do you have to use an attorney when buying commercial property

What is the job of a real estate attorney?

The job of a real estate attorney is to negotiate and make a transaction come together in a peaceful manner that’s fair and amenable to all parties. A real estate attorney takes over after the selling price and terms have been established by the real estate agents in the contract and all parties have signed.

Which states require a real estate attorney to be present at closing?

These include Alabama, Connecticut, Delaware, District of Columbia, Florida, Georgia, Kansas, Kentucky, Maine, Maryland, Massachusetts, Mississippi, New Hampshire, New Jersey, New York, North Dakota, Pennsylvania, Rhode Island, South Carolina, Vermont, Virginia, and West Virginia. Keep in mind that these rules can vary by region within states, too.

Why is it important to have an attorney involved early in the process?

Having an attorney involved early in the process can often save time and money in the long run , Zuetel says.

Does a brokerage offer a real estate attorney?

Some brokerages offer the services of a real estate attorney and broker in one at no additional cost.

What is the education required for real estate agents?

As part of agents’ licensing education, they’re taught and tested on real estate contracts used within their state, many of which also require continuing education courses and/or certifications on subjects such as ethics, buyer’s agency, distressed property sales, and more.

Who is the executor of a property whose owner is deceased?

You’re the heir or executor of a property whose owner is now deceased.

What is a problematic area to buy a house in?

You’re buying a property in a problematic area such as a flood zone or areas with adverse conditions (tornado-prone, radon, toxicity levels, etc.).

Why do you need a commercial real estate attorney?

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 ...

What can a commercial real estate lawyer do?

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.

What is the role of a real estate attorney?

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 ...

Do you have to hire an attorney when closing a house?

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 ...

What does a real estate lawyer do?

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, ...

Is it easy to buy a commercial property?

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 ...

Can a real estate attorney sell a commercial property?

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 ...

Why do you need an attorney for a commercial building?

If you’re buying a commercial building for your company, hiring an attorney can protect your interests by making sure the contract is fair. A real estate attorney can also protect you from potential issues by negotiating the procedures that will occur if the deal falls through, or if hidden environmental issues or structural problems should emerge after the closing.

What can a commercial real estate attorney do?

A commercial real estate attorney can help enforce your rights as outlined in a lease through negotiation or litigation.

What happens if the government takes commercial property for public use?

Eminent Domain. If the government is trying to take commercial property for public use, the property owner could lose ownership. Property rights vary by state, so an attorney can be a valuable asset.

What can an attorney do for a business?

An attorney can keep you up-to-date on the legalities and terms, advise you of potential problems that may arise in the negotiation and purchase process, and help you obtain the best possible purchase terms in order to support your business goals.

What to do if you are considering buying a property?

If you’re considering buying a piece of property, but you’re worried the price is too good to be true, an attorney can investigate on your behalf. For example, an affordably-priced office building may seem like a great deal, but what if it has $100,000 worth of tax debt? An attorney can research a building or property, check for liens or other issues, and help you avoid making a bad decision.

Why do you need a realtor?

Real estate attorneys work to protect individuals and companies from financial pitfalls when buying or selling property . Most home buyers rely on a realtor to ensure the legal details of the contract are handled by a reputable attorney. Business owners, on the other hand, should make it a priority to carefully select an experienced commercial real ...

What is a well written contract?

A well-written purchase or sales contract will clearly define the buyer’s and seller’s rights, obligations, and liabilities. These legal details can save time and money if any conflicts arise.

Obtain Expert Advice and Assistance

When commercial property is the object to purchase, there are many different persons involved in these dealings. It is important to have open communication with these individuals, but experts in the field may provide the best advice and assistance.

Financing and the Offer

When obtaining the first commercial property for business or other financial ventures, it is important that financing is understood fully and researched carefully. Unless the individual has his or her own income to ensure that financing is completely available, it may be best to check into the options such as banks, lenders or other investors.

Finalizing the Deal

It is important to complete due diligence and understand how escrow works. A survey may be necessary to ensure the land or building is up to code, has no contaminants and is free of any other complications or issues.

Commercial Property Purchase Lawyer

There are several processes necessary that protect either the buyer or seller, but a real estate lawyer may ensure transactions are valid and legal. It is best to hire legal representation for the duration of the event so that the buyer is not entangled in a purchase agreement that he or she does not want.

