What are the Differences in Roles and Responsibilities of Your Broker + Real Estate Attorney?
If you're a business owner in Minnesota, you may be wondering what role a real estate broker and a real estate attorney play in commercial real estate transactions. Both professionals can be invaluable resources in buying or selling commercial real estate, but it's important to understand their different roles and responsibilities. This article will provide you with a helpful guide to the differences between a real estate broker and a real estate attorney, so you can make informed decisions for your business.
Understanding the Role of a Real Estate Broker in Commercial Real Estate
A real estate broker is a licensed professional who helps buyers, sellers, and landlords navigate the process of buying, selling or leasing commercial property. They can provide a variety of services, including:
Identifying properties for sale or lease
Showing properties to potential buyers or tenants
Assisting with pricing and valuation of the property
Marketing the property to potential buyers or tenants
Negotiating the terms of a sale or lease agreement
While a broker can be a valuable resource in a commercial real estate transaction, they do not provide legal advice or represent you in court. A broker's role is limited to facilitating the sale, purchase, or lease of a commercial property.
The Role of a Real Estate Attorney in Commercial Real Estate
A real estate attorney is a licensed professional who works in the legal practice of buying, selling, or leasing commercial property. They can provide a variety of services, including:
Reviewing contracts and other legal documents
Conducting due diligence on a property
Providing legal advice and representation
Assisting with negotiations and dispute resolution
Ensuring compliance with state and federal laws
A real estate attorney's role is to protect your legal interests in a commercial real estate transaction. They can provide legal guidance and representation in court, if necessary.
How a Real Estate Broker + Attorney Can Work Together
in Commercial Real Estate
While a real estate broker and attorney have different roles and responsibilities in commercial real estate transactions, they can work together to provide a comprehensive service to buyers, sellers, and landlords. A broker can provide market insights and assist with the logistical aspects of a transaction, while an attorney can provide legal guidance and representation. By working together, they can ensure that all aspects of a commercial real estate transaction are handled professionally and efficiently.
Differences in Fees and Costs
One of the most significant differences between a real estate broker and attorney in commercial real estate is their fees and costs. A broker typically charges a commission based on the sale price or lease value of a commercial property, while an attorney charges an hourly rate or a flat fee for their services. The costs associated with using a broker or attorney can vary depending on the transaction and location, so it's important to discuss fees and costs with each professional before making a decision.
When to Use a Real Estate Broker and/or Attorney in Commercial Real Estate
Deciding whether to use a real estate broker and/or attorney in commercial real estate depends on your specific needs and circumstances. A broker may be a good choice if you need help identifying properties and negotiating the terms of a sale or lease. An attorney may be a good choice if you need legal advice and representation in a transaction or need assistance with drafting, reviewing, or negotiating the terms of the legal agreements. In many cases, it may be beneficial to use both a broker and attorney to ensure that all aspects of a commercial real estate transaction are handled professionally and efficiently.
Take Control of Your Commercial Real Estate Transactions:
Working with a Broker and Attorney
Understanding the roles and responsibilities of a real estate broker and attorney in commercial real estate is essential for the success of your commercial real estate transaction. By working with a broker and attorney in commercial real estate, you can ensure that all aspects of your transaction are handled professionally and efficiently. Remember, choosing the right professional for your needs can make all the difference in the success of your transaction.
Navigating a commercial real estate transaction can be complex, but with the right professionals on your side, it can be a smooth and successful process. By understanding the different roles and responsibilities of a real estate broker and attorney in commercial real estate, you can make informed decisions for your business and ensure that your legal and financial interests are protected.
