Real Estate Sales & Acquisitions Attorney

Thomas H. Curran Associates’s real estate and transactional lawyers are deeply experienced in the intricacies and complexities of commercial and residential real estate sales and acquisitions.  The Firm has represented purchasers, sellers, investors and lenders in numerous residential and commercial real estate transactions nationwide.

Real estate attorneys work to protect the interests of clients involved in the sale and acquisition of commercial properties. Buyers and sellers need legal guidance on the due diligence process, assistance with title issues, documenting financial transactions, and closing the sale or acquisition. Experienced real estate attorneys help clients ensure that transactions occur in an efficient manner that their interests are protected.

Every good commercial or residential real estate transaction involves a purchase and sale agreement. These agreements are bilateral contracts between the buyer and seller that specify the terms of the proposed transactions such as the property legal description, the sales price, payment structure, closing date, conditions of the sale and any other terms of the sale. The contract will also include the parties’ rights and obligations, any non-real estate assets included in the sale, terms of possession, and other things.

There are usually four significant steps to closing a commercial real estate deal: escrow, verification of signing authority, due diligence, and agreeing on the closing documents and title.

Due Diligence

There is no commercial version of the federal Real Estate Settlement Procedures Act (RESPA) that governs home sales in the U.S. As a result, commercial property buyers and sellers must do extensive due diligence on the property and the other party involved in the transaction. Many real estate lawyers have detailed checklists they follow to ensure they investigate every aspect of the sale prior to closing.

While the transaction is being negotiated a title company will often be hired to issue a preliminary report on the state of the property’s title. Titles for commercial properties are usually far more complicated than those for residential properties. After the preliminary report, the buyer may file objections and walk away from the transaction if the seller does not respond to them. Once the title issues have been settled, the title company will issue a final report to ensure that any issues have been resolved.

Escrow

As with residential real estate transactions, after the seller has accepted a purchase and sale agreement the parties will usually negotiate an escrow agreement. Escrow agreements provide for a neutral third party to hold the closing funds in a separate account that cannot be accessed by the buyer or seller. The funds will remain in the escrow account until all provisions in the sales agreement have been met or one party leaves the deal through a process outlined in the agreement.

Verification of Signing Authority

A commercial real estate transaction usually involves contracts between one or more legal entities. Often, to limit their liabilities, the parties will create a new legal entity for the sole purpose of owning one property. For each entity involved, steps need to be taken to ensure their representative has the authority to enter into the transaction.

Closing Documents

For a deal to be completed both the buyer and seller must agree to execute a series of closing documents and accept a title report. The Settlement Statement itemizes the amounts due from and to the buyer and seller involved in the transaction as well as amounts due to third parties such as to the closing attorney, to a municipality for taxes and betterments, lender payoffs, recording fees and other transaction expenses. The closing documents may include such items as the assignment and assumption of leases, deeds, zoning disclosures, and any other documents the parties believe are necessary to close the deal. Since there is no commercial equivalent to RESPA, the buyers and sellers of commercial property have more leeway as to which closing documents are used than for residential sales.

The Attorneys at Thomas H. Curran Associates Can Help

Real estate sales and acquisitions often involve complex transactions that can be difficult to navigate without the guidance of an experienced real estate attorney. The attorneys at the law firm of Thomas H. Curran Associates have decades of experience with real estate sales, acquisitions, financing, development, structuring ownership, leasing, land use, and permitting. Our lawyers represent buyers, sellers, lenders, investors, and real estate investment trusts (REITs), providing trusted counsel to clients on real estate across the U.S.