Legal Services

What is legal consultancy for commercial property?

As a Mercado Realty, legal consultancy for commercial property involves providing legal advice and services to our clients who own, invest, or develop commercial properties. Our legal consultants can assist with due diligence investigations, lease review and negotiation, land use and zoning regulations, dispute resolution, compliance, and development. We aim to help our clients make informed decisions by identifying potential legal risks, ensuring compliance with laws and regulations, and protecting their interests in negotiations and disputes. Our legal consultancy services are designed to help our clients navigate the complex legal landscape of commercial real estate and achieve their business objectives.

Corporate commercial services

To improve organizational proficiency, mitigate business risks, and enable smooth contractual processes and timely closures, we provide end-to-end support from both legal and business perspectives.

Our broad areas of service include:

What are some commercial property legal issues?

Distinct legal issues can be associated with the ownership and leasing of commercial property. Some of the issues that come up under commercial property rules can involve the following:

  1. Zoning and Land Use: As mentioned above, a business can typically conduct its business activities only in areas that are zoned by the local zoning authority for commercial uses on commercial property. Environmental and zoning issues can arise in connection with almost every commercial property. The specifics depend on the location, the type of business, and local zoning and land use regulations. Practically all local governments create separately zoned areas for residential, business, and industrial properties. If the use or proposed use of an owner or lessee does not conform to the current zoning, there can be issues with the local zoning authority. It may be possible to win a variance for a use that does not conform with local zoning, or it might not. This can, in turn, lead to issues with a commercial lease.
  2.  Commercial Leasing Issues: There are several different types of commercial leases in widespread use. Each can have its advantages and disadvantages for both the owners of commercial properties and their lessees. As with residential property leasing, commercial leasing can give rise to various legal issues. For example, there can be an issue as to material defects in a commercial structure and whether the lessor has to disclose these to a lessee or a seller to a buyer. There can be issues regarding encumbrances and whether there are easements, deed restrictions, or liens which limit how the property can be used. There can be issues as to who has the duty to repair a leased commercial property, the landlord or the tenant.
  3. ADA Compliance: In the U.S. all businesses open to the public or with more than 15 employees must make their facilities accessible to disabled people. So anyone purchasing or leasing commercial real property who fits the criteria for compliance with the Americans with Disabilities Act (ADA) wants to ensure that the property is compliant or know what it will take to make it compliant and who is going to pay for any necessary modification. If the property is not compliant, is the seller going to make it compliant before selling or will the responsibility fall on the buyer? If commercial property is leased, who is responsible for ADA compliance, the lessor or the lessee? These questions need to be answered before a transaction is completed.
  4. Property taxes: Commercial property taxes, like residential property taxes, are based on the assessed value of the property. So the property taxes on commercial property are generally higher because commercial properties are usually worth more than residential properties. They are worth more because they generate income. Thus, commercial property taxes are likely to be higher than residential property taxes.
  5. Insurance: Commercial property and business insurance disputes can be a source of legal issues for many businesses. Of course, issues with homeowner’s insurance can plague residential real property owners as well. But, businesses usually need more than one type of insurance, so there is more complexity and cost to business insurance.
  6. Ownership Disputes: As with any type of property, ownership of commercial property can sometimes lead to title, ownership, and leasing disputes.
  7. Boundary Disputes: Commercial property owners can have disputes with the owners of neighboring properties over the physical boundaries of the property. Issues of this type might be more common in rural settings than in urban ones, but they can arise in connection with commercial property anywhere. In addition, the sale and purchase of commercial property can involve a variety of legal issues. Such disputes can involve breaches of a sales contract, zoning, land use issues, and issues with disclosures of defects and implied warranties that may apply to a sales transaction.

Do I need a legal consultant for help with commercial property legal issues?

Commercial property is a very specific subset of real estate law. You may wish to hire a commercial property lawyer if you need help understanding the laws that may apply to commercial property in your area. Your attorney can assist you with any legal issues that need clarification. Also, your lawyer can represent you in negotiations, which can help you find a resolution without engaging in expensive legal action. If that is not possible, your lawyer should be able to assist with other methods of dispute resolution. Or, if a lawsuit becomes necessary, your lawyer can represent you in court.You may be able to recover money damages if you have suffered financial losses due to a property dispute. If the best resolution involves revisions to a commercial lease or other accommodations, that may be possible as well.

Most frequent questions and answers

 The Commercial lease agreement is an agreement between landlord and tenant to rent property with the intention to operate a business.

The term period of a commercial lease agreement is generally mentioned in the agreement. Usually these commercial lease agreements are for long term.

Some of the terms to Include In Your Commercial Lease Agreement are about- The Parties & Personal Guarantees, Lease Term & Renewals, Rent Payments and Expenses, Business Protection Clauses Etc.

 The rental agreement forms an important part of your business and the conditions therein, will impact your business and activities, as long as you are in those premises. A lease agreement is usually drafted by the landlord and thus, may contain several conditions that favour the landlord.

Vision

“Providing exceptional legal services to clients and being the trusted advisor in the commercial real estate industry”.

Mission

“Our mission is to help clients navigate the complexities of commercial real estate through expert legal guidance, proactive advice, and efficient service. We are committed to achieving our clients’ objectives while maintaining the highest standards of professionalism, ethics, and integrity”.