Commercial Real Estate Property Transactions
Commercial real estate property transactions are complicated. Whether one wishes to lease or utilize the property for a business, investing in commercial real estate, whether an apartment building, retail complex, manufacturing facility, or a different type of real estate asset, is an expensive and complicated proposition. The commercial real estate purchase and sale teams usually include real estate brokers, mortgage brokers, environmental consultants, escrow firms, appraisers, lenders, title teams, inspectors, and attorneys.
When selling commercial real estate assets, the process frequently involves long feasibility periods, tax considerations, environmental issues, and a complicated lending process. Although such commercial transactions may include many legal requirements, assessing the associated risks, following the established requirements, and negotiating the best terms for the transaction to be completed are essential.
What you should know about commercial real estate agreements and real estate law
Commercial Purchase and Sale Agreements. A commercial property’s purchase or sale is very different from a residential transaction. Commercial real estate requires the careful review of several real estate components that may not be included in a residential purchase or sale. These components include title policy choices, surveys, permits, hazardous materials, and ownership structures (i.e., LLC vs. individual ownership). A commercial real estate purchase and sale agreement differ from a residential contract. The agreement contains all the terms of the residential purchase and sale agreement, including leasing issues, buyer and seller representations, I.R.C. 1031 Exchange terms, the transfer of personal property (i.e., appliances), loan prepayment penalties, and several issues related to closing the transaction. We highly recommend engaging an experienced real estate attorney before signing a purchase and sale agreement to ensure that all the important issues related to commercial real estate are addressed before you are committed to the purchase or sale.
How can we help when it comes to Commercial Real Estate Property Transactions?
Our Seattle Real Estate Attorneys and firm has extensive experience in commercial real estate. Our partner, Scott Scher, is also a licensed real estate broker and a member of the Commercial Brokers Association. We have the experience to advise our clients regarding nearly all aspects of the purchase or sale, including brokerage issues, escrow management, environmental concerns, feasibility items, financing terms, title matters, a form of ownership, Letters of Intent, and the initial contract terms.
We advise our clients to engage us as soon as a purchaser or seller decides to buy or sell a commercial property. Structuring the transaction from the beginning can make the difference between a sale that closes or a purchase that results in problems that may last for years.