My spouse and i read once that if you took all real estate legal representatives in The state of illinois and laid them end to finish along the collar – it might be a good idea to leave them there. That’s what We read. What do you suppose that means? The Mahtani Group
I actually have written before about the need to exercise due diligence when purchasing commercial real estate. The need to investigate, before Closing, every significant aspect of the property you are acquiring. The importance of evaluating each commercial real estate transaction with a mindset that once the Closing occurs, there is no going again. The Seller has your money and is removed. If post-Closing problems come up, Seller’s contract representations and warranties will, at best, mean expensive litigation. STIPULATION EMPTOR! “Let the buyer beware! ”
Paying extra attention at the starting of ad advertisement real estate transaction to “get it right” conserve tens of thousands of us dollars when the offer will go bad. It’s like the old Fram(R) oil filtration system slogan during the 70’s: “You can pay me personally now – or pay me later”. In commercial real estate, however, “later” may be too past due.
Buying commercial real house is NOT like buying a home. It is not. Not necessarily. It is NOT.
In Illinois, and many more states, almost every residential real property closing needs a legal professional for the buyer and a legal professional for the seller. This might be smart. It is good consumer protection.
The “problem” this causes, however, is that every legal professional handling residential real house transactions considers himself or herself a “real house lawyer”, capable of managing any real estate purchase which may arise.
All of us learned in law university that there are only two sorts of property: real estate and personal property. Therefore – we intuit – if we are competent to deal with a residential real real estate closing, we must be competent to handle a commercial real estate shutting. They are each “real estate”, right?
ANSWER: Certainly, they are each real estate. No, they are different.
The legal issues and risks in a commercial real estate purchase are remarkably not the same as the legal issues and dangers in a residential real estate transaction. Most are not really remotely similar. Attorneys concentrating their practice handling residential real property closings do not face the same issues as attorneys concentrating their practice in commercial real property.
It is a few of experience. You either know the dimensions of the issues and dangers inherent in commercial real estate transactions – and learn how to deal with them – or you no longer.
A key point to not forget is that the myriad consumer protection laws that protect residential home buyers have no application to – and provide no safeguard for – buyers of commercial real estate.
Qualified commercial real estate practice requires focused and centered investigation of all issues material to the deal by someone who is aware of what they are looking for. In short, it requires the exercise of “due diligence”.
I acknowledge – the exercise of due diligence is not cheap, but the inability to exercise due persistence can create a financial disaster for the commercial real estate investor. No longer be “penny wise and pound foolish”.
In case you are buying a home, hire an legal professional who regularly presents home buyers. In case you are buying commercial real estate, retain the services of an legal professional who regularly represents commercial real real estate buyers.
Years ago I actually stopped handling residential real estate transactions. As an energetic commercial real estate lawyer, even I hire household real estate counsel for my own home buys. I really do that because non commercial real estate practice is fundamentally different from commercial real estate.
Maybe I actually do “harp” on the need for competent lawyer experienced in commercial real estate transactions. I truly believe it. I imagine it is essential. I really believe if you are heading to invest in commercial real estate, you must apply your critical thinking skills and be smart.