4 Common Commercial Real Estate Legal Issues
As you deal with your next commercial real estate transaction, there is an almost endless number of legal issues that may arise during negotiations, at closing, or afterward. Working with a South Florida commercial real estate attorney is a must when dealing with any of the common legal scenarios below:
Zoning and Land Use
Proper due diligence will help you avoid most zoning and land use issues. When you rush into a deal, the possibility of an unforeseen zoning issue is always present, and it can be highly detrimental to your goals. Your attorney can assist with ensuring your property can be utilized the way you intend, obtain local permits for your business or any new construction, and handle other tasks related to zoning.
Assumption of Liability
Multiple due diligence steps are necessary to guarantee a successful commercial real estate transaction and ensure that you assume no liability from the prior owner. For example, there may be preexisting environmental hazards that you may be liable for once you acquire the property. This can cost a substantial and unexpected amount, however you can shift the financial liability to the prior owner with a properly structured purchase agreement.
Title Defects
A commercial real estate attorney in South Florida can handle your title search, and it is often recommended. Title defects can bring any transaction to a halt, and a thorough search is necessary to ensure that any hidden defects are uncovered. An expert attorney will be able to guarantee a clear and defect-free title prior to your closing. A worst case scenario is having to deal with title defects after you have committed to buying a commercial property.
Reps and Warranties
Representations are factual statements while warranties are promises of indemnity for false statements. Generally, buyers of commercial real estate will want a contract that is full of as many reps and warranties as possible that verify income, expenses, the condition of the building and more. However, sellers will often want to negotiate a contract that contains few if any reps and warranties, or selling the property ‘as is.’
Every situation is different, and that’s why meeting with a commercial real estate attorney in South Florida is of the utmost importance when dealing with any of these and the myriad other legal issues that may arise.
Contact Schecter Law today at (954) 779-7009 with any questions you may have about commercial real estate legal issues.
