10 Things to Avoid During Escrow When Buying a Restaurant Property

 

10 MUST-NOTS DURING ESCROW WHEN BUYING A RESTAURANT PROPERTY

  1. ❌ Don’t Skip the Lease Review (if applicable)
    If the restaurant is leased, failing to review the lease terms (assignment clauses, CAM charges, term length) can trap you in an unfavorable agreement.

  2. ❌ Don’t Make Large Financial Changes
    Avoid opening new credit, taking large loans, or making significant purchases that may affect your financial profile—especially if you're financing the property.

  3. ❌ Don’t Ignore Health or Code Violations
    Overlooking past or pending health department citations, fire code issues, or zoning conflicts can lead to costly shutdowns post-close.

  4. ❌ Don’t Neglect Equipment Inspection
    Don’t assume all equipment is in working condition. Get it inspected. Ask for a list of what's included in the sale and ensure it matches your expectations.

  5. ❌ Don’t Trust Verbal Agreements
    Everything—inventory, training, seller promises—must be in writing. Verbal commitments mean nothing after closing.

  6. ❌ Don’t Skip Financial Due Diligence
    Always review profit & loss statements, tax returns, payroll, vendor contracts, and licenses. Don't just take the seller’s word on performance.

  7. ❌ Don’t Forget to Apply for Required Licenses and Permits
    Most permits are not transferable and must be re-applied for under your name or business before closing. Failing to do so can result in delays, fines, or even forced shutdowns.

  8. ❌ Don’t Overlook ADA or Building Compliance
    You might be liable for expensive upgrades if the property isn’t compliant with the Americans with Disabilities Act or local building codes.

  9. ❌ Don’t Communicate Directly with Staff
    Talking to employees before close—especially if they’re unaware of the sale—can cause panic, turnover, or legal trouble. Let the seller manage internal communication.

  10. ❌ Don’t Delay Working with a Professional Team
    Do not go at it alone. Work with a commercial REALTOR®, attorney, inspector, and CPA who are experienced in restaurant acquisitions.

If you're buying a restaurant property in Bexar County, I specialize in representing buyers like you and helping secure profitable restaurant investments.

Amir Keshmiri Ebadi (210) 388- 5098


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