3 Ways A Real Estate Attorney Can Help A First-Time Commercial Real Estate Investor
Posted on: 6 December 2019Share
Real estate attorneys are important if you plan on investing in commercial real estate, especially if this is your first time. Not only can they help protect your investment from a variety of circumstances that can cost you money, but they can also help you determine if a property will be worth buying or selling. The following are just a few examples of the ways real estate legal services can help you with commercial property investments.
1. They can examine the current leases
If there are existing tenants that are leasing the property, there will likely be lease agreements, and not all of these leases may be the same. It is important that an attorney looks at these leases before you make a commitment to buying the property. You will be responsible for the content of the leases, and you don't want to be surprised by a clause that you didn't know about or understand. Although buying a property that is fully occupied is a great selling point to a real estate investor, first-time investors can easily overlook issues related to the leases of the tenants.
2. They can explain existing zoning laws
Municipal zoning laws are not simply a matter of real estate that is zoned for residential or commercial use. These laws can be complex. If you have your eye on a piece of property that you would like to change to a different commercial use, you may not be able to do so. An attorney can explain the current zoning laws regarding the specific location of the property you are interested in. It may be that the property is not zoned the way it needs to be for your future development plans. An attorney can assist you in working with the city council to change the zoning laws.
3. They can analyze your liability issues
Depending upon the nature of the property you are investing in, there can be liability issues that the current owner is not advertising. There may be litigation that, although you are aware of, is more serious than you realize. It may be that the current insurance for liability on the property is much to low, and you may be stuck with a larger insurance bill if you want to have the proper amount of liability protection. An attorney can look at the property and uncover any current lawsuits as well as the amount of insurance you need to carry if you were to purchase the property.
People often think of attorneys as something you use when a legal problem develops, and to a certain extent, this is true. But a real estate lawyer can also be of great value when investing in property, and there is no better example than the circumstances of a first-time investor. Before you agree to purchase any commercial property, you need to consult with an attorney.