why hire an attorney for commercial real estate the balance

Whether a small business or a large corporation, utilizing the services of a commercial real estate attorney is vital when the landlord-tenant relationship goes off the rails. Getting an attorney involved early in any disputes will save time, money, and aggravation.

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Should I hire a lawyer or a real estate agent?

Some people assume that hiring a commercial real estate attorney is out of their budget. Later on, they run into problems with their deal and need to hire someone anyway. With commercial real estate transactions, you’re better off hiring an attorney from the start. It can save you time, money, and peace of mind.

Should you use a lawyer when buying a home?

Commercial real estate transactions require a thorough understanding of business and real estate law, real estate transactions, and financial and tax issues. 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 …

Why should you work with commercial real estate agents?

An attorney with relevant commercial property experience can protect your legal rights and has a unique understanding of property law. He/she will know what to look for in a commercial property transaction, whether it is a purchase, a sale or a lease. An experienced commercial real estate attorney can help you understand your rights and obligations and tell you what is in your …

Why hire a professional broker for your business?

Both buyers and sellers strive to obtain the best possible real estate purchase terms in order to support their business goals. A commercial real estate attorney is well-versed in potential problems that may arise in the negotiation and real estate purchase process, and understands how to address these issues before they escalate into problems that can lead to broken deals.

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 can a real estate attorney do?

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 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 happens if the government takes commercial property?

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.

Why is a lease agreement important?

The lease agreement is a critical component of any landlord-tenant relationship because a well-crafted lease should clearly specify all terms and conditions, and eliminate ambiguity which tends to lead to misunderstandings and friction.

What happens if a tenant doesn't pay rent?

If a tenant is not paying rent, is interfering with other tenants, or is otherwise failing to perform their duties as specified within the lease agreement, the property owner’s bottom line can be severely impacted. Likewise, commercial tenants faced with landlords who do not live up to their end of the lease can also find their businesses jeopardized.

Can a buyer's agent give legal advice?

Remember this: It is not that the buyer's agent does not want to help, it's that they can't give legal advice. Additionally, if they violated the law and expressed a legal opinion, a buyer could not rely on it anyway.

How much does a lawyer charge for a consultation?

While lawyers typically charge a few hundred dollars an hour, a brief consultation with a lawyer is generally the way to go. It's much better for a buyer to obtain true legal advice than to try to squeeze it out of their agent just because they don't want to pay a lawyer.

Who is Elizabeth Weintraub?

Elizabeth Weintraub is a homebuying, home loans, and mortgages expert. With more than 40 years of experience in real estate, including areas such as title and escrow, Elizabeth was nominated as a founding member of the California Association of REALTORS' Real Estate Certificate Institute (RECI) and has received more than 600 hours ...

Can a real estate agent sue a buyer?

However, real estate agents can't advise a buyer to sue the seller nor guarantee the deposit will be returned. If the agent knows the buyer's deposit is at risk, they might share a few situations about the way their past clients handled these matters.

What is MLS in real estate?

In residential real estate, the MLS allows every agent in the region to search the database of homes listed. In the commercial space, you've either got to come across an ad for a space to lease, or know someone in the industry. A commercial real estate broker gives you access to an entire array of proprietary databases and commercial listings.

Do you need a realtor to buy a house?

Many people hire a real estate broker when looking to buy a new home. They understand that finding the best house for their needs often requires help from a professional who has inside knowledge of the market. However, when it comes to brokering a commercial real estate lease, many don't think the same way.

What holds a business owner back from using a commercial real estate broker?

One of the biggest misconceptions holding business owners back from using a commercial real estate broker is the amount of money they believe it will cost them. In reality, however, the landlord typically holds a percentage back specifically for their broker and the lessee's broker.

Is commercial real estate different from residential?

Knowledge of the Market. Commercial real estate is vastly different than residential real estate. The needs of the buyer or lessee vary quite a bit between different markets as well. While a person might look for a home with a view, or one that's near their work, an entrepreneur might be looking for a location that provides the most exposure, ...

Do commercial real estate brokers know each other?

Those who regularly deal in commercial real estate know each other. Because they develop professional relationships with one another, you have access to a professional network via your commercial real estate broker.

Is it normal to be emotional when negotiating?

Getting emotional about our businesses is normal. When negotiating for space and terms, emotions tend to run a bit high if you have a lot at stake. Landlords can sense a panic and many use it to drive up prices. Commercial real estate brokers take out that emotional aspect. They are able to calmly and rationally discuss your options without showing your hand to the landlord.

Why do you need a real estate agent?

One of the best reasons to hire a real estate agent is that the sellers are likely to use their own agent— and you want to keep that agent from taking over the process. In fact, the seller's agent might pressure you to let him or her represent both seller and buyer, in a " dual agency " relationship that primarily benefits the seller.

How much commission does a seller pay?

The seller typically pays the commission to both the seller's agent and your agent—usually around 5% of the sales price, to be split between the two agents. This percentage isn't cast in stone, however. For example, the seller might negotiate the percentage down if the house is particularly expensive.

Do not sell personal information?

Do Not Sell My Personal Information. It's no secret that real estate agents earn high commissions. Although the commission is usually paid by the seller, the cost may be indirectly passed on to you. And real estate lawyers charge exorbitant hourly rates.

Do you need an attorney to buy real estate?

Except in states where it's mandated, an ordinary real estate transaction doesn't require an attorney's help. By now, real estate transactions are so standardized that most people in your state will use the exact same purchase contract, just filling in a few blanks.

Can a real estate agent answer a legal question?

However, legal issues might arise that your real estate agent can't answer. In that case, you'll need an attorney's help. Although good agents know a lot about the negotiating and contracting part of the process, they can't make judgments on legal questions. For example, what if your prospective new home has an illegal in-law unit ...

Do real estate agents get paid?

Real estate agents normally work on commission, not salary. They receive their slice only after your home search is over, the contract negotiated, and the transaction complete. (In many cases, they end up doing a lot of work for nothing, perhaps because the buyers lost interest or can't close the deal.)