Before 2020, commercial real estate in Texas was expanding at an impressive rate. According to the Texas Real Estate Research Center, before 2020, “Austin and Dallas tenants added around 200 square feet for each new office-using job in the market. Houton’s energy-rich office economy was even more generous with absorption.” However, in the years since the global pandemic and the increasing availability of work from home employment options, commercial real estate has faced several challenges. As a commercial property owner, it’s common for questions to arise about the best use of your real estate. One option is to explore the possibility of transferring commercial real estate, especially if this action would align with your personal or professional goals. It’s important to recognize that there are a few different types of commercial real estate ownership transfers worth evaluating before you make your decision.
If you want to transfer commercial property in Texas, it’s important to understand that these transactions are often high-stakes and complex to navigate on your own. Whether you are interested in selling the commercial property, transferring it to a business entity, or transferring the real estate as an inheritance or using a trust, enlisting the guidance of a highly experienced and knowledgeable Texas commercial real estate attorney is essential to ensuring that the choice you make moves forward as smoothly as possible. Even a seemingly minor oversight can lead to significant complications, such as commercial property title issues or costly real estate disputes. Let’s take a closer look at some of the key legal steps for commercial real estate sales and transfers in Texas and how partnering with a dedicated commercial real estate lawyer can safeguard your best interests and minimize legal risks and complications as much as possible.
Common Types of Commercial Property Ownership Transfers in Texas
As you begin to explore your options for a business property ownership transfer, it’s worth identifying your specific needs and goals with the help of an experienced Texas real estate attorney. Together, you can review the potential options so that you can make an informed decision with more clarity and confidence. Here are just a few of the ways that you can transfer ownership of a commercial real estate property.
Selling the Property
One of the most straightforward steps you can take is to sell the commercial property to another owner. In order to protect your investment and safeguard your best interests as much as possible, you will need to move through several steps to set yourself up for a successful transaction. For instance, you will need to get an appraisal of the property, make any necessary repairs to prepare the property for sale, settle on a fair asking price, market the property for sale, and negotiate the terms of the sale before you close. Commercial real estate attorneys and real estate professionals can be of valuable assistance during this time to help you with tasks like the deed transfer for your Texas commercial property to the new owner.
Transferring Commercial Property to a Business Entity
Another option is to transfer the commercial property to a business entity, such as an LLC or partnership. There may be tax advantages to taking this step. Additionally, entrusting the LLC with the commercial property can protect you from any claims that may be brought against your property (in other words, LLCs offer personal liability protection). In order to transfer a commercial real estate deed to an LLC, you will likely need to use a General Warranty Deed and file the necessary paperwork with the county clerk’s office. To learn more about transferring commercial property to a business entity, reach out to a skilled and experienced Texas real estate attorney today.
How to Transfer Commercial Real Estate Through Inheritance
In some cases, the owner of a commercial real estate property may wish to pass this asset to a beneficiary as part of their estate plan. Essentially, the owner of the property can place the asset into a trust to ensure that it transfers to your intended beneficiary when the time comes. Trusts are valuable estate planning tools that can reduce tax obligations and facilitate the smooth transfer of assets between family members. You can learn more about property transfers through trusts by contacting a highly qualified Texas real estate lawyer to get started.
Key Legal Steps to Follow When Transferring Commercial Real Estate in Texas
Regardless of the type of real estate transfer you choose, you can expect to move through several steps in order to ensure a smooth transaction. First, you will need to perform a title search and clearance to make sure that there are no legal claims against the property (i.e., liens, disputes, or outstanding debts). The deed will need to be drafted and updated to reflect the new owner, then filed with the county clerk according to state and local property laws. Since real estate transfers inherently involve a considerable investment, it’s highly recommended that you partner with a knowledgeable Texas real estate attorney who can look out for your best interests and address any issues that may arise as quickly and efficiently as possible. Hiring a legal professional can help you avoid costly mistakes, such as skipping due diligence obligations, using vague or inaccurate contract language, and other oversights that can leave you vulnerable to legal disputes later on. Seasoned commercial real estate lawyers know how to identify potential risks, draft clear and effective legal documents, and handle all required filings with ease, allowing you to move forward with your transaction with confidence.
Get Started With a Highly Trusted Texas Commercial Real Estate Lawyer Today
Texas real estate matters can be complex to navigate without an experienced and trusted legal advisor by your side. At Sewell Sewell Beard LLC, we are committed to providing every client we serve with the care, attention, and support they need to make informed decisions with greater confidence. Please contact our Prosper, Texas office at (972) 777-5390 or our Jasper, Alabama office at (205) 544-2350 to get started with a highly qualified real estate attorney.