Attorneys for Land Use
Guiding you through the Commercial Real Estate Transaction
Buying or selling commercial property is one of the biggest investments a business can make, but the process can be time-consuming, complex, and filled with unexpected pitfalls. You need a partner you can trust that will guide you through the process.
Dalton & Tomich’s team of Michigan and Illinois commercial real estate attorneys will shepherd and manage the entire real estate transaction. Not only do we review and edit legal documents, we also serve as your project manager, assist in moving the process along, keep you up to date, and help you close quickly so you can move forward with your investment.
Avoid unexpected pitfalls and rest easy knowing we have everything covered.
While agents and brokers can help find a property, they do not always provide guidance through the actual buying and selling process. That’s why partnering with an attorney who understands legal considerations and potential risks is important to making sure you have a successful commercial real estate deal.
Dalton & Tomich understands local laws in Michigan and Illinois as well as the the ins and outs of the commercial real estate process. We offer a full range of land use services and we use our knowledge to help you avoid pitfalls and navigate any zoning issues that might arise during the buying or selling process.
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What to Expect During the Commercial Real Estate Process
Most commercial real estate transactions follow a five-step process – but there are a lot of details to consider alone the way. We guide you step-by-step through each phase of the real estate deal:
1. Letter of Intent
Once a buyer has identified a property, negotiations have taken place, and a seller has agreed to initial terms, the real estate agents or brokers will want to agree upon the general key terms of the deal by memorializing them in a written Letter of Intent. The Letter of Intent should be reviewed by an attorney to confirm important terms are addressed appropriately, and that basic rights are preserved.
2. Purchase Agreement
The details of the Letter of Intent will then be further expounded upon in a Purchase and Sale Agreement. The Purchase and Sale Agreement will include all the details of the terms and will be drafted and reviewed by an attorney, as it a legally binding contract.
3. Obtain a Title Commitment
The seller obtains the title commitment for title insurance in amount of purchase price and shares with purchaser. This usually starts the timeline for buyer to review the title, and make objections to title to the seller, which then triggers seller’s rights to cure the title defects.
4. Due Diligence / Inspection Period
Depending on the transaction the due diligence can and should include title review and inspection, a survey to determine if there are any encroachments, easements, or other encumbrances, and environmental inspection. If issues arise with the property and adjustments to the agreement are needed, this is where experienced legal counsel can advise and negotiate for you.
Typically, the closing is facilitated by the title company once funding is approved and all due diligence is completed. The parties exchange signed documents, escrows are credited to purchase price, funds are wired, and deeds recorded. It is helpful to have a closing checklist ready to ensure all documents are properly executed. If your deal has any additional considerations such as a 1031 exchange or leases, an attorney will also assist with that part of the process.