A commercial real estate lawyer is a lawyer who specializes in the commercial real estate laws in the given area. A commercial real estate lawyer helps you with all your real estate needs, be it from drafting of contracts, creating sale and purchase agreements, creating lease agreements and a variety of other services in the subject matter of real estate law. The commercial real estate lawyers at Pacific Legal in Toronto can assist with due diligence, negotiate offers and agreements of purchase and sale, facilitate sales, financing, purchasing, vendor takebacks, and mortgages. Pacific Legal prides itself with providing our clients with in-depth guidance throughout each and every commercial real estate transaction. We will manage risks and protect the rights of our clients throughout every transaction, ensuring each client is positioned for success.
Importance of Legal Guidance in Commercial Real Estate
The commercial real estate sector like any other is a very volatile segment of the economy and these changing landscapes of commercial real estate law are rarely understood by people other than experts. In today’s times therefore, it has become imperative that the guidance and expertise of a sound commercial estate lawyer is taken for any person or company looking to benefit in the real estate sector. A commercial real estate lawyer is someone with navigating through the legal aspects of the business with ease. These lawyers can help you better understand the important facets of law and work with you to protect your company from any unforeseen legal complications. They are experts at resolving complex issues and also understand the local zoning laws. These lawyers specialize in safeguarding your rights and protecting you from any unnecessary lawsuits. All in all, hiring a real estate lawyer gives you a peace of mind, to go about your business transactions not ridden with encumbrances.
Overview of the Role of Commercial Real Estate Lawyers
The complicated field of law that controls the ownership, lease, and development of commercial real estate holdings is commercial real estate law. Contracts, leases, and zoning restrictions are some of the several legal instruments involved in commercial real estate law. In addition to finance, property management, and environmental compliance, commercial real estate law addresses a variety of legal challenges. A commercial real estate lawyer helps business deal with these challenges with ease. These lawyers helps their clients create contracts that are favorable to your business, resolve disputes in a quicker and more efficient manner, and protect your reputation. They can also help you stay up-to-date on the latest real estate laws so that you can avoid any legal trouble. At Pacific Legal, our lawyers help you with all transactions related to commercial real estate law. We assist our clients with due diligence, negotiation of offers and various agreements related for your all business needs.
Legal Framework in Canada
∙Federal vs. Provincial Jurisdiction: Unlike with most other laws in Canada the property rights and laws that govern property are the primary responsibilities of provincial governments except for Quebec. Other than in the province of Quebec, the real estate laws are developed through a combination of statutes an English Common Law processes. Whereas, in Quebec property as a subject of law is governed by the Civil Code of Quebec, which is a derivative of the Napoleonic Code. Although Federal Laws are not directly applicable upon the subject matter of property, still certain federal laws can become applicable in matters pertaining to commercial real estate which include interest rate, competition and anti-money laundering laws.
Also Read: Federal vs. Provincial Incorporation in Ontario: A Comprehensive Guide
∙Impact of Zoning Laws on Commercial Real Estate:
Zoning laws refer to local regulations that determine how a piece of land may be used in a particular jurisdiction. These laws help the government classify land into various different zones such as residential, industrial, commercial and agricultural. Each zone comes with its own set of rules and restrictions. Zoning laws impact how a property can be used in a particular zone as provided by law. Therefore, before investing in property it becomes important to ensure that the property’s current zoning aligns with your intended use. For example, a property which has been zoned for residency cannot be converted into an industry. Zoning regulations also impact the price of a particular property. Properties which are located in high demand areas for specific purposes will often have a higher value whereas, properties which lie in area with higher restrictions or a limited commercial use will often tend to be cheaper. Zoning laws of a particular province in Canada may also impose legal restrictions on property investments. These can include height limitations, setback requirements and even parking space ratios. Zoning laws therefore are important to be understood before making any investment in any commercial real estate. Due diligence become the key factor wherein your real estate lawyer can help you make a better more informed decision by researching the local zoning laws.
