The helping hand.
Though not obligatory, hiring an attorney can be extremely beneficial and time saving. Legal assistance may be costly, yet simultaneously it can save you a tremendous deal of distress and costs arising from future disputes. The role of a commercial real estate attorney is, but not limited to, the following:
1. Guiding you the negotiation process. A seller, typically, has experience when negotiating a purchase agreement. Thus, he/she is able to tilt favor towards his/her side. An attorney would analyze the agreement, perhaps draft one of his own, to ensure a fair result. Several terms that appear satisfactory on their surface may nonetheless be harmful to the buyer after the transaction is complete. An attorney assists a buyer in creating an agreement that caters to his/her business needs, and disambiguates certain provisions.
2. Explaining taxation, financing, and the whole 9 yards. Occasionally, purchasing commercial property has tax consequences; the buyer may have an amplified property tax burden. Almost all undertakings involve additional taxation, including subletting. Your attorney should enlighten you, the buyer, about prospective costs and the ways to avoid undue weight. Also, a lawyer would propose financing options.
3. Reviewing title. A thorough title search, often conducted by a title insurance company, ascertains the validity of a seller's property. An attorney should review these documents. In situations where title insurance isn't required, (like in several states), hiring an attorney to review the title and give an opinion is certainly suggested.
4. Explaining commercial property survey/zoning. An attorney should obtain a property survey for the buyer. The survey determines the property's marketability, whether the structure is within certified borders, and whether there are any encroachments. Zoning information will determine legal business possibilities along with restrictions (size, business type, etc).
5. Being there for the very end. The closing of your CRE purchase may be hectic. Your attorney should be present at the closing, having already described all of the documents and provisions. At closing, final signatures are made, money transferred, and provisions "engraved." An experienced professional can alleviate confusion and uncertainty.
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