Disputes concerning commercial real estate matters are not uncommon on Long Island. Whether you lease your commercial space or own it, a real estate dispute can significantly disrupt business operations, deplete your resources, and impact your bottom line. As a business owner, it’s essential to understand the types of conflicts that can arise in connection with real estate — and the measures you can take to safeguard your interests.
Common Types of Disputes in Real Estate
Long Island has a diverse business market — and each municipality has its own zoning regulations, restrictions on development, and building codes. A wide range of real estate disputes can occur, depending on the industry in which your company operates, the type of property, and the location. Some common types of real estate disputes Long Island businesses may face can include the following:
- Partition actions — If two business partners jointly own a commercial property and they can’t agree how to use it or whether to sell it, a partition action may be filed to force a sale or division of the property.
- Downpayment disputes — Downpayment disputes can arise over refundability, ambiguous contract language, and a buyer’s inability to secure financing.
- Constructive trust claims — A constructive trust is a court-imposed remedy to ensure property that has been wrongfully held is returned to its rightful owner.
- Specific performance issues — Specific performance is a legal remedy where the court orders a party to follow through with the terms of the contract. It is typically used in real estate disputes when a property has unique characteristics, or the harmed party cannot be made whole solely with monetary damages.
- Boundary disputes — If a company is expanding their property or renovating it, and a neighbor disagrees where their property line begins and the other ends, a boundary dispute can arise.
- Easement rights — Easement disputes can occur in commercial real estate over things like shared driveways, placement of signage, and maintenance responsibilities.
Your location is a critical part of running your business. It can help ensure your company grows and your operational goals are met. Being aware of the types of issues you might face can help ensure you take appropriate measures to mitigate them before they impact your company.
Protective Measures to Avoid Real Estate Disputes
Your commercial space is directly linked to the success of your business. Not only can a real estate dispute have an adverse effect on your operations, but it can also damage your business relationships, strain your finances, and lead to significant legal costs. While many types of real estate disputes are preventable, it’s essential to take the necessary protective measures to avoid them before they can happen.
The first thing you should do is carefully review the lease or purchase agreement before executing it. Any contract you sign should clearly define each party’s obligations – and not contain any ambiguities that could later cause issues regarding interpretation. Don’t hesitate to negotiate any aspects of the contract to secure more favorable terms.
It’s also important to do your due diligence before purchasing any property. This includes verifying ownership, identifying any liens, and ensuring the property is compliant with the applicable zoning laws. In addition, take the time to conduct a physical inspection of the property. Assess whether there are any issues that could result in unanticipated costs or lead to disputes.
Lastly, be sure to remain compliant with all laws, building codes, accessibility standards, and environmental regulations. You may also need to obtain permits or licenses, depending upon your business. It’s best to work with a real estate attorney who can help ensure you adhere to the law and stay informed about any legal and regulatory changes.
Contact an Experienced Long Island Real Estate Attorney
When it comes to your business, there is a lot at stake — and it’s important to have a knowledgeable attorney by your side who can assist you with any real estate disputes that may arise. At Barnes & Barnes, P.C., we are committed to helping business owners with many different types of commercial disputes, including those involving real estate. Contact us at (516) 673-0674 to schedule a consultation.
