Commercial real estate deals are rarely simple. Unlike residential purchases, buying commercial property often involves existing tenants, environmental risks, zoning limits, and contracts that strongly favor the seller. In Clark County, Washington, these issues can become even more complicated due to local land use rules and development restrictions. That is why legal due diligence matters before you commit to a purchase that could affect your business for years.
One of the first red flags in any commercial property purchase is an incomplete or clouded title. A title report should confirm who actually owns the property and whether there are liens, easements, or ownership disputes attached to it. In Clark County, it is common to see utility easements, access rights, or old financing liens that were never properly released. While title insurance can provide some protection, it does not cover every issue. Certain easements, zoning violations, or boundary problems may still fall on the buyer. Reviewing the title documents carefully helps prevent unpleasant surprises after closing.
Zoning problems are another major risk. Before purchasing commercial property, you need to confirm that your intended use is actually allowed under current zoning rules. This often requires checking directly with Clark County zoning and land use authorities. A property that works for one type of business may be restricted for another. Expansion plans, parking requirements, signage limits, or future redevelopment can all be blocked by zoning regulations. Buyers sometimes assume rezoning will be easy, only to find out later that it is unlikely or impossible.
Environmental liability is one of the most expensive risks in commercial real estate. Properties with contaminated soil, underground storage tanks, or past industrial use can expose buyers to cleanup costs, even if the contamination occurred decades earlier. A Phase I environmental site assessment is often used to identify potential environmental risks. If concerns are found, a Phase II assessment may be required. Skipping this step can result in severe financial consequences long after the deal is closed.
If the property has existing tenants, their leases must be reviewed carefully. Buyers inherit these leases, including tenant rights, renewal options, rent terms, and maintenance responsibilities. Assignment clauses, early termination rights, or poorly written leases can significantly reduce the value of the property. Understanding exactly what obligations transfer to the new owner is critical before moving forward.
Access issues can derail an otherwise solid deal. Some commercial properties rely on private roads or shared driveways governed by easements or maintenance agreements. Utility access can also be limited or shared with neighboring properties. If these rights are unclear or undocumented, future disputes can arise that interfere with business operations or resale value.
Many commercial purchase agreements contain clauses that heavily favor the seller. These may limit your ability to terminate the deal, reduce inspection rights, or impose unrealistic deadlines. A lack of clear contingencies for financing, inspections, or environmental reviews is a serious warning sign. The contract should clearly define timelines, remedies, and responsibilities for both parties.
Buying commercial property in Clark County is a major investment, and legal issues can easily outweigh the value of the deal if they are missed early. Working with a Washington commercial real estate attorney allows us to identify red flags, negotiate better terms, and protect your long-term interests before you sign.
If you are considering buying commercial property in Clark County or Vancouver, Washington, we can help review your deal and reduce your risk. Contact John L. Davis PLLC at (360) 597-4740 to discuss your commercial real estate purchase before problems arise.
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