Value of Attorney Review (Phoenix Real Estate Investment and leases)
Oftentimes when dealing with lease and purchase contracts, and Phoenix real estate investment contracts, we are asked as Real Estate brokers whether or not the document will require or should require attorney review – the question is often asked with a slight hesitation from the client, somehow hoping that the document passes the “sniff test” and that they can save some time and money and not proceed to an additional level of scrutiny. As if living in a world of “I didn’t know” somehow releases them from an obligation that may have been caught earlier had the document been reviewed….
To this question we answer a resounding YES – we have consistently recommended attorney review of all Phoenix real estate investment contracts or lease documents and any business or personal contracts that are signed. Yet even with this recommendation we continue to see professionals fail to utilize their professional counterparts.
Most often the idea of moving forward without an attorney’s blessing comes at the pressure of a time deadline. Attorney review can often take up to 3 weeks in total time on a lease document. Although this can often not be avoided, when possible, it is important to give yourself time when working on renewals and new lease documents.
As a brokerage firm we have seen great insights and value provided by an attorney that practices in Real Estate Law.
The risks of moving forward without attorney review can be great. We have seen over the course of the past years instances where lease contracts are vague on who handles water damage, fire and smoke damage, what happens in the event of death or disability,
Pay an attorney now or pay more later….
Recently I was made aware of a lease transaction that neither used attorneys nor real estate brokers to finalize their lease. The lease form used was a document that was provided by the tenant 10 years earlier in his career. As I was retained to review the lease from the Landlords perspective it became blatantly obvious that many clauses that protected the Landlords rights to his building had been removed. Language such as Landlord’s right on default, rent commencement, and other landlord notices were not included. This lease form has left the landlord questioning what his rights are as he deals with his tenant over the coming years. I have often heard attorney’s state that they would rather see a very descriptive long lease than a short ambiguous lease.
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