When investors get involved in buying, leasing or selling commercial real estate in Pennsylvania, having an experienced commercial real estate attorney on the team becomes essential. The commercial real estate (CRE) industry involves a great deal of complexity, and the legalities can become challenging to navigate without the help of a seasoned CRE attorney. As an investor, hiring an attorney can significantly decrease the risk of entering unfavorable real estate transactions and help you avoid many other potential issues.
Reviewing and negotiating contracts
An experienced CRE attorney thoroughly understands the specific language used in purchase and sale contracts for commercial real estate. They can be instrumental in identifying potential issues, such as noticing if the contract lacks language that should be included for your protection.
Additionally, an attorney may spot contract terms that unfairly favor the other party or put you at a disadvantage if disputes should arise in the future. As you work through negotiations for a potential acquisition or sale, an experienced attorney has the benefit of seeing many previous transactions and can provide valuable guidance to help structure the negotiation in your favor.
Perform due Diligence
As a real estate investor, you must perform due diligence on any potential transaction to verify whether it makes financial sense. An attorney can add value during due diligence by uncovering hidden liabilities and current or potential legal issues regarding a particular property. They can provide advice on laws regarding zoning and land use that can reveal unknown restrictions that hinder your intended plans.
Additionally, a CRE attorney will know the environmental regulations and other legal matters that can affect a property you want to purchase.
A CRE attorney can help you deal with disputes by navigating the complexities of the legal system and representing your interests if you must go to court. They can also help you avoid ending up in court or in a dispute by drafting a real estate contract that contains clear, comprehensive language that anticipates and covers a range of potential issues.
An attorney can keep you informed on applicable laws and regulations for your existing properties, including fair housing laws, changes in environmental regulations and other legal compliance information.
Although you will receive a bill for the attorney’s time, their efforts can save you significantly more in the long run. Identifying and addressing potential legal issues in the real estate contract can help avoid costly disputes and litigation later. An attorney can also save you money in the short term by helping you negotiate favorable lease rates and other contract terms that can minimize your costs and increase potential profits generated by the property.
Commercial real estate involves many rules, regulations and potential legal issues. Working with an experienced CRE attorney can help you substantially reduce risk and save money in all aspects of your commercial real estate deals.