Purchasing commercial real estate can be a very expensive prospect. Potential buyers can end up losing a great deal of money trying to negotiate a deal without the help of legal counsel.

Our experienced and knowledgeable team knows how important an investment commercial property is to buyers and can help you by protecting your interests, including providing ways to get out of the purchase without losing earnest money. We can draft a contract that reflects your needs throughout the transaction. We will include contingencies in your contract that allow you to recoup money already put into the purchase, such as when a seller fails to inspect or make repairs. If the seller breaches the purchase agreement and refuses to return your investments, we can file a claim against them.

Get help today from our real estate transaction lawyers in Maryland by calling the Heyman Law Firm at (410) 305-9287.

Is it Worth Hiring an Attorney if I Am Purchasing Commercial Real Estate?

Even if you possess a wealth of knowledge about and experience purchasing commercial real estate, having a lawyer represent your interests often saves a great deal of time and frustration. Numerous issues must be considered before signing for the property, from the formation of the contract, contingencies to save you money, and ensuring the title is perfected so that your real estate ownership is not challenged later.

True, you will spend some in the short run working with a law firm, but it is far better than going it alone and losing significant investments and capital. Our real estate transaction attorneys can draft a contract that protects your interest and guide you until the keys are turned over and after. The following are just some of the reasons you will want our attorneys representing you in your commercial transaction:

Drafting Real Estate Contracts

A successful commercial real estate transaction typically begins with drafting a strong contract that preserves certain rights for yourself. A strong contract is one that identifies possible situations that could give rise to a dispute and plans contingencies that protect your current investments in the project. Once you sign a contract, you will be bound to the terms included in it. Furthermore, courts are seriously reluctant to change any term in a contract where there is no evidence of fraud, so you likely be stuck with the contract that was originally drafted.

Our attorneys can help draft the terms and negotiate with the seller so that the document reflects your interests and the property’s needs. The terms needed in your agreement will depend on the commercial property being purchased. Real estate like warehouses, factories, and apartment buildings have very different concerns, but your contract can be tailored to meet specific issues you have with the property. Because the initial costs of purchasing real estate can be quite high, your contract should include contingencies that allow you to back out of the deal without breaching the agreement and earnest money.

For instance, assuming it passes inspection, you might have agreed to the property’s price and made a down payment to enter the escrow period. Upon inspection, though, you find several flaws that make you question whether purchasing the property is a good idea. Our team can include inspection contingencies in the event a problem is found that is a dealbreaker. Other contingencies can be included for proof of title, allowing you to back out of the purchase if the seller cannot provide a valid title to the property. Without these contingencies, you might be able to avoid the purchase, but you will likely lose any earnest money you have already invested.

Handling Breaches of Contract

Some sellers decide that they actually do not want to sell their property, leaving you in a difficult position. If they did not have a contingency of their own, they would usually be in breach of contract for not following through with the sale. If they breach, you can invoke your continency to leave the transaction.

Many disputes arise not because the buyer is backing out of the purchase but because sellers refuse to return earnest money after breaching the agreement. If that happens, we can file against the seller, showing the contingencies in the contract that they agreed to and how they failed to hold up their end of the bargain.

Returning to the inspection example above, perhaps the seller told you they would correct the issues discovered in the inspection. If they failed to do so, they would be in breach of contract. If they refuse to return your down payment and other costs you accounted for in your contingencies, we can help resolve the dispute in court or during mediation.

Settling Title Disputes

The more a commercial property changes ownership, the more likely it is to have issues with the title. The title confirms ownership and shows debts, liens, and other financial concerns placed on the property. It also designates the property’s boundaries and any easements on the property. If something that should have been reported on the title was not, and the seller did not confirm it when they originally purchased the property, they might not have legal ownership to transfer. This will leave you exposed to the real owner coming along and asserting their property rights. Our team can review the title with you to determine if it has defects that compel you not to purchase the real estate.

Suppose we do find title defects, like boundary disputes and creditors’ liens. In that case, we can file an action to “quiet title,” a special type of legal hearing where property ownership can be determined. We will include a contingency in your contract that allows you to recoup your losses if ownership cannot be established or other title defects are found.

Contact Our Real Estate Transaction Attorneys Today for Help with Your Commercial Property Purchase

For help with your case, contact our real estate transaction attorneys in Maryland at the Heyman Law Firm by calling (410) 305-9287.