I study once that if you took all the true estate lawyers in Illinois and laid them finish to finish along the equator – it would be a superior thought to leave them there. That is what I read. What do you suppose that means?

I have written before about the want to exercising due diligence when getting commercial genuine estate. The will need to investigate, just before Closing, each significant aspect of the house you are acquiring. The significance of evaluating each and every commercial genuine estate transaction with a mindset that once the Closing occurs, there is no going back. The Seller has your funds and is gone. If post-Closing issues arise, Seller’s contract representations and warranties will, at very best, mean expensive litigation. CAVEAT EMPTOR! “Let the buyer beware!”

Paying additional focus at the beginning of a commercial genuine estate transaction to “get it right” can save tens of thousands of dollars when the deal goes negative. It’s like the old Fram® oil filter slogan during the 1970’s: “You can spend me now – or spend me later”. In commercial genuine estate, having said that, “later” might be also late.

Purchasing industrial genuine estate is NOT like obtaining a household. It is not. It is not. It is NOT.

In Illinois, and a lot of other states, virtually each residential real estate closing needs a lawyer for the purchaser and a lawyer for the seller. This is possibly clever. It is good consumer protection.

The “challenge” this causes, on the other hand, is that each lawyer handling residential true estate transactions considers himself or herself a “real estate lawyer”, capable of handling any actual estate transaction that might arise.

We discovered in law school that there are only two kinds of property: genuine estate and personal house. Therefore – we intuit – if we are competent to deal with a residential real estate closing, we have to be competent to manage a industrial true estate closing. Realtor are every “actual estate”, ideal?

ANSWER: Yes, they are each and every genuine estate. No, they are not the exact same.

The legal concerns and risks in a commercial actual estate transaction are remarkably distinctive from the legal problems and dangers in a residential genuine estate transaction. Most are not even remotely similar. Attorneys concentrating their practice handling residential true estate closings do not face the identical difficulties as attorneys concentrating their practice in commercial real estate.

It is a matter of practical experience. You either know the difficulties and dangers inherent in industrial actual estate transactions – and know how to deal with them – or you never.

A crucial point to bear in mind is that the myriad customer protection laws that defend residential home purchasers have no application to – and give no protection for – purchasers of industrial real estate.

Competent commercial real estate practice demands focused and concentrated investigation of all concerns material to the transaction by someone who knows what they are looking for. In short, it requires the exercising of “due diligence”.

I admit – the exercise of due diligence is not affordable, but the failure to workout due diligence can make a economic disaster for the commercial actual estate investor. Never be “penny wise and pound foolish”.

If you are acquiring a property, employ an lawyer who on a regular basis represents dwelling buyers. If you are shopping for commercial actual estate, employ an attorney who consistently represents industrial real estate buyers.

Years ago I stopped handling residential genuine estate transactions. As an active industrial real estate lawyer, even I hire residential real estate counsel for my own residence purchases. I do that mainly because residential actual estate practice is fundamentally distinct from industrial true estate.

Maybe I do “harp” on the need to have for competent counsel skilled in commercial true estate transactions. I genuinely believe it. I believe it is vital. I believe if you are going to invest in industrial real estate, you will have to apply your crucial pondering abilities and be sensible.

POP QUIZ: Here’s is a very simple test of YOUR vital pondering capabilities:

Please study the following Scenarios and answer the queries True or FALSE:

Scenario No. 1: It is Valentine’s Day. You are in hot pursuit of the love of your life. A handful of weeks ago, she confided in you that all she ever dreamed of for Valentine’s Day was that her lover would show up at her door, dressed in a white tuxedo with tails and a top hat, and present her with a gorgeous bouquet of flowers. You’ve rented the tuxedo, but now you are concerned about how considerably money you are spending.

Accurate OR FALSE: Considering the fact that flowers are pretty much all the same, it is OK for you to skip the roses and show up with a bouquet of fresh yellow dandelions.

Situation No. 2: For various years you eyesight deteriorated to the point exactly where you can barely see your alarm clock. You are now considering corrective eye surgery so you will not require glasses. Your sister-in-law had corrective eye surgery and has had spectacular results. She recommends her eye surgeon, but mentions the price is about $5,700 for both eyes and that the surgery is not covered by insurance. A handful of years ago, you had surgery to correct your hemorrhoids and it price you only eight hundred bucks.

True OR FALSE: Due to the fact surgeons all went to medical college and are all healthcare medical doctors, you are becoming frugal and sensible by asking the surgeon who performed your hemorrhoid surgery to execute your corrective eye surgery.

Situation No. three: Many years ago, when you very first got married, you asked a former classmate who is a lawyer to represent you in the purchase of your townhome. The cost was only $375. A year later, you started a family members and decided you necessary a Will. The identical lawyer prepared Wills for you and your wife for a total cost of $700. You started your personal business enterprise and your lawyer pal formed a corporation for you and charged you only $600 plus the expense of the corporate minute book. Years later, when your son was arrested for misdemeanor reckless driving, your lawyer buddy handled the criminal case and got your son off with supervision for only $1,500.