Avoid a Use Restriction that Contradicts Your Business Plan

Avoid a Use Restriction that Contradicts Your Business Plan



Make sure you get a title report first before signing a lease for commercial property. Why? A title report will list any use restrictions on the building or center where you plan to lease space. If you fail to secure a report, you might find out—after you've already signed the lease—that a use restriction contradicts your lease and prohibits you from using the space the way you planned.

A title report is critical if your intended use is not typical of the other businesses in the building or center, or for the neighborhood where your business will be located. For example, if you plan on operating a moving company in a residential area, there's a good chance that the large trucks necessary to run a moving company are prohibited from driving in that area.

A title report may take a couple of weeks to get and can be expensive. But if it can help you avoid getting stuck in a bad lease and give you an advantage during negotiations, it's well worth it.

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