I check out when that if you took all the real estate lawyers in Illinois and laid them end to end along the equator - it would be a good idea to leave them there. That's what I read. What do you expect that suggests?

I have actually written before about the need to work out due diligence when buying business real estate. The requirement to examine, prior to Closing, every considerable element of the residential or commercial property you are acquiring. The importance of assessing each commercial real estate deal with a mindset that when the Closing happens, there is no going back. The Seller has your money and is gone. If post-Closing problems arise, Seller's agreement representations and warranties will, at best, indicate pricey lawsuits. CAVEAT EMPTOR! "Let the purchaser beware!"

Paying additional attention at the start of an industrial realty transaction to "get it right" can save tens of countless dollars when the deal goes bad. It's like the old Fram ® oil filter motto throughout the 1970's: "You can pay me now - or pay me later". In commercial property, however, "later on" may be far too late.

Buying industrial property is NOT like buying a house. It is not. It is not. It is NOT.

In Illinois, and lots of other states, essentially every property real estate closing requires a legal representative for the buyer and a lawyer for the seller. This is probably wise. It is great consumer defense.

The "problem" this causes, however, is that every legal representative dealing with residential real estate transactions considers himself or herself a "property lawyer", capable of managing any realty deal that might emerge.

We discovered in law school that there are only 2 kinds of residential or commercial property: real estate and personal effects. Therefore - we intuit - if we are skilled to manage a residential property closing, we must be qualified to deal with a business property closing. They are each "real estate", right?

RESPONSE: Yes, they are each property. No, they are not the very same.

The legal problems and risks in a business property transaction are extremely various from the legal concerns and dangers in a domestic realty deal. Many are not even from another location similar. Lawyers focusing their practice dealing with property realty closings do not deal with the exact same problems as attorneys concentrating their practice in commercial real estate.

It is a matter of experience. You either know the concerns and dangers intrinsic in business real estate deals - and know how to handle them - or you don't.

A key point to keep in mind is that the myriad customer protection laws that secure residential house buyers have no application to - and supply no protection for - buyers of business property.

Proficient business real estate practice needs concentrated and concentrated examination of all problems material to the deal by someone who knows what they are searching for. In short, it requires the workout of "due diligence".

I admit - the workout of due diligence is not cheap, however the failure to work out due diligence can create a monetary catastrophe for the business investor. Don't be "penny wise and pound foolish".

If you are purchasing a home, employ a lawyer who frequently represents home purchasers. If you are buying commercial property, hire a lawyer who frequently represents industrial property purchasers.

Years ago I stopped handling residential realty deals. As an active business realty attorney, even I hire domestic realty counsel for my own home purchases. I do that due to the fact that residential realty practice is basically different from commercial real estate.

Maybe I do "harp" on the need for qualified counsel experienced in industrial realty transactions. I truly think it. I think it is important. I think if you are going to buy industrial real estate, you need to use your crucial thinking skills and be clever.

POP TEST: Here's is an easy test of YOUR crucial thinking abilities:

Please read the following Situations and respond to the questions REAL or FALSE:

Situation No. 1: It's Valentine's Day. You remain in hot pursuit of the love of your life. A couple of weeks earlier, she confided in you that all she ever imagined for Valentine's Day was that her fan would show up at her door, worn a white tuxedo with tails and a stovepipe hat, and present her with a stunning arrangement of flowers. You've leased the tuxedo, but now you are worried about how much money you are investing.

REAL OR FALSE: Since flowers are basically all the same, it is OK for you to skip the roses and appear with an arrangement of fresh yellow dandelions.

Circumstance No. 2: For numerous years you eyesight deteriorated to the point where you can barely see your alarm clock. You are now considering restorative eye surgery so you won't need glasses. Your sister-in-law had restorative eye surgery and has had spectacular results. She suggests her eye surgeon, but points out the expense has to do with $5,700 for both eyes which the surgery is not covered by insurance. A couple of years ago, you had surgical treatment to fix your piles and it cost you only eight hundred dollars.

TRUE OR FALSE: Since cosmetic surgeons all went to medical school and are all medical doctors, you are saving and wise by asking the surgeon who performed your hemorrhoid surgical treatment to perform your corrective eye surgical treatment.

Circumstance No. 3: Numerous years back, when you first got married, you asked a previous classmate who is a lawyer to represent you in the purchase of your townhome. The cost was just $375. A year later, you began a family and decided you needed a Will. The exact same attorney prepared Wills for you and your spouse for a total expense of $700. You started your own company and your attorney friend formed a corporation for you and charged you only $600 plus the cost of the business minute book. Years later, when your kid was arrested for misdemeanor negligent driving, your lawyer buddy dealt with the criminal case and got your child off with supervision for just $1,500.

Your service has actually succeeded and you have built a pretty substantial savings, but you are tired of working for every penny and want to attempt investing in realty. You have your eye Browse around this site on a strip shopping center. It consists of a supermarket, bank, hardware shop, dry cleaners (on a month to month tenancy), a number of fast food restaurants, a gift store, oral office, bowling alley (with a lease ready to end), and wraps behind a gas station/mini-mart on the corner. The purchase rate is $8,000,000, however the net operating income looks pretty good. You figure if you turn the bowling alley into a full service restaurant/banquet center, and transform the dry cleaners into a 24-hour coin laundry, the net operating earnings will increase and the shopping center will turn into a spectacular investment. You plan to gather much of your life savings and put down $2,000,000 to purchase this strip shopping mall, obtaining the balance of $6,000,000. You bear in mind that your attorney good friend handled the purchase of your house a number of years back, so you understand he manages real estate.

REAL OR FALSE: Commercial real estate is the same as domestic property [Hey, its all dirt, isn't it (?)], so you are being a shrewd business person by hiring your attorney good friend who will charge much less than a legal representative who handles shopping center purchases a number of time a year. [What is this "due diligence" stuff anyway?]

ANSWERS:

If you answered "REAL" for any of the foregoing Circumstances

STOP!

The Test is over.

Please discover a quite place to contemplate your life and think about whether the choices you make regularly offer you the outcomes you want.

If, on the other hand, you comprehend that the response to each of the foregoing concerns is FALSE, I am offered to help you in Scenario No. 3.

For Circumstance No. 2, you should follow your sister-in-law's suggestion and contact her eye surgeon, or some other eye surgeon with equivalent ability.

For Situation No. 1, you are on your own. [But, if you answered REAL for Scenario No. 1, you may be FOREVER on you own.]

Buying commercial realty can be rewarding and fulfilling - however it requires excellent crucial thinking abilities and proficient counsel.

You have a have a brain. It is highly advised that you use it.