Real estate law: commercial
Commercial real estate transactions
Commercial transactions carry obligations that residential ones do not: zoning, environmental exposure, existing tenancies, and lenders with requirements of their own. The due diligence is where the work is, and it needs to start early.
The work happens before closing
On a residential purchase the legal work is largely procedural. On a commercial one the diligence period is where value is protected or lost, because what you find determines whether you proceed, renegotiate or walk away.
Environmental liability attaches to the property rather than to the person who caused it. Zoning determines whether your intended use is permitted at all. Existing leases bind you as the new landlord. Each of these is straightforward to check and expensive to discover late.
What we handle
Due diligence
Title searches, zoning considerations, and off-title enquiries appropriate to the property and its intended use.
Agreements and closing documents
Reviewing the agreement of purchase and sale and preparing the documentation the closing requires.
Lender compliance
Meeting the lender's instructions, which on a commercial file are more extensive than on a residential one.
Lease and tenancy review
Understanding what you inherit: terms, rent, options to renew, and obligations to existing tenants.
Corporate authority
Confirming who can sign on behalf of a corporation, and that the corporate records support it.
Working alongside the financing
Commercial lenders usually require third-party reports, commonly an appraisal, an environmental review and a building condition report. These take time to commission and are the most frequent reason a funding date slips.
Because financing and legal work sit in the same team here, the reports the lender will want can be identified at the outset rather than discovered halfway through.
Common questions
How is a commercial purchase different from a residential one?
The due diligence carries the weight. Zoning determines whether your intended use is permitted, environmental liability attaches to the property rather than to whoever caused the problem, and existing leases bind you as the new landlord.
Why do commercial closings take longer?
Lenders usually require third-party reports, commonly an appraisal, an environmental review and a building condition report. Commissioning them late is the most common reason a funding date moves, so they are worth starting early.
What if the property has tenants?
You inherit their leases, including the rent, any options to renew and the landlord's obligations. Reviewing them is part of the diligence, because they affect what the property is worth to you.
Who signs for a corporation?
Whoever the corporate records give authority to, which is not always who you have been dealing with. Confirming signing authority early avoids a problem on the closing date.
Why work with Gurpreet?
Clarity
Plain-language explanations and clear next steps.
Responsiveness
Timely updates, so you are never left guessing.
Accuracy
Careful review of documents and title issues to reduce risk.
Coordination
Working directly with your realtor and lender to keep the closing on schedule.
Meet Gurpreet
Barrister & Solicitor, Notary Public, Mahal Law Professional Corporation
Gurpreet Singh Mahal is the principal lawyer at Mahal Law Professional Corporation, serving clients across Ontario, including Brampton, the Greater Toronto Area, and Ottawa.
Read Gurpreet's full profile
Talk to Gurpreet about a commercial transaction
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- Call
- 613-306-9900
- Office hours
- Monday to Friday9:00 AM to 6:00 PMSaturday10:00 AM to 2:00 PMSundayClosed
- Visit
- 101-14 Chamberlain Ave
Ottawa, OntarioGet directions (opens Google Maps in a new tab)