If you’re investing in commercial real estate (CRE), legal counsel is a necessity, not a luxury. If you don’t have a legal advisor when you’re acquiring a property or drafting lease contracts, you could be laying a bad foundation for your investment.

Why?

Let’s look at what CRE lawyers do and why it matters for you.

Real Estate Lawyers, the Backbone to Any Project

In CRE deals, real estate lawyers can assist you in every step of the process. From due diligence to investor contracts and tenant lease agreements, CRE real estate lawyers help you thoroughly evaluate investments, avoid sticky legal situations, and set yourself up for success in the long-term.

• Draft legal documents (lease agreements, purchase agreements, investor contracts, etc.)
• Review contracts and documentation as part of due diligence
• Negotiate lease agreements and amendments
• Handle tenant and landlord disputes

These services are not areas where you want to tighten your budget. If you don’t work with an experienced CRE lawyer, you can end up paying far more if issues arise with your contracts later.

Real Estate Lawyers vs Agents

While nearly every CRE deal is going to involve a real estate agent at some point, agents serve a different purpose than lawyers. The major difference is that agents will not have the right skillset or expertise to draft legal documents, evaluate contracts, or mediate disputes with tenants.

Agents are a vital part of the process of finding and securing a CRE property to purchase or lease. They do not, however, eliminate the necessity of a real estate attorney for the investment analysis and document drafting.

Benefits of Working with a Lawyer for CRE Deals

Working with a good CRE lawyer pays for itself exponentially in the long-term. Here are some of the main benefits you can expect:

Avoid bad deals

No matter how many deals you’ve completed, an experienced CRE lawyer has gone through so many more. That added experience is a gamechanger during the due diligence process.

CRE lawyers can spot bad deals more quickly. A good lawyer knows what to look for and the right questions to ask. When it comes to zoning laws, restrictions, and your legal obligations, it’s best to have an experienced set of eyes to help you avoid making a big mistake.

The fact is, there may be issues with a deal that never would have occurred to you, and your lawyer will be another layer of protection before you sign the dotted line.

Draft appropriate contracts

Contracts are vital to smooth the operation of your investment. If your contract isn’t written well, you could have issues with loopholes, non-specific language, or unclear legal obligations.

A CRE lawyer can draft watertight contracts that lay out your responsibilities and obligations as well as those of your tenants, partners, and anyone else involved in the deal. It’s better to get your contract settled from the start, before you run into difficult problems with no clear solution.

Protect your interests

Even if a property seller or landlord already has a real estate lawyer, you need to bring your own lawyer to the table as well. Hiring a real estate lawyer is essential for protecting your own interest and avoiding things like leasing pitfalls.

When you hire a lawyer, they have a fiduciary duty to look out for your best interests in every transaction.

Clarify legal obligations

Your roles and responsibilities may vary depending on where you’re landlord or Tenant, buying or leasing. It’s important to understand what your obligations are in any given deal, so you can meet them without any unpleasant surprises after you’re already committed.

The bottom line is that if you’re involved in a CRE deal, legal consultation is something you need to plan for. Creiland makes it easy for you with in-house legal counsel services. We provide legal services including pre-consultation, documentation reviews and drafting, lease abstracts, lease amendments, negotiations, and more. With more than 20 years of legal experience, we are prepared to work with you through every step.