Investing in commercial real estate presents some of the most complicated issues in real estate law. Usually, a group of investors will come together and form either a partnership, LLC, or corporation for the venture, which requires agreements or articles, and registration with the state. In addition to their own funds, investors often seek loans, which require promissory notes, mortgage deeds, and other documents. Then, the investors purchase the target real estate, and, as in any purchase, there is a purchase and sales agreement, settlement statement (e.g. form HUD-1), deed, and state transfer tax forms (e.g. PA-37, CD-57).
Once the investors own the property, they will then either develop it, or lease it, or sell it. For development, creating a subdivision or condominium requires compliance with both town and state requirements. Building a building on the land requires contracts with the general contractor, and approval from the town, and possibly also the state. Leasing a building requires lease agreements with tenants, and possibly the eviction of tenants in default. Selling real estate again requires a purchase and sales agreement, deed, settlement statement, and other documents.
For commercial real estate lenders, in order to protect the lender's investment, promissory notes and mortgage deeds are required. Additionally, when a borrower defaults, the lender may require foreclosure.
The attorneys at Bielagus Law Offices PLLC have represented and advised clients in all aspects of commercial real estate since 1972.