Is Your Contract Dispute Proof?
Any type of commercial dispute can be costly, but when it comes to real estate things tend to get even more expensive and complex. Whether you are a property manager, investor, or even leasing your own business space, it is important that you have the right documentation in place to support your real estate transaction. There are a lot of ways that you can find yourself in hot water when it comes to commercial real estate, but here are some of the most common reasons:
- Breach of Contract – Contract disputes are extremely common in real estate transactions. The contract may be a purchase/sale agreement or a lease. When one of the parties fails to follow through with their obligations of the contract, it may be deemed a breach of contract.
- Land Use and Zoning Disputes – When these types of disputes occur, litigation is common. Developers are required to follow all regulations and laws pertaining to the restrictions and legal use of land even before they obtain permits. If a developer wishes to challenge these restrictions, it can result in litigation because the government is trying to enforce zoning restrictions to prevent unlawful use of the land. Boundary disputes may occur when the boundaries of properties weren’t recorded properly. An experienced attorney can help research what the legal boundaries of a property are and help settle these disputes.
- Disputes Between Co-Owners – There are often multiple owners involved in commercial properties. Any time there are multiple owners involved, there is an increased risk for disputes between the owners. These are often the hardest to resolve, especially when one owner doesn’t want to give up their rights or budge on the terms of the contract.
- Failure to Disclose Property Defects – If an owner is aware of a property defect and doesn’t disclose the defect before the sale or lease, it could be grounds for filing a lawsuit. Potential defects may also include mold issues, improvements that weren’t allowed, and more. Material defects are common issues because the purchaser of the property may claim that the seller should have known, or knew, about any issues and disclosed them.
- Bad Repairs – It is common with real estate contracts to require the seller to make certain repairs to the property. If the buyer of the property discovers that the repairs made were done poorly, or worse yet, not done at all, this is likely to result in a dispute that could result in litigation.
Commercial Real Estate Litigation
When you are planning your business, whether you plan to lease or purchase property, it is imperative that you have an attorney that is familiar with all aspects of business planning. Having adequate contracts in place that take into consideration state and federal laws, as well as city and county regulations and rules is a must. Tampa business transaction & formation attorney David Toback has been handling all aspects of business planning for years and can help you ensure that your business contracts are created to eliminate as many disputes as possible. Contact our office today to schedule a consultation.