In Minnesota and throughout the country, many people generate income by selling or investing in commercial properties. Signing contracts is an integral part of the process. The last thing you need is to become entangled in a commercial real estate dispute, which is why creating an effective and legally binding contract is important from the start.
Never sign a contract unless you fully understand its terms and implications. There may be legal terminology or clauses that are complex. It’s better to seek clarification from a knowledgeable source rather than relying on guesswork for understanding. This is a mistake that can backfire, big time, especially if a dispute arises or someone accuses you of a contract breach.
Keep these helpful tips in mind for commercial real estate contracts
The following list contains tips that can help you avoid legal disputes when you are drafting and signing real estate contracts for commercial properties:
- Seek counsel and guidance ahead of time from someone with experience in real estate contract development and Minnesota commercial property laws.
- List all parties involved in the agreement.
- Place in writing all terms and conditions, including detailed descriptions of each party’s responsibilities, as well as completion dates, scope of work and payment agreements.
- Incorporate terms of agreement for resolving disputes, as well as issues like delays or force majeure, which addresses freedom from liability if circumstances beyond control keep one or more parties from fulfilling their contractual obligations.
If you make sure that these issues are covered before signing a commercial real estate contract, you are less likely to encounter legal problems as the terms of the contract are carried out. However, even a well-written contract does not guarantee that a dispute will not occur.
What to do to resolve a contract dispute
The first thing to do if a commercial real estate contract dispute arises is to refer to the contract itself. If it is thorough and well-written, you may be able to resolve the issue by carefully reviewing its terms. Numerous issues may be involved in a dispute, such as poor-quality work, missing a deadline, lack of payment, and more.
Regardless of which side of a dispute you’re on, it’s best to seek experienced guidance and counsel if your attempts to peacefully resolve the problem have been unsuccessful. In many cases, Minnesota commercial real estate disputes necessitate litigation. If that happens in your case, you’ll want to make sure you have a strong support network on hand to help protect your interests.