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The basic guide for commercial real estate: zoning.

Zoning—The rules of a municipality that detail the allowable uses for the real property in specific areas, and only then on specified conditions.

To be more precise:
A zoning bylaw implements the objectives and policies of a municipality's official plan.
It provides a legal and precise way of managing land use and future development.
In addition to the official plan, protects you from conflicting and possibly dangerous land uses in your community.

The basic guide for commercial real estate: OPTION.

OPTION—The right to purchase or lease a property at a certain price within a designated period for which a consideration is paid.

More practically: By signing the option agreement for this sum, you are agreeing to sell your home for this price to the potential buyer within an agreed-upon timeframe, regardless of what the market does.

The basic guide for commercial real estate: letter of intent.

Letter of intent—A formal method of stating there’s interest in a property, but it’s not an offer and creates no obligation.

To be more precise: A letter of intent (LOI) is a written, nonbinding document that outlines an agreement in principle between two or more parties before a legal agreement is finalized.

It is often used in business transactions, such as mergers and acquisitions, joint ventures, and real estate leases.

The basic guide for commercial real estate: interest-only mortgage.

Interest-only mortgage—A non-amortizing loan where the lender receives only interest during the term of the loan and recovers the principal in a lump sum at the end of the term.

Interest-only mortgages can be structured in various ways. Interest-only payments may be made for a specified period, may be given as an option, or may last throughout the loan.

With some lenders, paying the interest exclusively may be a provision that is only available for certain borrowers.

The basic guide for commercial real estate: conditional offer.

Contingent offer (Conditional)—An offer to purchase property subject to certain conditions, including the buyer’s approval of income and expense statements, title commitment, physical condition of the property, loan commitment, etc. being met.

The specific amount of time allowed to clear (waive) these provisions (conditions) is called a contingency period.

The conditions are protecting both sides of the negotiations.

The basic guide for commercial real estate: comparables.

Comparables—this term refers to area rents or competitive rental properties or area sales that have sold, implying “rent comps” and “sales comps” are comparable in size, location, condition, amenities, etc., to the subject property.

This info is imperative to a proper assessment of real estate values in selected local markets.

The basic guide for commercial real estate: clear title.

Clear title - A title is one of the two most important documents for the purchase of a commercial property.

It grants the owner rights to the property.
A deed is the transfer of ownership.
A clear title is any property free of any competing claims, mortgages, liens, and encumbrances.

In simpler words, a clear title means that the property is owned outright by the seller and there are no outstanding claims or issues that could potentially complicate the transfer of ownership to the buyer.

The basic guide for commercial real estate: capital improvements.

Capital improvements—Additions to the property or improvements that enhance or extend the useful life of the property.

Capital improvements are permanent structural changes to a property.
They enhance its value, increase its useful life, or allow for a new use.
They are not simple repairs.

What is the difference between repair and capital improvement?
Repairs and maintenance can transition into capital improvements when a project exceeds minor fixes.
Improvements can encompass entire structures or specific components. Improvements lengthen the building's lifespan or add value...

The basic guide for commercial real estate: arrears.

ARREARS—Money that is due or past due but has not been paid.
It is the state of being behind or late, especially in the fulfillment of a duty, promise, obligation, etc.
Many businesses/homeowners have fallen into arrears.

Simply - something overdue in payment or a debt that remains unpaid.

A commercial real estate broker or a real estate lawyer can help you determine if there are any arrears owing on potential property.

The basic guide for commercial real estate: amenities.

AMENITIES—The details that factor into the sale price or rent calculations and include features around a property that make it more attractive, useful, desirable, and/or rentable.

An amenity is a feature of a property that can make it more valuable to potential buyers or tenants. Amenities are commonly used in the real estate industry and can be found in property listings.

And last, but not least - amenities can be public or property-specific.

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