Commercial Real Estate Information Center
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Frequently Asked Questions - Commercial Real Estate
Q: Is there a difference between commercial real estate and residential real estate?
A: The main difference lies in the amount of legal control that exists over residential real estate. For example, there are state laws that control the habitability of residential real estate. Commercial real estate leases and sales are based more on contract and the negotiating parties are given more negotiating latitude than in residential real-estate sales or leases. Other differences lie in the areas of zoning and land use, bankruptcy, financing, tax treatment, and the relative scales of projects.
Q: What is a mortgage?
A: A mortgage is a financing tool used to buy real estate. There are two parties, the mortgagee or mortgage holder, and the mortgagor or mortgage debtor. The mortgagee is the party loaning the money for the real estate, most often a bank. The mortgagor is the party receiving the loan in order to purchase the property. The transaction is secured by the real estate itself. If the mortgagor defaults on the loan, the mortgagee can initiate foreclosure proceedings in order to reclaim the property.
Connecticut Commercial Real Estate Information
A significant component of business growth is finding the proper location to conduct business. The Jorgensen Law Firm, LLC works closely with its commercial real estate clients to effectively handle a number of commercial real estate transactions, including the development, leasing or financing of commercial property interests. In an effort to keep our clients informed, we have prepared this comprehensive summary of basic commercial real estate principals.
Commercial Real Estate - An Overview
Commercial real estate covers a number of property types including industrial sites, retail outlets, and apartment complexes. The primary element that distinguishes commercial real estate from private real estate is the activity that occurs on the property. On a commercial property, the activity is generally financial or commercial in nature.
Commercial real-estate transactions are mainly governed by state law. However, federal law often becomes important in areas that affect interstate commerce, environmental regulations, and discrimination issues. Other issues such as contracts, mortgages, and zoning rules are mostly regulated by state law.
Commercial real estate encompasses more than just the land apportioned for commercial use. Buildings and other items attached to the land could come under the heading of commercial real estate. If you are faced with commercial real-estate issues, it is best to consult an attorney for detailed information. A real estate lawyer is an excellent resource for commercial real-estate matters.
Commercial Real Estate - Mortgage and Forms of Transfer of Interest
A mortgage exchanges an interest or collateral in a piece of real estate for a loan to purchase the land. The lender is the mortgagee and the debtor is the mortgagor. This transaction is one that provides a secured interest to the mortgagee because if default occurs there can be foreclosure. If you are faced with commercial real-estate issues, it is a good idea to consult an attorney. A real-estate lawyer is an excellent resource for commercial real-estate information.
Real Estate Development
Development of property cannot be done without adherence to local, state, and possibly federal laws and regulations. There are a variety of governmental regulations that control how property is to be developed or altered or even if it can be used for its intended purpose. If you are faced with commercial real-estate issues, consulting an attorney is a good idea. An experienced lawyer is an excellent resource for commercial real-estate information.
Encumbrances on Real Estate
Broadly, an easement is a right to use another's property. This right may be established by law or implied over a period of time as a result of continuous use. The use can also be bought and sold. This section will address how easements are created and used. This article will also discuss the subject of adverse possession, which involves the use of another's property over a period of time until, by law, the property becomes the adverse user's. There are some fundamental differences between easements and adverse possession. If you are faced with commercial real-estate issues, an experienced real-estate lawyer would be an excellent resource.
Commercial Real Estate - Leases
Many commercial real-estate transactions involve the rental of industrial buildings, offices, or retail space. There are a number of issues that affect commercial entities that do not apply to residential renters. In addition, there are also different financing models for businesses that depend on where the business is located. These issues will be briefly outlined below.
Commercial Real Estate Resource Links
Cornell Law School's Legal Information Institute
General information touching on various aspects of commercial real estate. Topics include mortgages, real estate transactions, brokers, and contracts.
Environmental Protection Agency (EPA)
EPA's Web site is a source about federal law that controls environmental integrity in commercial real estate.
Cityfeet.comŽ
Online commercial real estate glossary of terms.
