The Value of Document Research When Inspecting a Commercial Real Estate

Commercial Property Inspection is an important process in the real estate industry as it helps in identifying the current condition of a property. The process involves a thorough examination of the physical structure of the property, including its components such as the roof, walls, foundation, electrical system, plumbing, HVAC systems and other essential components. The inspector also evaluates the property with regards to the safety and suitability of the property for its intended purpose.

One essential aspect of commercial property inspection is document research. Document research involves reviewing relevant documents and records that can provide information about the history of the property, previous repairs, renovations, and upgrades, among other important information.

The following are the reasons why document research is crucial in performing commercial property inspections.

Identifying Legal Issues

Document research helps to identify any ongoing or resolved legal issues related to the property. Records such as land surveys and property titles may reveal a possible lien on the property. This information is critical because a lien can affect the transfer of ownership and create legal complications that could affect the value of the property. By doing document research, the inspector can identify such issues and recommend that the buyer or seller addresses them before continuing with the transaction.

Building Code Compliance

Document research helps inspectors to identify any building code compliance issues, including required permits or approvals. For instance, if a business owner adds a new room in the commercial property but fails to secure the necessary permits, the owner could face legal or regulatory issues. Through document research, an inspector can identify all the necessary permits and compare them with the actual work completed onsite. If there are any discrepancies or issues, the inspector can recommend that the buyer addresses them before finalizing the transaction.

Structural Records

Document research allows inspectors to evaluate the structural records of the property to determine its condition. Records such as building plans, maintenance records, and previous inspection reports can provide an insight into the condition of the property. These records can also reveal patterns of wear and tear that could indicate potential structural issues in the future. Through document research, an inspector can determine if there are any structural issues that need to be addressed before the transaction is completed.

Insurance Records

Insurance records such as claims history, risk assessments, and safety evaluations can provide an understanding of the safety measures that have been put in place for the property. The records can provide insight into any previous claims made regarding the property, including fire or water damage, theft or vandalism, and accidents. By analyzing these records, an inspector can identify potential safety risks and recommend safety measures to the buyer or seller.

Environmental History

Document research allows an inspector to evaluate the environmental history of a property. This evaluation is important as it helps to identify potential environmental hazards that may pose significant risks to the occupants of the property. By looking at records related to air quality, soil testing, water quality, and hazardous materials, the inspector can identify potential environmental issues and recommend corrective actions to mitigate the risks.

Document Research is an essential part of commercial property inspections. It plays a critical role in providing a comprehensive evaluation of the property, identifying potential legal and safety issues, and making recommendations to address them. By leveraging document research, an inspector can provide a thorough analysis of the property and help the buyer or seller make an informed decision. Document research also helps to mitigate risks and ensure that the property is safe and suitable for its intended purpose. And, it is crucial to conduct thorough document research in commercial property inspections.