If you are the chief executive officer of a small corporation, you might not have a large legal department. But any time you decide to engage in the acquisition of commercial real estate, it is imperative that you consult with a corporate real estate attorney. The following are a few reasons why this is important.
1. To protect your company from a liability
There may be financial traps that await you after a purchase is complete, and although there can be no guarantee that all the risk is eliminated when you hire an attorney, much of it is mitigated. Hidden debt that will become yours can be discovered before the deal is finalized. In addition, your attorney can find any pending lawsuits. Of course, none of the information found will mean the deal is bad, but you will know what you are getting so there will be less of a chance of any surprises.
2. To protect your company from buying in the wrong location
There are a variety of zoning laws, and they vary by city and county. You may have a specific use planned for the property, but it may not be allowed in the particular area you are buying. Once you explain what you will be doing, a real estate attorney can research the zoning restrictions. This takes on greater significance if you are planning on demolishing an existing structure and building something new on the land.
3. To protect your company from overlooked contracts
There are often many documents that are overlooked when buying property, but these are an important part of a real estate deal. If, for example, you are buying commercial office space with tenants, there will be lease agreements that you'll need to review. If you are buying a new building, you will want an attorney to review any warranties that are provided by the builder. There is also a sales or purchase agreement that you will want an attorney to review before finalizing the deal.
Regardless of the type of business your company is engaged in, if you're ready to buy property, then you should speak to an attorney about the real estate you are looking at. They can review all the contracts related to the property and look at any liabilities the current property owner has related to the property. Your attorney will examine any important local ordinances pertaining to your business and the intended use of the land or building before they review the final contract.