Resolving a Commercial Real Estate Dispute

Naperville commercial real estate lawyersCommercial real estate disputes can be frustrating, complex, extremely costly. Thankfully, there may be ways to solve issues with less stress, money, and effort. Learn more about resolving your commercial real estate dispute, including when to seek assistance from a legal professional, with help from the following information.

Types of Commercial Real Estate Disputes

Disputes in commercial real estate are, most often, related to contracts, development, land use, or title issues. For example, land developers may experience arguments or potential litigation over:

  • Tenant’s breach of a commercial lease;
  • Tenant’s use of property;
  • Fair market value of the home;
  • Construction development contracts;
  • Worksite personal injury cases;
  • Easements preventing the intended use of land or property;
  • Zoning violations;
  • Development contracts;
  • Contamination of property; and
  • Environmental issues.

When faced with such issues, it is important to act quickly. Some matters can escalate, which can increase the overall cost of your commercial real estate development project.

An Ounce of Prevention

When it comes to commercial real estate disputes, an ounce of prevention can go a long way towards avoiding litigation. For example, an experienced real estate lawyer can examine and draft pertinent contracts to protect your development business. A lawyer can also assist you with the due diligence process before purchasing a parcel to reduce the risk of zoning violations and environmental issues. Unfortunately, not every developer is aware that an attorney can help prevent disputes, and they may only consider a lawyer once problems arise.

Dealing with Disputes

If you are currently facing a commercial real estate dispute, do not wait until matters start to spiral out of control. Instead, find representation as soon as possible and increase your chances of resolving the matter with a negotiation, arbitration, or other low-level dispute resolution option. If, however, litigation is imminent or necessary, an attorney can help you navigate the process more efficiently. Depending on the situation, they may even be able to help mitigate any damage that a dispute may have on your development project, bottom line, or reputation. Just please do so as early as possible to ensure you have the most protection available.

Contact Our Naperville Real Estate Lawyers

At Lindell & Tessitore, P.C., we strive to protect the best interest of our clients and their businesses. Skilled and experienced, we can assist with your commercial real estate dispute matter in a professional and efficient manner. Call 630-778-3818 and schedule a personalized consultation with our Naperville real estate lawyers today.

Source:

http://www.ilga.gov/legislation/ilcs/ilcs5.asp?ActID=532

http://cases.justia.com/illinois/court-of-appeals-first-appellate-district/2015-1-14-0088.pdf?ts=1426010816

http://www.naperville.il.us/globalassets/media/permits-and-licenses/petition-for-development-approval.pdf

http://www.naperville.il.us/contentassets/f6f4d1b8766c4564bde31277f00f444b/pzc-by-laws-4.3.17—approved.pdf

Renting Commercial Property – What Every Business Owner Should Know About Commercial Property Leases

Naperville commercial real estate lawyersMost Americans have rented a home, apartment, or condominium at some point in their lives, but only a small fraction rent commercial spaces for their businesses. As such, many renters are unaware of the differences between commercial and residential leases. Yet, as the following explains, these differences can catch you off guard, especially if the market turns or your business fails. Learn how to mitigate against such situations, and discover how an attorney can help protect you with your commercial lease agreement issues.

Commercial Leases versus Residential Leases

Despite any misconceptions that commercial renters may have about commercial leases, they are significantly different than residential leases. In fact, the agreement itself is not standard. Instead, it reflects each landlord’s needs and preferences. Second, they are often longer and can cost you a great deal more money if you breach the contract. Flexibility and negotiability are also lower in commercial leases, and there are fewer consumer protections. All these aspects, when combined, make for a potentially catastrophic situation for commercial renters.

