Real Estate

Constructing Commercial Property

When you plan to building a commercial structure on land that you own or rent, carefully consider certain federal and state laws. In addition, a large construction project will involve many different contracts - at least a few of which will be disputed over the course of construction. To deal with these issues, you'll need the help of an experienced commercial real estate lawyer.

Zoning and Land Use Are Key

Before you purchase commercial property, you must know whether state and local zoning and land use laws will restrict the type of structures you can build. These laws can ultimately make or break your investment. Don't wait for ground-breaking to discover the land is not zoned for commercial purposes.

Environmental Laws Affect Construction

A number of federal laws, such as the Clean Water Act, are intended to prevent pollution to the environment. Because of the environmental risks in commercial construction, you may find limitations and other requirements on your construction activities. Failure to comply can subject you to expensive penalties and fines, regardless of your awareness of the law.

Get Everything in Writing

Different contractors that you hire will be responsible for different parts of the construction project. You need to protect your interests by creating written agreements with each contractor that states very clearly state your expectations. Agreements should also list dates for completion.

Indemnity Clauses Protect You

Disagreements and costly mistakes are fairly common in the construction industry. Sometimes you may be liable to pay damages just because you own the property. Because of this, it is important that all contacts include indemnity clauses. When you end up paying for damages, an indemnity agreement allows you to get reimbursed by the person or company that actually caused the damage.

A Commercial Real Estate Lawyer Can Help

The law surrounding commercial construction projects is complicated. Plus, the facts of each case are unique. This article provides a brief, general introduction to the topic. For more detailed, specific information, please contact a commercial real estate lawyer.

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