Matters pertaining to commercial leases can quickly grow complex. Any number of disagreements may arise between landlords and tenants, and unresolved disputes can escalate into costly and time-consuming courtroom battles. Even a seemingly straightforward lease negotiation may snowball into a complicated legal dispute once the tenant occupies the space and begins operations, especially if the parties approach these negotiations without enlisting legal representation. Whether you are a commercial landlord or tenant in Alabama or Texas, it’s in your best interests to work with a knowledgeable and trusted real estate attorney as you navigate lease negotiation matters. The seasoned and caring commercial real estate lawyers at Sewell Sewell Beard LLC are ready to listen to your goals, represent your best interests, and identify the most strategic path forward to secure you the desired outcome with your lease.
First, it’s helpful to understand how commercial leases work in Alabama and Texas. Commercial leases typically involve two parties: the landlord (the individual, or business that owns the property) and the tenant (the individual, or business that pays rent to the owner). Most commercial leases rely on comprehensive legal documents that specify the terms of the agreement, including the rent amount, the length of the rental term, how the space will be used, landlord and tenant responsibilities, options for renewing the lease, and how disputes will be handled and resolved.
Disputes involving commercial leases can arise for any number of reasons. For example, a tenant that owes delinquent rent payments to the landlord can prompt the landlord to take legal action in order to recover the amount they’re owed. Sometimes, the parties disagree about whether the landlord or the tenant should bear responsibility for any necessary repairs. In some cases, the landlord may increase the base rate for the rental, much to the consternation of the tenant. Disputes over the details of the commercial lease often require a nuanced understanding of the written contract and existing real estate laws governing these transactions and negotiations.
Both Texas and Alabama provide legal protections for commercial landlords and tenants. Unfortunately, poorly worded or unclearly written contracts can exacerbate misunderstandings and disagreements between landlords and tenants. It’s best to enlist the guidance of an experienced and knowledgeable commercial real estate attorney to help you negotiate a lease from the beginning. The sooner you involve an experienced attorney in your commercial lease negotiation matter, the more you can minimize on the front end the potential for confusing (and costly) legal disputes in the future. The seasoned commercial real estate lawyers at Sewell Sewell Beard LLC have been doing this work for nearly 40 years and are ready to help you establish a clear and enforceable lease agreement that protects your best interests moving forward. We will take every detail into account to ensure that you will have comprehensive and direct legal guidance should a dispute arise. In the event of a disagreement, you can trust that we will seek the most practical and efficient path forward to secure a favorable resolution.
Condemnation refers to the legal process by which a government entity can exercise its eminent domain authority to seize private property for public use. Condemnation proceedings follow a series of distinct steps, from providing the landowner with written notice of the eminent domain action to negotiating compensation for the taking of the privately owned property.
The party wishing to invoke its eminent domain power initiates the condemnation process. For instance, the Department of Transportation can initiate condemnation proceedings against a private property owner in order to take the land and use it to construct a new highway (which meets the public use requirement). Condemnation proceedings usually begin after negotiations with the property owner have failed.
In order for a government entity to exercise its eminent domain power, the proposed project must benefit the public in some way. Common examples of projects that can fulfill the public use requirement include the construction of new roadways, public transit lines, state parks, public schools and libraries, and other proposals that will benefit the community.
Yes, private property owners have many rights during the condemnation process. Most condemning authorities will provide an initial offer that does not take into account the full value of your property. It’s essential to recognize that you have the right to negotiate a fairer and more just amount of compensation in exchange for your land. If these negotiations are not successful, the matter can move to court, where you will have the chance to present your arguments to a jury.
If the matter moves to probate court and you are not satisfied with the judge’s determination, you can still appeal your case to a trial court. This allows you to make your case before a jury, who will then decide the amount of compensation you should receive. Whether you have just received a condemnation letter or you are preparing to appear in probate court, partnering with a highly experienced and caring condemnation attorney will give you the confidence and firepower you need as you move forward.
Commercial real estate refers to property that the buyer intends to use for commercial purposes. For instance, the commercial property owner may use the real estate for retail businesses, industrial purposes, office space, or agricultural endeavors. It’s worth noting that since the purpose of these properties is for commercial use, the land needs to be zoned to accommodate commercial uses.
The purchase and sale agreement is a legally binding contract that guides the commercial real estate transaction. These documents are often customized to address the specific considerations of the transaction, but they generally include a few key elements: The purchase price, the scope and timeline of the due diligence period, the payment terms, the conditions that govern how and when the parties may exit the contract, warranties provided by the seller regarding the property, and the handling of closing costs.
Due diligence refers to the period during a commercial real estate transaction where the buyer has the opportunity to fully examine the property’s physical, legal, financial, and environmental status to ensure that the property remains a sound investment. The due diligence period usually lasts between 30 and 90 days, beginning from the signing of the purchase agreement. If you have questions about what to look for during the due diligence period, give us a call to learn more.
In most cases, both the buyer and seller cover a portion of the closing costs. The buyer usually covers closing costs associated with due diligence fees, financing costs, title insurance, and recording fees. The seller’s closing costs often include brokerage commissions, transfer taxes, and any costs associated with clearing the title (i.e., clearing existing liens, paying off mortgages, or handling retroactive property taxes).
Although you are not legally required to hire a commercial real estate lawyer to buy or sell property, doing so is highly recommended. Commercial real estate transactions usually involve significant investments and a fair amount of risk, so many people feel more confident with an experienced legal advocate by their side. At Sewell Sewell Beard LLC, our team of skilled and knowledgeable commercial real estate attorneys is ready to provide you with the exceptional guidance you need to make informed decisions while eliminating mistakes and risks.
Contact us today if you have a potential Lease Negotiations case.
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