Commercial Real Estate

Entering into a contract to purchase or sell real property involves much more than just agreeing on a price. Other important parts of the puzzle include negotiating: (i) a “due diligence” period during which a buyer can investigate the property to be purchased; (ii) the type of legal title to the property the seller will promise to deliver to the buyer; (iii) whether the seller will provide owner financing; (iv) contingencies that must be met before the parties go forward with closing; and (v) other provisions that are peculiar to each specific property.

Just as with a purchase, there are many issues to consider when leasing property. In addition to the obvious matters such as rent and the length of the rental term, landlords and tenants need to consider: (i) what obligations each party will have for the maintenance of the leased premises; (ii) whether any particular uses of the property will be forbidden; (iii) the obligations of each party to maintain insurance and what types of insurance must be maintained; (iv) who will pay the property taxes; (v) whether subletting is allowed and under what circumstances; and (vi) other provisions that are peculiar to each specific transaction.

PLDR represents clients in closings for the sale or purchase of commercial real estate, including closing on purchase money loans, construction loans to finance new buildings and renovation of existing buildings, and new loans to refinance existing debt. Our attorneys ensure that all aspects of sale and purchase contracts are performed, that prior mortgage liens are released, and that all appropriate documents are recorded in the applicable jurisdiction.

Local zoning laws affect virtually every parcel of real estate and limit how you can use the property. PLDR can assist you with situations where the local zoning laws prohibit your desired use of the property by obtaining a change in the current zoning, a zoning variance, or a conditional use permit.

Often a particular property, or the use to be made of that property, would be greatly enhanced by having the right to an easement. The most common easement is one for the ingress and egress across adjacent property to get to and from your property, typically from and to a public road. It is also common for utility companies to approach land owners and request an easement to run their utility lines across the owner’s land. Sometimes owners may want to move the location of an existing easement that allows a third party to cross their land. At PLDR, we understand that easement situations usually involve relationships with your neighbors and we will help you deal with existing or new easement situations in thoughtful ways that are designed to build those relationships.

“Like-kind exchange” rules allow a seller to defer the payment of capital gains tax, which would otherwise be due upon the sale of property. A like kind exchange can be a direct exchange (simultaneous exchange of properties), a deferred exchange (the sale of one property followed by the later acquisition of another), or a reverse exchange (the acquisition of one property and the later sale of another). Because there is rarely another party available who happens to have a similar property and also desires to make a direct exchange for your property, most are either deferred or reverse exchanges. To qualify for the deferred capital gain tax benefit, these exchanges require a multi-step transaction involving a “qualified intermediary” who holds the funds or property during the first leg of the deal and then uses the funds or property for the acquisition or sale of the property in the second leg. The rules for like-kind exchanges are complicated and require detailed knowledge of the applicable tax laws to ensure the exchange is handled correctly. PLDR has extensive experience handling like-kind exchanges, both as the attorney for the party entering into the exchange transaction and as the qualified intermediary.