When a client came to attorney Oscar Rivera asking him to force a guy to sell him a hotel, Rivera was up a creek.
The problem: the client drew up his own contract to buy the property and then the seller changed his mind.
“It was a horrible contract,” says Rivera, head of the real estate department of Siegfried, Rivera, Lerner, De La Toree & Sobel, in Coral Gables, Fla. Startups should hire an attorney before even looking for commercial property to buy or lease, he says.
“The buyer wanted to see if we could default the seller and force them to close. Had that contract been drafted better, he would’ve been in a better position – as opposed to filing a lawsuit and spending $50,000 in legal fees when we don’t even know if we’re going to win,” Rivera says.
This is a typical scenario in the world of commercial real estate when companies don’t pull together the best team to guide them through the process. Don’t stop at hiring a lawyer; find a specialized broker, tax planner, engineer or licensed inspector and environmental consultant to share expertise, help you find the right property and ensure you claim it quickly and painlessly.
Learning lease lingo
Unlike buying a home, almost anything goes in the world of commercial real estate. Rivera warns that if you don’t negotiate, you’ll be taken for a ride. “Everything is open to negotiation,” he says.
Attorney Scott Jordan agrees.
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