Commercial Real Estate: Broker vs. Lawyer

When you are buying or selling commercial real estate, you should work with a commercial real estate broker and a commercial real estate attorney. Each plays a different role in the purchase and sale of commercial real estate. A commercial real estate broker brings the buyer and seller together to make the deal. The real estate attorney reviews and prepares legal documents, and gives you legal advice. An attorney can also help you with negotiations and due diligence on the property. Both the broker and the attorney represent you, and they work together to make sure that the closing goes smoothly.

Why Use Both?

Using both a broker and an attorney is to your benefit. While you can buy and sell commercial property on your own, it would take longer to find a property without a broker, and you could end up in litigation if you don't have an attorney looking out for your interests. Buying and selling commercial real estate is complicated. There are a number of things that can go wrong. Legal issues can arise under the contract, disputes and misunderstandings can occur,or there may be something wrong with the condition of the property, etc. Here are some more reasons why you should work with both a broker and an attorney:

Commercial real estate broker:

• The broker is an expert in commercial real estate.
• A broker acts as an intermediary betweenthe buyerand the seller and can help you with the negotiations.
• The broker keeps current on market conditions and current prices.
• Brokers network with each other, share information about properties and can refer mortgage brokers and other vendors to you.
• Your own broker represents you, and will be looking out for your best interests.

Real Estate Attorney:

• Only an attorney is qualified to give you legal advice.
• A real estate attorney is an expert in real estate laws.
• An attorney can prepare legal documents, and represent you in court.
• The real estate attorney is impartial because the attorneydoes notget paid a real estate commission after the sale. A real estate broker only gets paid a commissionwhen the transaction closes.
• If there is a problem that comes up during the due diligence period such as a zoning, use restriction, an easement or building encroachment issue, or a contract dispute, the attorney is in a better position to help because the attorney understands the laws and knows the best way to resolve the issue.

Real Estate Attorney Help

The real estate attorney is looking out for your legal interests, while the real estate broker is trying to negotiate the best deal for you.An attorney is knowledgeable about the real estate laws, and can represent you in a lawsuit, prepare legal documents and negotiate complicated legal issues on your behalf.