We believe that you are here because you may be interested in the opportunity of a lifetime: buying real estate property. Buying a property is a very important feat to any person who wishes to build a home, raise a family, or expand a business. However, being successful in achieving this feat is not always an easy task to undertake. This is because there are various legal obstacles that will arise throughout the buying process. It is important to understand that real estate property also has standards that need to be upheld in order to achieve a successful negotiation.
We are also ready to inform you that there are different types of real estate properties and that each have their own specific laws that need to be kept and administered. For that reason, you need to keep in mind that some laws will not be applicable to others just because it is real estate. Having said that, there are different types of properties that may be easier to purchase than others. If you are ready to venture out into the world of real estate, we are here to tell you that you could have not started at a better time. The market is booming, and it is ready for you to join it.
Today we will talk about the specific types of real estate law because there is an enormous difference between residential and commercial properties. These two separate types of real estate laws command the processes that dictate what a buyer needs to compile so that they can be fully ready to embark on this legal venture. However, please be advised that you cannot undergo this process on your own. The solemn truth is that you need to seek the assistance of a Florida real estate lawyer to ensure a successful property purchase.
By doing so, you will bask in the knowledge of a real estate attorney that will guide you in all of the necessary legal obligations that need to be met when trying to purchase a piece of property. You will feel full of confidence because these trained legal experts will ensure that your legal rights are always protected when venturing into contracts and other promises. So, it would be an honor for you to join us through this detailed account as we talk about the differences between residential vs commercial properties, its legal standards, and how a South Florida real estate attorney can make your purchasing dreams come true. Let’s get started!
Legal Standards of Both Types of Property
Let’s start by mentioning that residential real estate property includes apartments, single family homes, and townhouses. The nature of this type of real estate allows individuals to either live within those homes and also have the possibility to rent out those properties to acquire a good set of income. In comparison to commercial property, real estate lawyers state that residential real estate has a more emotional component because it entails the essence of livelihood. People are thus attached to these properties because it builds families and extends generations.
Commercial real estate property on the other hand differs from the former because they do not cover consistent living styles. Instead, commercial properties cover things such as hotels, retail stores, office spaces, industrial buildings, and public facilities. However, similarly to residential property, the owner of a commercial can run any type of business from the specific commercial property they own. As a result, they can lease some or even all of the space to the available tenants.
The truth is that a lot of reputable companies do prefer to rent public spaces instead of owning the property they operate their business from. Why? This occurs because that specific real estate property is not their core business. Instead, they can free up capital to invest in their other core business. This tendency causes commercial property to become a significant investment in the market. Also, commercial property is supported by underlying tenants who have the ability to produce services and goods to substantiate their income. In contrast, residential real estate is not seen as a productive asset.
Residential Versus Commercial Real Estate in Florida. What’s The Difference
Over the decades, commercial property has become famous for making it difficult for investors to attain access to debt and even currently banks lend at lower loan to value (LTV) ratios than residential property. This means that investors will have to place more equity in whichever commercial property project they wish to embark on. As a result, commercial LTV ratios tend to rank between 40-60% while banks end up lending up to 90% on a residential asset.
When analyzing those mentioned percentages, one can make the case that commercial property does indeed require the buyer to conduct thorough investigations of the market before making a crucial investment decision. However, an expert real estate lawyer can help you make the right decision.
Nonetheless, both residential and commercial sectors require that the investors take the time to inquire about the covenants, building reports, market fundamentals and titles. Similarly, the investor can also partake in commercial leases. It is actually more common to find specific terms by which a specific parent company will guarantee the lease should the tenant become unable to fulfill its obligations.
When delving to residential property once more, a common issue that investors tend to face is issues with property management. In residential property, it is common to deal with a single tenant or household but in a multiple commercial building owners may see applications up to even to 10 to 20 tenants.
This comes with its obvious operational challenges that require experienced real estate lawyers to assist in collecting rents, taking care of repairs, and making sure that the tenant’s living experience meets the guidelines instilled by residential real estate law.
This is important to keep in mind, because there are landlords that do in fact violate the rights of their tenants. The above mentioned criteria makes sure that if the landlord violates any of them, the tenant has the right to seek out legal counsel that can protect and promote their legal rights.
Going back on the financial aspect of residential property, many investors will manage the assets themselves.
However, if real estate is not their main area of expertise, this can lead to mismanagement in their budgets. To avoid this, it recommendable that they seek the expertise of a Florida real estate attorney. They will make sure that your capital investment is in good shape so that your budget is allocated correctly in the future.
How Can a Real Estate Lawyer Help You?
To start off, a real estate attorney will do everything under the legal playbook to protect your legal rights. They’ll negotiate any of the necessary procedures if a possible deal is deemed successful. If that does occur, your real estate attorney will be able to thoroughly review your contract to ensure that there aren’t any red flags that could jeopardize your interests.
In terms of commercial properties a real estate attorney will not only protect your business interests but they will also save you crucial time. This is when the phrase “time is money” becomes factual more than ever before. You need a legal expert on your side that has the ability to pinpoint if there are any left over legal deals to undertake as well as any other documents to sign. Think of it like this, if you find yourself trying to figure out the entire process on your own it would only waste your time and money. Don’t allow that to happen!
One of the most important aspects of purchasing a property is having the ability to properly close it. An expert real estate attorney can help you do exactly that by providing with the following information:
- A Proper Closing
- Preparation of closing papers such as the deed,
- Title to the property passes from the seller to you,
- A closing statement is prepared that itemizes the transactions between you and the buyer.
Get Represented As Soon As Possible!
The following information was brought to you by the best real estate lawyers in Florida. At HomeOwnersClaimDenied, our expert legal team works day in and day out to ensure that you can achieve your real estate goals in the short or long term. We are eager to hear your financial proposal that we can go ahead get started on making your property dreams come true. We are currently waiting for your call. Stop hesitating and get in contact with us immediately!