What is a real estate lawyer?

A real estate lawyer is licensed to practice law and specializes in real estate transactions. A real estate lawyer is familiar with all aspects of the home purchase process and can represent buyers, sellers or lenders. In states where a lawyer is required to be present at closing, it’s possible that the lawyer is there solely to represent ...

What are some situations that are unusual and might require an attorney’s advice and negotiating skills?

Here are some situations that are unusual and might require an attorney’s advice and negotiating skills: You’re buying a home that is part of a special type of sale, such as an estate sale, short sale, auction or purchase from a bank. You’re purchasing a home that’s in another state.

What does exclusive representation mean when buying a house?

Exclusive representation. When you are buying or selling your home, everyone has an interest in the deal getting done, including real estate agents and the lender. This can make you feel like you’re on your own at times. However, if you hire a lawyer, you’ll have access to an independent third party who can review the contract and represent your best interests throughout the transaction.

Why is it important to have a lawyer in a negotiation?

This is important because when you’re in the middle of a potentially contentious negotiation that needs to be resolved quickly, you’ll want the lawyer to be available to advise you and negotiate with the other party.

What is closing on a home?

Closing. The moment you’ve been waiting for— closing on a home sale or purchase —often involves dozens of pages of legal documents to review. A lawyer can help both the seller and buyer navigate the review, which can be especially intimidating and confusing to a first-time homebuyer.

What is the most important document in the home sale process?

It can help you avoid potential problems down the line by making the contingencies as favorable to you as possible. The contract is the most important document in the home sale process, and it includes several negotiable issues. Some of the most important issues in the purchase contract involve: Timing. Your timeline for closing on the property ...

Can a lawyer review a purchase contract?

Although real estate agents usually play a central role in preparing purchase contracts, a lawyer could provide a review of the purchase contract terms. What’s more, real estate agents are generally limited to filling out contract templates, rather than drafting them from scratch.

What is commercial real estate?

It might involve leasing office space, building a new office tower, or selling real property as part of the sale of a business. It could be industrial property (such as a factory) or agricultural property (such as a farm). It might even involve residential properties like apartment complexes or rental houses being held for business or income-producing purposes. Unless the property is a residence where the homeowner, renter, or subletter is living, you're likely dealing with commercial real estate.

What are the risks of owning a business property?

Hazardous waste and environmental contamination: One of the biggest potential concerns to owning business property is hazardous waste or environmental cleanup issues. Property owners have primary responsibility for fixing such problems, even if the current property owner didn't cause them. These problems might not be obvious or apparent to the naked eye, and could arise from anything ranging from a leaking underground storage tank to an old garbage dump. If you're in the chain of title to contaminated property (meaning that a some point you held an ownership interest in that property), you're potentially responsible for paying for the cleanup. The costs for an environmental cleanup operation can run into the millions of dollars.

How long does a commercial lease last?

These entities will often enter into long-term leases with various businesses. The lease periods can be lengthy, often three, five, or ten years.

Do commercial buyers and lessors have the same rights as residential buyers and sellers?

Commercial buyers and lessors are not ordinarily afforded the same consumer protections as residential buyers and sellers. Commercial entities are generally considered to be sophisticated parties, usually represented by legal counsel. States typically pass legislation designed to afford special protection to homeowners and renters. Many cities and states also have specialized housing courts, known to be “tenant friendly.” Commercial buyers and lessors have no such favorable forum; disputes will typically wind up in a commercial or federal court.

How long does residential real estate last?

Residential real estate also offers significant leasing and renting opportunities for the consumer, but typically for only one-year terms.

Is commercial real estate the same as residential?

A: While many of the concept s are the same, there can be significant differences between the commercial and residential real estate markets. It is far more common for commercial property to be leased, rather than sold. It isn’t uncommon for commercial space to be owned by large real estate holding companies, particularly in urban areas. These entities will often enter into long-term leases with various businesses. The lease periods can be lengthy, often three, five, or ten years.

Does buying a home prepare you for a business transaction?

Experience with residential home buying won't necessarily prepare you for the types of transactions involved with transferring ownership or possession of real estate used for business or investment purposes.