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Factors that can complicate a commercial real estate transaction

On Behalf of | Apr 29, 2024 | Commercial Law |

Many factors, calculations and negotiations are likely to come into play before you finally sign the lease for a commercial property. However, there are also various complications that can make the process even more complex than anticipated.

Understanding these complexities is necessary for anyone involved in buying or selling commercial properties.

Environmental concerns

One significant factor that can complicate a commercial real estate transaction is environmental issues. Contamination of the property’s soil or water can lead to costly cleanup efforts and legal liabilities. Conducting thorough environmental assessments before finalizing a deal is essential to avoid future complications.

Zoning and land use regulations

Zoning and land use regulations set by local authorities can significantly impact the transaction. You must ensure that your intended use of the property complies with zoning laws. Zoning changes or restrictions can delay or even derail a transaction, requiring careful navigation by all parties involved.

Title issues

A clear title is ideal in any real estate transaction. However, issues such as liens, encroachments or easements can complicate matters. Resolving title issues may require legal intervention and could prolong the closing process. Buyers must conduct a thorough title search and obtain title insurance to protect their interests.

Negotiation challenges

Negotiating terms and conditions satisfactory to all parties involved can be a significant hurdle in commercial real estate transactions. Disputes over price or inspection results can stall the process and require skilled negotiation to resolve. Finding common ground while protecting each party’s interests is key to overcoming these challenges.

Real estate transactions involve various complexities that can arise at any stage of the process. Contact Zarco Einhorn Salkowski, P.A. today for a free consultation and practiced guidance regarding your commercial real estate concerns.