Call in the Attorneys: In a buyer beware situation, good legal counsel can put out fires before they start

Sills Cummis Member Ivette Alvarado, who also serves as Chair of Commercial Real Estate Women of New Jersey, was interviewed for this article on commercial and industrial real estate deals that often involve big bucks and complex issues.

As seen in the article: “The complexity of commercial real estate deals can throw a wrench into negotiations. That was illustrated in a transaction handled by Ivette P. Alvarado, a partner in the Real Estate Department of Sills Cummis & Gross P.C. in Newark and president of the nonprofit networking organization Commercial Real Estate Women, Inc. New Jersey or CREW NJ.

“‘The vital importance of due diligence was demonstrated when I represented a longtime commercial tenant who was operating a warehouse-distribution center, and had the opportunity to purchase the property from the landlord,’ she recalled. ‘We entered into a contract that identified the site as including a building, a loading dock and a large parking area that occupied a large portion of the site. But you can imagine our surprise when we ordered a title search and discovered that the parking area was not actually owned by the seller — instead, an adjacent site owner had title to it and had granted an easement to the seller. Worse, the easement specified that it would be extinguished upon the sale of the property.’

“Armed with that knowledge, Alvarado helped her client to reduce the purchase price, and separately negotiated a purchase of the parking area from the rightful owner.”