There are three golden rules to buying any commercial property, bear these in mind and you might well be able to avoid a lot of heartache and financial headaches. The benefits of buying commercial property can be great. You can benefit from excellent capital growth and take a regular income from the rental payments your property generates. There can be a flip side though, as with any investment, there are pluses and minuses of commercial property. This easy guide looks at the most important things you should always bear in mind when buying.

Get a good survey: Sellers are not obliged to disclose defects in a commercial property that they are selling. Therefore, it is down to you to do the homework on your purchase .The old motto of 'caveat emptor' ('buyer beware') applies when purchasing commercial property more than at any other time. It is your job to make sure you commission a survey and valuation to uncover whether or not the property in question is actually worth buying at all.

To expand on what the seller has to inform a buyer about, certain structural problems have to be disclosed, i.e. underpinning, but that is a major structural point. Any problems with say, the piping, electrical wiring or problems with internal walls do not have to be. Discovering such problems after a sale with or without a survey will give you no option for legal action, and if not discovered during conveyance could cost you money in the long term.

So it will be strongly recommended that you do not skimp on the structural survey and commission a full and thorough inspection of the property. The only exception would be if the commercial property is a new build, it should be up to regulation. The other task of a conveyor is to see if the building meets the valuation and whether any extensions or refurbishment so it the property have added value and what additions could add more value in the future.

Beware of restrictive covenants: The restrictive covenant might prevent you from being able to change the usage of a commercial property or to redevelop the site. For instance, developers often find that a covenant may prevent them from turning a large commercial building or house into several self-contained flats. Therefore, it is vital that you investigate as to whether such covenants apply to the building that you are purchasing. This is quite a straightforward process, and can be done by searching the Land Registry information and obtaining a copy of the property's registered title.

You will also need to examine the Charges Register. This shows the prospective buyer a list of any covenants or rights that they have been placed on the property. The restrictive covenants which relate to the property will be detailed there. A charge of this kind could have a major effect on your designs for the commercial property that you are looking to purchase and might cause a serious rethink in your plans.

Get the right searches: When planning to buy a commercial property it is important that you get hold of the right searches on the property. A Local Authority Search takes about 2-3 weeks to complete and costs approximately £200. The search will cover potential pitfalls such as traffic and road schemes that may affect the value of the property, any breaches of building regulations, planning conditions, compulsory purchase orders and any enforcement notices that apply to the property.

A Drainage and Water Search will confirm the supply of water to the property and whether this is metered. It also tells you whether water and sewerage drains to a mains sewer within 100 feet of the commercial property. It costs around £140 and takes a few days to complete.

An Environmental Search establishes whether there is a likelihood of soil contamination from any building situated near the property. This is important as it can cost thousands of pounds to clear a site of contaminated soil. It also tells you if the property is in a flood risk area. It costs around £180 and takes just a day or two to complete.

Purchasing a commercial property can be a sound investment. However, as with all investments it is vital that you take great care to make sure there are no fundamental problems with your new purchase. By following the three pieces of advice above you can prevent your new asset from becoming a huge liability.

About the Author:
Timothy Frodsham writes for Just Commercial Mortgages the UK's No.1 site for the latest commercial mortgage rates and commercial property finance news.