Doing Commercial Deals In California
My commercial broker told me that having a lawyer for putting an offer is a waste of time + money b/c commercial brokers representing the buyers are somehow "required" to look out for the interest of the buyer. (I forget exact wording he used).
How important is it to have a lawyer backing when putting in an offer?
You do not need a lawyer.
To execute a contractual transaction you may use any kind of assistance you may choose or want. In the great State of California, a consumer is the king. For example, if your budget allows, a butler can be hired to hold the papers wearing white glows while you and your attorney look over the addendums, savoring an expansive bottle of Champaign. However, if your question is what’s common in State of CA concerning a RE transaction, the answer to that question is, your brokers is a licensed professional qualified to prepare necessary paperwork and follow the transaction through escrow. In line with his duties, broker and agents he employs use standardized contracts and addendums which may be required by you or the local and state law. While you negotiate a deal, you get to name the terms in your offer which the seller of the property may accept, decline or counteroffer if he so wants. Considering your question, it is my perception that you intend to step in deep water without knowing how to swim. Depending on your age you may want to seek an advice form your guardian or if within legal age, you may want to spend some serious time reading and learning before you decide to make your first independent step into commercial RE. Good luck!
When dealing on a higher level, having a transactional attorney is always a good idea especially because in case of a problem it is his rather then broker’s liability insurance on the line.
In case of a beginner, paying $400/hr might be a bit to much of a stretch... as I mentioned above, in the end, it all depends on how deep are your pockets and if you can afford the good lawyer, use it by all means. Keep one thing in mind though: If you have no sufficient knowledge of your own, how do you realy know who is good and who is not?
Your aunt may know the “good one” but in the end is you who got to sign the check! Your hard money lender will not finance that part of your deal [ Edited by REOCON on Date 06/30/2006 ]