High Swartz | July 16, 2024

Commercial Property Laws

Commercial Property Laws in PA - Avoiding Legal Issues

Pennsylvania commercial property laws are strict, whether leasing or owning. Our commercial real estate attorneys can help you avoid legal pitfalls.

Purchasing Commercial Property in Pennsylvania

Let's start with this simple fact. Pennsylvania doesn't mandate a lawyer when buying or selling a commercial property. However, owing to their complexity, a commercial property lawyer is valuable for due diligence and compliance with state laws.

Commercial real estate law requires detailed legal documents. Purchasing a commercial property also requires investing money. Hiring a real estate lawyer can support due diligence on various aspects of the purchase.

Most importantly, they can review the purchase agreement to ensure compliance with local and state regulations. They can also perform title searches and review zoning laws. Legal representation can help identify and mitigate potential risks, negotiate terms, and handle the closing process more effectively.

Our real estate attorneys address commercial laws and residential legal concerns. They focus on metropolitan Philadelphia while supporting clients in Bucks, Delaware, and Montgomery County, PA.

Real estate laws can vary based on your location. So consult with an attorney familiar with potential legal nuances in your area.

Is Pennsylvania a Full Disclosure State for Commercial Property?

With residential real estate in PA, sellers must disclose known material defects of a real property.

However, commercial property transactions operate under the "caveat emptor" principle or buyer beware. The burden generally falls on the buyer to discover property issues.

Based on commercial property laws, sellers don't have to disclose defects. However, they cannot misrepresent the property's condition or engage in deception.

This issue underscores the value of having an experienced commercial real estate attorney. A lawyer can also protect your interests throughout the buying process.

Purchasing Commercial Property in Pennsylvania

Commercial real estate transactions in Pennsylvania involve several critical legal steps to ensure compliance and protect your investment.

One legal consideration is a comprehensive title search. It will uncover any title defects or encumbrances affecting your ownership rights.

Another is an environmental assessment. Meeting state and federal regulations is mandatory, especially in areas prone to industrial contamination.

Leasing Commercial Properties

In Pennsylvania, commercial leases must adhere to specific laws governing the terms and conditions of rental agreements. The lease agreement between the parties primarily defines these terms.

Unlike residential leases, which are governed by the Landlord and Tenant Act of 1951, commercial leases rely on contract law principles.

Potential Legal Issues Surrounding Commercial Properties

The last thing you need with a commercial property, whether you own or lease it, is litigation. Violations can include everything from zoning disputes to rent escalation.

These are some essential considerations in light of Pennsylvania commercial property laws.

Zoning Laws

In Pennsylvania, zoning laws determine how you can use a property. Municipalities enact those laws through the Pennsylvania Municipalities Planning Code. Zoning laws can also extend beyond the code. Most significantly, they can vary from one locality to another.

Zoning governs land use, building heights, density, and the type of buildings allowed on commercial property. They can also specify requirements for parking, signs, and the percentage of the land a building may cover.

Understanding an area's commercial property laws for zoning is essential for potential buyers or developers. Non-compliance can result in costly legal disputes and fines. In the worst case, you may be unable to use the property.

Working with a commercial property lawyer near you who is familiar with local zoning laws is worth the investment.

Title Searches on Commercial Properties

A title search confirms the seller's right to sell the property. It also uncovers title issues, including:

Property disputes
False documents
False identities
Estate issues
Property liens
Code violations

Title searches help prevent future disputes over ownership. They also ensure you receive a clear title. A real estate attorney or a title company can conduct a title search to find issues.

You can get title insurance to protect against losses from property title issues. Unlike home purchases involving a mortgage, insurance isn't mandatory.

Environmental Regulations

Environmental regulations in Pennsylvania play a significant role in commercial property law. Their enforcement protects the environment and ensures public health and safety.

In particular, two pieces of legislation impact commercial properties in Pennsylvania.

The first is the Pennsylvania Clean Streams Law. It regulates the discharge of pollutants into state waters.

The second is the Pennsylvania Solid Waste Management Act. It governs waste treatment and disposal.

Before purchasing a commercial property, you should conduct an environmental assessment. Although not legally required, it affords liability protection.

The assessment, often called a Phase I Environmental Site Assessment, helps identify potential contamination from hazardous substances or petroleum products. Depending on the findings, a more detailed investigation (Phase II) may be necessary.

Failure to comply with environmental regulations can lead to substantial liabilities, including fines and even a loss of property value.

ADA Compliance and Commercial Property Law

Compliance with the Americans with Disabilities Act (ADA) is crucial for commercial properties to ensure accessibility for individuals with disabilities. Compliance includes entrances, restrooms, and parking facilities.

In Pennsylvania, the ADA prohibits private employers with 15 or more employees from discrimination. However, federal laws have no size requirements.

Federal laws allow for fines of up to $75,000 for a first offense. Ongoing non-compliance can lead to additional, more costly penalties.

Property Taxes on Commercial Properties

Property taxes can be a significant cost for commercial real estate owners in PA. They reflect the property's assessed value and can influence leasing rates and investment decisions.

For example, high property taxes might mean higher lease rates, making it more difficult to attract tenants. Property owners can challenge high assessments through appeals to potentially lower their tax liabilities, thereby improving their investment returns.

