What are common legal issues that arise in commercial real estate transactions?

Common legal issues that arise in commercial real estate transactions in Pennsylvania include environmental contamination, zoning, due diligence, tenant rights, title review, financing, and landlord-tenant disputes. Environmental contamination is important because it can pose an issue for buyers looking to purchase commercial real estate. If existing contamination is not addressed, buyers may be held liable for any damages caused by the contamination. Zoning is also an issue that must be considered when engaging in a commercial real estate transaction. Before purchasing a commercial property, it’s important to research local zoning laws to ensure the property can be used for the desired purpose. Due diligence issues also arise in commercial real estate transactions. This typically includes reviewing the property’s title, researching the prior use of the property, inspecting the property for defects, and negotiating any necessary repairs. Tenant rights must also be considered by buyers in a commercial real estate transaction. Buyers are typically responsible for existing tenant rights, so it’s important that any leases and documentation covering tenants is reviewed prior to purchase. Title review is also a key aspect of commercial real estate transactions. Buyers must review the chain of title in order to ensure there are no hidden liens, claims, or encumbrances against the property. Financing is another major factor in commercial real estate transactions. This includes arranging the loan, deciding on the repayment terms, and securing the loan with a legal instrument. Finally, landlord-tenant disputes can arise in any commercial real estate transaction. It is important for buyers to fully understand their responsibilities as a landlord in order to avoid any potential disputes with tenants.

What are common legal issues that arise in commercial real estate transactions?

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