Experienced Commercial Real Estate Lawyer in Ontario
Costs of a commercial real estate lawyer in Ontario have been escalating rapidly over the last decade. In many cases, buying properties make economic sense over renting them. As a commercial property owner, you will enjoy appreciation in the property price along with zero rent hikes.
The purchase of commercial real estate property in Ontario tends to be more complicated than the transactions of residential property. Due diligence needs to be exercised at every step for buying commercial real estate. There are many factors involved which are not present in the residential property purchase. Lack of adequate planning can lead to unscheduled costs, insufficient financing and potential environmental and other issues with off title searches including zoning, building and fire code compliance.
Commercial real estate property worth in Ontario had been increased swift over the last decade. That is why most of the time, buying properties make more economic sense than renting them. As a commercial property owner, you will have the advantage of the appreciation in the property price whereas there are zero rent hikes.
The purchase of commercial properties is a more difficult and complicated process than the transactions of residential property. There are quite many factors that need to be considered which are not necessarily in the purchase of the residential property. Proper planning is a must in commercial property transactions otherwise it might lead to unexpected costs, insufficient financing and potential environmental and other issues with off title searches including zoning, building and compliance issues with fire code.
Due Diligence of a Commercial Real Estate Lawyer
Commercial Real Estate Lawyer you select must have expertise in the given area, whether you choose to deal with commercial property, retail, and industrial, mineral and agricultural property. They detailed title search should be done to make you aware of the existing obstruction on the title such as site plan control agreements, the right of way, by-laws, easements, restrictive covenants, and subdivision agreements. At the same time an Off-title search also need to be done which include fire department, hydro one, building, department, conservation authority, zoning and much more. You can make an informed decision and avoid unpleasant surprises at the transaction closing time if the due title searches are performed.
In case of purchase from a corporation involves searches for the bankruptcy and corporate status. Authorization status for sale should also be confirmed with the vendor corporation.
The title of the commercial real estate property is investigated and reviewed in every transaction. As per representation all agreement matters are analyzed to make sure these are. Before initiating negotiations with the vendor to be clear on all property encumbrances, it is recommended to consult a Real Estate Lawyer. This helps to assure that the property you are going tobuy has a marketable and clear title. Typically a title review includes reviewing all instruments that are registered on property title including site plan control agreements, municipal by-laws, the right of way agreements, subdivision agreements, liens, registered leases and development agreements. Property surveys and adjacent property titles are also reviewed to assure there is no violation of Ontario Planning Act. Detailed off title searches are also done to confirm there is no outstanding dues exist on water, other utilities and tax. Law Wise real estate lawyer will also review and make sure that all off title searches are satisfactory and the title is clean and the transfer transaction has taken place as mandated.
Existing Tenancy Agreements & Leases
It is extremely important to review existing leases and tenancy agreements priorto closing to avoid an unforeseen problem at closing of the purchase transaction. Any service and employment contracts need to be reviewed against to the property being considered for purchase.
Commercial Properties For Sale
Commercial Real Estate Lawyer also takes the steps by attending the closing and taking care of all the final sale matters. You are advised by the lawyer in all legal matters regarding the sale & purchase agreement.
The other documentation to be done for the sale transaction include the property transfer papers, tenancy agreements, the bill of sale, lease assignment if any, and any assignment of service contracts. After all the mentioned documentation are prepared, then finally completed agreement of sale and purchase is reviewed.
There are many legal matters included in the sale transaction of commercial property. It is advised to consult a trusted Real Estate Lawyerto review the applicability of HST on sale, to assure you have the statement of adjustments, and analyze personal property security agreements.
Perfecting the security interest is to analyze the purchaser’s requisitions if the Vendor take back mortgages! Doing these actions protects the seller in case of any loans and mortgages.
At Law Wise, our experienced Commercial Real Estate lawyers understand your specific circumstances and provide tailored and customized solutions for each of them. Our professional approach and prompt communication ensures successful outcomes for you.
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