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  1. #1
    Join Date
    Jan 2018
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    Default How to Put Restrictions on Sale of Commercial Property

    My question involves real estate located in the State of: Texas

    I just purchased a commercial property that I intend to sell or lease. If I sell, I want to put restrictions on what type of business a Buyer can put in the property so as not to compete with another business I own in the area. How is this done? Thanks.

  2. #2
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    Oct 2016
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    Default Re: How to Put Restrictions on Sale of Commercial Property

    Quote Quoting shanelloyd
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    My question involves real estate located in the State of: Texas

    I just purchased a commercial property that I intend to sell or lease. If I sell, I want to put restrictions on what type of business a Buyer can put in the property so as not to compete with another business I own in the area. How is this done? Thanks.
    If you do this via the deed you will make the property unmarketable.

    You could do this by contract but all they would need to get around it is a better lawyer than you used.

  3. #3
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    Mar 2013
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    Default Re: How to Put Restrictions on Sale of Commercial Property

    Quote Quoting shanelloyd
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    My question involves real estate located in the State of: Texas

    I just purchased a commercial property that I intend to sell or lease. If I sell, I want to put restrictions on what type of business a Buyer can put in the property so as not to compete with another business I own in the area. How is this done? Thanks.
    Unless your property is INCREDIBLY DESIRABLE or dirt cheap you aren't likely to get anybody to buy it or lease it with that restriction. You'll have slim chance with a lease, no chance with a deed.

  4. #4
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    Default Re: How to Put Restrictions on Sale of Commercial Property

    By entering into a contract with the buyer. Consult with a local attorney.

  5. #5
    Join Date
    Sep 2010
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    Default Re: How to Put Restrictions on Sale of Commercial Property

    Quote Quoting pg1067
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    By entering into a contract with the buyer. Consult with a local attorney.
    Best you take that latter piece of advice. Just because you have an agreement with the buyer doesn't mean it will persist through to future owners (especially in the case of foreclosure or tax sale).
    Such restrictions on leases on the other hand are quite common.

  6. #6
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    Default Re: How to Put Restrictions on Sale of Commercial Property

    Quote Quoting flyingron
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    Best you take that latter piece of advice.
    Ha ha. You're quite the droll fellow.


    Quote Quoting flyingron
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    Just because you have an agreement with the buyer doesn't mean it will persist through to future owners (especially in the case of foreclosure or tax sale).
    The original post only said that the OP wants "to put restrictions on what type of business a Buyer can put in the property." The OP did not express any interest in restricting what the buyer's successors do with the property.

  7. #7
    Join Date
    Oct 2016
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    Default Re: How to Put Restrictions on Sale of Commercial Property

    Quote Quoting pg1067
    View Post
    The original post only said that the OP wants "to put restrictions on what type of business a Buyer can put in the property." The OP did not express any interest in restricting what the buyer's successors do with the property.
    If he doesn't do the same to successors he shouldn't bother with it at all because there is nothing stopping the buyer from selling the building the next day after close to someone else.

  8. #8
    Join Date
    Nov 2013
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    Default Re: How to Put Restrictions on Sale of Commercial Property

    Any seller of real property can place covenants in a deed that will run with the land in perpetuity no matter who owns it or how many times the property has changed hands.

    The real question is who will enforce the covenants?

  9. #9
    Join Date
    Oct 2014
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    7,091

    Default Re: How to Put Restrictions on Sale of Commercial Property

    There is a lot we don't know. For example, what would be a competing business? If the restriction is very narrow (e.g. the property cannot be used to run a paint manufacturing plant) that may not significantly affect marketability as very few buyers, either now or later, are likely to be interested in running that sort of business from that one location.

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