The real estate sales process can be confusing for those without the abundant experience of a real estate attorney. There are a lot of terms that don’t come up in day-to-day life like escrow, lien, and easement. Documents of great importance seem to be required for every step along the way. Those entering the process might think it to be fairly straightforward—find a property you like, make an offer and get it accepted, then move in.However, that is not often the case. There are plenty of circumstances that can arise that add a few more steps to the process. And throughout this process, everyone has their eyes on the final step— closing.
Commercial real estate can be a great investment. You buy a building, lease it to a company, and get a rent check in the mail each month.
So how do you determine whether a particular piece of real estate is a good investment? There are several main factors: location, return on investment (ROI), appearance, and a clear title.
But first, what exactly is commercial real estate?
A title search is a crucial part of the closing process. It benefits and protects both the buyer and the seller from a fraudulent or defective deal. Because homes cost thousands of dollars and owning property requires the payment of federal taxes, a lot of tedious work is involved in protecting the investment. While title insurance isn't legally required, lenders usually require a policy to be taken out to protect the new purchase. A title search and insurance are necessary to close on a new home, but many people aren't aware of what it is they are purchasing.
Whether you are buying, selling or managing a property, you need legal guidance and representation to protect your best interests. The state of Tennessee has legislation in place that protects both the buyer and the seller of a commercial property. In particular, the Tennessee Statute of Frauds requires, in writing, documents that comply with the strict regulations. Unless adequately drafted, these materials are unenforceable which may void the entire transaction.
Topics: Commercial Real Estate Law
Rochford Law & Real Estate Title, a long-standing member of the Nashville legal community, has released a new resource for investors and developers to help them better understand and navigate the complexities of the commercial real estate closing process.
A “Like-Kind Exchange,” also known as a 1031 Exchange or a Starker Exchange, allows investors to defer paying capital gains taxes on investment properties when they are sold, as long as another “like-kind” property is purchased with the profits of the sale. Congress enacted the like-kind exchange statue nearly 100 years ago, in 1921, to help investors avoid unfair taxation of ongoing investments in property and to encourage active reinvestment (Federation of Exchange Accommodators).
A first glance, real estate law might seem like a very specific niche in the legal world. Well, it shouldn’t take much exploration to begin to understand just how much is encompassed by the term “real estate law.” Indeed, real estate law is a world unto itself, and one that often must be extended to include adjacent areas of practice. Indeed, real estate lawyers are forced to wear many hats!
Today we’ll be talking about one such instance of real estate law overlapping with other fields of practice. We often handle matters that blur lines between different areas of law, and the following matter is a perfect example of this.