Best Commercial Real Estate Lawyers in Utah

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Gordon Rees Scully Mansukhani, LLP.
Salt Lake City, United States

Founded in 1974
1,688 people in their team
English
As the only law firm with offices and attorneys in all 50 states, we deliver maximum value to our clients by combining the resources of a full-service national firm with the local knowledge of a regional firm. Featuring more than 1,000 lawyers nationwide, we provide comprehensive litigation and...
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About Commercial Real Estate Law in Utah, United States

Commercial real estate law in Utah governs the purchase, sale, lease, development, and use of properties intended for business purposes. This includes office buildings, retail centers, warehouses, industrial parks, and multifamily apartment complexes. The laws and regulations are designed to protect buyers, sellers, lessors, lessees, and others involved in commercial property transactions. Utah has a growing commercial real estate market due to its expanding economy, making it critical for all parties to understand their legal rights and obligations.

Why You May Need a Lawyer

Many situations can arise in the field of commercial real estate where legal assistance is beneficial or even necessary. Here are some common scenarios:

  • Property Purchase and Sales: Negotiating purchase agreements, handling due diligence, and ensuring clear title can be complex and may require a legal expert.
  • Commercial Leasing: Leases for business properties are often lengthy and filled with technical terms. An attorney can review and negotiate terms to protect your interests.
  • Development and Zoning: Developers must comply with zoning, land use and permitting requirements specific to Utah. Legal hurdles can arise around city planning and code compliance.
  • Financing and Mortgages: Commercial loans have distinctive terms and risks that a lawyer can help clarify and negotiate.
  • Boundary Disputes and Litigation: Disagreements regarding property boundaries, easements, or breaches of contract may require legal action or dispute resolution.
  • Environmental Compliance: Projects may need to meet environmental standards or address contamination issues, which can lead to legal complications.
  • Entity Formation: Creating the right business entity for ownership or investment can have significant tax and liability implications.

Local Laws Overview

Commercial real estate in Utah is shaped by several key state statutes and local regulations. Here are some notable aspects:

  • Contract Law: All commercial real estate deals in Utah must adhere to contract requirements under Utah law, including the Statute of Frauds, which mandates that certain contracts must be in writing.
  • Disclosure Requirements: Sellers must disclose known material defects, but the extent of disclosure can differ from residential law. Failure to disclose may result in liability.
  • Land Use and Zoning: Each municipality in Utah enforces its own zoning and land use ordinances. Non-compliance can delay or prevent projects.
  • Utah Code Title 57: This set of statutes covers real estate and property matters. It includes provisions on recording deeds, landlord-tenant relationships, and liens.
  • Water Rights: Properties that require water for business operations may need to secure or transfer water rights, which are highly regulated in Utah.
  • Environmental Regulation: State and federal requirements may apply regarding hazardous materials, protection of wetlands, or air quality.
  • Taxation: Commercial properties are subject to property taxes as determined by county assessors. Utah’s tax structure may impact the overall return on investment.

Frequently Asked Questions

What types of properties are considered commercial real estate in Utah?

Commercial real estate includes office buildings, retail centers, hotels, warehouses, industrial facilities, multifamily apartment complexes with five or more units, and undeveloped land intended for commercial use.

Do I need a lawyer to buy or lease commercial real estate in Utah?

While not required by law, retaining a lawyer is highly recommended because commercial transactions are more complex than residential ones. An attorney can review contracts, spot potential problems, and advocate for your best interests.

How does zoning affect my commercial property?

Zoning laws dictate how land and buildings can be used. Your property must comply with local zoning ordinances. Seeking a zoning change or variance typically involves a public process and legal review.

What disclosures are required when selling commercial property?

Utah law requires sellers to disclose known material defects. Commercial sellers should also provide any required environmental site assessments and inform buyers of any factors materially affecting the value or use of the property.

What is due diligence in a commercial real estate transaction?

Due diligence is the investigative phase prior to closing a deal. It includes reviewing titles, surveys, environmental reports, leases, zoning, and financials to ensure the buyer knows what they are purchasing.

How can I resolve a dispute with my commercial landlord or tenant?

Disputes may be resolved through negotiation, mediation, arbitration, or litigation. The right approach depends on the lease terms and the nature of the disagreement.

Can I transfer water rights with commercial property in Utah?

Yes, but the transfer of water rights in Utah is governed by specific laws and must be approved by the Utah Division of Water Rights. Legal guidance is often necessary during this process.

What environmental regulations might impact my property?

Depending on the property’s location and history, you may need to address issues related to hazardous materials, underground storage tanks, asbestos, or other environmental risks. Compliance with state and federal regulations is required.

What are “triple net” leases?

A triple net lease is a common commercial lease in which the tenant pays rent plus property taxes, insurance, and maintenance costs, shifting much of the operational expense risk from the landlord to the tenant.

What should I do if a title issue emerges after purchase?

You should contact a real estate attorney immediately. Title insurance may cover certain defects, but some issues may require legal action to resolve and protect your ownership rights.

Additional Resources

  • Utah Division of Real Estate: Provides regulatory information, licensing, and consumer resources for real estate professionals in Utah.
  • County Recorder’s Office: Each county manages property records, deeds, and lien documents essential for confirming property title.
  • Utah State Bar: Offers a lawyer referral service and information on specialized real estate attorneys.
  • Utah Association of Realtors: Offers resources, market data, and standard contract forms relevant to commercial real estate professionals.
  • Utah Division of Water Rights: Handles issues related to securing and transferring water rights for commercial properties.
  • Local City or County Planning Departments: Responsible for zoning, permits, and land use approvals.

Next Steps

If you are considering buying, selling, leasing, or developing commercial real estate in Utah, it is wise to take the following steps:

  1. Gather all relevant property documents, such as deeds, surveys, inspection reports, and current or proposed contracts.
  2. Consult with a qualified commercial real estate attorney who is familiar with Utah laws and local practices.
  3. Clarify your goals and any unique circumstances regarding your transaction or dispute.
  4. Work with your lawyer to review documents, plan due diligence, and engage in negotiations or dispute resolution processes as needed.
  5. Stay informed about deadlines for filings, funding, and approvals to ensure your transaction proceeds smoothly.

By seeking legal advice early in the commercial real estate process, you can protect your interests, reduce risks, and make informed decisions in Utah’s dynamic property market.

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Disclaimer:
The information provided on this page is for general informational purposes only and does not constitute legal advice. While we strive to ensure the accuracy and relevance of the content, legal information may change over time, and interpretations of the law can vary. You should always consult with a qualified legal professional for advice specific to your situation. We disclaim all liability for actions taken or not taken based on the content of this page. If you believe any information is incorrect or outdated, please contact us, and we will review and update it where appropriate.