Get a Lawyer Involved Before You Find Out You Really Need One
When you’re starting a business or leasing or purchasing property to use for commercial purposes, there’s a lot to think about. Permits, insurance, taxes and contracts are just a few of the details to manage when dealing with commercial real estate. Don’t miss a potentially significant issue by trying to handle it all yourself; hire a professional to help you sift through the legalities so you know exactly what you’re getting into and save yourself possible hassles down the road.
Signing a Commercial Lease
Commercial leases can be complex. They range widely in factors such as term length and renewals. In addition, it’s necessary to make clear arrangements for improvements to the property. While residential leases usually make the owner of the property responsible for improvements, it’s not uncommon for commercial leases to make the tenant responsible.
A commercial lease is legally distinct from a residential lease. In short, commercial leases don’t automatically offer the consumer protection offered by residential leases, so they aren’t required to set a maximum for a security deposit or protect the privacy of the tenant. Commercial leases are often set for a longer term than residential leases, and they may not include a provision for breaking the lease, which means if the tenant skips out on the contract, he or she could be sued. Commercial leases are not standardized, and significant negotiations can go into creating a document that both parties feel comfortable signing. An attorney who specializes in commercial real estate can help you negotiate and clarify the specifics of a lease so there are no surprises once you’ve taken over the space.
Real Estate Permits and Taxes
If you’re the owner of a commercial space, you’re ultimately responsible for paying property taxes. If you’re asking a tenant to pay the taxes, you’ll need to make that arrangement in writing within the lease. Different cities require businesses to hold different permits when running a business out of a particular space or when making improvements to the physical property.
Some of the types of insurance involved in commercial real estate are property insurance, liability insurance, and worker’s compensation insurance. While the business owner is typically liable for paying the worker’s compensation premiums, property and liability insurance may be the responsibility of the landlord. Whichever side you’re on, make sure you’re clear about who is responsible for each type of insurance so your finances are protected if injury or damage does occur on the property.
As a tenant, you’re protected by laws that safeguard against unfair eviction. As a landlord, you’re protected by contract law. The real estate attorneys at Garrison Law Firm can save you time and help you understand the specifics of the laws that govern your commercial real estate deal. Visit our website to find out how we can help you.