If you are planning on starting a business, you should probably consider buying or leasing a commercial building. While this might sound like a straightforward endeavor, there are some things you should know, especially when it comes to understanding the law regarding commercial real estate. In fact, because the laws regarding commercial real estate can be quite complex, you may want to consider hiring an attorney that specializes in this area.
Whether you hire an attorney or not, here are three laws you should understand before buying or leasing commercial real estate.
1. Disclosure Laws
In some states, people who sell commercial property are under no legal obligation to disclose any latent defects that the property might contain. A latent defect is something that is not visible during a routine inspection. These types of defects may include leaky pipes inside the walls or mold under the carpeting. There are instances, however, where the seller does decide to disclose this information and when they are not truthful about it, they could be liable for fraud.
When there are environmental hazards, such as asbestos, the commercial property owner is legally obligated to disclose them. It's important to note that disclosure laws vary from state to state.
2. Zoning Laws
In most states, there are zoning laws that determine the type of business that certain buildings and property can be used for. Zoning laws affect all kinds of businesses including office building, shopping centers, warehouses, and nightclubs.
Commercial zoning may be affected by things like parking availability, how close the property is to a residential area, and how far the commercial building is away from schools and churches. For example, if you are hoping to open a nightclub, but the property is too close to a school, zoning laws may prohibit you from using the property for that purpose.
3. Insurance Laws
In order to protect your business from financial loss, you will want to have insurance. In general, business owners should have the following types of insurance:
If you have a company vehicle, you may also want to consider commercial auto insurance.
When it comes to insurance, you'll need to determine how much you need in order to protect your investment. Also, while you might not think that having certain types of insurance is necessary, there are some types of insurance that you will be required by law to have.
Share10 January 2019
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