A substantial number of commercial deals that fall through can be traced to the advice of, or lack thereof, an Attorney.
There are many reasons why this could happen. These include, but are not limited to, a real estate agent or client forgetting to, or choosing not to, consult legal advice on a million-dollar deal. Part of a commercial real estate agent’s due diligence is to ensure clients have access to real estate professionals engaged at every step of the transaction. These include lawyers, certified inspection officers, commercial lenders, among others.
The best advice a commercial real estate agent can give to a client, at the very least, is to consult legal advice on a drawn contract prior to making an offer.
Below are some thoughts on commercial real estate deals.
• To keep a buyer/sellers attorney from destroying the deal, talk to a lawyer and consider including them in your team.
• Partner with a great commercial realtor and brokerage.
• Inspection is one piece of due diligence.
• Real estate agents should manage the attorney’s engagement in the deal with great diplomacy.
• A letter of intent is not always a binding document, the contract is.
• Own property and be a lessor, commercial real estate is a great place to be.
• It takes months to find a good commercial property.
• Real estate agents should advise clients to get a pre-approval, it puts them weeks ahead of the lender’s due diligence process.
• Understand how 1031 exchanges can work to your advantage by deferring all capital gain taxes when rolling over real estate investment properties.
Contact me for more information.
Note: This blog is not intended to provide legal advice. Please contact a or your real estate lawyer if you have any legal questions on a commercial transaction.
Published on 2017-09-16 16:28:16
