Most real estate deals in California close without a hitch, but when it comes to purchasing a commercial property, you need to dot all the i’s and cross all the t’s. This is because making a small mistake during the closing process can harm your investment.
When buying a commercial property, you will interact with two people encouraging you to sign the deal – the realtor and the seller. So, naturally, these people will put their interests above yours, and you may easily make an expensive mistake.
Here are some common mistakes you should avoid before closing a commercial real estate deal.
Talking publicly about the transaction before it’s complete
You’ve most likely heard that loose lips sink ships. Careless talk in public before closing can result in disaster. Unfortunately, most people buying their first property make this mistake. Disclosing your transaction details may attract other potential buyers who act swiftly or even offer a better deal.
Not checking for title defects
Before closing on a commercial property, you’ll need to check the title for defects. A title can also have defects similar to how a property may have defects, such as wear and tear or shoddy construction.
Some of the most common title defects you should watch out for include unnamed liens against the property, public record errors, forgeries and zoning violations. Fortunately, you can protect yourself from title defects by obtaining a copy of the current insurance policy before closing on the property.