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Recent Blog Posts
Understanding the Basics of Commercial Real Estate Evictions in Illinois
Most commercial tenant-landlord relationships are fairly uneventful. However, there are circumstances in which a landlord must evict their commercial tenant. Generally due to a breach of contract or failure to pay rent in a timely manner, this process can be legally complex. Whatever side you fall on – landlord or tenant – it is important to know how commercial real estate evictions in Illinois work, and how an experienced commercial real estate attorney can help you with the process.
Commercial Evictions Are Governed by Law
When tenants and landlords enter into a commercial rental agreement, they typically do so through a legal contract. Contained within are certain guidelines, agreements, and expectations for property use, rental payments, property maintenance, and any other pertinent details. If a tenant violates any part of this contract, they become subject to an eviction. Landlords must pursue this process in accordance with the law. Specifically, commercial evictions are governed by the Forcible Entry and Detainer Act (735 ILCS 5/9-101), which outlines a timeline and procedure for evicting commercial tenants.
Strategies That Could Drastically Improve the Outcome of Your Commercial Project
Every investor has been there: they find that “perfect location,” a place where they know all of their dreams and ideas will flourish. It is ripe with promise and possibility and may even have nearby businesses, retail chains, communities, or other appealing attractions nearby. Then they notice the sparse development. An inexperienced investor might wonder why, but you immediately know the answer: zoning problems. Thankfully, you also know that there are ways to win the battle. The following strategies can help you along the way and may even improve the outcome of your commercial land development project.
Know the Why Behind Zoning Restrictions
Restrictions on zoning, expansion, and land use can be in place for any number of reasons. Maybe the city or county intentionally restricted it to preserve an endangered species. Alternatively, they may know it is a prime location and are simply trying to retain a position of power while they wait for the “right” project to come along. However, the most likely scenario is that the land is restricted through outdated zoning laws, ones that could be challenged or changed with the right approach. Whatever the case, get to know why certain zoning restrictions are in place. This can help you determine whether or not the fight is truly worth the effort and investment.
Building on Vacant Land: Zoning Regulations and Land Use
When you look at the vacant lot of land you have purchased, you probably see possibilities and promise for the future. What you might not are the zoning and land use ordinances that you will face along the way. Know how zoning regulation issues may hinder the development of your project and how you can best avoid them.
How Does Zoning Affect Your Project?
Governed by local laws, zoning ordinances restrict an area's land of use to a predetermined use. In theory, these restrictions are made to organize land and improve its efficiency and livability. For example, it would prohibit the construction of a power plant within a residential zone, where residents may become annoyed or even sick because of the noise and pollution.
Zoning Designations in Illinois
Each city and/or county determines their own zoning designations. However, most zoning designations will fall under one or more of the following categories:
Understanding the Plat Approval Process in Naperville, Illinois
Land development is one of the most complex real estate processes. It requires knowledge of zoning ordinances and regulations, due diligence, organization, and careful planning. It also requires that the landowner or developer seek site plan and plat approval. The following will help you better understand the approval process and provide you with key information on how you can smooth the path ahead.
Who Needs a Site Plan and Plat Approval?
Certain plat developments must seek prior approval through the City of Naperville Development Review Team (DRT). This includes subdivisions, planned unit developments, condominiums, dedication of right-of-way, easements, annexations, and vacation public right-of-ways. However, there may be other developments that must seek approval. Since each project is unique, and because zoning violations can be costly in terms of both time and money, it is important to contact an experienced real estate attorney prior to starting your land development project.
Condominium Development in Illinois
Condominium developments are unique real estate matters with complex laws, bylaws, and legal nuances. This particular branch of real estate law is complicated even further when there are multiple land owners and a necessity for homeowner association (HOA) agreements. As such, it is critical that condominium land developers seek the assistance of an experienced and seasoned real estate attorney.
Initiating a New Condominium Development
Those who wish to initiate a new condominium development are required to follow a set legal process to gain approval. Intent must be declared and an outline of the Association's bylaws, floorplans, and plat development must be submitted. Furthermore, developers need to ensure that the property or land being purchased is free of liens and that it is eligible for development under local, state, and federal zoning laws. This is especially critical since zoning ordinances could delay or hinder development, potentially costing you a lot of time and money.