Common Legal Issues in Commercial Real Estate
A variety of legal disputes can arise when a business is engaged in commercial real estate. Some of these commonly occurring real estate issues are:
1. Property Title Disputes:
Challenges related to property titles arise from boundary disputes and/or the chain of title i.e. conflicts over the boundaries of a particular property with ones neighbor and ensuring of a clean and unbroken chain of ownership to prove legal ownership. Te help of an expert lawyer is very important in helping you solve your title disputes with ease and the least amount of litigation.
2. Environmental Compliance:
This refers to conformation to a particular province’s environmental laws, standards and regulations. Compliances of this kind need to be taken care of before any real estate is purchased, leased, sold or even put to use. A good commercial estate lawyer helps you with all requisite environmental compliances as well as for obtaining the required environmental assessments and permits necessary for commercial real estate transactions.
3. Lease Agreement Disputes:
Lease Agreement Disputes arise between the owner of the property and the lessee. These arise when either of the parties do not conform to the regulations that have been laid down in the lease agreement. A good commercial real estate lawyer not only helps you draft an iron clad lease agreement but is also responsible to protect your interests when in dispute with the lessee.
4. Zoning Challenges:
Zoning challenges refer to issues that arise out of an area zoning laws. This can include zoning compliances, navigating through the permitting process as well as the requisite environmental compliances in that zone.
5. Handling Breach of Contract Issues:
Contractual Disputes in commercial real estate can arise when one party fails to comply with the obligations laid down in any contract be it sale or purchase, lease agreements or any other contract. Commercial real estate lawyers help both in the drafting of contracts as well as in finding an amicable solution in case of disputes.
Key Responsibilities of a Commercial Real Estate Lawyer
1. Contract Review and Drafting:
One of the most important tasks for your commercial real estate lawyer is to draft and review any and all contracts that may come your way for your commercial real estate transactions. These contracts can range over a variety of subject matters such as sale and purchase, lease, financing etc. It is important for a real estate lawyer to be well versed on how various contracts and agreements are made so as to better safeguard the rights of their clients. ∙
Types of contracts regularly made:
- Purchase and Sale Agreements: A sale and purchase agreement is a legally binding document which binds two parties in a contract for the sale of a property for a consideration.
- Lease Agreement: A lease agreement is a legal document made to solidify the rights and obligations of the lesser and lessee in a contract of tenancy.
- Financing and Mortgage Agreements: This refers to various kinds ofo contracts which may be related to obtaining of finance through another party. Mortgage on the other hand refers to when one party receives finance from another byt placing their property under a mortgage as security.
2. Due Diligence in Property Transactions:
Due diligence refers to when your lawyer inspects the documentation as well the physical property that is being purchased by you so that they can better advice you on the commercial real estate transactions . Due diligence includes title and off-title searches. These can include review of realty tax charges, water/sewer charges, unregistered agreements, zoning compliance, work orders, fire protection, occupancy permits, heritage designation, development charges and surveys.
3. Negotiations and Mediation:
Negotiation on part of the real estate lawyer can be both for contractual purposes as well as in cases of disputes. Mediation is a form of alternative dispute resolution wherein a third party mediator is present to help bring the two parties to an amicable solution. It is the duty of a lawyer to advice their clients in negotiations and mediations so that they can set their client up for success.
Legal Aspects in Commercial Real Estate
Certain legal aspects need to be kept in mind before getting into Commercial Real Estate. These legal aspects regularly come up during various transactions of commercial real estate law and therefore are necessary for a greater understanding of the subject. Some of these legal aspects are:
1. Property Acquisition:
Purchasing real estate for a business is a very big milestone for any entrepreneur. However, acquisition of property is not as easy as it might sound and one needs to jump through a lot of hurdles to make the acquisition a possibility. In order for a business to acquisition the right property, they need to strategize and negotiate a lease or works towards a purchase with the help of their lawyers. a commercial real estate acquisition can be complex. It requires diligence, rock-solid financials and forecasts, and a well-thought-out plan. With the help of the right legal expertise any business can successfully improve their commercial real estate portfolio and use acquisitioned property desirably.
2. Lease Agreements:
Lease Agreements refer to legally binding agreements between two parties which determine the rights and obligations of the lesser and lessee with respect to a particular piece of property. Lease agreements are essential to establish the relationship between the parties to the lease and this document explains how the lease can be ended, what is the duration of the lease, what is the cost of the lease for the lessee, and any other ancillary rights or duties that either party may wish to impose on each other.
