Investing in Commercial Real Estate

Commercial real estate investment can be profitable. However if you are not careful you can find yourself entangled in many legal issues.

Documents

When you invest in commercial real estate, you will be required to enter into a legally binding contract with the seller. This contract will determine your rights and obligations. It will also provide the seller’s rights and obligations. You must read the contract carefully and understand your rights and obligations. Not doing so may prove costly in the long run. A commercial real estate investment transaction will involve many other documents such as the purchase agreement and closing documents. You must review the abstract of title, insurance or other evidence of title. You must ensure that the title to the property is clear and transferable. You must check to see if there are any covenants, easements, liens, etc. registered against the property.

Closing

At the closing your must execute and exchange the required documents and transfer the sale proceeds to the seller. Commercial real estate transactions are governed by different sets of federal, state and local laws. You must ensure that your transaction complies with all the applicable laws.

How an Attorney Can Help

A commercial real estate attorney can be of immense help when you are investing in commercial real estate. The attorney can simplify the legal aspect of your investment. Here are some of the ways a commercial real estate attorney can help you:

• Explain your rights and obligations
• Inform you if the seller breaches his or her obligations and advise you on your remedies
• Prepare the necessary documents         
• Review abstract of the title
• Confirm if the title can be transferred to you
• Check for covenants, liens, easements, etc against the property
• Handle the closing        
• Ensure the transaction confirms to all applicable federal, state and local laws
• Analyze and advise you on the legal implications of any decision you take during the transaction
• File the necessary documents with the local authorities
• Advise you on your legal remedies if the transaction does not materialize
• Advise you on how to avoid any likely litigation that can arise from the transaction and the costs and implications of such litigation
• Ensure that the seller has made the required disclosure

Getting Legal Help

If you are investing in commercial real estate, consult with an experienced commercial real estate attorney. The attorney can ensure that your investment is hassle free from the legal point of view. The fees you pay the attorney will be well worth in the long run.