Starting a new company is one of the most exciting things a person can do. It’s also one of the most complicated and stressful endeavors a person can undertake. Without a solid support system, it can feel like a completely impossible task.
If you suspect you’re facing a bad commercial real estate deal, know the signs before you buy. A real estate lawyer can help you determine if you’re facing a bad deal and protect your interests.
Your Realtor Is Acting Aggressively or Strangely
Maybe you’ve found the perfect place to set up your business. You are absolutely thrilled, but the realtor is being weirdly pushy. If you are new to commercial real estate dealings, your realtor will likely be able to tell.
Unfortunately, this means they may try to take advantage of your inexperience, pushing a defective property on you before you can fully understand what you’re agreeing to. Regardless of how good a deal it seems, don’t let your realtor push you into making a quick decision before you have asked all your questions and had them answered to your satisfaction.
If the property is being sold for a price that is simply too good to be true, it may be. It’s a red flag if a property appears to be listed for far less than it looks to be worth on the surface. When a property is on the market at a suspiciously low price, there may be hidden issues or problems.
The Realtor Doesn’t Disclose Everything
There are certain things that realtors are required to disclose. That doesn’t mean that these things will be disclosed in a transparent way.
In Texas, sellers are required to disclose the condition of the property on or before the date of purchase. This includes the condition of:
- Septic systems
- Security systems (if any)
- Carbon monoxide detectors
- Smoke detectors
- Emergency escape features
- Walls and floor
- Ceilings and roof
- Plumbing and improper drainage
- Asbestos, lead paint, and other hazards
Sellers must also disclose past repairs and past damages from fires, water, insect infestation, or drug manufacturing. They must inform the buyer of any equipment or systems that may need a repair on the property before the purchase goes into effect.
Another unfortunate circumstance that must be disclosed by the seller is any murder that has occurred on the property. Sellers must also disclose any death caused by the condition of the property, even if it was an accident, and the issue was later fixed.
Sellers are not required to verbally inform you of these conditions or issues, but they are legally mandated to inform you. If a seller is late in sending the disclosure, the buyer has seven days to renegotiate or cancel their contract. If the seller never gives a disclosure, they have broken Texas law, and the buyer is allowed to back out of the contract anytime before closing.
The Real Estate Is in an Undesirable Neighborhood
A property’s value is directly tied to its surroundings. If the place you are considering is in a nice area near a shopping mall and a park, it will generate more foot traffic (and therefore more revenue) than a property tucked into a back alley near an abandoned building.
Even if the property itself is in mint condition, the neighborhood around it will impact your business significantly. Also, be sure to take into consideration factors that may not be brought up by the realtor. For example, the area may be prone to flooding, there’s been a history of arson or theft in the vicinity.
Make sure to factor in the surroundings of the building in your vision of your business’s future, and not just the property itself.
Talk to a Real Estate Lawyer Before You Buy
If you are navigating the complex world of leasing or purchasing commercial real estate for your growing business, don’t do it alone. There are resources available to you to help you understand and explore all of your possible options. If you’re struggling to determine whether you’re facing a bad real estate deal, getting a professional to review your case can help you get answers when you need them.
The Curry Law Firm is made up of entrepreneurial attorneys with extensive experience in business law. With the Curry Law Firm’s top priorities being transparency, return on investment (ROI), and results, it just makes sense to connect with an attorney today. Call 713-678-0013 or fill out the following online contact form to request a consultation.