Commercial Real Estate Law in Indiana
In Merrillville, Indiana, commercial real estate is any type of real property (land or permanent structures) being used for business purposes.
The laws in Merrillville, Indiana which regulate commercial real estate differ considerably from the laws governing the rental and purchase of residential real estate.
When renting or buying residential real estate, renters and buyers have substantial legal protections which often don't apply to commercial real estate.
Some of the protections that don't apply to commercial property include warranties of habitability, rent control, and warranties of quiet enjoyment. There are others, as well. The most basic protections, however, apply to buyers of both residential and commercial real estate, including remedies for fraud and concealment of physical or title defects.
Common Commercial Real Estate Law Issues in Merrillville, Indiana
Financing: The majority of small business owners in Merrillville, Indiana probably can't afford to buy much real estate outright, with cash paid up front, so most small business purchase commercial real estate with a mortgage. A mortgage is a loan taken out for the purpose of buying real estate, using that real estate as collateral for the loan.
Concealment of Defects: if the seller of commercial property acts to conceal a significant defect in the property, and then sells the property, he will be responsible for any harm this defect cause, as well as the reduced value of the property, or the cost of repair.
Duty to Inspect: Buyers of commercial real estate are expected to be diligent, and a court will not reward a lack of diligence. Consequently, if the buyer fails to conduct a thorough inspection of the property before buying it, and thereby fails to discover defects which such an inspection could have easily revealed, he will not be able to sue the seller over these defects later on.
Encumbrances: Undisclosed encumbrances are defects of another sort: defects of title. An encumbrance is any interest that a third party has in the Merrillville, Indiana commercial real estate. These typically take the form of easements, which are rights held by third parties to use the land for a specific purpose. Easements can have profound effects on how a new owner can use the land, so it is critical to know about them before buying.
Can a Merrillville, Indiana Attorney Help?
Because of the importance and potential complexity of the issues surrounding commercial real estate, it's almost always prudent that, before engaging in any real estate deal, you pursue the counsel of a good Merrillville, Indiana real estate attorney.