Commercial Real Estate
Similar to transactions involving residential real estate, commercial transactions involve either the purchase, sale or mortgaging of commercial real estate. Unlike residential real estate however, the transactions often involve complex representations and warranties and conditions as part of an agreement of purchase and sale, tax considerations, the giving of collateral security, assignments of rents, personal guarantees and the negotiation of other terms of security that will be given as part of a mortgage. The purchase/sale of real estate may also be part of a larger transaction involving the purchase/sale of a business as well which adds even more to the complexity of the transaction.
Because commercial real estate transactions frequently involve corporate entities, the documentation required to complete the transaction will usually also include numerous corporate resolutions and opinions related to the status of the corporation. These documents play an important role for both a vendor and a purchaser in insuring that the transaction is completed in a legally binding manner. Mortgage lenders will also require various corporate documents to support their mortgage.
Due to the complexity of most commercial real estate transactions and that each transaction tends to be largely unique, these transactions are seldom completed using a standardized pricing model. When contemplating a commercial transaction, we encourage you to seek both legal and accounting advice on the structuring of the transaction before entering into the Agreement of Purchase and Sale.
Should you be contemplating a commercial real estate transaction, please feel free to contact us to discuss your transaction.