What Makes a Commercial Real Estate Deal Different From a Home Purchase?

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.