If you are a property owner who wants to sell an apartment complex, you may be wondering how to handle the legal details of the transaction. Selling an apartment complex is not as simple as selling a single-family home. You have to deal with multiple tenants, leases, contracts, inspections, disclosures and more. You also have to comply with New Jersey and local laws that regulate the sale of multifamily properties.
Legal to-dos
Either you or your attorney will need to draft or review the purchase agreement and other purchase-related documents. You will also need to negotiate with the buyer, but this can be done through your realtor, broker, attorney or other representative. Prior to the close, you will also need to conduct due diligence and title search and then resolve any issues or disputes that may arise from that research. You will also need to coordinate with the closing agent and other professionals to actually close.
Common pitfalls and mistakes
There are also several common pitfalls and mistakes that could cost you time, money and legal trouble. For example, you must comply with the New Jersey Bulk Sales Act, which requires you to notify the state of your intention to sell an apartment complex and pay any taxes or liens that may be due. Plus, depending on your city, there are various local ordinances or regulations that may apply to your property.
If you have tenants, you must also comply with the New Jersey Anti-Eviction Act, which protects tenants from being evicted without cause or proper notice. There is also the New Jersey Truth in Renting Act that requires you to provide tenants with a written statement of their rights and responsibilities. Plus, even though you are selling the apartment complex, you must still comply with the federal Fair Housing Act.
Real estate attorney or realtor
Hiring a real estate attorney or realtor may seem like an extra expense, but it can save you a lot of hassle and headache in the long run. These Egg Harbor Township real estate professionals can help you sell your apartment complex faster, smoother and more profitably.