Commercial space is an essential thing in any type of business as such. Regardless, you are looking for a retail, manufacturing or office space, you will need to purchase a space. Generally, we recommend starting a business from a rental location. However, having a purchased commercial space ensure better profitability. Therefore, if you have the affordability, buying commercial space is really a good decision. And in that case, property documents plays a very important role.
In fact, property documents are the most significant aspect of any property investment. Buying a property need a very careful approach because corruptions are rampant nowadays. Hence, it is essential for you to know about the documents that need careful checking during the purchase.
This will surely help you in protecting yourself against cheating. We strongly recommend in taking lawyer advice before buying any property, be it empty land or apartment. For the benefit of our readers, we list down the documents you must arrange before buying property.
Things To Consider In Purchasing A Commercial Space
This is the primary consideration in purchasing a commercial space. Depending on the type of business you must choose the right property.
- Zoning Allowances
Check what type of business you can or cannot perform from that particular location. If you are starting a manufacturing business that demands commercial electrification, then check you will get this or not.
- Physical Condition
Additionally, you must check the physical condition of the property. If it is new, then ask for every detail from the owner or developer. If you are buying an old one, then check the age of the property and other details.
- Exterior & Interior
Check whether there is any option for changing exterior and interior of the property. Because according to your business demand you might go for an addition or alteration in near future.
- Accessibility & Car Parking
This is also an important consideration. Whether you are buying the space for retail or office or industrial purpose, you must ensure a minimum parking facility. Check this prior.
- Opportunity For Expansion
Check if there is an opportunity for further expansion. If your business demands more space in future whether you can expand it or not. It is better to have a clear conception about this before buying the commercial space.
List of Documents Required For Buying Commercial Space
Absolute sale deed in present seller’s name
This is the core legal document in writing which transfers the ownership of the property or properties in exchange for a price paid/consideration. This instrument needs to be registered compulsorily.
Mother deed reveals the history of ownership of the property right from the beginning. This document is extremely important while applying for a property loan or for reselling the property.
Sanction Plan of the Property
The property owner must get the property plan approved by the jurisdictional commissioner or any appropriate authority. The approval plan must include documents like title deed, property assessment extract, updated tax receipts, PID number of the property, property drawings, demand drafts, etc.
Encumbrance Certificate from date of purchase till date
You can procure this document from the sub registrar’s office where the deed is registered. It declares that the land is free of any legal hassle and unpaid dues.
Property Tax Receipts and Bills
Ask for the originals again and ensure all the payments have been made as this could lead to legal complications and more expenditure in the future.
Power of Attorney
POA is all about giving the authority of the property to another person by the owner on behalf of him/her. The government has made registering POA as mandatory from 2013 onwards.
Generally, local Municipal authorities issue ‘Completion Certificate’. It confirms that the property is built in compliance with rules and approved plans. You must check for the completion certificate.
An occupancy certificate is a document issued by a local government agency or building department certifying that the condition of the property is suitable for occupancy.
Finally, we strongly recommend taking advice from a competent lawyer before buying any property. We sincerely hope the list of documents will help you in making an informed decision in the process of buying a commercial space.
Editorial Staff at NextWhatBusiness is a team of Business Consultants having years of experience in small and medium scale businesses.