When it comes to commercial real estate, there is one main reason that many people tend to avoid legal issues involving this, and that’s because litigation can end up both slowing momentum and draining profits. Despite the fact that there are many different legal resources available these days, perhaps the best defense is to avoid the many legal issues that will require you to have to obtain legal protection in the first place.
Here are four important tips to help you avoid legal trouble in commercial real estate.
*First and foremost, perhaps one of the most important tips to help you avoid legal trouble in commercial real estate is to take the time to decide when you actually need legal support. In terms of a commercial real estate deal, any good lawyer can be worth it, especially if you are coming into the commercial real estate world from single family investing. Working with a qualified commercial real estate attorney can end up being far less expensive as opposed to getting yourself out of serious legal trouble.
*Another important tip to help avoid legal trouble involving commercial real estate is to always practice “win-win” thinking, as well as be honest no matter what. By always negotiating in good faith and remaining honest, this means that you will always be much less likely to find yourself in a courtroom setting. As long as you place yourself in the shoes of the other party and view ways to resolve problems with an “everyone wins” mentality, you will more than likely always be able to resolve the issue without any serious problems.
*One other useful tip to help avoid any serious legal trouble involving commercial real estate is to always do your due diligence on the other party. Regardless of what the other party may be, due diligence is something that will always be necessary. Oftentimes, many jurisdictions will offer online access to court records, which means that a quick check can be easy protection in order to determine whether or not the other party is litigious. Consider speaking to other trusted advisors and ask them if they have ever previously dealt with the other party in order to determine how their own experience was, as this can also be a quick and easy check on your part as well.
*Another great tip to help you avoid any legal trouble involving commercial real estate is to take the time to review all of the cost benefits that are involved. Litigation is something that can always be much more expensive as opposed to avoiding the actual situation that ended up causing you to seek litigation in the first place. This means that if you end up getting into a situation that appears as though it could turn litigious, you will need to do your best to reasonably work things out, as well as review all costs associated with it. This is something that is always a judgment call and also depends on whether you or the other party has the proper amount of money; however, it should also always involve a careful cost analysis as well.