3. Zoning and Land Use:
Zoning laws refer to laws of each province in Canada that dictates how the land can be used. These laws help the government classify land into various different zones such as residential, industrial, commercial and agricultural. Each zone comes with its own set of rules and restrictions. Understanding the application of zoning laws is of utmost importance since this is what dictates whether or not a particular piece of land can be used for residential purposes, industry or commercial use etc.
Finding the Right Commercial Real Estate Lawyer
Finding the right commercial estate lawyer can highly help any business owner in making the right decision towards the acquisition of real estate property. The expertise of a lawyer helps the business purchase the right property at the right time and also helps safeguard the rights of the owner whether it is with the lessees or even the government. A commercial real estate lawyer is essential in developing negotiation strategies for property acquisition, helping draft and review contracts for essential transactions and mostly importantly conduct due diligence in order to determine which property is most suitable for their clients business goals.
In order to find the right commercial real estate lawyer, you as a business owner should look into all possible options available to you and make an informed decision based on the same. Some important steps for any business owner to take in order to hire the best possible commercial real estate lawyer and put themselves on the path to success are:
1. Researching Local Law Firms:
It is important for any business to research all possible options by looking at all law firms in and around their areas. By looking at all the firms which provide commercial real estate services for their business, an entrepreneur can make a seasoned decision on which firm can best help their long term business goals. Researching all possible options to go with help provide a relevant comparative analysis with respect to services, pricing, qualifications and even reviews to an entrepreneur.
2. Utilizing Online Legal Directories:
In order to find all law firms which may be of help to your business, a great method of research is through the utilization of online legal directories. These directories are readily available for anyone to access and contain all relevant information that you may require to make an informed decision on your commercial real estate lawyer hiring process.
3. Seeking Recommendations from Peers and Industry Professionals:
One of the greatest methods on finding the right commercial lawyers is through seeking recommendations from peers who have used or are using the services of any commercial real estate lawyer. Peers and Industry Professionals can often offer a better insight into how the processes of hiring go about as well as with respect to what the requisite requirements could be for your particular business enterprise and goals. Seeking answers to questions from people who have been in the same positions helps with a better understanding and puts you in touch with lawyers that are experienced in conducting work for your success.
When to Hire a Commercial Real Estate Lawyer
It is important to understand when a business might be requiring the help and expertise of a commercial real estate lawyer. Hiring of a commercial real estate lawyer at the right moment becomes absolutely crucial for any business to use the commercial real estate space for their success. A commercial real estate lawyers services can be enjoyed at a lot of different points during the transaction on commercial real estate. Points at which a commercial real estate lawyer can be hired are:
1. Early Stages of Property Acquisition:
Arguably the best time to hire a commercial real estate lawyer, early stages of property acquisition is when the business owner is trying to find the right property for their business requirements. The help of a commercial real estate lawyer at this stage is crucial since the lawyer does all required due diligence and strategizing in order to help the business find the perfect property. The services don’t end at this, but continue as the lawyer helps with the acquisition of the property and all the documentation related to the transaction. They also help in safeguarding your rights in the future whether it be through the drafted documents or even by litigation.
2. Lease Negotiations and Drafting:
Lease negotiations and drafting of contracts is another stage at which the services of a seasoned lawyer prove fruitful for the business owner. An experienced lawyer helps draft and review ironclad contracts on behalf of your business which helps both in the present acquisition of property but also in the future when disputes arise. Likewise with the drafting of lease agreements or even for negotiations of lease agreements, a lawyer provides their services in order to best help you achieve your business goals.
3. Handling Disputes and Litigation:
Hiring a commercial real estate lawyer helps your business deal with the various kinds of disputes that can arise with respect to your commercial real estate. The services of commercial real estate lawyer help safeguard your rights during the handling of disputes whether it is by alternative dispute methods or litigation. It is however advised to hire a lawyer before this stage arrives since a lawyer can help any business mitigate their risks of potential disputes.
