New Bedford Commercial Purchase Agreement Drafting Lawyer

Many people think their experience purchasing residential real estate prepares them for buying commercial property. Unfortunately, the legal differences between these two closings sometimes become apparent only when problems arise during negotiations.

Commercial real estate closings are more complex than residential ones and involve more parties and extra forms. Yet, commercial real estate closings are less regulated than residential ones, which may lead to less protection for commercial real estate purchasers. A New Bedford commercial purchase agreement drafting lawyer could help you navigate real estate law and spot potential risks during the sale process. Contact us today to schedule an initial consultation with one of the knowledgeable commercial real estate attorneys at our firm.

What Is Commercial Real Estate and How Is It Governed?

Commercial real estate, by definition, includes property used for business purposes as well as residential properties with more than four units. Commercial properties derive value from a variety of factors, which require more intention and effort in creating commercial purchase agreements.

Residential vs. Commercial Property

A set of federal laws governs the sale of residential property. Since the laws are clear, most residential real estate closings have standard, or boilerplate, forms. In contrast, commercial real estate closings are not covered by those laws. Instead, commercial sales can involve local laws, like zoning and building codes, and often require more complex financing. The complexity of a commercial real estate closing lengthens the average closing time to a year.

A New Bedford attorney experienced in real estate law could help commercial purchasers with drafting many of the forms needed for these types of closings.

Commercial Purchase Complexity Leads to Advanced Negotiation

Commercial purchase agreements must be written to take many possibilities into consideration. Some of these possibilities include:

  • Zoning restrictions
  • The rights and obligations of joint owners or partnership
  • Mortgages, deeds of trust, securities, and commercial lending disclosures
  • Whether the property will have commercial tenants and the rights of those tenants
  • Whether the property will need construction or easements to achieve its most valuable use
  • How the property will be owned or titled, and whether the owners will be disclosed or if a nominee trust will be used

Due to the additional complexity of commercial purchase agreements and the effect those considerations have on the property’s value, parties negotiate the terms of the agreements more heavily. Seasoned commercial purchase agreement drafting lawyers could help New Bedford business owners protect their interests during the negotiation process.

Additional Complexity May Call for Longer Due Diligence Periods

The complexity of the considerations needed to ensure that commercial property agreements protect the value and rights of the buyers often calls for intensive research and investigation, sometimes called due diligence. Some of the records that must be reviewed include:

  • UCC liens
  • Insurance issues
  • Competitor analysis
  • Liens or tax concerns
  • Financial and operating report
  • Pending or threatened litigation
  • Environmental impact assessments
  • Lists of property, including tangible assets (such as equipment), as well as intellectual property

The long due diligence process may call for special agreements, such as letters of intent (LOI), to preserve the parties’ agreements. LOIs are used in complex commercial transactions to preserve important terms, like the purchase price or other conditions of transfer, while the due diligence process unfolds. A skilled New Bedford commercial purchase agreement drafting attorney could manage the due diligence process, ensure records are requested, received, and reviewed, and help draft LOI for their clients.

Reach Out to New Bedford Attorney With Experience Drafting Commercial Purchase Agreements

The complexity and cost of commercial purchase agreements needed in real estate closings can be more than most businesspeople can handle alone. The increased negotiation, lack of boilerplate forms, lengthy due diligence process, and other specific real estate laws can derail a commercial real estate sale. A New Bedford commercial purchase agreement drafting lawyer could help you navigate real estate law, identify potential pitfalls, and protect your interests. Call one of our capable attorneys today to learn more.

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