While buying a commercial property or a multi-unit residence is essential for business owners and landlords, it is often a complex, somewhat challenging legal process. Even if a buyer has all the money up front, there are documents to sign, inspections to make, and legal procedures to follow. If you want to dispute a real estate transaction, contact an attorney for help right away.
During a commercial real estate transaction, a buyer and seller must draft a purchase agreement that outlines payment terms, specifies who will cover certain closing costs, and includes other important terms of the sale. Once a deposit is paid, it may be held in escrow until closing. A buyer may need to conduct due diligence, including inspecting the property, obtaining appraisals, and conducting a title search, among other steps. An attorney can help you if you feel overwhelmed.
Call our real estate transaction and disputes attorneys with the Heyman Law Firm at (410) 305-9287 to get a confidential review of your case.
What Happens During a Real Estate Transaction in Aspen Hill, MD?
Real estate transactions are rarely simple, even when the buyer and seller are both keen on wrapping up the sale as quickly as possible.
Written Purchase Agreement
Commercial real estate transactions revolve largely around written agreements. Verbal or handshake agreements are often not enough to make a real estate transaction legally binding. The purchase agreement is a contract that binds the buyer and seller to specific terms regarding the transaction.
The purchase agreement may contain various terms and conditions regarding the sale. These may include, but are not limited to, down payments, inspection requirements, financing, property appraisals, and proof of title. Our real estate transaction and disputes attorneys will review the agreement with you before you sign it.
Deposits Held in Escrow
In many cases, business owners or landlords will put down a deposit, often referred to as “earnest money.” This is usually a sign of good faith from buyers who are serious about the transaction. The deposit may be held in an escrow account by an escrow manager. This is a third-party account where a neutral party holds the funds until closing.
Closing and Recording
Closing is the final stage of a commercial real estate transaction, when all legal documents necessary to transfer ownership of the property are signed. This may include signing deeds or mortgage notes. Any funds held in escrow are disbursed at this time, and the deed is recorded with the appropriate county government office.
How Do Disputes Over Real Estate Transactions Arise?
Disputes may arise from a number of factors in the commercial real estate transaction process, and your lawyer can step in and help as soon as you realize something is wrong.
Faulty Contracts
The contract or purchase agreement is a crucial part of the transaction, as it outlines the terms and conditions both parties must comply with. If you later realize that the contract is extremely unfair to you but highly favorable to the other party, you may dispute it with the help of a lawyer. More importantly, if the seller does something to violate the terms of the purchase agreement, your attorney can help you sue them for breach of contract.
Title Disputes
If the seller lacks a valid title to the property, the entire transaction may be in serious jeopardy. If the transaction goes through, the buyer may not be able to receive the title and legal ownership of the property. If you believe the seller does not have a valid title to the property, tell your lawyer immediately.
Seller Misrepresentations
Sellers often hide the worst parts of their property while highlighting the best to secure a sale. Sometimes, this means hiding small flaws that buyers can handle on their own. In other cases, sellers might hide serious defects, like termite infestations, extensive plumbing issues, or roof problems. If you are a buyer who has been deceived by a seller, get a lawyer now.
This is crucial in real estate transactions involving apartment buildings or multi-unit residences. These buildings must be up to code before residents can move in. If the seller misrepresents the building and it is actually not up to code, your ability to begin conducting business with the property may be significantly delayed.
FAQs About Real Estate Transactions and Disputes in Aspen Hill, MD
What Should I Do Before Buying Commercial Real Estate?
Before entering into a commercial real estate transaction, buyers should consult their real estate agent and attorney on the steps to protect themselves throughout the home-buying process. This may include arranging property inspections, researching current and former businesses that occupied the property, and making sure the property is up to code so you can open your business as soon as possible.
What if the Seller Lies About the Property During a Real Estate Transaction?
If you are buying some commercial property or some other real estate and you believe that the seller has lied about material facts regarding the property, contact an attorney immediately. You and your attorney can contact the real estate agent involved in the transaction and explain the situation. Your attorney should help you reclaim any money you may have spent and cancel the transaction.
How Long Does a Normal Real Estate Transaction Take?
While real estate transactions are typically time-consuming, the timeline can vary by case. When buyers and sellers are both motivated, inspections and appraisals proceed smoothly, and both parties are honest about material facts, a real estate transaction can take only a few weeks. On average, real estate transactions can take several months before the closing is finalized.
What Should I Do if I Want to Dispute a Real Estate Transaction?
Disputing a real estate transaction is arguably more complicated than the transaction itself. Depending on where you are in the transaction when the dispute arises, it may be difficult to cancel it. Sellers may be contractually obligated to continue the transaction, and an attorney can help you compel their cooperation. A buyer might lose earnest money if the transaction is suddenly canceled or placed in jeopardy. Your best bet is to contact an experienced attorney right away.
Do I Have to File a Lawsuit Over a Disputed Real Estate Transaction?
While you may have the option of filing a lawsuit to resolve a real estate transaction dispute, it is not always necessary. Some disputes are the result of honest mistakes or misunderstandings, and your attorney may help you address the mistake with the other party and correct it, allowing the transaction to proceed. In other cases, the other party might push back against your claims, and a lawsuit may be necessary.
When Should I Hire a Lawyer to Help with Real Estate Transactions or Disputes?
Attorneys are necessary in real estate transactions. Your lender may have a lawyer, but they represent only the lender, not you. It is best to speak to an attorney before you begin the transaction. If you are serious about putting in an offer on a piece of property, get a lawyer before making an offer. If disputes arise later, your attorney will be ready to step in and protect you.
Contact Our Real Estate Transaction and Disputes Attorneys in Aspen Hill, MD
Call our real estate transaction and disputes attorneys with the Heyman Law Firm at (410) 305-9287 to get a confidential review of your case.