The due diligence period for commercial real estate occurs after the buyer commits to buying a piece of property. The buyer then has a period of time, usually 45 to 60 days, during which she/he can inspect the property and determine whether the deal makes sense.

​The due diligence period for commercial real estate transactions is much longer than residential transactions. This is because of the amount of money involved and the number of issues that could arise to derail the purchase.

​Due diligence can include a wide variety of issues. In Cook and Lake Counties, a major issue involves the dramatic increases in property taxes. As such, it is critical to real estate buyers to look at not only what their current taxes are but what they may be in the future.Other issues during this period focus on the hidden costs that may arise with the property. These might include environmental issues, revenue from tenants or utility bills. Your commercial real estate lawyer may work with your accountant to help you determine if your budget, based on the expected income level, justifies the acquisition.

There are many other issues that make the use of a real estate attorney essential when purchasing commercial or investment property. These include but are not limited to:

• Commercial property often involves a large investment of money
• Deals can be legally complicated and require legal knowledge
• Real estate attorneys have extensive negotiation experience
• Your law firm can advise you about problems with title or that title is clear
• Your Real Estate Attorney can help to negotiation Warranties for work done on any repairs to the property
• The contract used in these transactions may be the Chicago Association of Realtors Contract but often are drafted by the attorneys.