Commercial Real Estate Law in Oregon
Commercial real estate is any form of land or structure in Sutherlin, Oregon which is utilized for business purposes, mainly the sale of goods and/or services to the public.
The laws in Sutherlin, Oregon which control commercial real estate differ substantially from the laws governing the rental and purchase of residential real estate.
People who buy and rent residential unites have a larger deal of legal protections not available to buyers of commercial property.
These absent protections include rent control, and warranties of habitability, among others. The most general protections, such as prohibiting sellers of real estate from lying regarding the property to the buyer, apply in any context, however.
Common Commercial Real Estate Law Issues in Sutherlin, Oregon
Financing: The majority of small business owners in Sutherlin, Oregon probably can't afford to buy much real estate outright, with cash paid up front, so most small business buy 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.
Duty to Disclose Defects: It is of the utmost importance that sellers and lessors of commercial real estate be up front about any defects that might be present in the property. Failing to disclose them can be bad, and actively concealing them can be much worse. In general, if a defect is significant enough that it would influence a reasonable person's decision to buy a piece of property, and the seller knows about it, the seller should disclose it. Failure to disclose can have significant outcomes. If the buyer later discovers the defect, they can sue for the cost of repairing it, or for any reduction in the property's value caused by it. And, of course, if it causes any injuries, the buyer can sue the seller for those, as well.
Duty to Inspect: While buyers of real estate have some considerable protections with respect to defects, they also have some obligations. Before finalizing a purchase, buyers are expected to undertake a reasonable inspection of the property, usually by using a licensed building inspector. If the buyer fails to conduct an inspection, they normally won't be able to successfully sue, if defects are discovered after the purchase.
Encumbrances: Undisclosed encumbrances are defects of another sort: defects of title. An encumbrance is any interest that a third party has in the Sutherlin, Oregon commercial real estate. These normally 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 important to know about them before buying.
Can a Sutherlin, Oregon Attorney Help?
These issues are sometimes intricate, and almost always very important. Therefore, it's necessary to seek the assistance of a Sutherlin, Oregon real estate attorney if you have any dealings in this area.