Finding commercial real estate that suits the needs of a company and fits within its budget is not easy, especially in Los Angeles. Real estate is expensive, and people buying or selling would be wise to take steps to protect their interests as they move forward. Failure to proceed carefully can expose a business to legal and financial complications in the future and increase the chance of real estate litigation.
A letter of intent is an important step in this type of real estate transaction. Most of the terms included in these letters are not binding, but it is still wise to have guidance when drafting one. In these letters, a buyer or seller can address issues such as the selling price, contingencies and other important details. These letters can be particularly important in a market that is showing signs of slowing down, which is currently happening in California.
When buying commercial property as is, it is especially important to be wary and cautious. The term "as is" typically indicates the person will take the property as it is in its current condition, but that does not mean the buyer cannot ask for certain things from the seller, such as a warranty. Along the same line, a seller can also be specific about terms that will limit their liability.
Costs are another important factor of any Los Angeles commercial real estate transaction. Either a buyer or seller would be wise to ensure contracts clearly address specific costs, such as selling price, closing costs, recording fees and more. In order to reduce the chance of complications during the transaction or the possibility of real estate litigation in the future, a business or individual would be wise to speak to a legal professional about how to proceed.