When a business routinely engages in commercial real estate transactions, the company may prefer to manage most aspects of those transactions in-house. Many aspects of the commercial real estate purchase and sale process will be familiar and quite comfortable for the internal team. However, there may still be occasions when a transaction is unusually complex or involves aspects outside the ordinary course of business for that organization. In those circumstances, it pays to have outside counsel familiar with the company’s operations standing by to offer guidance and ensure that every detail is addressed.
Complications in Commercial Real Estate Transactions
A commercial real estate transaction may involve complexities or unexpected facets when:
- The property being purchased or sold comes including not just the premises, but equipment or other non-real property
- There are multiple liens or other encumbrances on the property being transferred
- The property is located in another state, where substantive and procedural requirements may differ
- The negotiation is contentious or there are multiple parties in interest
- There are outstanding legal claims relating to the property or known potential claims
- There are outstanding receivables associated with the property and ongoing relationships, such as tenants currently residing or operating businesses in the building
- There are building code or environmental issues that require remedying, either known or uncovered during due diligence
- There are problems or inconsistencies with the legal description of the property or the chain of title
- Unexpected delays take the transaction outside the agreed loan contingency period, jeopardizing the agreement
This is just a short list of possible complications that may arise in the course of a commercial real estate transaction. The very fact that this list is not and cannot be exhaustive is the reason your company will benefit from having seasoned commercial real estate attorneys at the ready.
In order to ensure that your company’s interests are fully protected in each commercial real estate transaction you undertake, consider the following steps:
Develop a relationship with a law firm like ours, that has expertise in all aspects of commercial real estate transactions
Reach out whenever a question arises or a transaction involves an unfamiliar element or the transaction is based in an unfamiliar jurisdiction
When in doubt, get an outside review; sometimes a consideration will not even be on your team’s radar if it is far outside the norm for your transactions
Enjoy the Best of Both Worlds in Handling Commercial Real Estate Transactions
When your in-house team manages commercial real estate transactions but has a solid, trusting relationship with experts in all aspects of commercial real estate law, then your company reaps the benefits of both approaches. Your organization will:
- Retain internal control and management by in-house staff who have intimate knowledge of your operations, the purpose of the transaction, and how it relates to your business
- Manage costs by seeking outside guidance only when you need it to ensure that your interests are protected, all while allowing your internal team to handle the more routine pieces
- Enjoy the protection of having experienced commercial real estate attorneys at the ready, well-versed in the intricacies that may arise infrequently for your team
Have Experienced Commercial Real Estate Transaction Counseling Lawyers at the Ready
The attorneys in our firm have years of experience managing all aspects of commercial real estate transactions, including many issues that arise infrequently and may be new territory for an organization’s in-house team. For many companies, we provide a full range of commercial real estate transaction services, including negotiation and drafting or review of contracts. However, our goal is to provide the services that best fit your business and your needs.
When you retain our firm to provide commercial real estate transaction counseling, we will take the time to acquaint ourselves with your team and your operations, so that we are able to provide services that directly addresses your goals and needs. Then, we will back up and assist your internal team as needed, whether that means:
- Taking a call to provide a quick explanation of an unfamiliar term
- Entering negotiations when your team has encountered an obstacle
- Reviewing a contract your team has drafted or received, or
- Providing other support as needed
When complications arise, you do not want to find yourself in the position of trying to locate and educate reliable professionals on short notice, perhaps on an emergency basis. Making the investment in building a relationship with knowledgeable attorneys you can trust today, before the crisis arises, will give you security and control when the need arises. Contact KPPB LAW for more information.