The purchase and sale of commercial real estate can be attributed to transactions with high risk for each of the parties to the transaction. These are not always direct purchase and sale transactions. Companies often buy commercial real estate for loans and investments. Therefore, companies that want to purchase or sell such real estate need the services of an experienced lawyer in structuring the transaction in order to take into account the interests of the parties: analyzing the risks of the transaction, developing the terms of contracts within the framework of the transaction, tax planning, preparing a package of documents, etc.
Key points of structuring commercial real estate transactions
In the field of commercial real estate in Belarus, transaction structuring plays an important role in ensuring business security and efficiency. Here are some key aspects of transaction structuring in this area:
- Legal structure: One of the most important aspects of structuring transactions of this kind is the choice of the legal form of ownership of real estate. This may be private property, a limited liability company, or other types of legal entities. Each form has its own advantages and risks, and the choice of a specific structure should be based on financial, tax and legal aspects.
- Transaction financing: Structuring the financing of the acquisition of commercial real estate also requires attention. Various sources of financing, including bank loans, borrowed funds, leasing, etc., may present different tax and legal consequences.
- Tax and legislative aspects: In the process of structuring transactions, it is important to take into account the tax consequences. For example, tax benefits or tax liabilities can significantly affect the profitability of commercial real estate.
- Commercial terms of transactions: Structuring commercial terms such as lease payments, contract terms, the possibility of indexing lease payments and other conditions also require attention to ensure that the interests of the parties to the transaction are protected.
These and other aspects of structuring commercial real estate transactions in Belarus involve detailed legal and financial planning, conducting necessary audits and assessments, as well as taking into account current civil and tax legislation.
How we conduct the examination and analysis of transaction risks
Structuring a transaction is the division of a transaction into stages. How our examination of the transaction is going:
Step 1. Find out the purpose: the purchase or sale of certain commercial real estate.
Step 2. We find out who is the owner (buyer) of the property, whether there are those among the owners who do not agree to the purchase or sale of the property.
Step 3. Determine the strategy of action.
What is important to find out when buying, building commercial real estate
When buying a commercial property, it is important to find out in particular:
- Whether investments are required for the purchase and what are the investment conditions.
- Is the real estate object secured by the bank, under arrest, are there enforcement proceedings against the seller, arrears on mandatory payments related to the real estate object.
- Is the seller of the property in bankruptcy proceedings and is there a possibility of bankruptcy. Since in the case of a transaction with a potential bankrupt, there is a risk of losing money and real estate after a bankruptcy manager is appointed.
- It is important to find out whether the transaction requires collateral: surety, bank guarantee, etc.. If such measures are needed, we prepare a package of documents for this stage of the transaction. We study the tax implications of the transaction for your business and select the best options.
- When you plan to participate in the construction of commercial real estate, and then — its purchase and sale, we accompany you at all stages of the transaction, including participation in negotiations to agree on the terms of contracts.
How transactions for the purchase and sale of commercial real estate take place
Step 1. Conclusion of the contract
Before registration, the parties to the transaction conclude a written agreement in which they describe commercial real estate (address, area, etc.). Plans, diagrams of the real estate object and an acceptance certificate are attached to the agreement. The composition of the package of documents required to conclude a contract depends on who the seller of commercial real estate is: an individual or a company.
Step 2. State registration of the transaction
Commercial real estate purchase and sale transactions require state registration. This means that the territorial organization for the state registration of real estate registers the contract of sale of commercial real estate and the transfer of ownership. For example, a commercial real estate transaction will not be registered when the transaction amount is more than 2000 basic units and the seller, an individual, has not filed a tax return. There is no such requirement for a transaction in which the seller is a company.
When the seller or buyer is a foreign company, an extract from the commercial register of the state in which this company is registered is needed to register the transaction.
How we can be useful in structuring transactions for the purchase and sale of commercial real estate
Our lawyers and attorneys are experienced specialists in the field of structuring transactions for the purchase and sale of real estate and speak English. We can:
- Advise you on the purchase and sale of commercial real estate;
- Structure a transaction for the purchase and sale of a commercial real estate object;
- Develop the stages of a transaction for the purchase and sale of commercial real estate;
- Conduct negotiations to agree on the terms of the transaction at each stage with your partners;
- Prepare packages of documents for each stage of the transaction;
- Check the risks associated with the commercial real estate object that you want to buy or sell;
- Advise you on tax issues related to the purchase, sale of commercial real estate;
- Represent your interests in the execution of contractual relations for the purchase, sale of commercial real estate real estate;
- Represent your interests in state bodies during state registration, dispute resolution in the field of purchase, sale of commercial real estate.
Contact us
If you have any questions about structuring transactions for the purchase and sale of commercial real estate – we will be happy to help you! Our long-term experience in the field of structuring transactions related to commercial real estate will help you in resolving any situations and disputes.
Phone and email communication options are available for your convenience:
- +375293664477 (WhatsApp/Telegram/Viber);
- info@ambylegal.by.
