Vero Beach Real Estate Closings Lawyer

A Vero Beach real estate closings lawyer can assist you with both personal and business real estate transactions.

Sometimes people tell us they thought purchasing a home was complicated only to realize a few years later that purchasing real estate for their business was even more complex. All real estate transactions involve a thorough closing process and a lot of paperwork to ensure everything goes smoothly so that there will be no unexpected problems for the new owner. However, business real estate transactions sometimes have additional considerations.

Businesses that wish to build a new office, manufacturing plant, store, or other building should consider an environmental assessment of the property they want to build on. This is not a legal requirement, but it is a very good idea. For instance, a proper assessment may reveal problems that could be costly if discovered later—say, after you have purchased the property and built your new office on it. Most lenders will also insist on an environmental assessment for commercial real estate deals.

Understanding a Phase I Assessment

A Phase I assessment sometimes called a Phase I ESA, usually involves an inspection of the property and review of property records. If no red flags appear during the due diligence inspection period, the Phase I ESA is generally considered complete. However, if something suspicious turns up during Phase I, a Phase II assessment may be necessary. In this phase, water and soil samples may be tested. Phase II can be very expensive, and, if the purchase contract was written with the proper contingency clauses, the buyer usually has the opportunity to back out. For this reason, it’s very important to discuss contingency clauses in commercial property contracts with your Florida real estate attorney.

Sometimes clients wonder why they have been asked to sign a Personal Guaranty for a business loan. This is not uncommon in business transactions. Typically, the lender knows they are dealing with an entity, such as a corporation or LLC, and sometimes entities dissolve. The entity may also be a shell company without a lot of assets. To protect themselves, lenders may ask one or more members, partners, or shareholders of the company to sign a Personal Guaranty, ensuring the loan will be repaid if the business does not work out. Depending on the situation, members asked to sign the Personal Guaranty may also be asked to put up personal assets as collateral.

Real Estate as an Investment

People purchasing real estate for investment purposes may also want to create a business entity to limit personal liability. Most commonly, business people will create an LLC (limited liability corporation), corporation (either “S” or “C” type), or LLLP (limited liability limited partnership), although other types may also be used.

The type of entity you should choose may depend on the specifics of your business, situation, and purchasing plans. Your Florida real estate attorney can explain your options, and the benefits and downsides to the different types of entities.

If you have questions or concerns about real estate transactions, title closings, or other Florida legal services, please contact Apfelbaum Law for a consultation. We can be reached at 772-236-4009, or contactus@alawfl.com.