Florida Panhandle Real Estate Law Firm Experienced in Distressed Property Acquisitions
Panama City Beach Real Estate Lawyer Focuses on Distressed Property
During the economic downturn, many Florida developers focused on buying distressed properties from banks, and are now starting to see these projects come to fruition.
Some of the issues that parties considering the acquisition of distressed property should be aware of include:
- Due diligence – as with any real estate acquisition, due diligence plays a role in distressed property acquisitions, and a complete investigation of the status of the property is critical to protect a buyer from unknown risk.
- Inspection – if the property has been neglected because of abandonment or the inability to pay for normal maintenance, a proper building inspection will help disclose these issues and identify future expenses.
- Title review – the buyer should pay special attention to any development agreements and other encumbrances to the title to the property.
- Tenants – the terms of all leases, operating contracts, and similar documents should be reviewed, as lease defaults and lease expirations have a severe impact on the value of the property.
- Existing and potential claims and disputes – your lawyer can conduct a litigation search and have the seller disclose all existing and potential claims and disputes.
- Zoning issues – Buyers should always do a thorough investigation of current zoning and land use of the property, and owners of distressed properties often have obtained zoning approvals based upon specific stipulations that must be fulfilled.
- Valuation – Multiple appraisals and/or professional opinions should be obtained to get a better understanding of the fair market value of the property.
- Surrounding development – a determination must be made whether all off-site improvements and infrastructure serving the property have been completed, including roads and utilities.
Contact an Experienced Panama City Real Estate Attorney Today
If you have questions about distressed property acquisitions, Florida Attorney Nishad Khan P.L. has assisted clients with numerous Florida real estate matters, including acquisitions, for more than 12 years. Contact us online or call (850) 500-3030 to schedule your free initial consultation today.