The concepts between commercial real estate deals and home purchases are the same, but there are a handful of differences between the two. Even though there is an exchange of money in both deals, the paperwork and requirements vary greatly. Because of this, it is a good idea to hire a commercial real estate attorney in New York.
Aspects of a Commercial Real Estate Deal
Some of the most common aspects of a commercial real estate deal that differ from a home purchase include the following:
- Larger investment required to purchase the property
- Commercial real estate is viewed as the potential to earn an income
- Exposure to liability greater on commercial real estate deal
- Zoning issues are more prominent
- Consumer protections might be less when buying a commercial property compared to a residential property
Aspects of a Home Purchase
The most common aspects of a home purchase that differ from a commercial real estate deal include the following:
- Home buyers can make a 20 percent down payment on a property
- Home buyers are afforded more consumer protections on a home purchase
- Zoning issues are not as prominent and only crop up when looking to build additions to the home
- Not many businesses operate out of residential property (if they do, the property is not viewed as a commercial property)
- Smaller risk of exposure to liability when purchasing a home
As you can see, there are clear differences between purchasing a home and being involved in a commercial real estate deal. Because of these differences, and the complexities of both types of deals, a commercial real estate attorney in New York should be hired to navigate the process.