The Significance of Hiring a Pacific Legal Commercial Real Estate Lawyer
At Pacific Legal, we have an experienced team of lawyer dedicated to helping our clients obtain and maintain the best possible commercial real estate portfolios in Toronto. We pride ourselves in providing all essential services to our clients which help them achieve their commercial real estate goals; whether it be from initial due diligence, drafting and review of contracts and agreements, providing sound negotiation strategies to helping you safeguard your rights in dispute or litigation , we do it all. When hiring Pacific Legal as your legal representatives you receive a host of services from seasoned law practitioners that help you breeze past each and every potential obstacle to acquiring commercial real estate. Some of the services that our team provides are:
1.Essential Legal Documents: At Pacific Legal, we take care of all the drafting requirements for our clients. Our lawyers work to prepare all essential legal documents required for the clients commercial real estate acquisition at each step of the acquisition. Some regularly drafted and reviewed documents from our team include:
- Purchase and Sale Agreements: These refer to legally binding documents that help two parties execute the :sale of a particular property for a consideration.
- Lease Agreements: Lease Agreements refer to legally binding agreements between two parties which determine the rights and obligations of the lesser and lessee with espect to a particular piece of property. Lease agreements can be made both for acquisition of property as well as for getting tenants for pre- owned property.
- Title Documents and Property Surveys: This refers to inspection of titles to establish the correct owner of the property and surveys of the property to be acquired in order to access the condition of the property.
2.Mitigating Risks and Legal Pitfalls: At Pacific Legal, our lawyers help make strategies and conduct necessary due diligence that helps our clients mitigate any potential risk from the acquisition of properties. We also keep a regular stream of communication with our clients in order to keep a track of all necessary legal compliances to protect the client from future legal pitfalls.
3.Ensuring Compliance with Local and Federal Regulations: As part of mitigating risks for our clients we also help them in ensuring compliances with local regulations as well as federal laws. This helps protect our clients from any uncalled government action against the property that you have acquired.
Frequently Asked Questions:
1. What does a commercial real estate lawyer do?
A commercial real estate lawyer is a lawyer who specializes in the commercial real estate laws in the given area. A commercial real estate lawyer helps you with all your real estate needs, be it from drafting of contracts, creating sale and purchase agreements, creating lease agreements and a variety of other services in the subject matter of real estate law.
2. How do zoning laws vary across Canadian provinces?
Zoning laws impact how a property can be used in a particular zone as provided by law. Each province in Canada has different zoning laws . Each province has established municipalities and regions that are empowered to control the use of land within their boundaries.
3. What is the role of due diligence in property transactions?
Due diligence is important for all real estate transactions. It refers to when a lawyer inspects the property to be acquisitioned along with the requisite documents. Due diligence includes title and off-title searches. These can include review of realty tax charges, water/sewer charges, unregistered agreements, zoning compliance, work orders, fire protection, occupancy permits, heritage designation, development charges and surveys.
4. How can a lawyer assist in resolving boundary disputes?
A real estate lawyer may assist clients identify the legal border of their property and guarantee that their rights are protected in the event of a boundary dispute. Also, they can negotiate with the opposing property owner to resolve the matter without resorting to litigation.
5. What are the common pitfalls in commercial real estate contracts?
Certain pitfalls in commercial real estate contracts can be with respect to not establishing a proper legal recourse towards disputes, incorrect valuation of property , drafting without due diligence being done and an array of other such problems. It is therefore, very important to hire experienced commercial real estate lawyers who understand and remove these pitfalls from the contracts.
6. How does alternative dispute resolution differ from litigation?
Alternative dispute resolution refers to methods of dispute resolution that usually are conducted in a simpler manner than regular litigation. These methods of dispute resolution are normally cheaper and provide a quicker resolution to grievances than going for litigation through the country’s court system.
7. What emerging technologies are impacting commercial real estate law?
It has become clear that data, and technology overall, has and will continue to play an integral role in the industry’s ongoing transformation. Data allows real estate professionals and organizations to compile information and track trends in order to offer the most up-to-date insights while allowing for transparency for current and potential property owners in the process.
8. How long does the commercial real estate legal process take?
The time duration upon getting into commercial real estate transaction ranges over several months at a minimum. There can be no exact time frame for the duration of time that will be taken as this is depedent upon multiple
