If you think you know everything there is to know about commercial real estate law, you should know that commercial real estate law is not an easy thing to understand. There are different federal laws and state laws to understand. For example, you might think knowing about property law is enough, but the reality is that you need to know other things, such as contract laws and insurance laws. It is always best to speak to a qualified attorney, so you do not find yourself on the wrong side of the law. Below are five essential things you should know regarding commercial real estate law in California.
Disclosure Laws
As a commercial real estate seller, there are several disclosure laws you need to know about. In simple words, disclosure laws deal with the location, conditions, and restrictions placed on a property. In general, these laws exist so that buyers understand what they are getting into. If, as a seller, you fail to make a disclosure to a buyer, the buyer has a right to take legal action.
In California, real estate disclosures for commercial property include;
- Whether it is advisable for a buyer to seek title insurance
- The presence of toxic substances, such as asbestos and radioactive materials
- Whether the property is at any risk of flooding or earthquake damage
- The condition of utility systems and other structures on the property
Zoning and Land Use Laws
In addition to determining taxation, state laws determine how commercial property can be used. Sometimes, state laws even dictate which kind of retail operations can take place. For example, as a commercial real estate property owner, you need to understand zoning and land use laws to avoid renting a property to a business only for you to find out that the business cannot operate there without getting the property rezoned.
Landlord/Tenant Laws
California landlord/tenant laws are designed to protect the rights of both parties in any leasing or rental agreement. These laws are a crafted definition of the relationship between the property owner and the person or entity habituating the space. Often,
clauses in these laws govern things like;
- Taxation
- Duration of tenancy
- Payment of rental fees
- Rights to termination of tenancy
As a commercial property owner in California, you need to understand landlord/tenant laws to avoid violating your tenant’s rights. You also need to know about these laws in case your tenants violate your rights.
Contract Laws
Binding agreements in commercial real estate include lease and rental agreements. One of the crucial things you need to know about such documents is that they need to be specifically structured and contain rigid wording to ensure they can stand up to any challenge.
Insurance Laws
You will need your investment covered as a commercial real estate owner, meaning you will need insurance. Therefore, it is crucial for you to contact a qualified attorney to answer your questions on commercial insurance law.
It would be best if you avoided trying to understand commercial real estate laws on your own. These laws are far too complex to understand without the help of a professional. To avoid legal loopholes, you should speak to an attorney. Here at Stryker Slev, we can help you understand all there is to know about commercial real estate laws in California. Contact us today to schedule a consultation.
