Commercial real estate transactions involve a lot of risk for all parties, whether buying or leasing. As the commercial real estate market grows, it is important to stay aware of risks which frequently stop real estate transactions. These risks are common and can be avoided, if parties of the transaction are aware of these issues ahead of time. Our friends at SVN | Southgate Realty, LLC have listed 5 issues that can stop a commercial real estate transaction.

All owners and users of commercial real estate know that every transaction involves some level of risk, whether buying, selling or leasing property. With a long history in the world of real estate we have seen a handful of these “risks” pop up more frequently than others. The key to any successful problem resolution is to be prepared. Best way to do that? Be informed!

commercial real estate deed

Below we outline the more common issues that can turn a simple commercial real estate transaction into a failed deal, or worse – a legal dispute.

Defects in the Title

Defects in the title of a commercial real estate property can: (i) mean you aren’t really getting the property you thought you were or (ii) lead to a lien against the title, which means your deal can fall flat until it’s resolved. A little background: Any interest in real property is typically conveyed by a deed. This deed is recorded in public record (state and county) every time the property changes ownership.

Sounds like a great system in theory, but issues arise when…