Commercial property buying advisers: the order to hire them and what to check before you commit

A purchase needs more advisers than a letting, and they arrive in a strict order. Some of them work for you, some work for the lender and produce reports you pay for, and one of them works for the seller while being the most visible person in the process. Knowing which is which is most of what protects you.

What to take away

Order the slow reports first. The environmental assessment and the title work control the timetable and both can produce a second stage.
A report addressed to somebody else may give you no rights if it is wrong. Ask who your reports are addressed to.
Two roles are worth engaging before you make an offera property lawyer and an accountant, because who buys the property is decided then.

The roles, in the order they are needed

Accountant. First, not last. Whether the operating business, a separate entity or the owners buy the property changes tax, liability, financing and what happens when the business is sold. This is settled before an offer or it is settled expensively.

Property lawyer. Also before the offer. Drafts or reviews the contract, runs the title work, and tells you what your protections actually are. The standard of investigation expected of a commercial buyer is described under due diligence, and the instrument that transfers ownership is a deed whose form matters more than people assume.

Selling agent. Works for the seller, and is paid on completion. Often knowledgeable and never your adviser. Useful for information, and everything they tell you is worth verifying independently.

Buyer's agent. Optional, paid by you or from the seller's commission. Ask which, because the two produce different behavior.

Building surveyor or inspector. Structure, roof, systems and the remaining life of the expensive items. Engage them early enough that the report can still change your mind.

Environmental consultant. Assesses ground and previous use. On commercial property this is not optional in practice, because the inquiry framework described in the EPA's guidance on all appropriate inquiries has to be completed before you own the site, not after.

Surveyor for boundaries. Tells you where the line is, what encroaches, and where recorded rights run on the ground. A marketing plan does none of this.

Title company or examiner. Produces the title search and, where available, insures the result.

Valuer or appraiser. Usually instructed by the lender, usually paid by you. Ask whether you are entitled to rely on the report. The same reliance question decides whether a valuation is worth paying for, and the buying examples show how that plays out.

Lender or finance broker. Ask a broker who pays them and across how many lenders they search. Where a government-supported program is involved, read the program's own terms, such as the SBA's 504 loans, rather than a summary.

Follow the money

Four questions, in writing, at the first conversation.

Four Money Questions

Who instructs you and who pays you?
Am I entitled to rely on your report?
Any relationship with seller or agent?
If purchase does not happen, what do I owe?

The second question is the one people skip. A survey commissioned by a lender and shown to you as a courtesy may leave you with no remedy at all if it misses something.

Sequence, not shopping list

When	Who	Why then
Before the offer	Accountant, property lawyer	Buying entity and contract structure
At the offer	Lawyer	Investigation period long enough for the slowest report
Day one of investigation	Environmental, title, survey	These control the timetable
Early in investigation	Building surveyor	So the report can still change the price
As required	Valuer, lender	Their timetable is not yours
Before exchange	Lawyer, accountant	Findings priced into the deal
After completion	Insurance, building manager	Risk passes and the running costs start

The scorecard

A good answer sounds like

Am I entitled to rely on this?: Yes, it is addressed to you
What is not covered?: A written list of exclusions
How long will this take?: This many days from instruction, and here is what delays it
What did the title search find?: Here are the recorded rights and what each does to your plans
Is the existing use lawful?: That is a planning question and here is who confirms it

A bad answer sounds like

Am I entitled to rely on this?: It is a standard report
What is not covered?: It covers the property
How long will this take?: It should be quick
What did the title search find?: Nothing unusual
Is the existing use lawful?: It has been used that way for years

The last row is worth insisting on. The concept that determines whether a long-standing activity is protected is local, and how to check is in zoning and permits.

One task before you commit to anybody

Ask each candidate for a written scope: what they will do, what they will not do, who the report is addressed to, and how long it takes from instruction. Compare those four things rather than the fees. Two proposals at similar prices frequently describe very different work.

Signs to walk away

Reluctance to say who the report is addressed to.
A scope with no exclusions listed.
Encouragement to shorten the investigation period to win the deal.
Any adviser recommended by the seller who will not answer the question about relationships.

Where this sits in the decision

If you have not settled whether to buy at all, the framing is in commercial buying. The honest cost of the alternative is in commercial leasing.

If the address is still open, the commercial questions come first, and those are in location selection. If part of your reason to buy is a building you would alter heavily either way, the cost buckets are in tenant improvements.

Common questions

Can I skip the buyer's agent?

Frequently, yes, especially if you know the area and have a lawyer engaged early. You cannot skip the lawyer, the survey or the title work.

Should I use the seller's recommended lawyer?

Ask the relationship question directly. Local knowledge is real and so is the conflict, and you are entitled to know which you are getting.

How much should the professional work cost?

Nobody can tell you from a page, and the useful comparison is scope rather than fee. Get written scopes from two firms and compare what is actually being done.

When is it too late to walk away?

At the point the contract binds you, which is why the investigation period and what it allows you to do is the most important thing your lawyer negotiates.