Purchasing or leasing real estate can be one of the most significant events in a person’s life. It also can be one of the most stressful—not to mention risky—transactions one can make. Inexperienced buyers or lessors in the market for commercial real estate run the risk of making simple mistakes or oversights that can lead to significant legal or financial penalties in the future. A Chicago commercial real estate attorney can offer guidance throughout the process to help reduce liability and stress for those in the market for commercial property.
The Search for Real Estate
The first hurdle in any real estate transaction is either finding a property to lease, purchase or land on which to build. Determining that property’s value is key in negotiating a fair purchase price and obtaining financing and insurance. In commercial transactions, the business’ future income must be taken into account when determining the value of the property. Real estate lawyers can enlist commercial brokers or valuation experts to either provide a market analysis or in larger transactions appraise the property and determine a fair price based on its present and future worth.
Professionals also should be called on to assess the property for potential liabilities or violations. When the purchase is completed, all code violations become the responsibility of the owners. An experienced attorney should know what to look for and can cut through the red tape to either find a property that is in good shape or negotiate the purchase price to compensate for necessary repairs or renovations.
Negotiating the Contract
In any commercial real estate transaction contracts typically seal the deal, laying out the terms and conditions of the sale or lease. A real estate attorney can help business owners negotiate the terms of their contracts to ensure they are in the best interest of the parties.
For leased properties, the price of rent and length of the lease are only two points of negotiation. Business owners in particular should be conservative when settling on a lease term, as breaking a lease early can lead to financial penalties. A real estate lawyer can help navigate the more basic lease terms, such as CAM, as well as those that are more specific to commercial properties, such as exclusivity clauses, approved zoning uses, and local and federal compliance rules.
Enlisting the help and guidance of a qualified Chicago real estate attorney can streamline the process of buying or leasing commercial real estate, covering all the necessary bases to ensure a smooth transaction for homebuyers and business owners alike.
This document is intended for informational purposes only and is not legal advice or a substitute for consultation with a licensed legal professional in a particular case or circumstance.