Commercial Real Estate Transactions
Common Problems During Commercial Transactions
Lack of legal due diligence: Unexpected issues found in public-record documents are a potential landmine for any entity that hasn't examined the public record for a parcel. The risk of unexpected evidence of debt encumbrance, easement issues, zoning restrictions, land use limitations, chain of title problems, and deed restrictions, to name a few, can quickly turn a profitable endeavor into a money pit.
Poor contract language: Poorly-crafted definitions, ambiguous language, overly-complex sentences, unclear terms of performance, or absence of contract terms, to name only a few issues, can lead to a poor understanding of expectations and deadlines that can affect escrow close and longer term profitability of the parcel.
Inadequate contract integration: Ground lease clauses, master lease percentage of gross calculations written without relationship to one another can result in conflicting interpretations.
Calendaring mishaps. Missing calendar elements, unrealistic, and conflicting deadlines will put a parcel at risk of closing.
Construction • Engineering • Farm • Hotel / Motel • Land Developers • Logging • Manufacturing • Mining • Office • Retail • Surveyors