What is the Role of a Lawyer When Buying an Investment Property?
Buying investment property has many benefits. The property will gain value over time, it may have rental or development potential or offer you tax benefits. Whatever the reason you decide to buy, ensure you have a real estate attorney by your side so the investment goes through without a hitch.
A real estate lawyer will guide you through the legal transaction before, during and after the sale to ensure your interests are protected. If there are complications such as a lien on a house, deed claims in question and more, your real estate lawyer can walk you through the legal ramifications of the purchases. As a significant purchase, it is in your best interest to ensure you have the legal paperwork in order and a lawyer by your side.
The Role of a Lawyer in Buying Investment Property
First and foremost a real estate lawyer is there to make the transaction of your investment property as smooth and efficient as possible. Their unique set of skills and industry expertise will help to prioritise your interests and mitigate risks. They will be able to explain and make you understand the intricacies of your purchase.
For an investment property, potential buyers should contact a lawyer who specialises in commercial real estate law. Even if you are a private investor and this will be your first investment property, the purchase should be looked at through the lens of a business transaction. Since investment properties are purchased with the intent of generating income in one way or another.
Does the price seem too good to be true? A commercial real estate lawyer will investigate any possible liens or other issues with the property. Unsure if you can develop the potential investment property? A good lawyer will understand the zoning laws and types of development options your property offers. Unlike a realtor, a real estate attorney works for you and therefore will help to secure the best price for your investment property throughout negotiations.
Investment properties are often larger and can be more complicated to purchase than a primary residence. A commercial real estate lawyer will draft and review agreements, perform due diligence searches (such as zoning compliance, parking requirements, permitted uses), and handle the eventual closing. They will lead you through the transaction while also keeping your business interests in mind. If you are in disagreement with the sellers, they will defend you in court or through negotiations.
Lawyers who practice commercial real estate deal with all types of properties, including residential complexes, office buildings and industrial and retail spaces. They will help to identify any consequences or risks associated with the individual type of property you are interested in investing in.
Can I Buy an Investment Property without a Lawyer?
In most countries, a lawyer is not legally required to purchase a property. However, with so much money on the line, most people opt for enlisting the help of a lawyer. When it comes to real estate transactions, mistakes can be easy to make but very expensive to fix. For good reason, most people don’t want to take that risk.
When choosing a commercial lawyer for your investment property, reach out to a lawyer with experience in local real estate and business law. A lawyer who only has residential real estate experience or only has business law experience will not have the know-how to support you through this transaction.
Too many businesses and first-time investors, put their trust in their company lawyer or the lawyer they used for their home purchase and suffer dire financial ramifications as a result. Don’t be one of them.
Whether you are a seasoned investor or a first-time flipper, the purchase of an investment is an exciting time. Ensure your transactions are smooth and efficient by enlisting the help of a commercial real estate lawyer for this important investment.