Hamilton & Antonsen
Purchasing or Selling Commercial Investment Property
The in’s & Out’s of purchasing and selling commercial investment property in illinois
No matter if a property is commercial or residential, real-estate transactions in Illinois involve many complex issues. These transactions often involve long negotiations with a real estate attorney, with a closing process that poses its own unique challenges.
Illinois Law and Commercial/Investment Property
Illinois has established a body of common law addressing both the purchase and sale of commercial and investment property. Any agreements that address critical contractual rights must meet strict requirements under the law in order to be binding. Illinois law also limits the remedies that are available to commercial and investment buyers and sellers who end up involved in deals that fall through.
The state also requires that contracts for the purchase or sale of commercial property be in writing, which is why it is critical to make sure that purchase agreements satisfy state laws if you plan on becoming part of a successful real estate transaction.
Navigating the Terms of Commercial Real Estate Contracts
Commercial real estate transactions begin with buyers offering letters of intent or formally expressing their interest in a property. These letters address the terms and elements that will be involved in the final real estate contract. Rather than function as legally-binding contracts, these statements function as offers.
Once the offer is accepted, commercial real estate (CRE) sales and purchase agreements will be created. These agreements provide a detailed description of the steps that must be followed before a person can close on a commercial real estate transaction.
Remember the Fine Print
Commercial and investment transactions in Will County, Illinois are often much more complex than typical home acquisitions. Commercial transactions often address issues like leases, licenses, and warranties that must be conveyed through the terms of their own legal instrument. For a commercial or investment property to reach its full value, all of these rights must be sufficiently conveyed or assigned.
Challenges on Closing Illinois Commercial and Investment Property
Besides finalizing the contracts for commercial and investment property, the closing process for commercial and investment real estate also often presents various challenges. In many cases, agreements proceed successfully through the negotiation and sale phases only to fall apart during closing if not handled properly by a local real estate attorney.
Before transactions are finalized, both the buyer and seller must agree to the title report an its findings as well as complete any other required closing documents which might include environmental reports, assignments of liability, and assumptions of warranty.
Real Estate Topics of Interest
For more information regarding some specific aspects Real Estate Law in Joliet and the greater Will County area, please see the topics below