Commercial real estate transactions present unique challenges that many residential real estate professionals are not equipped to handle. Working with a commercial real estate attorney ensures that your commercial closings are handled properly, and your interests are protected.
The general concepts of residential and commercial real estate are the same, but there are numerous differences that can impact how these transactions affect each party. That’s why hiring a real estate attorney instead of just working with a real estate agent is the most ideal option for commercial property transactions. Here are five reasons you should hire a real estate attorney for your commercial sale or purchase.
1) The Terms of Each Commercial Property Transaction Are Unique.
Commercial properties vary greatly in variety and type, and each transaction is unique. From office to retail to multifamily, each commercial transaction type has its own set of intricacies and challenges. It is important to understand the objective of the transaction (e.g., income flowing property, development, owner-occupied, etc.) and then develop a game plan from there that covers all the bases, including legal and financial due diligence. Commercial real estate leases must also be analyzed in great detail, as they are often for a longer term, such as five or ten years, as opposed to the common one-year lease for residential properties.
2) Zoning and Land Use Requirements Vary.
Commercial property transactions often include legal concerns that residential sales do not, namely in the form of current and future land use, as well as zoning considerations. Depending on the type of business that will be operating out of the property, the zoning and use requirements must be examined carefully to determine compliance.
3) Legal Protections are Not as Robust in Commercial Real Estate.
Residential buyers and sellers are granted more legal protections than commercial property parties, as sellers must disclose issues that materially impact the property and are not readily observable to the buyer. Consumer protection laws do not cover commercial transactions and so the old adage of caveat emptor (or “buyer beware”) holds especially true in these types of transactions.
4) Commercial Real Estate Attorneys Understand the Due Diligence Process.
A commercial real estate attorney is not motivated by the urgency of a sale, so any guidance they give will be focused on the legal details and best interests of their client. They will be able to explain the parties’ contractual obligations, advise the client on the due diligence process, and assist with lending and financial requirements.
5) More Money is Being Exchanged in Commercial Transactions.
Many commercial real estate transactions involve higher dollar amounts than residential property sales and purchases. Whenever a significant amount of money is being exchanged, having an attorney on your side is a good way to secure your interests.
How We Can Help With Your Next Commercial Purchase or Sale
Whether you are buying or selling commercial properties, our commercial real estate attorney can provide valuable assistance throughout the entire commercial property transaction. At Farshchian Law, we are well-versed in every aspect of commercial real estate. Please call us at (800) 604-1871 or email us at Info@JFRealEstateLaw.com. We cover commercial closing transactions throughout the State of Florida.