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Frequently Asked Questions - Real Estate
What kinds of real estate clients does Hessian & McKasy, P.A. represent?
The attorneys at Hessian & McKasy, P.A. have experience representing a variety of real estate clients, including buyers and sellers, borrowers and lenders, landlords and tenants, and partnerships and joint ventures. We are capable of providing strong, effective representation in matters in Minnesota and throughout the country.
What real estate issues can Hessian & McKasy, P.A. handle?
Hessian & McKasy’s attorneys have experience in all aspects of residential and commercial real estate law. We can advise clients throughout all stages of a real estate transaction. We provide advice regarding the acquisition and disposition of single assets or portfolios, mortgages and construction financing and restructuring, leasing, title insurance, land use and development, and environmental regulation and compliance. Our attorneys can also assist with tax issues concerning real property, including tax disputes and appeals.
Why should I hire an attorney for my real estate purchase or sale?
An experienced real estate lawyer can add a great deal of value to a transaction. An attorney can negotiate and review purchase agreements, deeds, legal descriptions, mortgage loan documents, and closing documents to ensure compliance with the law and that the client’s interests are protected. An attorney will also work with loan officers, title companies, and brokers to make sure that the transaction proceeds smoothly, thus avoiding potential delays and additional costs.
What type of commercial lease should I consider?
Three common types of commercial leases are gross leases, net leases, and modified gross leases. Each type of lease has its own advantages and disadvantages.
The Gross Lease — In a gross lease, the landlord is responsible for paying property taxes, insurance, utilities, and maintenance. Because the landlord takes on these greater obligations, the base rent the tenant pays appears higher than for other types of leases. Nevertheless, this type of lease tends to favor the tenant because rent is fixed and the tenant will not have to be involved in the day-to-day operations of the building.
The Net Lease — In a net lease, the tenant’s base rent is lower, but the tenant also pays certain operating expenses, such as property taxes, insurance, and maintenance. The extent of the tenant’s obligations depends on whether the net lease is single (tenant pays base rent plus a pro-rata share of the building’s property tax), double (tenant pays base rent plus a pro-rata share of property taxes and insurance), or triple (tenant pays all operating expenses in addition to base rent). In general, net leases tend to favor the landlord.
The Modified Gross Lease — The modified gross lease represents a flexible middle ground. The tenant and the landlord negotiate who will pay for operating expenses such as maintenance, utilities, and property taxes. The base rent will then be subjected to the terms agreed upon by the parties like in a gross lease.
Can Hessian & McKasy, P.A. assist with real estate litigation?
Our attorneys can handle the full spectrum of real estate litigation issues arising in state or federal court, including claims involving purchase agreements, leases, mortgages, mechanic liens, construction contracts, and disputes with government regulatory bodies. We can also provide representation in alternative dispute resolution proceedings, including mediation and binding and nonbinding arbitration.
