Collision check on Placement

First time poster here. I have been working something small for a few days now. The basic idea is that you place items in a game world, like a strategy game. Right now I have a first script for simply placing an item (GUI and multiple items will be implemented later) and all I have left is to check for collisions between objects, so that if an object about to be placed will overlap an already existing object it will simply not happen. Thing is I'm doing all of this in void Update and everything I've seen online uses some other class, like void OnCollision. Does anyone know how to write these kinda things in void Update? Below is the complete code.

using System.Collections; using System.Collections.Generic; using UnityEngine;

public class victorsBuildingManager : MonoBehaviour { bool preview = false; public GameObject building;

 void Update ()
 {

     if (Input.GetKeyDown (KeyCode.Alpha1))
     {
         preview = true;
     }

     if (preview == true)
     {
         Ray ray = Camera.main.ScreenPointToRay(Input.mousePosition);
         RaycastHit hit;
         Physics.Raycast(ray, out hit);
         building.transform.position = hit.point;           
     }

     if (Input.GetMouseButtonDown(0))
     {
         //Check for collision
         Ray ray = Camera.main.ScreenPointToRay(Input.mousePosition);
         RaycastHit hit;
         Physics.Raycast(ray, out hit);

         if (/*collision exists*/)
         {
             Destroy(building);
             preview = false;
         }

         if (/*no collision*/)
         {
             Destroy(building);
             preview = false;
             Instantiate(building, hit.point, Quaternion.identity);
         }
     }

 }

}