What you need to know before buying commercial property in Florida
In 1985 the Florida Supreme Court decided that buyer beware does not apply to commercial property. In other words, caveat emptor is alive and well in non-residential real estate transactions. The reason is because commercial property buyers are capable of and knowledgeable about performing substantial due diligence. For that reason, they are considered sophisticated investors.
What due diligence should you do
The courts presume that commercial property buyers compile whatever information they deem relevant to the transaction. The courts also presume that those buyers have had a full and fair opportunity to do so. In addition to traditional physical inspections, commercial due diligence should include documentation of the transaction. Preserving communications with the seller and third parties can both alleviate confusion in the transaction and reduce discovery in subsequent litigation. Oftentimes lawsuits over commercial real estate purchases focus on preclosing representations or misinformation by the seller. Absent proper written documentation of those statements, it may be difficult to establish them or meet burdens required to win the case.
What are the disputes common to Florida commercial real estate deals
In residential transactions the post-closing lawsuits normally focuses on the failure of a seller to disclose material and unobservable defects that the seller actually knew about. In commercial deals, however, litigation can address a broader range of representations upon which the buyer relied as well as performance failures in the transaction. These performance failures may include contractual obligations, title issues, and waiver provisions in the contract.
Other concerns that arise in non-residential transactions are environmental impacts, property taxes, community impact fees, and development planning. These issues require the assistance and skills of qualified professionals. There are many such experts that offer these services for commercial land deals. Knowing what services are necessary and which expert is best is where a real estate attorney with experience in commercial transactions is helpful.
Other concerns that arise in non-residential transactions are environmental impacts, property taxes, community impact fees, and development planning. These issues require the assistance and skills of qualified professionals. There are many such experts that offer these services for commercial land deals. Knowing what services are necessary and which expert is best is where a real estate attorney with experience in commercial transactions is helpful.
Who can help me with buying commercial real estate in Florida
Attorneys who are Board Certified by the Florida Bar are those individuals who have demonstrated their experience and expertise. You can easily search for a Board Certified attorney in real estate, construction, or business litigation on the website of the Florida Bar.
Prepared by business litigation expert attorney David Steinfeld
David Steinfeld is one of the few Board Certified business law experts in Florida. He has been licensed for more than 25 years. He is AV-Preeminent rated, ranked as one of the Best Lawyers in America by U.S. News and World Report, and consistently named a Florida Super Lawyer and one of Florida’s Legal Elite. Dave has also received Martindale’s prestigious Judicial Edition Award for high reviews by Judges, its Platinum Client Champion Award and has a 10.0-Superb rating on AVVO as well as a 10.0 rating on Justia, lawyer reviews websites.
Check out business lawyer David Steinfeld online for helpful videos and articles on Florida business law, real estate disputes, and electronic discovery solutions for your business. This article is provided for informational purposes only.
Check out business lawyer David Steinfeld online for helpful videos and articles on Florida business law, real estate disputes, and electronic discovery solutions for your business. This article is provided for informational purposes only.
