Jackson Law Firm

What to look for when conducting due diligence

Individuals who are looking to purchase commercial real estate in Texas or elsewhere will generally do due diligence prior to closing on a deal. This makes it possible to look into the property, the seller and how the deal will be financed to ensure that the buyer is closing a deal that is in his or her best interest. The due diligence period can be as long or as short as the buyer and seller want it to be.

It should be long enough for a buyer to get as much information as necessary to feel comfortable about the deal. During the due diligence period, it may be possible to discover any limitations regarding how the property can be used. For instance, the property may not be zoned to be used as the buyer intends. It may also be possible that using a property in a certain manner could violate laws such as the Americans with Disabilities Act.

Buyers will want to determine if there are any liabilities that they will assume when buying a property. In addition to looking into the property, it may be worthwhile to investigate the seller. Most importantly, a buyer should ensure that the seller has the ability to follow through on the sale.

Doing due diligence may reduce the odds of contract disputes occurring after a purchase deal closes. It may be beneficial to enlist the help of an attorney during this period. It might be possible for legal counsel to assist with a title search or to look further into any zoning issues that may be present. An attorney may also do research into the seller to determine if he or she has the legal ability to sell the property to the buyer.

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The Jackson Law Firm
3900 Essex Lane, Suite 1116
Houston, Texas 77027

Toll Free: 877-475-3058
Phone: 713-522-4435
Fax: 713-527-8850
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