Commercial real estate transactions generally involve large amounts of money. Oftentimes, many considerations need to be made.
Commercial property and real estate lawyers in Ontario are knowledgeable about real estate law and have extensive experience in these transactions. They can give you valuable advice and manage the transaction for you so you can focus on your business.
Whether you are planning to buy a commercial property or enter into a leasing agreement , lawyers in commercial real estate can assist with due diligence, negotiation, financing, purchase, and mortgages.
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What do commercial real estate lawyers do?
Commercial real estate lawyers offer a suite of services related to:
- Purchase or sale of commercial properties or real estate
- Title search and examination
- Commercial Mortgages
- Lease agreements
- Secured lending
- Asset-based lending
- Financing for the purchase or construction of a commercial property
- Commercial property disputes
These lawyers focus on commercial real estate law and litigation, making them the most qualified to handle simple or complicated transactions.
With their vast experience, they can identify potential legal issues regarding financing matters, the purchase or sale of a business , etc. If litigation becomes necessary, commercial real estate lawyers can represent clients in court.
Commercial property & real estate lawyers can represent tenants of industrial or commercial properties, developers, owners, condominium corporations, etc. They assist with land acquisition, zoning or land use issues, construction and development agreements, leases, contracts, and property management.
Commercial Property Leasing
Lawyers specializing in commercial property leasing work with developers, property managers, lenders, and tenants of retail, industrial, or commercial offices.
Their experience in all pertinent matters of leasing make them excellent partners in negotiating lease agreements and resolving landlord and tenant disputes with legal remedies.
Before entering into a lease agreement for a commercial property, find the right lawyer to handle the transaction. A lawyer will protect your business interests by negotiating and drafting the lease or changes to an agreement.
Commercial Property Title Searches
Commercial real estate transactions have many complexities that need careful consideration. Whether you are leasing a commercial property, buying, or selling , it is crucial to know and understand all aspects of the transaction.
Off-title searches are critical because they can reveal matters that could impact a buyer’s plans for the premises.
While title searches are a common aspect of residential and commercial real estate transactions, a comprehensive off-title search may be necessary for commercial properties, depending on the type.
The purpose of an off-title search is to discover potential risks or issues that could affect the value of the property or its intended use that may not be obvious from the title.
Buyers can make more informed decisions by knowing the potential risks of the commercial property in question.
It is also important that a commercial property is maintained well for electrical supply. An off-title search can determine the compliance of the property with the Electrical Act and will show if the premises have had electrical issues in the past.
Municipal Ordinances
A commercial property can be used in several ways as permitted by law.
A commercial building, for instance, can house different businesses under its roof. But be that it may, an off-title search can discover if the intended use violates by-laws or codes that could be roadblocks and result in future liability.
Environmental Issues
Due diligence should also be conducted to determine if a property has been used for activities that could cause contamination. It is also possible that other nearby businesses could contaminate the property and expose an investor to future liabilities.
An environmental off-title search will assist the buyer in avoiding future claims that could be costly. A search could be done through the Environmental Site Registry-O. Reg. 153/04 which would reveal whether a record of site condition had been filed, including a contamination assessment.
Safety Inspections
Commercial properties are required to comply with regulations for fire, health, and safety concerns. For restaurants or commercial kitchens, the Ontario Food Premises Regulation and the Ontario Building Code Section 6.2.2.6 must be followed.
An off-title search will guarantee to the buyer that he is not exposed to fire or health liabilities.
Commercial Real Estate Sales or Purchases
A commercial property sales transaction involves multiple steps which you can take with your real estate lawyer.
Preparation of documents
Several documents must be readied for the sale transaction including property transfer documents, the bill of sale, lease assignment, tenancy agreement, or service agreements.
Security Interest
A commercial real estate lawyer will ensure that you have the statement of adjustments, assess if HST on the sale applies, and review property security agreements.
Mortgages may also be reviewed. This process is referred to as completing the security interest to ensure that the client is protected in any mortgages or loans.
Closing the Sale
A commercial real estate lawyer also attends to the closing of the sale transaction and finalizing the transfer. He provides valuable legal advice in matters pertaining to the sale agreement.
Good real estate Lawyers work with the brokers, accountants, and property management companies to protect their clients’ interests.
Are you considering the purchase of an existing business with a property or redeveloping an existing business? You will need a commercial real estate lawyer to help you with the offer, sale agreement, title search, financing, and insurance.
Commercial property and real estate lawyers assist clients from start to finish to prevent risks to their clients and ensure a successful transaction.
Find the right lawyer for your commercial real estate sale or purchase by comparing lawyers in JuriGo. Fill out the form on this page with no obligation.
Buying an Existing Business in Leased Premises
Have you decided to buy an existing business? Due diligence and company research are important to avoid unpleasant news at closing time. You don’t want to spend more money than you bargained for.
A good commercial real estate lawyer is familiar with the purchase of a business in leased premises.
