Buying and Selling Commercial Real Estate
Serving Waukegan, Libertyville, Lake County, Gurnee & nearby areas of Illinois
Commercial real estate transactions are typically more complex than residential transactions. Usually, they involve large sums of money and increased liability for both parties. Unlike a residential transaction where the law provides basic consumer protection for the buyer, the law takes a neutral approach to its treatment of commercial transactions.
Courts expect that both parties to commercial real estate transactions are sophisticated enough to understand the contract terms. Therefore, they will hold the parties to the terms of any sales agreement - absent illegality or fraud. For these reasons and others, a buyer and seller of commercial real estate should both have an attorney to help close the deal.
Buying and selling commercial real estate is typically subject to intense negotiation. Buyers are expected to conduct due diligence including a) confirming the income generated by the property, b) determining the expenses associated with ownership, and c) satisfying themselves as to the physical condition of the property and upgrades and repairs which might be needed. The seller and buyer typically negotiate concessions to address these issues.
Environmental clean-up can cost more than the property itself is worth. The process of buying and selling commercial real estate requires various types of professional assessments to ensure that the new buyer is not taking on an eventual liability.
The buyer must evaluate the strength of any tenants in the property and whether they can afford to pay the mortgage and real estate taxes if one or more tenants breaks their lease or chooses not to renew.
A Commercial Real Estate Lawyer can help. The law surrounding the purchase and sale of commercial reseal estate is complicated. Plus, the facts of each case are unique. This article provides a brief, general introduction to the topic. For more detailed, specific information, please contact us for more information.