A commercial property sale involves the sale and transfer of property that is to be used for business purposes rather than for residential use. These can often be major transactions that involve properties that are worth large amounts. In some cases, entire lots or multiple buildings can be involved in a commercial property sale. In other cases, commercial property sales can involve smaller buildings or residential buildings that will be converted for business use.
Competition for commercial real estate is often greater than for residential property this is because businesses often compete for the best location possible for their business. Also, commercial properties are generally subject to more stringent regulations than residential properties.
What Are Some Legal Issues Associated with a Sale of Commercial Property?
Commercial property sales can often be complex and may be associated with various legal issues. These may include:
- Land use: Commercial property must generally be used only for commercial uses, not residential (and vice-versa).
- Zoning: The commercial property must only be operated in areas that are zoned out for business use.
- Additions or renovations: all additions and renovations to buildings must conform with local and state ordinances (this is a specific part of zoning laws).
- Fraud/misrepresentation: As with any sales or contract transaction, it might happen where one or more parties engages in fraud or deceit when it comes to the sales terms (for instance, with regards to the property value).
Lastly, various other legal issues may be associated with the property. In particular, aspects related to the business use of the property may be a key bargaining point in the sale. An example of this is if there are outstanding issues regarding property taxes, or if there will be any specific requests regarding business property insurance.
What Are the Legal Remedies for a Commercial Property Dispute?
Remedies for a commercial property dispute will depend on the type of violation or legal issue at hand. In many cases a dispute may be resolved through a monetary damages award. These are often issued in cases involving fraud, breach of contract, or disputes over property value.
Other cases may be remedied through other means such as a requirement that one party transfer title to another (for instance, if the party refuses to transfer the title after a valid sale). Or, an order may be made to have the property altered or changed in order to fit zoning requirements. Again, the remedies will depend on the exact needs of the parties.
Do I Need a Lawyer for Help with a Commercial Property Sale?
Dealing with commercial property for sale can often involve some complex legal issues and laws. You may need to hire a real estate law attorney in your area if you will be involved in a commercial property sale. Your attorney can help determine which options and approaches are best for your situation. Also, if you need to file a lawsuit, your attorney can help research laws and can represent you during court meetings.