what to ask commercial lawyer before selling commercial property

Before hiring a commercial real estate broker to sell your property, conduct due diligence, and ensure you hire the right person. Just like with any other professional, you should check their references, speak with some past clients, and ensure they are dedicated to helping you get the best deal for your property.

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What should I know before selling a commercial property?

Jan 28, 2020 · If you have any questions about buying or selling commercial property in Queensland and you would like to discuss the requirements, please contact our office on (07) 3733 2574 for an obligation free consultation. Written by. Kayleigh Whittaker , Senior Lawyer. NB Lawyers – Lawyers for Employers. kayleighw@nb-lawyers.com.au.

How do I contact people who have sold commercial property?

Jul 31, 2020 · Selling Commercial Real Estate. There are three main strategies for selling a commercial property of any kind: Work with a commercial real estate broker. Market your property on commercial or FSBO listings websites. Analyze off-market data to identify likely buyers and connect with them directly. While the idea of off-market transactions is ...

Should you hire a realtor when buying a commercial property?

Aug 22, 2019 · Most buyers aren’t interested in purchasing commercial real estate with tax issues. So all tax issues should be resolved in advance. Title Clearing. Before selling a commercial building, any issues with the title must be cleared up, such as: tax liens; judgments; contractor/mechanics liens; encroachments; breaks in the chain of title

Why do I need a commercial real estate closing attorney?

Jan 15, 2014 · Below you will find a list of the universal top 10 questions you should be asking before you close the deal. Is title clear? An Ownership and Encumbrance report can be quickly and easily obtained prior to writing an offer to purchase a property. During the due diligence period, the buyer will be furnished with a full title report disclosing all ...

Curb Appeal is King!

Take a really good look at the outside of your building. Do you need to spruce up the landscaping? Maybe a good power washing or a coat of paint would make your property look fresh and appealing. Clean the windows and replace any that are broken. And, don’t forget about that parking lot.

WOW Potential Buyers

A new coat of paint inside can really help sell a property by making the interior look clean and well maintained. Make all minor repair and have floors and carpeting cleaned. If there are any major repairs that need to be handled, it is best to make them before putting the property on the market.

Find a Dynamite CRE Broker

If you are getting overwhelmed just reading this, perhaps partnering with a seasoned commercial real estate broker would alleviate the stress of selling your property. The relationship you build with your CRE broker is crucial. A lot is at stake with any CRE transaction and the process is complicated to maneuver through.

Work With a Commercial Real Estate Broker

If you are a broker and want to learn about winning deals off-market, you might want to jump to this section.

List Your Property for Sale

Hiring a broker and using a listing service to advertise your commercial real estate for sale are not mutually exclusive options.

Find Buyers Off Market

Both brokers and owners also consider other approaches to selling real estate. Identifying prospective buyers through off-market research can be a proactive way to identify potential investors.

How is the value of a commercial property determined?

The value of a commercial property is generally determined by: a direct comparison approach—comparing the building to similar properties. a cost approach—basing the value on the building’s replacement cost.

Can a seller have a property inspected?

In case there are any concerns about the property’s condition, the seller can have the facility inspected by licensed commercial property inspectors to identify any unknown issues that need repair .

What is closing costs?

By definition, the costs associated with the sale of a building (‘closing on a property’ in the real estate slang) are referred to as ‘closing costs.’. Both the buyer and the seller have such expenses. This guide only addresses the seller’s typical expenses, such as:

What is the average commission rate for a real estate agent?

Agent/Broker Commission Rates. The average commission for a commercial real estate agent is between 4% and 8%. All of the agent fees can go to one agent/broker if they both list the property and find the buyer. But often there are two brokers involved: on the buyer’s side and on the seller’s side.

Do building owners pay utilities?

In addition to paying utility costs in the common areas of the property, some building owners pay their tenants’ utilities. The owner must pay any unpaid utility bills before trying to sell the building.

What is title insurance?

If so, the title insurance company pays the buyer the face amount of the policy. In the event of a title problem, title insurance could also help prevent a lawsuit against the seller.

What is a UCC filing?

A UCC (Uniform Commercial Code) filing refers to a UCC-1 financing statement. A creditor gives legal notice that they have or might have an interest in the business property of a debtor.

What is boilerplate lease?

Many landlords use "standard" or "boilerplate" leases that include general terms that are common to most leases, so make sure terms are included if you've negotiated something different. Make sure that the standard language and your special language don't contradict each other.

What is CAM in leases?

Most leases use the term "CAM" rather than spell out "common area maintenance.". You should be allocated a percentage of the CAM fees you're responsible for. Your fee is based on the percentage of the building you're renting.

Is it too late to change a lease?

Updated November 06, 2019. It's too late to make changes after you've signed a commercial lease for an office building or retail space and the ink has dried. It's vitally important that you understand lease terms, how they'll impact you, and that you've negotiated the best deal possible for yourself before you sign a business lease.

What is the importance of understanding lease terms?

It's vitally important that you understand lease terms, how they'll impact you, and that you've negotiated the best deal possible for yourself before you sign a business lease. This begins with having a working knowledge of terms like "CAM" and arbitration clauses.

What is a sublessee in a lease?

A sublessee is another business that works in your lease space under your lease terms. You pay the lease and the other party pays you a portion of the cost. Many landlords don't allow sublessees, but you might want to share costs with someone down the road.

How long does a lease guarantee last?

Consider providing one for only a portion of the lease term, or negotiate for a guarantee that lasts for only six to 12 months after you terminate.

What is a triple net lease?

Most leases these days are "triple net" or "net-net-net," meaning that you pay rent plus your proportionate share of CAM fees, property taxes, and often repair and maintenance costs for the property. But you can ask the landlord for a CAM Stop lease so you'll only pay for an increase in CAM fees and property taxes above your initial lease year, ...

Can a realtor negotiate for you?

When they also represent the buyer, they cannot negotiate for you. You can see this in the agreement you’ll sign with them.

What does it mean when a real estate agent represents the buyer?

If your real estate agent also represents the buyer, this means they make twice as much. Unfortunately, many real estate agents are willing to risk their integrity to make this happen. In many cases, the end result means a lower selling price by tens of thousands of dollars.

What does lower price mean?

Lower price, which means lower monthly payments and lower property taxes. The opportunity for the buyer to add their “own artistic touch”. A good agent will do their homework before meeting with you and should be able to tell you the features they would use as selling points.