Buying and Selling Commercial Real Estate
Buying and selling commercial real estate in DuPage County can be extremely complicated, and it is important to work with an experienced real estate attorney who has experience handling complex business transactions. Even if you have sold residential property in the past, and if you have experience buying and selling a home, you should know that the process is different — and much more complicated — when it comes to commercial space.
What Is Commercial Real Estate in Illinois?
Under Illinois law (770 ILCS 15/5), commercial real estate is defined as “any real estate located in Illinois other than (i) real estate containing one to 6 residential units, (ii) real estate on which no buildings or structures are located, or (iii) real estate classified as farmland.” To be clear, commercial real estate cannot be any of the following:
- Homes in a subdivision; or
- Any other kind of single family residential unit.
Understanding How Commercial Real Estate Is Valued in Illinois
If you are thinking of opening a small business and buying commercial property, or if you recently inherited commercial property and want to sell it, the chances are good that you do not have substantial experience valuing commercial real estate. This can make it hard to know whether the property you are considering is in a reasonable price range. Helping to value commercial real estate is one of the first ways that a DuPage County business lawyer can help you.
Most commercial structures do not have an obvious equivalent for you to compare. In addition, you must take into account the income that you will earn from the property in determining its value (and what a reasonable sales price should be). We have experience working with professional appraisers and valuation experts who can properly assess what a reasonable selling or buying price might be for the property at issue.
Dealing with Issues of Liquidity and Cash Flow
When you are buying or selling commercial real estate, it is important to have a lawyer who can help you to manage the risks associated with the property. For example how will you deal with a loss of liquidity once you own the real estate? Do you have plans in place in the event a tenant in the commercial space fails to pay rent and you were relying on that rent payment for your own business expenses?
Drafting Contracts to Buy or Sell Commercial Property in DuPage County
At Farooqi & Husain Law Office, our dedicated business law attorneys can help to ensure that you have a fair and valid contract when you are buying or selling commercial property. Contracts can have a lot of complicated aspects, and it is important to have an experienced attorney draft the sales contract or to carefully assess the purchase contract before you sign anything.
Moreover, we can negotiate with the seller or buyer to help ensure that you get the best possible deal while also taking steps to ensure that the deal occurs in a timely and efficient manner.
Discuss Your Options with a DuPage County Business Lawyer
At Farooqi & Husain Law Office, we are committed to helping members of the DuPage County Muslim community who are opening small businesses and learning more about commercial real estate in the area. One of our dedicated Oakbrook Terrace business lawyers can answer your questions about buying and selling commercial real estate in Illinois. Contact Farooqi & Husain Law Office today for more information.