Reviewing a Commercial Lease Agreement

Although it is a good idea to read through any lease to ensure you understand and agree with the terms, it becomes crucial that you do so before signing a commercial lease agreement. Consider pertinent elements, such as:

  • Rental fee (can you afford it?);
  • Rental term (if your business is just starting up, a 10-year lease may not be optimal);
  • Any modifications that may need to be made to the existing space;
  • Zoning issues that may affect your business;
  • Security deposit and conditions for its return;
  • Repairs and maintenance (who is responsible?);
  • Subleasing (is it permitted?) and lease renewals;
  • Requirements for terminating the lease;
  • Marketing and advertising needs (can you put up sidewalk signs, etc.);
  • Competitor leasing (can your landlord rent to a competing business?);
  • How disputes are handled;
  • Space included in your agreement; and
  • If you are signing a gross lease (insurance, taxes, etc. are included in the agreement) or a net lease (you pay for the items separately).

Negotiating a Better Contract

Being unhappy with a contract does not mean you cannot rent the space, or that you must turn it down. Instead, you can attempt to negotiate better terms. Keep in mind that it is advised that you seek assistance from an experienced real estate attorney; not only can this help to ensure you understand the terms and agree to them, it can also give you an edge in negotiations when dealing with a commercial landlord, where your rights are less protected.

Backed by almost a decade of experience in handling high-level, commercial matters, Lindell & Tessitore, P.C. can assist with your commercial lease needs. We can even represent you in a litigated matter. Schedule your personalized consultation with our Naperville commercial real estate lawyers to ask how we can help with your situation. Call 630-778-3818 today.

Source:

https://www.forbes.com/sites/groupthink/2015/06/02/negotiating-a-commercial-lease-heres-what-you-need-to-know/#6fd0fa422d5c

 

Partnerships in Commercial Development: Why You Should Be Wary and How You Can Mitigate the Risks

Naperville real estate lawyersCommercial development projects are, by nature, risky endeavors. They are typically larger than residential projects, often require more funds, and have an added layer of complex regulations and requirements. When you add in a potential partnership, things can get even trickier. Learn why you should be wary of a partnership in commercial real estate development, and how you can mitigate against the risks if you decide to move forward.

Understanding the Unique Challenges of a Partnership

There might be a dozen or more sayings that justify a partnership (i.e. two heads are better than one), but they often downplay the unique challenges that one might face. For example, partners might take a synergy approach, only to realize that each member has grown or changed over the course of the partnership. Another potential challenge is the differing of opinions, morals, work ethic, and beliefs. Even more concerning is that this particular issue often emerges at the worst possible times – when speaking to the media, dealing with investors, or closing a deal.

Adding further to the challenges of a partnership is the volatile nature of commercial development. The market can be fickle, investment amounts are large, and when these two issues collide, it can create a sort of perfect storm. Sometimes, the situation can become so contentious that the partners spend several years in litigation, trying to sort out who owes what to whom. At the end of it all, both may walk away with significant financial losses and a soured relationship.

Mitigating Against the Risks

Probably the easiest way to avoid the risks of a partnership is to just not enter one. Of course, this may not be a possibility for everyone; sometimes a partner is needed to ensure all tasks are completed, or because more capital or credit is needed. In these situations, you can protect your portfolio by not engaging in a 50/50 partnership. Instead, be the one in charge of decision-making. Be the face of your own company. Lastly, never agree to something without first consulting a real estate attorney.

Contact Our Naperville Commercial Real Estate Lawyers

At Lindell & Tessitore, P.C., we make your best interests a top priority. Dedicated and experienced, our Naperville commercial real estate lawyers can examine the terms of a purchase or sale agreement, review partnership agreements, assist you in performing due diligence, and safeguard you from litigation over zoning and land use issues. Schedule your personalized consultation and ask how we can help with your next project. Call 630-778-3818 today.

Source:

http://www.nreionline.com/development/why-partnerships-commercial-development-are-destined-fail

Tenant Protection for Illinois’ Domestic Violence Victims

Naperville real estate lawyersData from the National Coalition Against Domestic Violence (NCADV) shows that approximately 20 people per minute are abused by an intimate partner. In some cases, the violence extends beyond cuts and bruises; the victim’s life is truly in danger. What does this mean for you as a landlord? The following explains the tenant protections offered to domestic violence victims under Illinois state law, and it provides you with details on where to find assistance if you need further guidance or advice in a specific tenant-landlord situation.

