Let’s Get the Basics on Commercial Real Estate Law

Commercial Real Estate Law is the legal framework controlling real estate ownership, use, and sale for business purposes. Commercial real estate law covers potential issues including contract and lease negotiations, obtaining funding, overcoming zoning and land use restrictions. It also includes abiding by tax and environmental requirements.

Buyers, sellers, landlords, tenants, and lenders are just a few parties whose rights are intended to be protected by the law regarding commercial real estate transactions. Along with providing a framework for resolving disputes and upholding legal rights, it also lays out the legal criteria for commercial real estate construction, use, and upkeep.

In addition, commercial real estate law is a complicated field that is continually changing. Therefore, firms and investors should consult with knowledgeable legal experts when making decisions. Educate yourself on the basic terms and elements of commercial real estate.

Essential Elements of Commercial Real Estate Law


A crucial component of every transaction involving commercial real estate. They list the criteria governing real estate purchase, rental, or financing. Among the important clauses in a commercial real estate contract could be:

  • Price of an Item or Monthly Rent
    • The price to be received for the property and the schedule and mode of payment should all be specified in the contract.
  • Property Details
    • A thorough description of the property, including its address, dimensions, and any other crucial details, should be included in the contract.
  • Expiry
    • The closure date and the requirements that must be satisfied before it can happen should be stated in the contract.
  • Assurances and Representations
    • The buyer and the seller should make representations and warranties in the contract saying that they are legally permitted to enter the trade and have not made any substantial factual misrepresentations or omissions.


Commercial leases are contracts that landlords and tenants enter into to give the renter access to commercial property for a predetermined time. Business leases can be very complicated and may have clauses like these:

  • Amount and Conditions of the Rent
    • The amount of money to be paid, the method and schedule of payment, and any late payment fees should all be included in the lease.
  • Options for Term and Renewal
    • The length of the contract, any options for extensions or renewals, and the circumstances in which these options may be exercised should all be specified in the lease.
  • In Use and Occupied
    • The permissible uses of the property, the number of inhabitants, and any usage limitations should all be specified in the lease.
  • Repairing and Maintaining
    • The lease terms should specify who is responsible for maintenance and repairs and any reporting and problem-solving methods.


Financing is usually a process where the purchaser can seek funding from an outside party to obtain a commercial property. You can handle financing in the following ways:

  • Mortgages
    • A mortgage is a loan used to finance real estate acquisition. Business mortgages may need a 20% down payment or more and are frequently bigger and more complicated than residential mortgages.
  • Funding for Mezzanine
    • With mezzanine financing, the equity in a facility is used as collateral rather than the actual asset. This kind of funding is frequently utilized to close the gap between the sum borrowed through a mortgage and the project’s overall cost.
  • Privileged Equity
    • Instead of conventional financing techniques, private equity refers to investments made by investors in a commercial real estate project. High returns are often expected in return from private equity investors.

A commercial real estate attorney should be involved if you are planning on renting or buying commercial real estate. Since commercial real estate properties are generally more expensive and come with different rules and regulations, you want someone with a real estate background in your corner.

If you are renting a commercial property for your business, you need a real estate attorney in order to understand what are very complex agreements and possible pitfalls as the lease progresses. Commercial real estate is a very complex area, and entering into any commercial real estate undertaking without an experienced Illinois commercial real estate attorney guiding and advising you can lead to time-consuming and expensive litigation in the future.

Why do I Need a Real Estate Attorney?

There are many reasons you should hire a commercial real estate attorney. Is your goal to sell commercial real estate in Illinois? Buy or rent commercial real estate in Illinois? If so, you need the appropriate guidance and advice to protect yourself.

Our experienced commercial real estate lawyers provide legal services across the spectrum of real estate transactions. From contract negotiations and related issues, we can be a tremendous asset if you are:

  • Evaluating or pursuing a purchase of commercial real estate or a multifamily residential property anywhere in Chicago or its suburbs.
  • Preparing to sell commercial or residential property. Especially is you are in need of an experienced real estate closing attorney emphasizing due diligence and efficiency.
  • Preparing to lease property or extend a lease agreement to a prospective tenant.
  • In need of knowledgeable legal counsel. Such as a landlord dealing with a problem tenant and evaluating viable options. This includes eviction in a manner consistent with landlord-tenant law.
  • Have legal questions? Send us a message.

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