posted byBagasian LawFebruary 24, 2021
Commercial real estate disputes can be very complex especially since they often involve large sums of money and more than one owner.
However, with legal help from a business attorney, your commercial real estate case will be settled.
In this article, we are going to discuss:
Commercial real estate is a property that is meant to generate profit, whether through rentals for living or for businesses, such as retail spaces, malls, or facilities.
There are a number of reasons a commercial real estate dispute arises.
A commercial real estate dispute may emerge from a breach of contract. Most, if not all, real estate transactions are defined by a contract, whether that is a leasing agreement or a contract of sale.
Since commercial real estate transitions involve very large sums of money, a contract will be required. However, a dispute may emerge if this contract is breached, for example, if one party does not fulfill their obligation to maintain the property as the contract states.
Additionally, a commercial real estate dispute may be due to problems between co-owners of a property. A co-owner dispute arises when a property is owned by more than one person or organization.
These disputes can arise for a number of reasons, such as disagreements on selling the property, payment from tenants, or maintaining the property.
Because real estate is not like money, which can be easily divided amongst owners, co-owner disputes can become complicated.
Commercial real estate disputes may also emerge from real estate fraud, which is when there are issues with a property that are not disclosed.
Commercial real estate fraud can also occur if someone sells a property that they only partly own or do not have the full rights to. Consequently, the buyer has no rights to the property they purchased.
As previously mentioned, commercial real estate is a property that is meant to generate income. Since this is mainly done through rentals, these spaces are larger and more expensive than residential properties.
Often, commercial real estate is leased to a business or multiple businesses that also generate profit.
Investopedia breaks commercial property into four categories: office spaces, industrial, multi-family rentals, and retail.
Additionally, since commercial real estate is very expensive and requires large amounts of capital, it is often owned by a number of investors, which is why co-owner disputes are common.
Commercial real estate leases are also different from residential leases in that the tenant is charged by the square foot, while in residential property rentals tenants pay per month.
Another important difference between commercial and residential real estate is that commercial property leases tend to be much longer.
While residential leases can last a year or two, commercial leases begin at a 10-year lease. This is because commercial renters, like businesses, are going to invest more money into the property, will not be able to move quickly, and often have specific requirements for their space.
First and foremost, a business attorney will give you recommendations prior to entering into a business deal or contract . Working with an attorney from the beginning will help you avoid real estate fraud and co-owner disputes.
For example, an attorney will be able to draft the necessary contracts for any commercial real estate transaction to ensure that both you and your business are protected.
Additionally, a business attorney will help you draft the documents needed to start your operations. Whether you need to create a leasing agreement for a business moving into your commercial property or draft a co-ownership contract, an attorney will know how to protect you.
If you are a business owner moving into a commercial space, an attorney will keep you informed about regulations in your city and state.
Because of their knowledge of real estate and the negotiations necessary to acquire or sell commercial real estate, a business lawyer can guide you through negotiations and help you choose the best deal.
Finally, if you find yourself in a commercial real estate dispute, an attorney will help build your case and offer legal solutions for your case. Whether you choose to file a lawsuit to recover unpaid rent or to resolve a co-owner dispute, a business attorney will help define your rights and fight for them.
Buying, selling, and leasing commercial property has many legal requirements and implications. Hiring legal representation ensures your contract is carried out legally, and that you, as a buyer or seller, understand the legal agreements you are engaging in.
An experienced commercial real estate attorney will help with drafting contracts and ensure the deal goes through, whether you are buying a space for your business or are renting out a multi-family residential property.
Los Angeles-based lawyer, Alina Bagasian, will provide the best legal services for your business. Possessing an understanding of commercial real estate law, Alina Bagasian is ready to represent you and provide you with excellent legal advice.
The Law Offices of Alina Bagasian have achieved 100% client satisfaction, providing clients with unlimited advice, and offering eight different services to settle or prevent any commercial real estate disputes.
Get the help you need today!