Commercial real estate law can be difficult to understand, as there are laws at the local, state, and federal levels. Additionally, the area encompasses everything from contracts to insurance law. Here, commercial real estate owners will find five legal areas that affect the way they do business.
Landlord/Tenant Law
While landlord/tenant laws vary by jurisdiction, they’re typically designed to protect the rights of those involved in leasing and rental agreements. Clauses often govern rent payments, taxation, privacy rights, disclosure, and tenancy termination. Understanding the state’s laws and hiring a real estate law firm in Chicago is an important part of ensuring that tenants’ rights aren’t violated.
Disclosure
Disclosure laws also vary by location. They pertain to the property’s location, conditions, and use restrictions. Typically, these laws exist so renters understand what they’re agreeing to in a rental contract. While many disclosures have to do with the presence of dangerous materials, other disclosures may be required of commercial property owners.
Land Use and Zoning Laws
State and local legislation usually dictate the enforcement of land use and zoning regulations. Along with determining taxation, these rules outline how commercial properties can be used. For instance, something as basic as a food truck is covered under the state’s zoning laws, and the operation can be stopped if it infringes on other business owners’ property rights.
Contract Law
Rental agreements and leases are binding contracts created by either party and accepted by both sides. As a legally binding contract, a document must contain specific wording to stand up to internal and external challenges. While most real estate contracts are under the UCC (Universal Commercial Code), real estate transactions are covered under the Common Law of Contracts.
Insurance Law
Insurance helps a property owner protect his or her investment. It covers the property in the event of an accident, but it does not cover the tenant’s assets. It’s the tenant’s responsibility to secure their own business insurance to protect assets and guard against liability claims.
Commercial real estate law is a complex area, and there are too many variables for novices to consider. A commercial real estate law firm in Chicago can help a property owner protect their rights and remain in compliance with the law. Call the firm of Starr, Bejgiert, Zink & Rowells today to schedule a consultation.
