Jacob A. Kupp, Commercial Real Estate Attorney Discusses the Most Common Legal Issues in Commercial Real Estate
Each year, hundreds of thousands of commercial properties are purchased within the United States. Unfortunately, as with any legal real estate transaction, many of these deals will result in litigation due to unforeseen circumstances and improper documentation. Whether it be issues resulting from the assumption of liability, zoning and land use, or title defects, Jacob A. Kupp, Orlando FL real estate attorney, has helped clients navigate through numerous commercial real-estate legal battles and hopes to educate future buyers on the most common causes of commercial litigation. Today, Jacob Kupp of Orlando, FL, will discuss some of the most common commercial real estate legal issues and how best to avoid them when purchasing a commercial property.
Assumption of Liability
It is essential that any commercial property owner take the necessary steps to ensure they take on no liability from the previous owner when purchasing a property. Jacob A. Kupp explains that one of the most common liabilities taken on by new commercial owners is preexisting environmental hazards, costing property owners tens of thousands of dollars to fix. This can be avoided by ensuring the prior owner is financially liable for any future code violations by signing a properly structured purchase agreement.
Title Defects
A title defect refers to any potential threat to a property owners’ right to sell or claim their property. Most often, if the property has a documented issue such as a lien or past-due mortgage payment, another party can lay claim to the property. To prevent any title defects occurring during the closing, potential commercial property owners are encouraged to hire an expert attorney to review the property and current owner’s financial history and ensure a smooth transition of property ownership.
Zoning and Land Use
It is crucial to properly research a potential property in Orlando or anywhere else before rushing into a deal to avoid legal issues down the road. When a deal seems too good to be true, or the current owner is pushing for a fast transfer of ownership, new buyers are recommended to walk away. When a new owner rushes into a deal, the chances of zoning issues occurring in the near future are greater and can completely halt any new building plans for a property. For this reason, new buyers are highly encouraged to hire an experienced attorney who can ensure that the proper permits can be obtained and that all tasks related to zoning can take place in the future.