Commercial real estate law covers the legal requirements for buying, selling, and transferring property that businesses use. Legal problems in this area come up because of disagreements about the sale or purchase of commercial property.
You also need to remember some things like commercial leases.
Liquor licenses and zoning are also important things to know about. These laws set very clear limits.
Most cities and states stop businesses from opening up in areas meant for homes and you can’t use residential properties for business activities, either. Commercial real estate laws help to guide what you can and can’t do with your property, depending on what part of the town you’re in.
What Is a Commercial Real Estate Lawyer?
You’ll work with a commercial real estate lawyer when you need help with property deals involving businesses. Some real estate attorneys also manage residential and commercial matters. You’ll still want to find a lawyer who handles commercial matters for more input.
Commercial real estate lawyers know the laws that affect businesses that buy, sell, or rent properties in their area. They focus on things like how much a property is worth, the laws in different contracts, and the local business laws that can affect your deal.
Since commercial real estate can get pretty complicated, you’ll find that some lawyers only manage these types of deals.
What Does a Commercial Real Estate Lawyer Do?
You can research which laws apply, get help with contract negotiations, and have someone represent you in court.
You’ll also need to determine if it makes more sense to buy or lease the commercial real estate. Look at the different types of commercial leases, since some of them set out very separate terms for you as the tenant. It helps to view the commercial leases from the tenant’s perspective, so you’ll find what works in your favor and what might not.
If you want to sublease or assign your lease, you’ll need a landlord’s consent. You should clarify what’s considered acceptable in advance. When signing a commercial lease, it helps to understand the common process and your rights.
On top of that, commercial real estate law ties into commercial banking. The attorneys working in this area might protect a commercial loan for your business. They can help you get a line of credit. They might also guide you through starting a business. They can also assist with securities matters.
You’ll find that commercial real estate attorneys take care of different tasks for their clients. They know how to help businesses follow commercial real estate laws, which makes the entire process go smoother.
How Much Does it Cost to Hire a Commercial Real Estate Lawyer?
You’ll find that the attorney’s experience, the types of services that are offered, and their location all play an important role in how much you end up paying. In home purchases, the cost of a real estate attorney gets rolled right into the closing process. Sometimes though, you might wonder if bringing on a lawyer is worth the extra money for you.
When you pay for an attorney, you’re putting your money toward protecting your rights as a property owner.
Most of the real estate lawyers charge somewhere between $100 and $400 per hour. Some of the very skilled attorneys may set their rates as high as $1,000 per hour, reflecting their high level of experience. You’ll see that what you pay can depend on how tough your case is, what the lawyer brings to the table in terms of skills, and where the property is located.
Attorneys use a few different ways to bill their clients. You might see hourly rates, flat fees, or sometimes even contingency fees.
Hourly billing is the most common strategy. You might also need to pay a retainer fee up front which the attorney will draw from as they work on your case. After that money runs out, then you’ll need to switch to paying by the hour.
But the retainer fees may not be refundable. You may not get that cash back if things change.
Flat fees come into play for the easy transactions. This fee covers the whole job, no matter how long it takes. In easy cases like a home buy or sale, lawyers charge around $1,500 to $4,000. However, your final price could be higher or lower depending on where you live.
Here’s an idea of what you might expect in different situations. The fees for a residential home closing run between $800 and $1,200. For a commercial property sale, you’re looking at $1,500 to $2,000. If you need help with a rent-to-own deal, you might pay between $500 and $750. In the case of property disputes or development, attorneys charge by the hour, between $75 and $125.
If your deal is large or very tough, your legal fees may end up in the $3,000 to $10,000 range. Lawyers typically set their flat fee at the beginning of the real estate transaction.
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How Are Real Estate Attorney Fees Calculated?
You’ll see that real estate attorney fees can depend on a few different things.
First, the type of representation you need shapes how much you’ll pay. If you have a more expensive property or a more involved case, costs increase. You’ll also need to consider any ongoing problems with the property that require management.
You’ll pay less for something easy like buying a single home. If you’re buying or leasing a commercial space and need some advice about the business zoning rules, you can expect a higher bill. The services that your lawyer provides can also affect the total cost.
The way that a lawyer structures their fees also plays a big part. Some attorneys will charge by the hour. But others will set a flat rate. In some situations, you might hire a lawyer on retainer and reach out for some advice when needed and each of these strategies can affect what you pay. You have options here which helps with planning your budget.
There are a few other things that can affect the attorney rates. The amount of time and effort that your case will need comes into play. How tough the work is also matters quite a bit. What skills or training the attorney may have is important too. Lawyers with more experience or a strong local reputation will charge more. That’s also the case if others with the same background do the same. Whether the lawyer uses an hourly rate or a fixed price changes your bottom line, too.
Remember that there may be some extra costs like the filing fees, the fees to record deeds, and other similar costs related to your case.
Do I Need to Hire a Commercial Real Estate Lawyer?
When you’re thinking about getting involved in a commercial real estate deal, it also helps to talk with a real estate lawyer to figure out your next steps. The laws for these types of transactions can be complex, and they may change from one area to the next.
The laws are different even if you stay within the same city or county. A lawyer who knows your local area helps you work through any questions or problems that might come up with your commercial real estate transaction.
