Leonard Swerdloff Brooklyn Real Estate Attorney

More than likely, yes, you will need an environmental assessment when buying real property for your business. There are no federal requirements demanding one, but many lenders want one depending on property usage and the history of the property, and in order for the property to receive insurance coverage, it will need one. Not to mention an environmental assessment can protect the buyer, so it is a smart investment to make when buying property.

A 1031 exchange, also known as a Starker exchange, is a tax strategy that allows investors to defer payment of the capital gains tax on an investment property when selling it, provided the new property is purchased with the profit gained from the sale of the first property. It makes it possible for a real estate investor to continue to invest without incurring the tax liability that would be an issue in a traditional sale.

It depends on where you are purchasing a property. Some states require a real estate attorney to be involved in transactions while others leave the option up to the buyer. Even if you live in a state that does not require an attorney it is a good idea to work with one because they will help the transaction flow as smoothly as possible. He or she can check for title defects, make sure any inspection issues are dealt with prior to the closing, and ensure that financing matters are settled in advance.

There are several issues that can arise that delay or impede closing on a home. Sometimes they just make the process a hassle even if it eventually goes off without a hitch. The most common issues include problems with the inspection, the buyer or seller getting cold feet, title defects, financing issues, insurance issues, inaccurate appraisal, or the home might be located in what is known as a “high-risk” area.

Title defects are publicly listed issues that give another party a claim to the property. Title issues can postpone or even stop sales of property because they need to be cleared before the transaction can be completed. Common title defects include errors, liens for court-ordered fees, mechanic’s liens, illegal deeds, unidentified or missing, delinquent taxes, heirs, bankruptcies, unknown easements, and forgeries. Working with an experienced real estate law professional can help you avoid title defect issues.

Property taxes are calculated based on the assessed value of the property in question. The assessment includes both the land and the buildings on the property. Approximately every one to five years, an assessment is performed by a professional tax assessor and that information is submitted to the city or municipality in which the property is located. That entity then charges the property’s owner the appropriate rate based on standards set by the taxing authority.

Real estate purchase contracts govern buying and selling transactions and should feature several provisions to protect both the buyer and seller. Some of them include: -Price -Initial deposit amount -Data of title transfer -Financing information -Description of the property -Inspection information -Whether or not there is a “cooling off” period and what that entails -Standard and/or general conditions of the sale, including clauses that address any unforeseen events that might occur during the transaction

Yes, how you take the title in a commercial real property transaction has a major bearing on the purchase. The majority of commercial real property is purchased in what is known as a single-purpose entity. This protects your other assets from liability if there turns out to be an issue with the real estate in question. Working with an experienced real estate attorney when purchasing real property means you will be able to discuss your concerns and get guidance concerning titling issues.

Some of the most common pitfalls that occur in a commercial real estate transaction include difficult property valuations - calculating the value of a commercial real estate can be tough because the property might be completely unique and there are not any comparable sales. Over-reaching in regard to what one can afford also tends to be a problem. And since buyers cannot rely on consumer protection laws when making a commercial transaction, they must perform careful due diligence before committing to a purchase.

The primary difference between a commercial real estate deal and purchasing a home is that the former is a business deal and the latter is a personal investment. Based on that, the transactions are governed by a few different guidelines, including the contingency period (typically longer for commercial deals), usage concerns, and negotiations. Especially, there tends to be less negotiating on price in a commercial real estate deal than there is when someone is buying a home.