A commercial real estate attorney should have one goal: protecting you.
When creating or negotiating a commercial real estate lease, the attorney will ensure that nothing is left up to chance. If it’s not in writing, it doesn’t exist.
Disputes arise between the landlord and tenant when there is a lack of communication, especially if the basis is an item that isn’t explained in the lease. For example, who is responsible for a faulty HVAC system or unexpected repairs?
That’s why a proper lease is so important. If these items are not addressed in the lease, it can lead to litigation, which means more of your time and money.
A purchase agreement is an in-depth document that contains conditions and disclosure forms. These documents contain deadlines for things such as earnest money deposit, inspections, contingency removals, as well as the condition of the property that is sold. This is signed by and agreed to by both parties.
If either party needs more time, it is imperative for the party to notify the other one well in advance. This maintains a smooth relationship between the landlord and tenant and allows time to create an extension.
Similarly to a lease, you want to know what exactly you are getting into. A commercial real estate attorney will help you know and understand your obligations and understand what you are getting into what your options are for getting out if it if necessary.
Get it in writing.
If you rent a commercial property, you need to have all of your terms written in detail and agreed to by landlord and tenant. Oral lease agreements are often thought of as being an easy way to create an agreement. However, that creates opportunity for confusion and misinterpretation.
Do you have a personal relationship with your landlord? That’s great – but you still need to have an agreement that holds each party responsible.
When you work with a commercial real estate attorney, she will discuss your concerns and your documents. Consider these questions:
- Who will handle repairs?
- Who pays for the utilities?
- Is subleasing allowed?
With an attorney and a well-crafted lease, these questions will be answered in detail.
A long-term lease locks you into the agreement for a certain amount of time. It could be one year, five years or even more. During that specified time, you are, of course, obligated to the terms of the agreement.
In the unfortunate event that your business becomes unsuccessful, you would be obligated to continue your five-year lease, paying 60 months worth of rent/lease. That’s a large amount of money! With the option agreement, the tenant has a pre-negotiated lease term once the original lease ends. That means the tenant knows the amount of time and rent that will be set going forward.
No matter the lease option that you partake in, a commercial real estate attorney is key. She looks out for your best interests and makes sure that your lease is detailed and fair.
Call me to discuss your lease options and learn how to protect yourself and your business!
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