There was a time when a handshake was all that was needed to seal a deal and get the ball rolling on a commercial real estate venture. While a handshake may still be enough for key decision makers to begin the process of structuring a complex commercial real estate transaction and preparing documents, our complicated financial and legal environment requires careful planning to capture the spirit of an agreement, reduce the agreement to writing, and plan for the implementation of the agreement, all with an eye toward compliance with various state, federal, and foreign regulations, and minimizing tax consequences.
Put another way, the goal of a well-structured commercial real estate transaction is to “enable actors from a variety of countries and jurisdictions to co-manage and create a communal perspective that incorporates complexity, yet produces certainty and calculability.” (Flood & Skordaki, 2008.)
The role of lawyers in this process is clear — all lawyers, ideally, specialize in the minimization of risk and management of uncertainty, regardless of practice area. A good lawyer first endeavors to eliminate risk where possible (think disclaimers, waivers, and limited warranties), then minimize any remaining risk to the extent possible.
It stands to reason in the area of commercial real estate transactions, then, if a lawyer’s role is to minimize risk and manage uncertainty, substantial knowledge and experience in the area of complex commercial real estate transactions is vital. Knowledge and experience in a practice area beget awareness of snares and pitfalls particular to the practice area – and how to help clients avoid them. At the end of the day, the way a real estate transaction is put together, and how well it aligns with the stated goals of functionality and compliance at minimal cost, will determine its outcome.
Commercial real estate deals can carry significant risk. Be certain your commercial real estate transaction is structured with the correct goals in mind, by competent, experienced legal counsel who know the business. The attorneys at Glass & Goldberg are committed to helping you minimize risk and manage uncertainty before, during, and after the deal, and can help structure your transaction to meet your goals.
Glass & Goldberg provides high quality and cost-effective legal services and advice for clients in all aspects of business litigation and transactional law. Call us at (818) 888-2220, email us at info@glassgoldberg.com, or visit us on the web at www.glassgoldberg.com to learn more about the firm and to sign up for future newsletters.