If an client wants to purchase a property that was once used as a gas station what actions should their agent take to accommodate their request?

Asked by Futurelicensee, 60103 Wed Oct 30, 2013

Steps towards owning a commercial property that was used as a gas station.

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9
Bill J Delig…, Agent, Naperville, IL
Thu Oct 31, 2013
Make sure plenty of time is allowed for the property to be properly inspected.
0 votes
Jacqueline S…, Agent, Chicago, IL
Wed Oct 30, 2013
1) what is it zoned for versus what are their plans for the land
2) determine if the land it contaminated from leaking tanks, past and present.
3) determine if the tanks are still buried and must be removed
4) determine how much the tank removal and possible clean up could be, and who should pay
5) find out about future liability if the soil is contaminated and the water table is involved in the future. Will the locality go after the past owner, whose corporation has probably been dissolved, or the current owner, who is easy to find.
0 votes
It is my opinion this is the best advise right here.

Good luck!
Flag Thu Oct 31, 2013
In other words, have an environmental specialist examine it, test the groundwater & soil , & do remediation work per EPA requirements & those of the state. Even if the past owner, in my case, Exxon, has done the remediaion work mandated for previous years, they may still be held accountable for environmental cleanup to meet current standards. I hired an attorney to do the negotiations. This is a tricky issue, especially if the responsible business entity has been dissolved. I found it best to hire an attorney. The commercial property I am trying to sell to a buyer with s small business administration loan is being stymied by State of CA govt. red tape. I'm sure a sale such as this is easier in states with less stringent environmental regulations.
Flag Wed Oct 30, 2013
Josh Barnett, Agent, Chandler, OK
Wed Oct 30, 2013
What is the business relationship of the buyer and the buyer rep? Is the buyer rep an "agent" of the buyer?
0 votes
Marcia Kelly, Agent, Topeka, KS
Wed Oct 30, 2013
If a lender is involved, they may insist on your doing environmental testing & remedial work in compliance with current codes & environmental regulations. Remedial work done in the 1970s may not comply with current standards. Be sure to specify in the contract that your buyer be allowed time to conduct environmental testing by a licensed specialist. (Some states specify the remedial work plans be approved by state regulatory agencies.)

Because of govt. bureaucracy, this testing & regulatory approval may be a lengthy process. I know because I'm currently selling a commercial building I own. The buyer is getting a small business administration loan, which requires environmental testing.

If your buyer is paying cash, he won't have to go through the EPA red tape. He might want environmental testing for his own information. However, he might get the property at a much lower price if he accepts it "as is" & conducts the inspections later. Be sure to get a "hold harmless" contact signed in this case.

Marcia Kelly, CRS
Keller Williams, Legacy Partners
Topeka, KS
(785) 249-3989
marcia@marciakelly.com
0 votes
Santiago Ken…, Agent, Chicago, IL
Wed Oct 30, 2013
Depends of the zoning ordinance ......
0 votes
Matt Laricy, Agent, Chicago, IL
Wed Oct 30, 2013
I would get environmental tests on the soil. That would be the first thing I would do.
0 votes
Sohail Salah…, Agent, Chicago, IL
Wed Oct 30, 2013
Make time for environmental tests which take time and make sure your client will be able to use the property for what he plans to.
0 votes
Matt Hoyt, Agent, Highland Park, IL
Wed Oct 30, 2013
research the comps and write an offer at a favorable price for their client. Depending what the future use of the property will be, you may have to remove the under ground fuel storage tanks. Your agent can shop around for experts in this field for you to speak with.
0 votes
Phil Rotondo, Agent, Melbourne, FL
Wed Oct 30, 2013
Stipulate in the contract that there's an adequate amount of time for feasibility and due diligence tests.
0 votes
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