Evictions can be drama-filled, but they don’t have to be.  Most often an eviction is simply the outcome when the tenant cannot afford to pay the rent.  However, in some cases, the Landlord is being over-aggressive in an effort to get out of an unfavorable lease.

In this video, California Attorney and Real Estate Broker Chris Adishian answers the question, “Are commercial and residential evictions commonplace?” at the South Bay Association of Realtors Commercial Attorney Panel on June 2, 2015.

Transcript

If you look across the county, for example, in LA County, I know there’s not a lot of visibility into the legal system from laypeople, and I’d like to provide that.  Unlawful detainers are a significant percentage of what’s actually in court.  I’ve seen estimates as high as 30%, 40%, 50% of a judge’s case volume in a civil court, is unlawful detainer.  And now, they’ve even made, in LA County, as an attempt to organize it, they’ve made specialty courts where that judge, all day every day, all he hears is unlawful detainers.  So, you are entering into a business, and that business does involve litigation.

Environmental issues in real estate transactions are critical, and can be a source of significant financial liability.

California Attorney and Real Estate Broker Chris Adishian answers the question, “How important are environmental issues when purchasing a commercial property?” at the South Bay Association of Realtors Commercial Attorney Panel on June 2, 2015.

Transcript

This is in the larger context in the topic of due diligence. They call it inspections for residential, but for commercial properties they tend to call it due diligence. There’s a whole slew of factors to look at as you’re investigating the purchase of the property, but absolutely, you should look at environmental issues. For example, we’re in El Segundo – almost every property transaction in El Segundo has environmental issues. Why? Well, the Standard Oil refinery used to operate before there was Chevron and before there were environmental regulations, so a lot of the ground in El Segundo has environmental issues under the current laws.

So every time a property trades you should know what you’re getting, and often times that involves hiring an environmental consulting firm. They have reports – if you’re not familiar – they’re called “Phase 1’s”. That’s sort of an initial inquiry to see if they are any issues.
As a buyer, you want to know that because you might have to pay to have it remediated. And as a seller you want to know that because the buyer is going to ask, but also so when you close the transaction both parties have the same information and you don’t have a claim coming back to you. Most of these issues can be remediated. There’s a whole industry out there and there are consultants available on the state of California Website.

Again, if you have a good team as you’re going through your acquisition or your sale, your attorney will point out, from his or her checklist, this is something to really be aware of: environmental risk of the actual land. It will also go into your leases, and usually there is a baseline that says “landlord knows of this as of today.” Then when the tenant comes in, they reference that baseline so when the tenant leaves they can say “this is a preexisting condition” or “the tenant caused this to happen” – and if the tenant caused it to happen then it is their job to remediate.

California Attorney and Real Estate Broker Chris Adishian answers the question, “When buying a commercial property, who should be on my team?” at the South Bay Association of Realtors Commercial Attorney Panel on June 2, 2015.

Transcript

When you go into a transaction, like buying a commercial property, you want to make sure you have your team together.  You might say “that’s great, who should be on my team?”  Well, the people you want are a really good brokerage firm and/or an agent if the broker is not a selling broker actively out there in the marketplace.

You want an excellent insurance person:  there are a lot of insurance issues and a lot of different ways that run through managing and owning a commercial property.

The third person you want is an attorney – stuff will come up.  The fourth person you probably want is perhaps a property manager.

There are a lot of different roles.  Sometimes they can all overlap, sometimes they’re distinct, and there are reasons why you may want them to overlap and reasons why you may want them to be distinct.

A property manager, at their core – they run the property sort of like a CFO or a trustee for the owner.  They collect all the rents, pay all the vendors, generate financial statements, and hopefully if the property is running well, they distribute checks to the owners at the end of each month.

The leasing agent handles if there’s a vacancy.  When a property has some spaces that turn over, the agent will be called into market that space and lease it.  In that situation, you’re having those roles separated out.  Often times, property managers may want to lease it, but they’re kind of different skill sets.  We often separate those out.  If there’s a vacancy, we have the leasing agent handle it.  We’ll consult with him or her.  This person knows the market, knows how to market, has the databases – that’s not really the business we’re in.

The third piece is real estate brokerage.  Brokerage is really about buying and selling property, not so much about leasing.  And again, all those things can be blended together in a firm, but brokerage is really focused on you’re ready to sell your building, you’re ready to buy a building – we’ll help you do that.