Legal Pitfalls That Could Impact Your Commercial Real Estate Deal | Michael McVinney
Contact Michael McVinney, a NY licensed Real Estate Broker. Michael McVinney is also licensed in PA.
Bemus Point NY condos for sale,Ashville NY condos for sale,Lakewood NY condos for sale,Mayville NY condos for sale,Jamestown NY condos for sale,Falconer NY condos for sale,Ellicotville NY condos for sale,Fredonia NY condos for sale,Chautauqua NY condos for sale,Lakefront condos for sale,Bemus Point NY fsbo,Ashville NY fsbo,Lakewood NY fsbo,Mayville NY fsbo,Jamestown NY fsbo,Falconer NY fsbo,Ellicotville NY fsbo,Fredonia NY fsbo,Chautauqua NY fsbo,Lakefront fsbo,Bemus Point NY home for sale,Ashville NY home for sale,Lakewood NY home for sale,Mayville NY home for sale,Jamestown NY home for sale,Falconer NY home for sale,Ellicotville NY home for sale,Fredonia NY home for sale,Chautauqua NY home for sale,Lakefront home for sale,Bemus Point NY real estate license,Ashville NY real estate license,Lakewood NY real estate license,Mayville NY real estate license,Jamestown NY real estate license,Falconer NY real estate license,Ellicotville NY real estate license,Fredonia NY real estate license,Chautauqua NY real estate license,Lakefront real estate license,Bemus Point NY real estate agent,Ashville NY real estate agent,Lakewood NY real estate agent,Mayville NY real estate agent,Jamestown NY real estate agent,Falconer NY real estate agent,Ellicotville NY real estate agent,Fredonia NY real estate agent,Chautauqua NY real estate agent,Lakefront real estate agent,Bemus Point NY realty,Ashville NY realty,Lakewood NY realty,Mayville NY realty,Jamestown NY realty,Falconer NY realty,Ellicotville NY realty,Fredonia NY realty,Chautauqua NY realty,Lakefront realty,Bemus Point NY for sale,Ashville NY for sale,Lakewood NY for sale,Mayville NY for sale,Jamestown NY for sale,Falconer NY for sale,Ellicotville NY for sale,Fredonia NY for sale,Chautauqua NY for sale,Lakefront for sale,Bemus Point NY homes for sale by owner,Ashville NY homes for sale by owner,Lakewood NY homes for sale by owner,Mayville NY homes for sale by owner,Jamestown NY homes for sale by owner,Falconer NY homes for sale by owner,Ellicotville NY homes for sale by owner,Fredonia NY homes for sale by owner,Chautauqua NY homes for sale by owner,Lakefront homes for sale by owner,Bemus Point NY foreclosed homes,Ashville NY foreclosed homes,Lakewood NY foreclosed homes,Mayville NY foreclosed homes,Jamestown NY foreclosed homes,Falconer NY foreclosed homes,Ellicotville NY foreclosed homes,Fredonia NY foreclosed homes,Chautauqua NY foreclosed homes,Lakefront foreclosed homes,Bemus Point NY real estate school,Ashville NY real estate school,Lakewood NY real estate school,Mayville NY real estate school,Jamestown NY real estate school,Falconer NY real estate school,Ellicotville NY real estate school,Fredonia NY real estate school,Chautauqua NY real estate school,Lakefront real estate school,Bemus Point NY mls listing,Ashville NY mls listing,Lakewood NY mls listing,Mayville NY mls listing,Jamestown NY mls listing,Falconer NY mls listing,Ellicotville NY mls listing,Fredonia NY mls listing,Chautauqua NY mls listing,Lakefront mls listing,Bemus Point NY buying a house,Ashville NY buying a house,Lakewood NY buying a house,Mayville NY buying a house,Jamestown NY buying a house,Falconer NY buying a house,Ellicotville NY buying a house,Fredonia NY buying a house,Chautauqua NY buying a house,Lakefront buying a house,Bemus Point NY townhomes for sale,Ashville NY townhomes for sale,Lakewood NY townhomes for sale,Mayville NY townhomes for sale,Jamestown NY townhomes for sale,Falconer NY townhomes for sale,Ellicotville NY townhomes for sale,Fredonia NY townhomes for sale,Chautauqua NY townhomes for sale,Lakefront townhomes for sale,Bemus Point NY homesearch,Ashville NY homesearch,Lakewood NY homesearch,Mayville NY homesearch,Jamestown NY homesearch,Falconer NY homesearch,Ellicotville NY homesearch,Fredonia NY homesearch,Chautauqua NY homesearch,Lakefront homesearch,Bemus Point NY houses for sale by owner,Ashville NY houses for sale by owner,Lakewood NY houses for sale by owner,Mayville NY houses for sale by owner,Jamestown NY houses for sale by owner,Falconer NY houses for sale by owner,Ellicotville NY houses for sale by owner,Fredonia NY houses for sale by owner,Chautauqua NY houses for sale by owner,Lakefront houses for sale by owner, contact Michael McVinney, Real Estate Broker Michael McVinney, NY Real Estate Broker, NY Real Estate Agent, NY Realtor, Michael McVinney
post-template-default,single,single-post,postid-18034,single-format-standard,bridge-core-1.0.6,ajax_fade,page_not_loaded,,qode-title-hidden,side_area_uncovered_from_content,qode-child-theme-ver-1.0.0,qode-theme-ver-18.2,qode-theme-bridge,qode_header_in_grid,wpb-js-composer js-comp-ver-6.0.5,vc_responsive

Legal Pitfalls That Could Impact Your Commercial Real Estate Deal

This post originally appeared on tBL member Michael Kushner’s blog Omni Realty Group and is republished with permission. Find out how to syndicate your content with theBrokerList.

