On behalf of Kadish & Associates Law Group posted in Commercial Real Estate on Friday, October 16, 2015.
When two Arizona companies enter into a real estate transaction, there are many facets that need to be addressed and issues to be resolved. Sometimes, however, the parties are unable to come to an agreement, or one party fails to fulfill the terms of an already signed agreement, and it may be necessary to mediate, arbitrate or litigate that dispute. Litigating commercial real estate transactions can get complex, time consuming and expensive quickly, so no business should attempt to face these issues alone.
One of the most crucial components of any real estate conveyance is making sure that the title to the property is clear. This means that no other person or entity has a right to the property other than the buyer once the transaction is complete. The purchaser needs to conduct an investigation into the title to make sure there will be no roadblocks to ownership.
If it is determined that the piece of property is not owned free and clear by the current owner, the property cannot be properly conveyed. In most cases, obtaining a clear title is part of a buy/sell agreement. If it turns out that the title is not clear, the parties have numerous options, depending on the circumstances. An attorney who focuses on commercial real estate transactions can explore the options and advocate on your behalf.
It may be possible to fix any defects on the title. If either party refuses to make the attempt, it might be necessary to go to either mediation, arbitration or court, depending on what the purchase agreement specifies. Even if the agreement does not specify an alternative method for resolving disputes connected to an Arizona commercial real estate transaction, it would be worth the time to consider them. Mediation and arbitration are often less time-consuming and more cost-effective, allowing the parties to get back to business.