My spouse and i read once that if you took all real estate legal professionals in The state of illinois and laid them end to get rid of along the collar – it will be a good idea to leave them there. That’s what We read. What do you suppose that means?
We 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 back again. The Seller has your money and is eliminated. If post-Closing problems happen, Seller’s contract representations and warranties will, at best, mean expensive litigation. STIPULATION EMPTOR! “Let the buyer beware! ” real estate in halifax
Paying extra attention at the start of ad advertisement real estate transaction to “get it right” can help you tens of thousands of us dollars when the offer moves bad. It’s like the old Fram(R) oil filtration slogan during the 70’s: “You can pay myself now – or pay me later”. In commercial real estate, however, “later” may be too overdue.
Buying commercial real real estate is NOT like buying a home. It is not. It is far from. 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 property transactions considers himself or herself a “real house lawyer”, capable of managing any real estate purchase which may arise.
We all learned in law college 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 house closing, we must be competent to handle a commercial real estate final. 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 real estate.
It is a few of experience. You either understand the issues and hazards inherent in commercial real estate transactions – and learn how to deal with them – or you avoid.
A key point to consider 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.
Proficient commercial real estate practice requires focused and focused 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 failing to exercise due persistance can create a financial disaster for the commercial real estate investor. No longer be “penny wise and pound foolish”.
Should you be buying a home, hire an legal professional who regularly presents home buyers. In case you are buying commercial real estate, work with an legal professional who regularly represents commercial real real estate buyers.
Years ago My spouse and i stopped handling residential real estate transactions. As the commercial real estate legal professional, even I hire non commercial real estate counsel for my own home buys. I actually do that because household 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 honestly believe it. I believe that it is essential. In my opinion if you are heading to invest in commercial real estate, you must apply your critical thinking skills and be smart.