Selling a commercial property in New York requires going through a step-by-step process. The seller has to prove that the property is efficient for regular use. As much information as possible is collected and prepared before the commercial building is put up for sale.
Requirements for selling
Sellers of commercial real estate have to meet the state’s legal requirements. They have to provide written and verbal responses to their potential buyers’ inquiries. Buyers can sue the seller for misrepresentation if the responses are incorrect.
Sellers must provide documentation about building permits or certificates to prove their legal use of the property. In addition, they have to show documentation that the building is free of asbestos if they were built before the 1980s or ’70s. The seller provides an assessment to show that the building is free of fire hazards. The energy performance certificate and maintenance records show the building’s level of energy efficiency.
Problems when selling
The problems with selling commercial properties increase when the sellers lack proper documentation, such as building permits and inspection reports. A property title that is not clean has a reduced number of interested buyers. Sellers have to pay off the liens or unpaid taxes beforehand. Furthermore, they face lawsuits if they provide inaccurate details, such as incorrect age, structural measurements or past usage.
For buyers and sellers, selling property is taking a series of steps to research, record, negotiate and close a transaction correctly. Deciding how to sell a building is similar to creating a business plan. New York has commercial real estate laws that require sellers to provide accurate information to buyers and make sure that the transaction is valid.