When it comes to commercial real estate transactions, as with any contract of sufficient complexity, there are many ways that the deal can go sideways. The reality of the matter is that a poorly constructed contract or difficult transaction process can turn a great deal into a nightmare, draining a good prospect of its value. If you are considering a commercial real estate deal, it is important to make sure that you have a professional team around you to help navigate some of the trickier aspects of commercial real estate.
You might think that since a deal is occurring in the professional realm that the contract will be professional and well-constructed. Sadly, this is often not the case. Real estate contracts are often plagued with vague and misleading wording that either side may interpret in vastly different ways. If you do not properly vet the contract with a legal professional before signing on the dotted line, you may take on liabilities you do not anticipate.
With any piece of real estate, it is important to be diligent and make sure that the underlying property is not hiding any nasty surprises. This might mean a physical problem that you didn’t see during the initial walkthrough, but it may also be something more complicated and difficult to identify. Even if you think you’ve found the perfect spot for your business, the city or county where it resides may have zoning restrictions leveed on the property that may make your business more difficult to operate. Similarly, you might be purchasing a piece of property that does not have a clear title, which can cause serious headaches later on if some party or another emerges with a claim to it. An experienced attorney can help you sniff out these issues before they can become a problem.
Real estate transactions do not have to be a nightmare. However, without proper guidance, they can easily become one. With the help of an experienced attorney, you can navigate the tricky terrain of real estate transactions and deal with any problems that arise professionally.
Source: The Daily Report, “Ten Pitfalls in Commercial Real Estate Transactions,” Simon Bloom and Shannan Oliver, accessed March 10, 2017