Commercial real estate deals have a lot of moving parts and even the most knowledgeable seller can experience legal issues that negatively affect the deal while Selling a Commercial Property.
Some are outside of the seller’s control, but there are many common issues that you need to be aware of to prevent legal issues within your control. Below are some of the most common legal issues that can come up in a real estate transaction.
Commercial Property Insurance
Disputes with commercial property insurance are very common. Insurance companies are notorious for needling every aspect of a claim so that they can pay as little as possible. But first, let’s discuss what they typically cover:
- Machinery and equipment
- Plumbing fixtures
- Lighting fixtures
- HVAC systems
- The building itself
- Office furniture
- Items in inventory and stockrooms
Florida is home to some nasty storms, particularly hurricanes and tornados. Commercial property insurance doesn’t always cover natural disasters or floods. Be sure to have a lawyer read over your insurance policy in order to identify what is covered before signing anything.
The commercial real estate industry can be very lucrative, but you need to make sure all your bases are covered while selling a commercial property.
Assumption of Liability
Do your due diligence on the previous owners of the property. You may be liable for legal violations caused by the previous owner such as the existence of environmental hazards.
Not only are you legally liable for any violations, you also will have to bear the burden of removing the hazard and restoring the property to environmentally safe levels.
Land and Zoning Issues
The local government designates various zones for land. A piece of land can have many uses, but common designations are industrial, commercial, residential, agricultural or a combination.
Be sure to examine any zoning or land use rules for your property with your attorney. Knowing how robust your property is could increase its equity.
Title Defects and Liens
Titles can come with their own legal issues. Once again, it’s important to do due diligence on the property’s previous owner and history. Your property could have a lien on it which could significantly affect your deal.
You can easily look up this information by doing a title search. Your title could also have defects. If your deed isn’t recorded accurately, it could affect the value of the property or your ability to sell it outright.
Not Consulting a Real Estate Lawyer
The commercial real estate industry can be very lucrative, but you need to make sure all your bases are covered. A blown real estate deal can be worth hundreds of thousands or even millions of dollars.
Prepare yourself for every eventuality by utilizing an attorney well versed in Real Estate Law. Contact The Law Offices of Cipparone and Cipparone. Your real estate advisors.
**This blog is for general informational purposes only. Cipparone & Cipparone, P.A. does not distribute legal advice through this blog. As such, this blog does not constitute legal or other professional advice and no attorney-client relationship is created between the reader and Cipparone & Cipparone, P.A.