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Common Issues That May Arise From Commercial Real Estate Transactions

Updated: Jun 3, 2023

Common Issues That May Arise From Commercial Real Estate Transactions

Commercial real estate has always been a great place to invest money or grow your portfolio. Getting into commercial real estate can get complicated when two sides are involved. Both sides will usually bring outside representation like a real estate lawyer or law firm to represent their best interests. However, you might ask yourself do I really need to hire a lawyer, what problems can arise from a commercial real estate transaction. Below we’ve complied some common issues that may arise from a purchase or sale of commercial real estate.

Common issues

Commercial real estate can be a great way to invest your money however it’s also full of potential issues. Below are some common issues we’ve helped our clients deal with.


When making a purchase or sale of a commercial property financing terms will need to be set in advance. This can dictate how much money is to be paid, when the payment needs to be provided or what terms the payments need to be made in such as half up front and half upon delivery of the keys.


Once you decide to purchase or sell commercial property, taxes will inevitably need to get paid. Knowing how much you might owe can have an impact on the decision you make prior to finalizing the sale. If taxes are not paid you can wind up in legal trouble with the government. At David Ghavitian Avocat Inc. we can help you sort out any tax related issues on commercial properties.

Transfer of titles:

Once a purchase or sale of a commercial property has been made the ownership of the property will need to be updated in order to reflect this. David Ghavitian Avocat Inc. can help you with deed and titles transfer while you focus on the important stuff.

Accurate Property Valuation:

If a commercial property is not properly and accurately evaluated you may end up losing money on the sale of a property. Alternatively, you can also end up paying much more than you should if a property is overvalued.

Negotiation Challenges:

Once negotiations begin they can end up taking weeks or even months before both sides can agree on common terms. At David Ghavitian Avocat Inc. we take the stress and headaches of negotiating with the other party involved. Why waste your time going back and forth when an experienced and professional lawyer can get it done for you. The longer negotiations drag on the more you will end up paying in the end.

Financial Risk Evaluation:

One of the most important factors to consider is financing. Simply put can you afford the amount being asked? Will the property increase or decrease in value over time. No one wants to spend large sums of money or risk losing money on commercial property transactions.

Inspection Problems:

Inspections are one of the most important places you will begin your journey into commercial real estate. In order to determine the value of a property as well as its potential to increase in value in the future it is of utmost importance to make sure the property in question is properly evaluated. Sometimes spending a little more time or money on the inspection phase can save you large amounts of money in the future.

Most professional and experienced real estate lawyers or law firms will usual have different staff who will specialize in each field as they all require special and unique skill sets. More often than not, commercial real estate transactions will have a lot more issues to deal with and are considered more complicated than private real estate transactions. That’s why having an experienced and professional law firm can help you take the stress of commercial transactions. If a sale or purchase of commercial property is not handled with care you may find yourself having to pay more in the end.

On top of everything else commercial properties will usually involve some risk and high stakes. The value of the property can enter a long and draw out phase of negotiations where the price and terms can change back forth until both sides are satisfied.

Way too many people think commercial real estate is a great place to put your money if you are looking to invest or grow your portfolio. You need to remember if you skip any steps or don’t have the right people behind you, things can go from bad to worse, fast. Avoid the headaches and pitfalls one may encounter when entering into commercial real estate and let the professionals at David Ghavitian Avocat Inc. do all the hard work and heavy lifting for you.

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