Drat

Dee has been eyeing another property. The place in question is zoned commercial. However, it appears to be an apartment in the back and what was once a bar in the front. It is located South of the State Capital in a neighborhood where I don't like to venture much during daylight.

Yesterday Dee asked if she needed a commercial agent for this sale. Possibly. I have handled multi-family housing before. In this case the building in front--the former bar--is just an empty shell. So, is it really a commercial sale?

The way the AZ real estate rules are stated, agents should not go outside of their scope of expertise unless they have written consent from their clients. For example, I am not too familiar with Gila Bend AZ, but if my client wants to buy a home there and is willing to put in writing I should be the agent, all is good. However, if I made a mistake because I am not familiar with Gila Bend, the liability is still on me.

This sale is a bit different. I certainly know the 85007 zip code (thanks to Dee) and I know how to write a residential offer. And I know how to structure a multi-family property contract. However, I know enough about commercial real estate to fully understand I might get myself in front of a judge if I make a mistake. And, because there is a vacant bar involved, one could argue this sale could be structured in many different ways.

I explained all of the above to Dee. She sweetly absorbed it, telling me she wasn't too worried about there being a problem. And then she asked if she needed to have an environmental impact study done. After all, that was part of a commercial sales process. The fact I could not answer that question tells me I am not the agent for this sale. (Though, I honestly don't think she needs an impact study done in this case, but I am not willing to stake my license on it).

"That's too bad." Dee said when we realized I wasn't a good fit. Her disappointment was high praise. And I wish I could be involved if she goes forward. But I would rather she found the right property with the right agent who knows about such things as environmental impact studies. 

As we left it, I gave Dee my notes on how I was planning on structuring this offer if I had been the agent. I had already written a couple of clauses for the purchase contract I thought she would need. I also asked if I could tag along if she buys this one. This way I can learn a thing or two.