Businesses find out sometimes too late how sophisticated and complicated commercial real estate transactions are. And that is why people should be aware of the necessity to hire a property lawyer whenever they are facing a real estate transaction in order to avoid tricks and traps.
Investing in commercial real estate can turn out to be a source of great returns but it can just as well turn out to be the source of serious headaches. The diversity of commercial properties as well as the interplay of various laws drives business people to hire a commercial real estate attorney, who has the skills, expertise, and knowledge necessary in handling the situation accurately, quickly, and efficiently. No matter how confident you may feel, in order to protect you investment and avoid common pitfalls, you need to get the assistance of a property lawyer.
Common Pitfalls What are the most common pitfalls of a real estate business deal and why a commercial real estate attorney can be of help?
Defective title. A property attorney can help you avoid the situation where you may not be buying what you thought you were buying simply because someone else could have a prior claim that you were not aware of.
Debt service and lender requirements can easily be uncovered by a specialized attorney while they can remain hidden to the inexperienced eye.
Mechanic’s liens can impose large burdens on property owners if they remain undetected.
Zoning and land use problems are a major source of headaches and possible business failure.
Market fluctuations are also a major concern and a commercial real estate attorney can help implement the proper solution so that commercial property investment would not turn out to be a loss.
Hazardous waste and environmental contamination is a huge risk with large commercial properties as the effects can hardly be detected with the naked eye. A property lawyer can both prevent and protect against costs arising from such situations.
How Exactly Can A Property Lawyer Help You? The benefit of competent legal advice on a real estate deal stands on its own. There are so many things that could go wrong with any transaction in general. However, with commercial real estate, whether you are the buyer or the seller, the stakes are a lot higher. These are some of the aspects which a commercial real estate lawyer can clarify for you in order to help you go through a smooth transaction:
A property lawyer can help you understand the terms of your loan in case you are using a mortgage to buy commercial property.
The commercial real estate attorney will know where to look and what to look for in order to avoid zoning problems before the purchase is completed.
The property attorney knows about the importance of the preliminary title report and will know how to dig deeper in case of any ambiguous issues.
The attorney can also advise you as to how you should take title of commercial property so that you pay reasonable taxes.
Again a specialized lawyer could guide you through the 1031 exchange in case you meet the eligibility criteria.
The commercial real estate attorney has the capacity to demonstrate the necessity of an escrow.