I read after that if you took all the genuine estate lawyers in Illinois and laid them end to end along the equator – it would be a excellent concept to leave them there. That’s what I study. What do you suppose that means?

I have written just before about the need to physical exercise due diligence when acquiring commercial actual estate. The want to investigate, before Closing, each and every significant aspect of the property you are acquiring. The value of evaluating every single commercial genuine estate transaction with a mindset that after the Closing occurs, there is no going back. The Seller has your funds and is gone. If post-Closing complications arise, Seller’s contract representations and warranties will, at very best, mean expensive litigation. CAVEAT EMPTOR! “Let the purchaser beware!”

Paying extra attention at the beginning of a commercial real estate transaction to “get it proper” can save tens of thousands of dollars when the deal goes undesirable. It is like the old Fram® oil filter slogan throughout the 1970’s: “You can spend me now – or spend me later”. In industrial true estate, having said that, “later” may possibly be as well late.

Buying commercial true estate is NOT like shopping for a home. It is not. It is not. It is NOT.

In Illinois, and numerous other states, virtually every single residential actual estate closing requires a lawyer for the purchaser and a lawyer for the seller. This is in all probability smart. It is good customer protection.

The “issue” this causes, having said that, is that each lawyer handling residential real estate transactions considers himself or herself a “actual estate lawyer”, capable of handling any true estate transaction that might arise.

We learned in law college that there are only two types of home: genuine estate and individual property. For that reason – we intuit – if we are competent to handle a residential genuine estate closing, we must be competent to deal with a commercial real estate closing. They are each and every “actual estate”, correct?

ANSWER: Yes, they are each and every real estate. No, they are not the very same.

The legal concerns and dangers in a industrial real estate transaction are remarkably diverse from the legal difficulties and risks in a residential true estate transaction. Most are not even remotely related. Attorneys concentrating their practice handling residential genuine estate closings do not face the same troubles as attorneys concentrating their practice in industrial true estate.

It is a matter of practical experience. You either know the difficulties and dangers inherent in commercial real estate transactions – and know how to deal with them – or you don’t.

A key point to recall is that the myriad consumer protection laws that guard residential household purchasers have no application to – and deliver no protection for – purchasers of industrial actual estate.

Competent commercial genuine estate practice requires focused and concentrated investigation of all concerns material to the transaction by somebody who knows what they are seeking for. In quick, it calls for the workout of “due diligence”.

I admit – the exercise of due diligence is not cheap, but the failure to exercise due diligence can make a financial disaster for the commercial actual estate investor. Do not be “penny smart and pound foolish”.

If you are buying a house, employ an attorney who consistently represents household purchasers. If you are obtaining industrial true estate, hire an lawyer who regularly represents commercial actual estate purchasers.

Years ago I stopped handling residential genuine estate transactions. As an active commercial true estate attorney, even I hire residential true estate counsel for my own residence purchases. I do that since residential actual estate practice is fundamentally different from industrial true estate.

Possibly I do “harp” on the need to have for competent counsel experienced in commercial actual estate transactions. I genuinely think it. I believe it is essential. I believe if you are going to invest in industrial real estate, you should apply your vital pondering skills and be intelligent.

POP QUIZ: Here’s is a simple test of YOUR critical pondering abilities:

Please read the following Scenarios and answer the queries Accurate or FALSE:

Situation No. 1: It is Valentine’s Day. You are in hot pursuit of the adore of your life. A few weeks ago, she confided in you that all she ever dreamed of for Valentine’s Day was that her lover would show up at her door, dressed in a white tuxedo with tails and a top rated hat, and present her with a stunning bouquet of flowers. You have rented the tuxedo, but now you are concerned about how much funds you are spending.

True OR yoursite.com : Due to the fact flowers are fairly considerably all the same, it is OK for you to skip the roses and show up with a bouquet of fresh yellow dandelions.

Scenario No. 2: For several years you eyesight deteriorated to the point exactly where you can barely see your alarm clock. You are now contemplating corrective eye surgery so you won’t will need glasses. Your sister-in-law had corrective eye surgery and has had spectacular results. She recommends her eye surgeon, but mentions the cost is about $5,700 for each eyes and that the surgery is not covered by insurance coverage. A handful of years ago, you had surgery to correct your hemorrhoids and it price you only eight hundred bucks.

True OR FALSE: Considering the fact that surgeons all went to healthcare school and are all healthcare physicians, you are becoming frugal and wise by asking the surgeon who performed your hemorrhoid surgery to perform your corrective eye surgery.

Situation No. 3: Many years ago, when you very first got married, you asked a former classmate who is a lawyer to represent you in the obtain of your townhome. The price was only $375. A year later, you started a loved ones and decided you required a Will. The identical lawyer prepared Wills for you and your wife for a total cost of $700. You began your own business and your lawyer friend formed a corporation for you and charged you only $600 plus the price of the corporate minute book. Years later, when your son was arrested for misdemeanor reckless driving, your lawyer friend handled the criminal case and got your son off with supervision for only $1,500.