Legal matters can arise just about anywhere and in any industry. Commercial real estate is no exception. In fact, commercial real estate transactions can be filled with legal pitfalls if you don’t take proper precautions or seek professional advice.

What legal challenges are common to commercial real estate? For the answers, we looked to an experienced real estate attorney who has helped many clients navigate through such challenges.

Hannah Dowd McPhelin is a partner with Pepper Hamilton LLP, resident in the Harrisburg and Philadelphia offices and vice chair of the firm’s Real Estate Practice Group. Attorney McPhelin concentrates her practice in real estate matters and other business transactions, including the acquisition, sale and financing of commercial real estate properties and leasing of office, retail, warehouse and industrial space, representing both landlords and tenants. She is an Accredited Professional and was named a member of The Counselors of Real Estate in 2017.

Omni Realty Group had the pleasure of interviewing Attorney McPhelin to further examine the legal pitfalls that could impact commercial real estate deals. Here’s what we learned.

Omni: Describe some of the most common legal challenges you’ve seen arise when working through a commercial real estate deal.

Hannah Dowd McPhelin: I’ve worked through a lot of different challenges on a variety of deals, but an enduring theme is that some level of trust between the parties is necessary to get a deal done efficiently. If there is no trust or trust erodes, it is extremely difficult to work through challenges and get to closing, and it makes the deal much more expensive for all parties.

Omni: What conflicts can arise between the LOI and the lease? How can this be avoided?

HDM: The issue I see most often is that, because LOIs are typically not binding, a party may not raise concerns at that stage and will believe those terms can be “re-negotiated” in the lease — this leads to mistrust and deal delays. It is better to raise material issues at the LOI stage so both parties do not waste time and resources when there is not a meeting of the minds. I also recommend that the LOI be a short and concise document containing only the most important terms. A long LOI slows down deals and makes it more likely that you will do a second round of negotiations on particular issues when you negotiate the lease.

Omni: How can an attorney help parties avoid legal pitfalls in commercial real estate transactions?

HDM: A good deal attorney should be creative and look to solve problems as they come up. Every deal has certain issues, but an attorney who only spots issues without offering useful and practical solutions to them is not helpful to the process and reduces the chance that the deal will get done. Frank and open discussions among the parties and their attorneys are the most useful tool in avoiding pitfalls and making sure that the deal is documented in such a way that each party understands its obligations and risks.

Omni: What are the benefits of using a commercial real estate broker?

HDM: Similar to a good attorney, a good broker can be very useful in moving a deal forward, particularly over any rough patches. A broker’s knowledge of the market and other options in the market is essential to understanding a party’s leverage, and a good broker has strong relationships in the relevant market that benefit his or her client.

Omni: For tenants/buyers, how will using an exclusive tenant representative help avoid conflict of interest in a CRE deal?

HDM: Exclusive tenant representatives are particularly helpful to companies that are not in the real estate industry but have real estate needs. The representative’s knowledge of the market, the tenant’s options, and the deal process helps set the tenant’s expectations and assists the tenant in making efficient decisions.

Omni: When entering a commercial real estate transaction, what is the best time in the process to engage outside professionals like attorneys and/or commercial real estate brokers?

HDM: As early as possible. A broker should be engaged when a tenant first considers a move in order to best understand the options in the market and to help the tenant make a considered decision. Ideally, an attorney is engaged in the LOI stage. As an attorney, I find it helpful if I can do a quick review of the LOI before it is signed, as I may see issues that will eventually become big problems in the lease if not addressed at the LOI stage. Often, what I am doing is asking a few follow-up questions to make sure the parties have considered how certain terms will play out in the lease.

Navigating commercial real estate transactions can come with many challenges. What’s most important to remember is that any successful deal must be built upon a foundation of trust. Additionally, seeking the input of an experienced commercial real estate broker, particularly one that is an exclusive tenant representative, will ensure your interests are represented. Finally, having the counsel of a real estate attorney on your side to review any documents and spot issues that could grow into bigger problems down the road can be invaluable to the success of your transaction.

To learn more about Attorney Hannah Dowd McPhelin or Pepper Hamilton LLP, please visit:

, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

RSS Feed provided by theBrokerList Blog – theBrokerList for commercial real estate brokers (cre) and Legal Pitfalls That Could Impact Your Commercial Real Estate Deal was written by Michael Kushner.