Thinking of purchasing or selling a commercial property? We can help. The term “Commercial Property” generally refers to any building or land intended to generate a profit. The term “Commercial” is important because it has implications about financing, taxes, and laws that govern the relationship between Landlord and Tenants, as well as Landlord and governing authorities.
Commercial property Landlords, for example, can utilize the ”triple net lease,” where the risks are passed on to the leasing business to an extent that is not available to residential real estate Landlords. In Other words, the commercial Tenant or lessee may agree to pay all real estate taxes, building insurance, and maintenance (the three “nets”) on the property in addition to any normal fees that are expected under the agreement (rent, utilities, etc.).
We represent clients in all phases of real estate matters, assisting clients in the following:
Common Pitfalls To Watch Out For:
1. Environmental Inspection.
Hazardous waste and soil contamination can cost from a few thousand to millions of dollars in remediation costs. The Seller is responsible for the cleanup cost, even if the Seller is not responsible for causing the contamination. Consult with an attorney to guide you through the process. Do not buy a problem.
2. Marketable Title vs. Clear Title.
A property with a clear title is free from all encumbrances. These are not necessarily financial. Encumbrances may include liens or judgments from previous owners, but they can also include covenants about the ways in which the property can be used. On the other hand, a property with a marketable title may have certain encumbrances but the title is clear enough to sell at a fair market price. Consult with an attorney to help you understand any title issues.
3. Zoning and Land Use.
Zoning laws dictate the use of your business property, because they determine availabilities of practice on your property by the municipal government. These laws are subject to change by government agencies as well as your neighbors, so it is important to know the zoning laws and inspect the zoning permits of the prospective property as well as nearby properties and businesses.