Protecting Your Interests in Commercial Lease Agreement Disputes
Of all the real estate matters, those involving commercial lease agreement disputes are often the most complex. Governed by complicated contracts and esoteric laws, they could result in a significant financial loss for a business or landowner if handled incorrectly. Such disputes may even result in violations at a local, state, or federal level that could compromise future use of the property. If you are facing a commercial lease agreement issue, understand your rights, and how to best protect them.
Common Commercial Real Estate Agreement Issues
Though real estate agreement disputes come in a wide variety of forms and types, they typically involve two vested parties: the tenant (or business owner) and the landlord (landowner). Some issues stem from a breach of contract. Others are due to improper land use or development. Still others may relate to property damage or failure to maintain the property as outlined in the contract. However, not all disputes are between the landlord and the tenant.
Practicing Due Diligence When Purchasing Commercial Real Estate
Commercial real estate purchases might offer the buyer several opportunities, such as an expansion of their portfolio or an increase in income, but they are also a major investment. This is why due diligence is so critical in commercial real estate transactions. Know your rights, understand the importance of an experienced commercial real estate attorney, and learn how to ensure you have considered all aspects of a potential acquisition through proper and effective due diligence practices.
Your Due Diligence Rights
Under Illinois state law, buyers are permitted a due diligence period (generally 45 to 60 days) once a contract is signed. This time should be used to ensure that the property, and its intended use, will be able to meet all local, state, and federal zoning regulations. If you happen to find a major issue, you can still back out of the deal at this time. However, failure to practice due diligence – or ineffective due diligence practices – could leave you at risk for a substantial financial loss. In some situations, it could even result in the purchase of a property that is useless to you.
Possible Solutions to Zoning Conflicts on Your Property
Before purchasing real estate, most buyers check zoning regulations to ensure the property can be used for the purpose they have intended. Unfortunately, zoning laws can change and cause conflicts for land owners, homeowners, and business owners. Furthermore, if the needs of a property owner change and require an expansion, they may run into zoning issues. Thankfully, there are some strategies that property owners can use to resolve zoning conflicts.
Nonconforming Use
When an existing property or its qualities conflict with a new zoning regulations, landowners or buyers may be able to seek temporary relief under nonconforming use. This allows the property to be used for its current purpose, despite zoning laws, for a limited period of time. However, there are some limitations. Once the amortization expires, the property must be converted to conforming use. Additionally, nonconforming use typically expires if it is abandoned (i.e. a business closes down), or if the building is partially or completely destroyed.
What Do You Need to Know About Condominium Law?
The regulations governing condominium homeowner's associations are often complex. There are specific rules about how the boards of these associations must conduct official business and what powers the associations have to enforce the rules against members who are not in compliance. An experienced attorney can help you navigate these complex matters.
Controlling Documents
Condominium homeowner's associations control all of the common areas of a building and are responsible for making sure all the unit owners pay their fair share of the fees for the operation of the association and the maintenance of the common areas. Each association has a declaration that sets forth the basic duties and rules of the association. If the board tries to exercise a power that is not listed in the declaration, a unit owner will likely be able to sue the board.
Illinois Commercial Litigation FAQs: Part 2
Commercial litigation can be a complex area of law and especially confusing in the wake of a lawsuit. It is important to understand your rights as a business owner and the litigation process overall. In the first part of our series, we reviewed a few frequently asked questions (FAQs). Below are some additional matters you should be aware of regarding commercial litigation.
What Should I Do if I Think the Company May Get Sued?
If you have reason to believe that you or your business may be sued, you need to take action to preserve all documents potentially related to the lawsuit. This also includes documents in electronic form such as emails and text messages. Failure to preserve these documents can harm your case and result in severe penalties. You should also speak with a lawyer immediately to develop a plan of action. You should not wait for a lawsuit to be filed before meeting with a lawyer.
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