He will help you with the following:
- Analysis of the sale and purchase agreement;
- Check for statutory liens and any outstanding taxes under business, corporation, etc.
- Analysis of the Bill of Sale;
- Preparation of any personal property security agreement;
- Applicable and relevant legislations like the Bankruptcy Act, Bill of Sale Act, Corporation Securities Registration Act, Bank Act, Personal Property Security Act, etc.;
- Executions or litigations, if any.
Evaluating Lease Agreements
A lease in a business contract is legally binding. It is critical to evaluate the lease agreement before you sign a purchase agreement for a business in leased premises.
Your lawyer will verify the following:
- Duration of the lease;
- Rent increases;
- Possibility of sub-leasing the premises if you need to move to another location;
- Lease renewal;
- Protection from bankruptcy of your landlord with a non-disturbance clause;
- Insurance;
- Property improvements.
Real Estate lawyers take into account your specific circumstances to offer tailored and personalized solutions for your real estate transaction.
Before venturing into the purchase of an existing business, make sure to find the right commercial property lawyer to help you.
Factors to Consider when Hiring a Commercial Property Lawyer
If you are a property owner or tenant, a commercial property lawyer can guide you in the complexities of commercial real estate law.
Many Canadians venture into commercial real estate because of its high potential for building wealth. But why is it necessary to hire a commercial property lawyer?
As pointed out earlier, commercial real estate transactions involve large financial investments and complex agreements. With a real estate lawyer by your side, you can be sure that legal requirements will be met.
How do you choose the right commercial property lawyer for your transaction?
Consider the following when choosing a commercial property lawyer.
- Knowledge of your local area and market
The law as well as market conditions could vary from one area to the next. You need to find a lawyer with local knowledge for commercial real estate matters.
Real estate law in your locality or city has a big impact on commercial real estate investments . A lawyer with knowledge of the area’s specific requirements can help you comply with legal standards and avoid future problems.
Good lawyers have connections with key players in the industry and can facilitate transactions for greater convenience.
- Good Lawyer-Client Relationship
Aside from his legal expertise and local knowledge, a lawyer’s communication and work style must be compatible to yours. This is crucial for the success of your commercial real estate project.
Find a lawyer who is responsive and able to answer your questions regarding legal concepts. He must be willing to listen to your concerns and offer a legal approach based on your needs.
- Legal Fees and Payment Schedule
Finally, he must be transparent with his fee structure and explain the costs involved to avoid unexpected financial burdens on your part.
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Understanding Regulatory Considerations
Ontario’s commercial real estate market functions within a solid framework of federal, provincial, and municipal laws. These are related to zoning, land use, environmental considerations, building codes, and foreign investments.
Any investor must comply with these regulations to avoid future legal and tax implications. A commercial real estate lawyer is the best professional to help you with a smooth investment transaction.
Buying a commercial property in Ontario
An investor buys a commercial property with the goal of generating regular income. Commercial properties are rental apartments, warehouses, gas stations, office buildings, hotels, retail units, etc.
Buying a commercial property is more complicated than buying a residential property . Commercial property purchase transactions usually require tenant leases, service contracts, financing, etc.
Adequate planning is necessary including due diligence to avoid unscheduled expenses, and issues with off title searches such as zoning, building, and fire code compliance.
Commercial Title Insurance
Proper title insurance is necessary for commercial real estate. This is different from a simple home purchase.
This insurance coverage offers protection to commercial property owners and lenders from losses pertaining to the title of the property or ownership.
It also makes the closing process simpler for the lawyer and saves you time and money.
A commercial real estate lawyer can help with custom polices tailored to the type and coverage you need.
For a one-time premium, title insurance coverage protects a property owner from:
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Unknown defects
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Outstanding liens
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Problems with encroachment
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Survey and public record errors;
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Other title issues that could impact an owner’s ability to sell, buy, lease, or mortgage the property.
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Title fraud.
Title insurance is not required in Ontario but your lawyer can explain to you what type of protection you can get from title insurance.
When purchasing title insurance, always check and understand the policy. Know the exclusions which could include:
- Known title defects (those you were aware of before you purchased the property)
- Environmental hazards
- Native land claim
- Problems only discovered by a new survey or inspection of your property. For example, the property is smaller than originally thought
- Issues that are not reflected in public records such as unrecorded liens and encroachments
- Violations of zoning bylaws due to renovations, additions, or changes made to the land or property.
Our high-quality professional partners in JuriGo specializing in commercial real estate law will provide you with the best legal counsel for your transaction.
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Entrust your Commercial Real Estate Transaction with the Experts
If you are buying or selling a commercial property anywhere in Ontario, entrust this important transaction to an expert.
A commercial real estate lawyer can simplify the process while ensuring that you benefit from the transaction in every way possible.
A real estate lawyer will take care of your interests from start to finish and ensure a successful closing.
To find the real estate attorney that matches your needs, fill out our short online form below and get connected to the experts.
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