While many people will purchase a home to live in over the course of their lives, fewer people choose to buy a home or building for commercial purposes. If you have some experience in residential real estate, and you are interested in going into commercial real estate, don't be fooled. There are many significant differences between residential real estate and commercial real estate that you should consider before you go into commercial real estate. Our real estate lawyer at Cummings Law Firm in Connecticut is here to help.
If you want to purchase property located in the Waterbury area in order to conduct business or rent the building to tenants who will run their business in it, you are interested in commercial real estate. There is the major difference between residential real estate and commercial real estate. Instead of living in the home, you will be conducting business in it. For this reason, there are some stipulations that a building purchased for commercial purposes must have that a residential building will not have.
When you want to buy a building for commercial purposes, you need to make sure that the Waterbury property is zoned properly for the particular use that you have for it. For example, if you are interested in starting a day care, you need to make sure that the building you are interested in purchasing is properly zoned for this purpose. Common zoning issues may include:
- If the property is located in the permitted zone.
- If the property meets requirements under the zone to operate the use (ex. Parking).
- Setback lines (how far you can set back the building in the lot).
- Wetlands on the property.
If you are seriously interested in a piece of property, but you run across a zoning issues, you may be able to get a permit to make certain changes to a property. If getting a permit is not possible, you may be able to get a zone change for your use. A zone change is an oftentimes difficult process, so you should make sure that you really want the property before you go through the trouble of getting a zone change. Our real estate attorney can help you learn more about zoning.
Laws Governing Contamination To Property
Before you purchase a property for commercial use, you need to get the property checked to make sure that there are no contamination from previous uses or owners. For example, if you want to buy a piece of property that was formerly a gas station, you should get soil tests and paperwork from the prior owner so that you are aware of issues such as leaking oil tanks. Major contamination issues are related to any pollutants on the property. In general, this relates to chemical leakage into the soil or fuel leakage. Certain types of properties require special conditions to sell in the state, for example, auto body shops, dry cleaners and gas stations due to contamination issues.
Real Estate Mortgage Laws
Obtaining a mortgage for a commercial purpose as opposed to a residential purpose can be a little more difficult, particularly if you plan to rent the property to a tenant. Interest rates tend to be higher for commercial properties than for residential properties.
Just as with a Waterbury residential building, when you want to purchase property for commercial use, you will have to conduct a closing. It is always in your best interest to have a real estate lawyer present at the closing, preferably a lawyer who has experience with commercial real estate laws.
On the day of the closing, you can conduct a final walk through to make sure that there are no hidden issues with the property. At the closing, your lawyer can help you navigate the paperwork and answer any questions that you may have. When you and your real estate attorney feel confident in the purchase, you are ready to sign the papers and purchase the property.
Contact Us For More Information
If you are searching for a commercial real estate lawyer to help you through this process located in Waterbury, you should consider Cummings Law Firm. We have experience with both residential and commercial real estate, and we can make sure that you have no issues with zoning or contamination to the property. If these issues do arise, we can advise you on how to negotiate an agreement. For more information on commercial real estate laws, contact us today. Call 203-754-7779.