What to do next
Commission environmental assessment early
A Phase I, escalating to Phase II if it flags concerns, takes time. Owners can be liable for remediation regardless of fault, and lenders will require it. Start it the day the agreement is signed.
Review every lease and estoppel
You take the property subject to existing tenancies. Read each lease for term, renewal options, rent, exclusivity, and landlord obligations, and obtain estoppel certificates confirming what tenants say is true.
Confirm zoning permits your intended use
Legal non-conforming use rights can be lost through discontinuance. Confirm compliance in writing from the municipality rather than assuming continuity.
Search title, liens and work orders
Registered instruments, outstanding work orders, unpaid realty taxes and construction liens all follow the property. Get an up-to-date survey where boundaries or encroachments matter.
Frequently asked questions
Am I liable for contamination I didn't cause?
Frequently yes — environmental liability commonly attaches to the current owner regardless of fault. This is the single largest risk in commercial acquisition.
Do I have to honour existing leases?
Yes. You acquire subject to them on their existing terms, which is why lease review and estoppel certificates are essential rather than optional.
Can I rely on the seller's environmental report?
Cautiously. Reports are usually addressed to the party who commissioned them, limiting your ability to rely on them. Commission your own or obtain a reliance letter.
What if the survey shows an encroachment?
It may be resolvable by agreement, easement or title insurance. Address it before closing — afterwards it is your problem.
This is general information, not legal advice. Laws vary by location and every situation is different — speak with a qualified lawyer about your specific circumstances.