If you are considering buying or selling real estate in a commercial capacity, there are a number of conditions and contract terms to include in order to properly secure the deal.
The following discusses some of the top legal notions to consider when engaging in a real property transaction, and our Ft. Lauderdale real estate attorneys can help ensure your purchase agreement is ironclad and adequately protects your interest.
#5: Financing Contingencies: Commercial real estate transactions often involve high-value properties, particularly in the Ft. Lauderdale area. If you are selling property, decide whether you wish to include a financing contingency in you deal. This condition could broaden your list of potential buyers, but could also result in deals that “fall through” if financing cannot be obtained by the buyer.
#4: Closing Date: Choosing a definitive closing date is one way to ensure buyers and sellers work diligently to reach a conclusion to the deal. However, the date should be realistic, and not too soon so as to set up both sides for breach. Likewise, choosing a closing date several months in the future could leave way too much wiggle room for problems and disagreements to arise. As always, our team of real estate attorneys can advise you as to the best way to handle this situation.
#3: Type of Deed: One very important detail to work out is the type of deed the buyer will expect from the seller. Different deeds convey different warranties in the property, ranging from buying “as is” to guaranteeing the property free and clear of problems. In a general warranty deed, for example, the seller guarantees to the buyer that the property is clear of “clouds on the title,” including encumbrances, liens, and outstanding mortgages. By contrast, a quitclaim deed does nothing more than transfer ownership from seller to buyer, and it becomes the buyer’s responsibility to check for problems with the title.
#2: Inspection & Survey: If a property has not been transferred for several decades, it may be prudent for a buyer to require an inspection and survey, particularly if the buyer needs the building for a specific commercial purpose. The purchase agreement may contain a contingency clause addressing the outcome of these procedures, including a release of the buyer if the inspection survey reveals major problems – which should be specifically defined.
#1: Closing Procedures: With a commercial real estate transaction, there will be a number of closing fees, taxes, and expenses for both parties to consider. With the high-value real estate often involved in a commercial deal, these collateral expenses can be exceptionally impactful, often in the tens of thousands of dollars. In order to avoid major stress – or a total breakdown of the deal – our real estate attorneys suggest working these costs out ahead of time and arriving at a mutually-agreeable allocation of closing costs.
Contact a Ft. Lauderdale Real Estate Attorney Today
We are exceptionally familiar with the Ft. Lauderdale real estate market and we can help your business work through the purchase or sale of valuable commercial property. For more information, or to get started on the process, please contact Michael Feinstein today.