When it comes to buying or selling commercial property, many people shy away from seeking the assistance of an attorney. The added cost of an attorney can be significant, and many people would rather save the money. However, these transactions, if done inadequately, can have major ramifications later on down the road. A commercial real estate attorney can help you navigate through this process and avoid the major mistakes that buyers or sellers can make or overcome any hurdles that you may encounter.
Why do you Need a Lawyer for Commercial Real Estate?
Buying, selling, financing and developing a commercial property aren’t exactly easy tasks. There are many steps that must occur before any transaction is complete. On top of that, there are dozens of laws and regulations that have to be followed in order for the process to be valid. A commercial real estate lawyer can take care of many of these steps for you. They consult with you regarding construction, financing, environmental issues, zoning, taxes, title insurance, and other steps in the legalities of land use and development.
Real estate lawyers help you negotiate the sale, analyze a contract, explain the purchase agreement and facilitate closing. Furthermore, a commercial real estate attorney will have a trained eye at recognizing suspicious contract terms or identifying a potential pitfall. At every step of the buying and selling process, an attorney is also able to answer any questions that might arise or make a recommendation. In essence, a commercial real estate attorney will make buying or selling a property an infinitely less stressful experience.
Both private landowners and public entities often need consultation when negotiating tax incremental financing (TIF) and tax abatement arrangements (LERTA). When a law firm has a robust set of expertise in construction law, banking law and finance, real estate attorneys can better represent their clients with more favorable deals.
Additionally commercial real estate attorneys assist clients in negotiating and drafting purchase and sale contracts, ground leases, site development agreements, and property management contracts. Attorneys can help with title insurance matters and conduct closings in their state.
Do you Need an Attorney for Commercial Real Estate Closing?
Depending on your state’s laws, you might not be legally obligated to hire an attorney when you close on a property. However, even if your state’s laws don’t require you to have a lawyer present, there can be many benefits to involving an attorney at this stage. Many people argue that closing can be the most important phase of buying or selling a commercial property, and therefore it can be extremely helpful to have someone there with you to answer your questions, advocate for your interests and ensure that you are entering into a fair deal. If you feel uncomfortable reviewing documents, communicating with the other party or managing disbursements, having an attorney present at closing might be a good idea since an attorney can take care of these aspects of the sale for you.
How Much Does it Cost to Hire a Commercial Real Estate Attorney?
The cost of a real estate attorney can vary on a number of factors, such as where you live and how involved the lawyer is throughout the buying or selling process. An investment in a real estate law firm with a good reputation can save clients a significant amount of money over the course of a construction project. A commercial real estate lawyer will help ensure that you comply with all laws and regulations, which will prevent any potential fines or sanctions for improper process. Similarly, a real estate attorney can identify distrustful or questionable aspects of the sale or purchase of the property, which again can save you hundreds or thousands of dollars in the future.
Do I Need a Lawyer to Review a Real Estate Contract?
Again, in most states, there is no legal requirement to have a commercial real estate attorney review your contract. However, it’s important to remember that the purchase agreement is legally binding once your signature is on it. If there is any aspect of a real estate contract that you do not understand, have questions about, or do not feel comfortable with, you should absolutely consult an attorney. A lawyer should be able to guide you through contract modifications, taxes, and financing to help you avoid pitfalls.
What Does a Commercial Real Estate Attorney do for a Buyer?
At its core, the role of the attorney for both the buyer and the seller is to ensure the purchase or sale of the commercial property goes smoothly and fairly. Nevertheless, there are certain roles a real estate attorney takes on specifically when representing a buyer versus representing a seller. For example, a lawyer will guide you through different processes if your purchasing an industrial complex, an apartment building, or if you are buying a property that is bank owned. Additionally, a real estate lawyer can help guide buyers who are facing unique circumstances. If you are purchasing property in a flood or tornado zone, considering a property that might have structural issues, or may be exposed to hazardous materials, a real estate attorney can provide you with ample advice that will allow you to still move forward with the purchase. In short, a real estate attorney offers comprehensive legal services that can help developers identify opportunities and manage risks while considering long-term goals regarding property-related growth.
What Does a Commercial Real Estate Attorney do for a Seller?
Just as there are unique benefits to hiring a real estate attorney as a buyer, there are also benefits that come with working with a lawyer as a seller. A commercial real estate attorney, for example, can help you make your property marketable even if there are limiting aspects to its sale, such as a lien on the property or if there are structural problems as well. Additionally, a real estate lawyer can facilitate a sale that is occurring as a result of a difficult circumstance, such as selling your share of a property when there are other owners or selling a property that has leases on the premises. If you ever have any doubts about selling your commercial property, you can rely on a real estate attorney to help.
How a Real Estate Attorney From Maiello Brungo & Maiello can Help you
The attorneys at Maiello Brungo & Maiello have extensive experience guiding individuals in the purchase or sale of their commercial properties. Whether you are a first-time buyer or seller, or someone that regularly works in real estate, there are countless ways you can benefit from the counsel of our team. If you’re considering purchasing or selling a commercial property, or simply want to consult an attorney before closing, contact our office today!