Knowing how to fix real estate problems with the help of a real estate attorney is one of the most valuable assets to have today in commercial business. Commercial real estate is a multibillion-dollar industry, with hundreds of property deals going through every single day. While a good deal can be worth every penny, it is still prudent to enlist an experienced and reputable real estate attorney to assist with purchase contracts, lease agreements, disputes, titles, and more.
The Top 4 Most Common Real Estate Issues
Commercial real estate can combine multiple areas of complex law such as real estate, business, and finance law, making it necessary to posses a wide breadth of knowledge to navigate the top 4 most common real estate issues that generally require the assistance of a real estate attorney:
- Commercial lease agreements and disputes
- Construction agreements
- Eminent domain
- Title insurance or title exams
Do not let the fact that these issues are common underestimate their seriousness. Without proper legal counsel to advise in these situations, one or more parties could be at risk of having their rights unprotected and losing money.
Commercial Lease Agreements and Disputes
A commercial lease is typically entered into by two different parties, and how well a lease is crafted can significantly impact the lease dispute process. It is best to have an experienced attorney review a lease agreement prior to signing it to address any financial liabilities or potential loopholes before they become a problem.
Some of the most common commercial real estate issues for lease agreements and disputes include:
- Land use
- Rent increases
On average, a single commercial lease can be worth millions, making the need for solid lease agreements or well executed disputes a necessity in protecting a client’s investment.
Most construction agreements affect far more than a single construction company. Construction law generally affects multiple parties such as building owners, contractors, developers, and material suppliers. A reputable real estate attorney can help draw up or decipher construction agreements for clients as well as represent them should a dispute arise.
Additional areas in which an attorney can assist with construction agreements can include:
- Abandonment claims
- Construction litigation
- Delay claims
- Defect litigation
- Lien claims
- Payment disputes
Having a real estate attorney’s expertise can help keep a landowner from absorbing exorbitant costs from commercial construction contracts.
As cities across the nation continue to rapidly expand power lines, roadways, and sewer lines, eminent domain (or the government’s ability to take private land for its own use if compensating the property owner) is alive and well.
Real estate attorneys can be invaluable in ensuring fairness of eminent domain issues such as:
- Defining characteristics of the property including size, current use, accessibility, etc.
- Establishing a fair market value for the property
- Obtaining proper compensation for the property
- Debating and determining if the property will indeed be used for public use
- Challenging eminent domain if necessary
Title Insurance and Title Exams
It is important to note that title insurance and title exams are separate terms with different meanings within commercial real estate.
Title insurance is designed to help protect a buyer regarding purchasing issues and chain of title. Titles for commercial real estate properties are typically much more complex than those for residential, and most require the legal knowledge and expertise of a real estate attorney. Title insurance is an important part of the due diligence and closing processes of commercial real estate.
The purpose of a title exam is to search for any encumbrances on a property and to ensure it is truly ready for sale. Some examples of encumbrances against commercial real estate include:
- Deed restrictions
How to Fix Real Estate Problems with a Real Estate Attorney
Do not wonder how to fix real estate problems with a real estate attorney when you are already knee deep in negotiations for buying or selling a property. It is highly recommended to enlist legal counsel before ever beginning to negotiate the terms of a sale. Doing so can provide critical benefits to clients, such as:
Legal knowledge of commercial real estate.
Everything from contracts to zoning laws to due diligence can be infinitely more complicated for commercial real estate. It is crucial that an attorney be able to decipher the language and concepts in a legal document to ensure the client understands the verbiage more clearly, minus complicated legal speak.
Familiarity with local and federal commercial real estate law.
In order to close any open loopholes that could be damaging in the future, it is key to have legal counsel with an intimate understanding of both local and federal law as it relates to commercial real estate issues.
Just because something is presented to a client in an unsigned contract does not mean it cannot be negotiated. It is recommended to have a qualified attorney review contracts or purchase agreements in full before signing so they can ensure that the document is in the client’s best interest.
Protection of your rights.
No matter the size of the company or the dollar signs on the price tag, commercial real estate deals can see a number of unexpected challenges in the form of structural concerns, environmental issues, and deals that fall through. An attorney knows how to best protect a client’s interest from contract negotiation all the way through post-closing situations.
Whether you are a Fortune 500 company or one that is slightly smaller, buying and selling property takes far more time than most realize. Finding the right property or buyer is only half of the equation when it comes to commercial real estate. The other half deals with research and due diligence that can ultimately yield more clarity and confidence about purchase agreements.
With the possible issues facing commercial properties, understanding how to fix real estate problems with the help of a real estate attorney ensures every important aspect has been considered, adding some valuable peace of mind to the process.