Hidden Issues In Commercial Property Acquisitions

There are various issues that may arise in connection with commercial property acquisitions that are not typically addressed in the standard form of Contract of Sale. These are known as "hidden issues" as nothing in the standard form of Contract of Sale would necessarily alert a purchaser or their representative counsel. 

Water charges are typically determined by usage or by "frontage" (based on a fixed amount determined in advance by the city). When the water charges are based on frontage, the city is entitled to a "look back" period whereby the city can audit the actual usage to determine whether or not the usage was in excess of the frontage. If the city determines that the usage was in excess of the frontage, the city can potentially impose additional water charges against the property (whereby a purchaser can inherit water charges incurred by the prior owner).