some factors to ask about when considering the property’s listing.
- The legal ownership of the property should be checked against the title. Understand that the people you are talking to have the right to act on a property transaction. When it comes to working with business owners and companies, these facts can get a little ‘clouded’. Get evidence of the ownership and understand how it works.
- When you look at a property, it will have a use and be constructed according to the property zoning. Ensure that the property is compliant with the area’s zoning and that the improvements have been correctly approved and authorised by the local planning office.
- Ask about any orders or notices that could apply to the property today and are still to be discharged and satisfied. These factors could have an impact on the marketing of the listing. In some cases, the orders or notices may need to be discharged by the current property owner before any further action is taken to market the property.
- Look for problems in a property. If you can see an issue, then buyers will do the same. Obvious problems with any property listing should be investigated and qualified. You do not need hurdles to arise when your marketing campaign starts.
- Covenants and restrictions could apply to the property for any number of reasons. Some may be detailed on the title, whilst others may not. What issues impact the use and occupation of the building and the property? Rights of way, easements, encroachments, and encumbrances are some of the big ones. If such things do exist, get copies of the documentation and review it comprehensively.
- Environmental issues are a big deal today, and they can be quite common in industrial property. If any environmental issues exist, it may be appropriate to get an expert consultant to give a report on the issue and its status. Having a report will help with questions from interested buyers about the property.
You can add to this list based on the property and the location. Importantly, take all your notes, because some of these issues can be a challenge later in the marketing campaign and negotiation process.
