As someone looking to purchase commercial real estate in the area, did you know that Tennessee requires a franchise and excise tax that can equate to 4% annually? Deciding to put your property into an LLC or purchase an umbrella insurance policy can be a tricky feat. With varying state regulations and laws that go along with these transactions, commercial ownership can benefit from a real estate attorney.
A real estate attorney is a professional that fights for you and your property needs. This can offer you protection throughout the sales process and afterwards. Problems with any property services during this sales process or issues with neighboring lots can lead to the need for a real estate attorney.
Here are some of the ways a real estate attorney can help save you money in Nashville, Tennessee:
- Breach of Contract
- Issues With the Property
- Breach of Agent Contract
- Zoning Issues
- Handle Boundary Disputes
- Increase Liability Protection
Breach of Contract
When a property sale is initiated, a contract is immediately issued. This typically includes aspects such as the closing date, financial stipulations, title clearance, and assets associated with your final purchase. This contract should contain each party responsible for the proper completion of each aspect.
A failure to adhere by the stipulations of any section of the contract can leave a party open to possible litigation that can rack up a multitude of costs. Both the buyer and the seller should have their attorney look over this contract to make sure they are able to meet each aspect of the document in due time. With the help of your personal real estate attorney, you can ensure that any breach of contract from the opposing party’s side will be covered with the right legal assistance.
Issues With the Property
While it is mandatory for a person selling either a residential or commercial property to disclose any and all known problems with the property, various issues can still arise during a purchase agreement. The failure to disclose extra property issues is grounds for legal action on behalf of the buyer. Without the proper real estate legal knowledge, you could find yourself stuck with excess property costs.
These situations could include a leaky roof, unchecked mold, wiring issues, or any modifications that don’t meet current standards. Typically, a buyer operates under the assumption that the property they are looking at has been deemed safe. When purchasing a piece of property, they will expect to have every piece of information inherent to making an informed decision on the property. A failure to provide this information could lead to increased spending without the help of an attorney.
Commercial real estate closings in Nashville necessitate an experienced real estate attorney. Visit Rochford Law & Real Estate Title today!
Breach of Agent Contract
One of the biggest reasons you could need to hire a real estate attorney doesn't always relate to actions on behalf of the buyer or seller. Real estate agents and realtors open themselves up to the possibility of being sued when they fail to act in their client’s best interest.
A cost heavy problem, the failure to disclose any important information or share confidential information goes against the assumptions of the professional relationship. This would likely call for you to take legal action. A real estate attorney can help to review the situation and discern if there was a breach of duty performed by the agent or realtor.
When it comes to purchasing residential or commercial property, zoning codes dictate which types of structures and uses a particular property can support. Buyers will often have specific plans with a property they are looking to buy. Sometimes, these plans don’t align with the zoning codes of the land. In this case, a real estate attorney will be able to help you verify the current zoning of a property before you complete the purchasing process.
Pro Tip: If you make it through closing day and find out the property isn’t zoned for your intended use, don’t panic. A real estate lawyer will be able to help you file a rezoning application with the city.
Handle Boundary Disputes
As you begin to think about your potential new property, the boundaries of your lot might not be as apparent as you think. A legal property line isn’t always reflected in the practical applications of one. Rather than wait till the last minute or suffer excess legal costs, this issue can be addressed early on with the help of a real estate attorney. If this leads to any other issues such as a neighbor building a structure that crosses your property line, your lawyer can help to resolve the dispute as they were with you from the very beginning.
Increase Liability Protection
Many buyers purchasing property in Tennessee tend to place their property into an LLC to access limited liability protection. However, what they do not realize is that Tennessee has a franchise and excise tax that is based upon the value of the assets and the income and earnings owned by the LLC every year.
These taxes can often equate to as much as 4% per year. For example, if you own an Airbnb worth $900,000 with bookings valued at $100,000 per year, these taxes could equal as much as $40,000 per year. With a real estate attorney, you can decide if an umbrella insurance policy is better for your property over an LLC. The protection from personal liability offered by an LLC is often not worth it to many TN investors as a lot of insurance can be purchased for a far smaller price. A real estate attorney in your area can help you decide which is best for your property needs.
Working with an experienced real estate attorney like Rochford Law & Real Estate Title in Nashville, TN can save you time and money in the long run. It’s best to cover all your bases and get through a real estate transaction with as little problems as possible. However, it’s comforting to know that should a dispute pop up, a real estate litigation attorney can help find a resolution. Contact Rochford Law & Real Estate Title today!