A few years ago, I was in a pretty serious car accident. During the aftermath, I became really familiar with a lot of different types of lawyers. I worked with personal injury lawyers, insurance lawyers, and many others. Perhaps the most important, though, was the estate planning lawyer. I was really young, and neither my wife or I had thought about starting a will. But the accident kind of scared us into it. What would happen if one of us were to die? Even when still in the hospital, I was working with the lawyer to draw up a will. Now, I have some peace and security about what the future will be like if something should happen to me. And I have a lot of experience working with various types of lawyers! The accident was kind of a blessing in disguise in that way.
If you're considering hiring a commercial real estate lawyer, you might wonder what distinguishes CRE from other parts of this field of law. You may wish to hire a commercial property real estate attorney if you're dealing with any of the following three situations.
Zoning
One of the most basic arguments for working with a commercial real estate attorney is you might have to address zoning issues. Most folks acquiring CRE will want to know they can legally use the properties for their particular plans. Zoning boards can be weird to deal with, especially if your use case differs significantly from the previous zoning of the location in question. You might have to apply for a variance if the planned usage is notably divergent from the current classification for the property.
A commercial property real estate lawyer can help you understand the current zoning of a location. Likewise, they can help you navigate the zoning system by talking with officials and assembling proposals.
Tenancy
Many commercial property owners aim to rent buildings to others. This creates a whole layer of legal issues, especially ones relating to tenant's rights.
Notably, the assignment of taxes, bills, and liability for a tenanted property can seem unusual if you're only familiar with residential real estate. You will want to be clear about who pays for taxes and bills in the agreement.
Also, you'll want clauses in the agreement outlining who is responsible for the maintenance and upkeep of the property. This is especially important because it may dovetail with liability for any accidents at the location. If a customer of a commercial renter is hurt on the premises, you'll want to know whether you might be liable for insurance purposes.
Closing
The closing process for commercial sites is often very different from what it might be with a residence. Oftentimes, multiple parties are involved with the purchase or sale of a commercial location. This introduces greater complexity because there might be investment capital clearing concurrently with loans from financial institutions.
Contingency in closing is a big deal when it comes to CRE. For example, you might make the closing contingent on zoning and permit approvals. In case either of those falls through, a commercial real estate attorney can draft the agreement to protect your rights and interests. This creates a longer checklist than you'd see with a residential purchase, but it also reduces the odds you might lose significant money if the deal collapses.
Share5 January 2022
