When you are buying a new commercial property in Arizona, it’s important to hire a professional real estate attorney to guide you through every necessary step of an Arizona commercial conveyancing. An attorney helps you with the transfer of the land ownership.
Before you get started with any transaction, you must understand Arizona’s conveyancing process, so you know how the laws work and what’s needed to ensure a stress-free and smooth transfer of your commercial property.
Here’s a look at the six important reasons why you need an attorney for Arizona commercial conveyancing.
Attorney Guides on Different Types of Deeds
When you transfer the title of a property to another person, you have to draft and sign a deed for legal purposes. All property transfers, whether a commercial building or a residential property, must be detailed and executed in writing. The following are different types of deeds for property transfers in Arizona:
- Warranty Deed: The first one is the general warranty deed, which acts as proof showing that the seller is the owner of the property in question and there are no encumbrances. Of course, anyone buying a commercial property needs clear evidence they will have the sole right to the property without any legal issues or third parties making an ownership claim. It has the guarantee from the seller that they own the property, and it is not associated with any encumbrances or liens.
- Special Warranty Deed: Unlike a Warranty Deed, a special warranty deed does not covenant against the property’s history that extends beyond the seller’s ownership and to still-hidden defects. A special warranty deed is commonly used in commercial real estate transactions.
- Quitclaim Deed: This deed involves the current owner of the property recording the transfer of the ownership title to the new owner. These deeds are commonly used when processing a divorce and when the transfer of the ownership title takes place between family members. A quitclaim deed is used frequently for residential real estate.
- Beneficiary Deed: The beneficiary deed is used when the grantor wants to transfer their property to their desired grantee upon their death. Instead of using the will, they can draft the beneficiary deed to allow the beneficiary to claim the property immediately after the death of the grantor.
- Joint Tenants Deed: As the name suggests, this deed allows multiple parties to enjoy the ownership title of the property together. The deed includes the rights of each member and the clause that suggests the property rights if one of the partners dies. In general, the surviving owner acquires ownership of the deceased owner’s rights in the property.
The conveyance of real estate can be complicated and time-consuming. Only a professional and qualified attorney who has experience in managing such deeds can help you draft the appropriate deeds.
Experienced Real Estate Attorneys Help You with Documentation
After finding a suitable property, you can propose an offer to the property owner. If they accept your offer, you can start arranging the purchase agreement to complete the transaction. However, this is where you need a professional to simplify your work. It isn’t only 1-2 documents you need to sign for complying with the conveyancing guidelines.
Property conveyancing in Arizona is complex and requires accuracy to protect your investment. Whether you are transferring the property ownership title to a family member, or the deal is between two strangers, proper documentation needs to be completed before you go ahead with the transaction.
Here are a few documents the attorney will help you with:
- Purchase and sale agreement
- Disclosure documents
- Preliminary title report
- ALTA survey
- Appraisal Report
- Bill of sale
- Tenant estoppel certificates
- The required deeds
- Transfer or release of equity
- Joint ownership documents (if necessary)
The document requirements can vary depending on the type of conveyance. You can get more information about the ownership title transfer documentation from an Arizona commercial real estate attorney.
The legal documents must contain the buyer and seller details, the property’s address, a detailed description of the property, and any other aspects of the transaction, like any personal property included, easements, existing contracts on the property and more depending on the property type and use.
Understanding the Counterparty
When it comes to any real estate or financial transaction, there are two parties involved – buyer and seller. No transaction can be completed without the consent of the counterparty, which is why it is important that you understand the role of the counterparty and make a deed that includes their rights and responsibilities as well.
An experienced real estate attorney can draft a deed that satisfies both the seller and buyer’s interests. For the contract to be legally acceptable, it must contain the names, addresses, and other personal details of each party willing to sign a deal. It must also contain the intention of each party getting into an agreement.
Construction or Renovation Planning after Conveyancing
Once the conveyancing process is done, the buyer gets certain rights to the property. They can invest in further construction of the property or renovate it, depending on zoning regulations in the area. An attorney can assist with these provisions and this process.
Attorneys Can Help with Complex Financing
Financing is the most crucial and complex aspect of any real estate conveyance process. One of the reasons why it’s necessary for each party to get legal representation when executing commercial conveyancing in Arizona is that the attorney can simplify the financing process. Whether it is about the mortgages, or the payments held in escrow, the attorney creates a contract that contains the breakdown of all necessary financing for the transaction.
It gives each party clear insights into the finances involved in the transaction and some areas that might be beyond the control of either party. It also shows the total cost each party incurs to complete the transaction. Not only does the attorney help navigate the complex financing terms, but they create a comprehensive contract explaining the finances in detail. In a nutshell, an attorney helps streamline the complex financing processes and make it a whole lot easier and smoother for you.
Attorneys Streamline the Entire Real Estate Conveyance Process
In addition to the processes listed above, real estate conveyancing involves other important elements. The main job of the attorney is drafting the real estate contract that includes the buyer’s and seller’s rights and duties.
This contract shows the details of which property is sold, who is purchasing the property, where is the property located, how the payment will be processed, how is the buyer funding the property, and other crucial details. The buyer and seller can use this contract to settle any issue or dispute that arises in the future.
The attorney helps the buyer in drafting the proposal letter that shows the buyer’s intention of investing in a particular property. The attorney also handles the due diligence process. They can assist in finding the best professionals to conduct a thorough inspection of the property, its construction history, and other important factors associated with the sale before closing the transaction. It helps a buyer understand whether the property has any issues that may require costly repairs in the future and analyze whether the transaction is still a good investment. These steps are taken after the buyer and seller sign the real estate contract.
Bottom Line: Experienced Attorneys are Key to Success Commercial Conveyance
No commercial conveyance process should be completed without an attorney. The commercial property laws are pretty complex in Arizona. Each party has to comply with these laws to get into a legal deal.
An attorney can help you understand the complexities of commercial property transactions and make the process of executing the deal smoother and easier. So, make sure you hire an experienced and professional attorney to simplify your real estate transaction.
Contact us today at 602-562-7218 to schedule an initial consultation or make an appointment on our contact us page.