Commercial Real Estate transactions have the potential to be high risk due to the amount of money invested. Sometime legal issues may happen during the sale or purchase of commercial property.
Real estate property is very unique. You can’t exactly compare based on size, age, use, the state of the building, etc. Making a property evaluation of the property is very challenging. An experienced commercial appraiser can assist both buyers and sellers to help them determine if the property is really worth the price. Not giving or getting an accurate property valuation can cause potential legal issues.
When making a commercial property business transaction, investigation will be needed. The buyer must know exactly what is involved in the transaction. The buyer must know of any potential problems involved with this property’s intended use. An example of this would be , you would want to make sure that the zoning for the property allows your intended use, title of the property will identify liens, and easements, and identifying property corners will assist in identifying possible encroachments. An attorney can help you avoid a costly error. You will want to contact an experienced real estate lawyer.
When you plan to purchase a piece of commercial real estate, you will want to make sure that you are not assuming liability for any previous violations of law. If you buy a property, you don’t want to later find out something such as environmental hazards exist there. You would be liable to take care of this problem. Even if you were not the cause of the problem, you will still have to be the individual to provide a solution for it. This could be very costly.
Real estate is definitely an investment for a business. These purchases can also tie up your liquid assets. The period of time that this might happen for varies, but it could be a lengthy amount of time. If you are struggling to collect rent from your tenants or you can’t seem to fill up empty rooms, this may leave you struggling to make the required payments to your financial company. If you try to sell a property due to financial problems, it may take some time. It will more likely take more time if the market is down. You should evaluate your risks before you decide to make a business transaction.
If you are considering buying or selling commercial property, then you are going to want to contact a real estate lawyer. Palacios Law Group is always here to help and answer any of your questions!
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