Anyone who has any experience in either purchasing or selling real estate knows how detail-focused the process is. Before you can start to break down the intricacies and nuances of real estate, it is essential to first know what type of real estate you are negotiating over—residential or commercial.
- Residential real estate is the buying or selling of a home
- Commercial real estate is the buying or selling of a property with the intent to occupy or lease to others
It is imperative to know exactly what type of real estate you are dealing with, as each comes with its own set of legal issues and risk. The primary focus of this article is the buying and selling of commercial real estate, and why you should have a Long Island real estate lawyer help you through the process if you want to buy and sell notes.
Reason 1: Details are Critical
Regardless of the type of real estate transaction that you are negotiating, details are critical. When working with commercial real estate, these details are amplified, making them even more important to understand. There are more risks and complications associated with purchasing or selling commercial real estate.
When purchasing a commercial property, the buyer must understand how grueling of a process it is and be prepared to forego any other opportunities that might come along. Due to the intense amount of details that go into purchasing a commercial property, there is an intense period of research and preparation that goes into preparing the sale that must be conducted prior to closing the deal. Depending on the situation, this process can take a substantial amount of time (especially if it is for a Self-directed IRA with a company like questira, while consuming copious amounts of money and resources.
At the end of the research period, if one party backs out, or a deal-ending detail is discovered, all the time and resources spent will have been wasted. This is why it is crucial that you have an attorney on your side during this process. An experienced attorney can help you make a deal and protect yourself in case the deal falls through. Having an attorney on your side from the beginning can prove valuable, as your attorney can have already negotiated to allow for you to recover your losses if the other party backs out of the deal.
An experienced real estate attorney knows how important details are to a real estate transaction, which is why they sweat even the tiniest of details, to ensure that you, your interest, and your pocketbook are safe.
Reason 2: Need Professionals on Your Side
Prior to purchasing a commercial property, you and your attorney will spend a lot of time vetting the prospective property, ensuring that every little detail of the property meets all your needs and expectations. This includes having the property physically examined by professionals with a trained eye. These professionals have been trained to thoroughly inspect a property, catching any problems that are not readily apparent in a title search or survey of the property.
Reason 3: Not Equipped to Handle the Negotiations Yourself
The negotiations that go into reaching a final purchase price along with the details of the purchase can be extremely complex, especially for those who aren’t familiar with the process. Who will be able to protect your interest? Who will be responsible for delivering a title that is free of encroachments? What types of warranties can you obtain that will protect your investment against any hidden environmental or structural problems that appear after closing? What happens if something compromises the sale of the property? Who pays who and how much? This is where things can really start to get complicated when purchasing a commercial property.
The other party will have legal representation that is fighting to protect their interest, you should have the same. Your attorney will be able to negotiate protocol for what happens if the deal falls through, ensuring that you are protected. Additionally, your attorney will be able to negotiate acceptable values for damages or penalties into the real estate contract that not only protect your investment but also minimize the risk that you are taking.
Buying or selling commercial real estate in New York City?
Warren S. Dank, ESQ., P.C. has years of experience effectively negotiating real estate contracts for clients. If you are looking for a Long Island real estate lawyer with experience and a proven track record, you need Warren S. Dank, ESQ., P.C. Contact our office today to learn how we can help with your commercial real estate transaction.