How does Dingman Labowitz approach a typical commercial real estate transaction?
We start from the perspective that no transaction is ‘typical.’ Each deal deserves and receives individual treatment. While past experience is often a useful guide, we recognize that this type of transaction needs to be client driven, with documents and procedures tailored to client goals in the present matter. We can assist with most of the necessary tasks including:
- Drafting a Letter of Intent
- Negotiating and drafting a Purchase and Sale Agreement
- Securing title searches, surveys and appraisals
- Review of due diligence materials
- Limiting exposure for hazardous waste and environmental contamination
- Negotiation and review of loan documentation
- Effecting a clean, crisp closing
Will Dingman Labowitz handle the closing?
We will represent our client through the closing process. Best results are achieved, though, when an independent (not beholden to either buyer or seller) company serves as escrow/closing agent. That company will have duties to both sides as follows:
- Follow escrow instructions from each side and any lender
- Obtain and forward title reports
- Assure all requirements met to issue title insurance
- Satisfy lender requirements and collect all necessary funds
- Recording deeds and other instruments
- Disbursing funds
We will monitor and direct the activities of the escrow/closing agent to assure a smooth closing transaction.
How should I take title to commercial real property?
There are many issues that can arise with respect to how you take title to property, and especially so in a commercial context. Whether you take title as a business or an individual will dictate what liability you are exposed to and what tax obligations you will face. Peter Dingman regularly assists client in forming appropriate entities to hold and to operate commercial real estate.
Do I need to get an environmental site assessment?
Almost all lenders require an environmental site assessment. Even if there is no lender requirement, it is often wise to get one anyway. Obtaining a timely Phase I assessment can avoid buying into a problem and/or establish the critical baseline if future problems arise.
What is a 1031 exchange?
A 1031 exchange allows a seller to defer tax on a gain that would otherwise be realized on a sale of property if the proceeds from the sale were reinvested in like-kind property. It is very common for a 1031 exchange to be involved in some manner in a commercial real estate transaction.