Examining the Tenant’s Rights

Tenants who are being abused by a family member have the right to terminate their lease early, should they so choose. However, they can also request to have their abuser evicted and the locks changed. As a landlord, you are required to comply with these protections. You should also be aware that domestic violence is considered a viable defense to an eviction, which may already be underway by the time you learn of the abuse. Sadly, this can leave you feeling a little caught off-guard, and it may even cause you to overlook your own rights as a landlord.

Examining the Landlord’s Rights

Having to provide accommodations for victims does not necessarily mean a loss. You can bifurcate the lease and extend living space to a victim, but not their abuser. You also have a right to request documentation of the abuse as proof, should an eviction or early termination of the lease occur. Just remember that you cannot disclose to anyone that the victim has exercised their rights under the domestic violence protection law; to do so could cost you greatly.

When to Hire an Attorney

If you believe that a tenant is trying to abuse the protection, if you suspect there may be severe damage to your property, or if you wish to bring a civil case against the abuser to recover losses, it is important that you have an advocate on your side. An attorney can help you navigate the process, and they can help to ensure you do not violate the laws that protect victims.

At Lindell & Tessitore, P.C., we have extensive knowledge of the tenant-landlord laws in Illinois, and we can work to ensure your investment property is safeguarded. Dedicated and experienced, our Naperville real estate lawyers will fight for you. Learn more about how we can assist with your unique situation by scheduling a personalized consultation. Call our offices at 630-778-3818 today.

Sources:

http://ncadv.org/learn-more/statistics

http://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=2201&ChapterID=62

Cyber Security Issues and Commercial Real Estate – What Every Investor Should Know

Naperville commercial real estate lawyersAs more and more cyber security breaches make headlines, investors find themselves asking when and how they may be vulnerable to threats. Interestingly enough, there are more areas of concern than real estate investors may realize. Learn more about the risks of cyber security breaches, including ways that you can protect your real estate investment empire.

Examining the Severity of the Problem

What do Target, Sony, Yahoo, and Heartland Payment Systems all have in common? Each one faced a cyber security breach over the past year – big enough ones that their companies landed in the news. If these multimillion dollar companies, armed with high-tech security systems are vulnerable to threats, then every business and individual should consider themselves at risk. Yet only 53 percent of all small companies place a high-priority on cyber security. In a world that is becoming increasingly reliant upon digital data and information, the lack of security is not just a risk; it is ultimately an invitation for trouble and, in turn, financial devastation.

Cyber Security and Commercial Real Estate

From emails, social media, and online banking to digital contracts and data storage, real estate investors of today are digitally connected to their attorneys, real estate brokers, and lenders. Those connections are portals that leave you, the investor, vulnerable. A single breach could significantly delay the closing on a property. It could wipe out any savings or investments you have made. Payroll for employees, such as contractors that you work with, could also be at risk.

Protecting Your Investments

The key to protecting your investment business is knowing when and where your property, closing, tenants, or the individuals you rely on and work with might be vulnerable. Have policies in place that address payroll issues and direct deposit drafts for terminated employees. Gain the knowledge you need to create a defense strategy for smart buildings, personal and company computers, cloud drives, and thumb drives. Know when data should be deleted, where it should be stored, and frequently scan for malware. Most of all, ensure you are working with a team of professionals who care just as much about your business as you do.

Contact Our Naperville Real Estate Lawyers

At Lindell & Tessitore, P.C., we work hard to preserve the best interest of our clients. Whether you need assistance with the closing process, due diligence, or ensuring you have a system in place to protect your investments, our Naperville real estate lawyers can help. Schedule your personalized consultation to learn more. Call 630-778-3818 today.

Sources:

https://cdn.theatlantic.com/assets/media/files/the-atlantic_whitepaper_v9_120516_(1).pdf

https://www.cnet.com/how-to/11-things-small-businesses-can-do-to-get-big-business-level-cybersecurity/

https://www.realcomm.com/advisory/687/1/cybersecurity-and-commercial-real-estate-a-growing-industry-concern

https://financialregnews.com/cybersecurity-concerns-real-estate-process-subject-illinois-conference/