Commercial property disputes can affect tenants, landlords, investors, or property developers. They commonly arise because of issues concerning the usage and ownership of the property, contract renewals, and payment concerns.
When a commercial property dispute occurs, you want to deal with it promptly and effectively so that it doesn’t cost you money or risk legal problems.
Read the rest of this article to learn more about commercial property legal disputes: what causes them, what to do if you find yourself in one, your legal options for dealing with them, and when to call a lawyer.
What Causes Commercial Property Disputes?
Managing and using properties can sometimes be challenging. Disputes can get in the way of your business goals or result in financial losses. We’ve found that it’s common for commercial property disputes to arise from the following:
- Leases. These include arguments over rent, lease-renewal terms, and prohibited subleasing of the property.
- Property lines. Parties could clash about boundaries and access rights, such as if they’re both claiming ownership to the property or are arguing over access to a driveway or other section of land.
- Maintenance. This refers to maintaining and repairing the property, with parties arguing over whose responsibility it is.
- Eviction. Tenants might refuse to leave the property, even if they’ve violated the lease, haven’t paid rent, or are conducting illegal activities on site.
- Construction. There could be various issues that arise during construction projects on the property, such as work delays or higher-than-expected costs.
What Should You Do During a Commercial Property Legal Dispute?
Before considering your legal options for commercial disagreements, you should follow important tips.
Address the Issue Right Away
Don’t ignore the issue as it will just get worse and could potentially lead to legal battles, which can be expensive. One of the best things you can do is be receptive to the other party. Try to communicate with them and share your concerns. This might be enough to resolve the problem.
Be Flexible About Resolution
While you might want to negotiate without a third party present, this isn’t always possible. By remaining open to different options, you can find the right solution and settle your dispute out of court.
Put Everything in Writing
Whenever there are agreement changes or important compromises between parties, these should be put down in writing so that everyone can fall back on them should there be queries.
It’s also important to keep track of events or important conversations, such as in meetings or via email. This will help your lawyer if you need to take your dispute to court.
What Legal Options Do You Have for Commercial Property Disputes?
If you’ve tried to communicate with the other party but you can’t reach a negotiation, there are many effective options you have at your disposal to resolve commercial property disputes.
Mediation
In this resolution process, you hire a third party mediator to oversee your negotiations. Instead of making a decision on how to resolve the dispute, the mediator encourages two-way communication so that you and the other party can brainstorm remedies.
Arbitration
Arbitration involves hiring a third party arbitrator. It’s effective if you’re seeking a more formal, legal solution. How it works is that the arbitrator listens to both parties and then delivers a final, binding decision.
Litigation
If you can’t find a resolution via mediation or arbitration, you might need to choose litigation. This requires you to file a claim and present evidence to the court. A judge will decide the outcome of the case.
Litigation is usually recommended for disputes such as lease violations, property damage, or financial losses. It can include a lawsuit to counteract breach of contract and recover money, and injunction relief if one party needs to stop the other party’s activities, such as if they’re committing illegal activities on the property.
However, it’s usually a last resort if other resolution options haven’t been successful.
How Can You Prevent Commercial Property Disputes?
You don’t have to risk commercial property disputes from happening. Preventing them can save you time and money.
Draft Transparent Contracts
You should always strive to have legally-sound and clear contracts that define all parties’ obligations, payment schedules, and dispute-resolution strategies.
Hire a lawyer from ContractsCounsel, an online legal marketplace that connects you with vetted lawyers, for contract drafting and review. They’ll ensure that your agreements are comprehensive and easy for all parties to understand, as this will minimize the risk of misunderstandings or conflict.
Check for Red Flags
It’s sometimes possible to see signs of a conflict brewing. This could include tense conversations with the other party, financial issues like delayed payments, or neglected property repairs. Document these signs as they could lead to larger disputes.
Have Regular Check-Ins
Whether you’re working with a tenant or construction company, you should aim to have regular check-ins so that you stay on track with any concerns they might have. This will help you resolve small issues and misunderstandings so that they don’t grow and turn into a legal fight.
Should You Hire a Lawyer for Commercial Property Legal Disputes?
Dealing with a commercial property dispute can be stressful, especially if you don’t have a legal background or are unaware of the processes to resolve it. A lawyer can help you in various ways:
- They check that all documents and negotiations are in line with legal processes and local laws.
- They guide you to choose the best dispute-resolution strategy depending on your specific situation.
- Should you have to go to court, your lawyer will help you file your claim, gather evidence, and represent you.
- They draft and review your contracts to ensure they’re legally sound, transparent, and have valid dispute-resolution clauses.
- They can save you money and time by providing you with out-of-court options.
- They reduce your risks by looking for contract red flags and protecting your interests.
Do you need a commercial property dispute lawyer?
If you’re dealing with a commercial property dispute, you’ll want to connect with a lawyer on ContractsCounsel. They have years of experience in resolving commercial property disputes. They can also help you draft or review your commercial property agreements to give you peace of mind.
