Commercial real estate is essential to economic growth and the improvement of many industries. Legal representation can be helpful for business owners or investors who want to acquire new commercial properties. Real estate law can get complex when it comes to large commercial buildings or large acreage. Commercial transactions are based on hard numbers and performance of the commercial space, not feelings or emotions. Legal advice will ensure a smooth process for all parties.

What Is Considered Commercial Real Estate?

Before we get into the legal process of CRE, it is important to understand what constitutes commercial real estate. Commercial real estate is property that generates revenue, like office spaces, shopping centers, multi-family residences, and more. Some commercial properties will need to meet specific requirements to be acquired by an investor or another business owner. Legal representatives can help you understand these requirements or find properties that may fit your needs. Different classes of commercial real estate will change the cost and legal process required by the purchaser.

The Role Of Lawyers In Real Estate Transactions

While a legal representative is not required for commercial real estate transactions, they can perform many roles that will help you have a smooth and successful process. One of the first things real estate lawyers will do is help to explain and review legal documents. Documents and contracts can be difficult to understand for the typical person, so legal professionals can help you fully understand what you are getting. 

If there are disputes over boundaries, property type, or price during the process, your real estate lawyer will help to handle these. If it proceeds far enough, this lawyer can help represent your case in court proceedings. They may also go to negotiation meetings on your behalf to get you optimal results.

During the buying process, real estate lawyers will ensure that all laws and regulations are followed by both parties. This will ensure that you complete your inspection and due diligence tasks while securing the property legally. 

Other services from commercial real estate lawyers can include:

• Finding potential property
• Finding potential buyers
• Strategic planning
• Enforcement of commercial leases
• Advocate for clients during the process

The Legal Process Of Acquiring Commercial Property

Obtaining commercial property can be a long process, depending on the type of property and industry it fits into. While a real estate lawyer may not need to be involved in every step of the process, there are a variety of steps they can assist with. Understanding the legal process will help you have proper expectations when acquiring a new property or building.

The first step in the process is to determine your real estate needs, including what you want to use the property for and how it will benefit your long term financial goals. You should also determine a budget before meeting with a real estate agent or lawyer so they can help you narrow down what properties fit in those parameters.

Your real estate agent will then look for properties that fit in your budget and can help you meet your business needs. The agent will help find properties you may not be able to see on your own and make choices on what properties will be a smart investment.

Once you have decided on a property to purchase, you will need to put in an offer and see if it is accepted by the current owner. Once your offer is accepted, you should get financial loans and put earnest money in escrow to ensure that the purchase happens quickly.

Next, both parties will need to conduct due diligence, such as inspections and environmental site assessments. These will help to determine the value and security of the property, ensuring it can be used for the intended purpose.

Documents stating the legal procedures that were followed and the purchase agreement between seller and purchaser are also part of the purchasing process. These documents can be drafted by your lawyer or your real estate agent, which ensures a comprehensive paper trail if something goes wrong or someone tries to back out of the purchase. 

The final step is to transfer funds and finalize the sale through signing deeds that transfer the ownership of the building. Now you are the proud owner of commercial real estate. 

Real Estate Help From WW Partners

Our legal team is based in Salt Lake City and provides help with securities law, creditors’ rights, real estate law, and business law. WW Partners can help you through every step of the process, no matter what legal issue you are dealing with. Commercial real estate can be a messy and complex process, so having a legal expert who is there to protect you can provide essential peace of mind. Reach out to our team to get started today!

Securities fraud refers to deceptive acts or practices that are used to scam people out of large sums of money. Fraudulent acts like making illegal investments or inflating stocks to force others to buy into them, only to sell right after, are considered securities fraud. Tricking investors while withholding information or not sharing the whole picture about an investment opportunity could result in severe legal consequences. If you want to protect yourself, your business, or others from securities fraud, here are some common schemes to look out for. 

Misleading Financial Statements

Companies are required to submit different financial statements to the government, their financial department, and others in order to keep everything in check. Misleading documents that report overstated earnings or omit crucial assets are considered fraudulent. Hiding liabilities, overstating earnings, or minimizing assets can put a company and its investors at risk of large financial losses. Reporting all assets and money that a company has will improve its integrity and prevent securities fraud.

Failure To Disclose Risks

An insurance broker or financial advisor could omit important information from financial records that can show the risks of making a specific investment. Failure to disclose this information could result in damage to the health and longevity of a company. Securities fraud due to failure to disclose risks is often a big financial hit to an investor or a company. Any misleading information or withheld information about the investment someone is about to make could be considered fraud.

Insider Trading

The most common type of securities fraud is insider trading, which involves company insiders sharing non-public information that will help them sell or buy the company’s stock. Lawyers, board members, or company accountants who share this confidential information are guilty of securities fraud because it often gives them a step up in trading and buying stocks. Retail investors are often left in the dark and can experience financial losses when investing in a company’s stock. 

Market Manipulation

Individuals who interfere with the natural flow of the stock or securities market can be guilty of securities fraud. Manipulation often looks like spreading misinformation about the company’s profits, spreading rumors about a company merger or acquisition, and talking down about a company’s performance to help lower their stock market price. Buying and selling rapidly can also be a form of market manipulation, making it difficult for typical investors to buy stocks at a fair price. Anything that tips the scales in favor of the individual to make the stock prices unfair constitutes securities fraud.

Affinity Scams

This specific type of fraud preys on identifiable groups and exploits their trust. A fraudulent individual may present an investment opportunity with exaggerated potential returns. They may also hide risks or potential drawbacks of the investment to make it appear favorable. These investments go right into the fraudster’s pocket, rather than investing in a company or stock. Affinity scammers may give some of the original investment back to the group to create an illusion of “returns,” but will ultimately steal the rest of the group’s investment.

Unregistered Securities

All securities must be registered in the United States in order for them to be sold or traded. Unless a special exemption is given, securities need to be registered in order to prevent fraud. Unregistered securities should be a major red flag for investors, as these are not controlled or reviewed by the SEC, meaning they could be worth less than your investment or a risky product. Unregistered securities could range from investments in a start-up to investments in a product stock. 

What To Do If You Suspect Securities Fraud?

If you suspect securities fraud or think you have been a victim, it is important to report it to the SEC immediately. The Office of the Whistleblower may also be able to help you get some of your investment if the scam was over $1 million. 

If you believe that you have caught a fraudulent scheme before it comes to fruition, work with your company’s lawyer or outside legal team to stop the scam from happening. Because company lawyers may also be a part of securities fraud, you may consider outsourcing if you suspect they are involved in fraud. 

Attorneys from a trusted law firm can help you look for evidence and can protect you or your investors from losing money. The sooner you contact a legal expert, the lower the risk of financial ruin. 

Legal Help From WW Partners

Our legal team is here to protect your investments, stocks, bonds, and other securities. WW Partners is proud to serve our local communities and businesses, providing them with comprehensive legal advice and litigation services. Don’t be a victim of securities fraud and ensure that your business is safe from insider trading or other fraudulent schemes. Reach out and get to know our lawyers today!