Commercial Real Estate Development
Buying or selling commercial real property is a complicated process that should be handled with great care. An attorney can advise you of potential problems—legal or financial—and suggest ways to solve those problems before and after you have entered into a legally binding obligation.
It is important to retain an attorney early in the transaction so that you will be best protected with early consultation and planning. Hendry, Stoner, Calandrino & Brown, P.A., provides real estate attorneys who concentrate their legal practice in the areas of real estate, tax law, corporate law, business law, and international business law.
Our attorneys have more than 35 years of experience in commercial real estate and are recognized by their peers as specialists in real estate law. We are happy to meet with you to discuss your needs and to help you achieve your goals. Contact the law office of Hendry, Stoner, Calandrino & Brown, P.A., to schedule an appointment.
Structuring the Purchasing Partnership
There are tax concerns, liability issues, privacy issues, and other practical reasons for using different types of business entities to own, develop, and manage commercial property. Some of the choices are:
Corporations and limited liability companies
Partnerships, limited partnerships, and limited liability partnerships
Land trusts
Individual ownership
Each type of business entity has certain advantages and disadvantages, depending upon the citizenship, tax status, and desire of the parties involved. Consult a business law attorney at Hendry, Stoner, Calandrino & Brown for sound legal counsel to determine the business formation Link to Business Start-Up for your particular needs.
Contract for Sale
Each commercial property is as unique as the use for which it is intended. There are no standard commercial property contracts for purchase and sale because each contract must be drafted specifically for that project.
The purchase contract is the most important document in the process of commercial development. This is the best time to bring an experienced real estate attorney on board.
Title Insurance
Title insurance is essential in purchasing a commercial property, but by itself does not offer the buyer complete protection. Every title insurance policy will include exceptions to the title. It is essential to have an attorney review the title commitment to determine if the exceptions to title are detrimental to the intended use of the property.
Survey
A survey is also essential to the purchase of commercial property. The survey discloses matters of title that cannot be determined by the title policy. Since the survey, together with the title policy, determines the usability of the property, it should be examined by an attorney.
Financing
Should you choose to finance the purchase of your property, your attorney can provide valuable assistance. Not only are the terms of the financing subject to negotiation with the financing institution, but so are the loan documents. Loan documents can vary dramatically from one financing institution to another. The wording of the documentation may determine questions of individual liability or whether or not a default can be declared. A lawyer can assist in negotiations of the terms of the loan and the wording of the loan documents to the benefit of the borrower.
Environmental Concerns
The purchaser of commercial property may well become responsible for any environmental problems that exist upon the property. Environmental problems can prevent financing of the property for future use, so it is imperative to protect against inadvertently buying property with environmental problems. Property must be inspected, researched and if necessary, tested for environmental contamination prior to purchase. Remember, a seller may not even be aware that the property is environmentally contaminated.
Foreign Buyers and Sellers
International investors buying or selling commercial or investment properties in the U.S. face some unique problems. It is imperative that an international business person work with an experienced international business law attorney to avoid investment and taxation pitfalls. For example:
International clients can inadvertently subject themselves to taxation as a U.S. citizen, depending upon the number of days they reside in the U.S. If an international business person is taxed by the U.S., all worldwide income becomes subject to U.S. taxation
They must also recognize and comply with the myriad reporting requirements by the IRS, Department of Agriculture, Commerce, customs, and others U.S. and Florida agencies.
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