As attorneys practicing in contract law in Miami, FL for commercial real estate deals, we frequently work with clients who have experienced deals that have fallen through and come to us for assistance. Our years of experience in the field have exposed us to many types of mistakes made by parties to real estate transactions that quickly sink the deal.
Here are some of those most common mistakes we see made with commercial real estate transactions in Florida:
- Not getting the deal in writing: This is an absolutely fatal mistake when it comes to making real estate deals. You cannot trust someone when they say “my word is my bond”—you must put any agreement you make in writing and get their signature. In the event of a potential dispute down the road, having something in writing will provide clear, indisputable evidence of the deal you made together.
- Not being careful with text communications: You cannot treat text communications the same way you treat phone calls and in-person meetings. If you send someone a ticked-off email with all-caps rage writing and coarse language, this will certainly be saved and presented to the court. In addition, it is a huge mistake not to send confirmation emails or to not save text messages. You must establish a clear paper trail at every opportunity. This will protect you down the line.
- Not getting a business valued before a sale: The value of your business is more than just the value of the real estate it owns. You should make sure you work with business valuation experts if you are planning on selling your business as well as your real estate so you can make sure you’re getting a fair deal out of the sale.
- Buying the wrong type of business: If you are the buyer in the transaction, you must think carefully about whether or not this is really the right type of business or business property for you to purchase. Just because you are a great cook at home does not mean you can run a restaurant, for example. You must be honest with yourself about whether you are truly prepared to handle the type of business or property you are getting ready to purchase.
- Failure to investigate why the owner is selling: Again, this is a mistake made more frequently by buyers than by sellers, but it’s still an important consideration to keep in mind. It’s important to get a sense of why the owner is selling the property. Is it because they have a business plan that failed? Is it because they’re getting old and want to retire, and no longer have a need for the property? Or is there something wrong with the property itself?
These are just a few of the most common mistakes made during commercial real estate transactions in Florida. If you’re in need of representation for your commercial property purchase or sale, contact a real estate attorney in Miami, FL at the office of Rubén J. Padrón, PA today.
Categorised in: Real Estate Attorney