Real Estate Law FAQ
1. Do I need a lawyer at a residential real estate closing?
Yes. Attorneys for both buyer and seller have an active role in all parts of the house transaction, details of offers, contracts and house closings.
2. What is a contract?
The contract is a legally binding document spelling out the essential issues of the sale. This includes description of property, purchase price, mortgage contingencies, closing date, and the names of both parties involved. You should have all Contracts reviewed by an Attorneybefore signing.
3. What are contingencies?
Contingencies are escape hatches in a real estate contract. They let you walk away from the deal without penalty if certain conditions are not met. You might, for example, sign a contract to buy a building, but make your obligation to close contingent on things such as obtaining a mortgage loan, selling your existing property, or having a contractor inspect the building.
4. What is due diligence?
Due diligence is an investigation into the background of a company and its principals. The depth of the investigation may vary depending upon the nature of the transaction and the industry involved. The investigation may involve a credibility assessment of a company through court record checks, organized crime inquiries and a review of financial information. It is legal and acceptable for companies to ensure that the people they do business with are reliable and above reproach.
5. What is commercial real estate?
Broadly defined, the term “commercial real estate” refers to any dealing with real property in a business context. It may involve leasing out office space, owning an apartment complex or selling real property along with the sale of a business. It might be industrial or agricultural property.
6. How can I improve my chances of getting a commercial loan?
Be prepared to demonstrate how you will repay the loan. It will be extremely beneficial to be able to show the lender a history of your earnings and a projection of future earnings. It is also beneficial to show that you have invested in your business, the lender will more comfortable knowing that your interest are aligned with those of the lender. A Coover Law Firm, LLC banking law attorney can assist you with all your commercial loan needs.