The laws governing commercial real estate deals are complex. Transactions are affected by a number of legalities, including contractual provisions, statutory limitations, and local or county restrictions. At any point during the purchase or sale of a commercial property, some legal issues could come up, putting a deal at risk of falling through or having the potential to cost a buyer or seller a significant amount of money. Here are a few of the most common issues real estate attorneys help their clients deal with when trying to close a commercial real estate transaction. 

3 Legal Issues That Often Arise When Buying or Selling Commercial Real Estate 

1. Assumption of Liability 

When purchasing a commercial property, buyers must ensure they won’t become legally responsible for any environmental hazards that were the result of a previous owner’s violations. If property ownership transfers without this knowledge, the buyer is liable for damages caused by the hazard, as well as held accountable for making sure the hazard is eliminated and the property is restored to environmentally safe levels.

2. Title Defects 

One of the most critical steps in closing a commercial real estate deal is doing a title search. This will let the buyer know whether a property is clear of any liens against the title or if there is someone else’s name on the deed. Failing to identify these details before assuming ownership could lead to lawsuits and other legal troubles in the future. 

3. Zoning & Land Use 

Before investing in commercial real estate, it’s essential for buyers to learn of any zoning or land use restrictions that may be placed on the property. A transaction could turn out to be disastrous if it’s only discovered after the paperwork is signed that the property cannot be used as the buyer intended. It will also help determine boundary lines and the presence of easements to avoid allegations of encroachment. 

Anyone involved in a commercial real estate transaction should have legal representation to advocate on their behalf. Choose an attorney who is qualified to handle the challenges these types of issues present. Stuart R. Norman Jr. has over 40 years of experience in real estate law. He is well-versed in all the local, state, and federal statutes that can come into play when buying or selling a commercial property and understands how to successfully work out potential pitfalls. Contact his practice in Jewett City, CT, at (860) 376-0069, or visit him online for additional information.