Commercial Real Estate Transactions and 5 Legal Issues to Consider

If you are looking to purchase commercial real estate, it is important to be aware of potential legal issues that could impact the transaction. Knowing what to watch out for, and having the help you need, can ensure your transaction goes smoothly from beginning to end.

Zoning Issues

When purchasing commercial real estate, you need to make sure that all the zoning is correct based on what you will be doing with the property. This is more than just confirming that the property is zoned as commercial. There are specific requirements or limitations on property based on a variety of factors, all of which should be considered. Whether you are going to use the property to grow a business that is already operating on the property or starting something new, zoning issues can be very costly and time-consuming if you don’t take care of them from the beginning.

Disputed Valuation

Getting an approximate value on a piece of residential property is fairly simple, but that is not always the case with commercial real estate. When the buyer and seller disagree on the valuation, it can lead to some heated disputes and even legal issues. Having an appraisal done by an appraiser that specializes in commercial property can help to get an accurate price so effective negotiations can begin.

Assuming Liability

When you purchase a piece of commercial real estate, you are (typically) purchasing everything to do with that real estate. This can include any liabilities that are present. For example, if a piece of property has hazardous waste on it, you will be responsible for getting it cleaned up if you make the purchase. This should be factored in when determining the purchase price, or whether you want to complete the transaction at all.

Existing Tenants

In many cases when buying commercial real estate, the building will already have tenants renting portions of the building for their businesses. Before making the purchase, make sure you know all the details of the contracts those tenants have, and whether they will remain in place after the sale has completed. Whether you would like those tenants to continue to operate in your new building, or you need them to vacate, you need to know what legal implications exist before making a purchase.

Liens and Easements

Knowing what (if any) claims against the property exist and if there are any easements in place is very important. In most cases, when you buy the commercial real estate property, you will also be “buying” these obligations. If you aren’t aware of them, it can cause some very costly problems for years to come. Having an attorney complete an in-depth title search on the property can help to minimize this risk.

Experienced Legal Help

Whether you’re buying a small piece of real estate to open a shop or a skyscraper, you will want to have an experienced commercial real estate attorney at your side. Reyes Law Group is here to work with you throughout this important process.


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Reyes Law Group

Reyes Law Group represents clients in a multi-disciplinary legal practice involving real estate transactions and litigation with a “footprint” that covers the State of Florida. Over the firm’s first 10 years, Reyes Law Group has closed over $100M in commercial closings, representing buyers and sellers in contract negotiations, due diligence, and the related title review and policy issuance related to closings. In litigation, the firm has commercial litigation experience focused on prosecuting or defending claims such as breach of contracts, partition actions, trade secret violations, and breach of non-competes. However, our firm’s MAIN FOCUS is assisting asset and loan portfolio managers, investors and private lenders with a “ 4-PILLAR APPROACH” to the legal challenges they face with non-performing assets: 1) LOAN WORKOUTS; 2) COMMERCIAL FORECLOSURES (across the State of Florida); 3) COMMERCIAL EVICTIONS; and 4) REO COMMERCIAL CLOSINGS.30+ years’ legal experience means - WE CAN HELP!

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