Q: What is commercial real estate?
A: Broadly, commercial real estate is referring to any real estate property that can be used in a business context. It could be industrial property, agricultural, new building office tower, or even real property as part of the sale of a business. With commercial property for sale, a client can look all different directions to identify the type of property they are looking for.
Q: What is the difference between buying commercial real estate and buying a residential house?
A: The biggest difference is that it’s not uncommon to rent out commercial real estate for length periods of three, five or even ten years. Whereas with residential real estate, the client is most commonly purchasing the house, not renting. At times, commercial property for lease is another avenue many clients take when looking at commercial real estate.
Q: What are some of the common issues in commercial real estate business deals?
A: When investing in real estate, there are always problems that can occur. The risk is huge for the money you are putting into the property. A client could experience any of the following: defects in title, mechanic liens, zoning restrictions, market fluctuations, etc.
Q: Why should I hire a real estate broker?
A: Real estate can be a hard commodity to understand, search for, and negotiate. By using a real estate broker, you have a personal helper to dive into all the details of looking into commercial real estate. A commercial lease search for the right property can be time consuming and tedious. One of the greatest benefits of hiring a broker is that they have an extensive network of properties available for rent or purchase. They do all the back-end work for you.
Q: Now that I have a real estate broker, why do I also need a lawyer?
A: Even though your real estate broker is a licensed professional, they are not legally required to walk through all the ins-and-outs of the contract. If you hire an experienced real estate attorney, you can ensure that all the details of your property have been checked thoroughly. Real estate investing is serious business so a lawyer is a good idea to keep things in order.
Q: Is an escrow necessary in all agreements?
A: Essentially, no. But escrow is a good idea. Escrow is a bond or other document kept in the custody of a third party to take effect only once a specific condition has been fulfilled. The escrow company acts as a facilitator throughout the transaction and can handle most of the details.
Q: How do I find out if my title is a good title?
A: A ‘Good title’ or as it’s referred to usually as a ‘clear title’, means that the property ownership interests are unclouded and clear. This is usually necessary in purchasing a property because a third party could swoop in and state that they still have partial ownership. When buildings for sale get purchased, it’s essential to have a good title of ownership for the future.
Q: Are there different types of deeds?
A: Typically, in most states, the deed is a grant deed which tells the seller that they have interest in the property being conveyed to the buyer. Other states have warranty deeds to provide a warranty stating that the seller has good title to the interest being conveyed. And finally[SD1] , all states have something similar to a quitclaim deed which is where a party signs over the interest that the party has in the property if any.