Commercial Property Law and Financing

In Pennsylvania, you can structure financing for commercial properties using various methods. Each caters to different types of investments and investor needs. An experienced commercial property lawyer working with financial advisors can help determine the best option.

Here's an overview of the most common forms of financing for commercial real estate in the state:

Traditional Mortgages

Traditional mortgages are the most straightforward and commonly used financing for commercial properties. You can access these loans from banks, credit unions, or private lenders. Commercial mortgages generally have terms ranging from 5 to 20 years.

SBA Loans

The Small Business Administration (SBA) offers several loan programs for purchasing or improving commercial properties.

The SBA 504 loan allows long-term, fixed-rate financing for significant fixed assets like land and buildings. You can also use the SBA 7(a) loan program for smaller real estate purchases, but it comes with variable rates.

Bridge Loans

Bridge loans are a short-term financing option. As the name implies, they "bridge" the gap between immediate needs and longer-term financing solutions.

Bridge loans are valuable for buyers needing to move quickly on a purchase before their current property sells. Bridge loans have higher interest rates with shorter terms, typically six months to three years.

Mezzanine Loans

Mezzanine financing is a hybrid of debt and equity financing. If the business doesn't repay the loan on time and in full, the lender can convert it to an equity interest. Because of that risk, you might want to consult with a commercial real estate attorney.

This financing focuses on projects requiring more significant amounts than available through traditional loans. Mezzanine loads often facilitate large-scale developments or acquisitions.

Hard Money Loans

Hard money loans are another alternative, especially for investors looking for quick approvals and funding. The property secures the loan with terms much shorter than traditional mortgages. However, interest rates are higher. Investors often use hard money loans to renovate or reposition a commercial property quickly.

Experienced Commercial Real Estate Attorneys Near You

Our commercial real estate attorneys represent buyers and sellers in metropolitan Philadelphia and surrounding Bucks, Delaware, and Montgomery County. Commercial property laws, particularly zoning, may vary by location.

U.S. News recognized High Swartz as a Tier 1 firm in its Best Law Firm rankings. Best Lawyers in America© also cited several of our firm's real estate attorneys in its 2024 edition.

Sean G. Livesey | July 16, 2024

Property Tax Protest

Property Tax Protest: 5 Reasons to Consider an Appeal

Property tax assessments are critical components of real estate ownership. They impact both commercial and residential property owners. While necessary, they aren't always correct, opening the opportunity for a property tax protest.

If your tax assessment is out of line, you should consider submitting an appeal to ensure fairness in property valuation. You should also consider consulting a real estate attorney near you to help with the tax appeal protest.

High Swartz attorneys serve residential and commercial clients in Bucks, Delaware, and Montgomery County, PA.

Understanding Property Tax Assessments

In Pennsylvania, several entities assess property tax rates, such as counties, municipalities, and local taxing authorities like school districts. Consequently, property tax levies vary according to your address.

Your PA county tax assessor is the primary resource for understanding local property taxes and valuation. Moreover, how much you'll pay on the assessed fair market value varies by county. PA property taxes reflect the estimated value of your home. Discrepancies in estimated value often lead to property tax protests.

Mill Rates

Mill rates reflect the total value of property within your jurisdiction. They provide tax revenue to cover projected expenses in our jurisdiction's infrastructure, including items like police and emergency services and public schools.

The millage rate determines what you pay for Pennsylvania property taxes. Your property tax equals your property's estimated value times the millage rate. Mill rates often vary for different property types, such as residential, commercial, or industrial properties.

Because real estate values fluctuate, tax assessors typically update a property's taxable value annually. However, one consistent aspect in the Commonwealth is that one million represents $1 for every $1,000 assessed value.

Calculating Your Assessed Value

The calculation formula is Property tax levied on property = (mill rate x taxable property value) ÷ 1,000.

So, let's assume your mill rate is 7, and your residence has a taxable value of $150,000. Based on the formula, your tax bill is $1,050. So, $150,000 times 7 equals $1,050,000, then divide that by 7, and you get $1,050.

But here's the thing: assessments aren't infallible, and errors can happen. Plus, market values can shift, making your tax bill seem exorbitant. Hence, you have the option of filing a property tax protest.

5 Reasons to Consider a Property Tax Protest

Tax appeals ensure you don't pay an inflated tax bill. Whether you own residential or commercial property, there are compelling reasons to examine your assessment.

Here are five reasons you might want to consider a property tax protest:

1. Property Values Can Be Overvalued

It's not uncommon for commercial and residential property to reflect an overvalued assessment. It can stem from outdated assessment techniques or changes in property market values.

It's a good idea to use a third-party assessor to determine the value of your home. For example, a real estate agent can help you determine whether the assessment is fair. Their analysis can illuminate whether contesting an assessment is worth the time and expense.

2. Property Descriptions Can Have Inaccuracies

Sometimes, asses rs record information incorrectly. For example, the description of a property, its size, number of rooms, or even its usage isn't accurate.

For example, get a copy of your tax records and review it for some of the following:

Is your home correctly classified as residential property?
Is the size of your home and the lot accurate?
Is the number of bedrooms and bathrooms correct?
Are defects in your home, such as a leaky basement or an aging roof, mentioned?
Is the age of your home accurately stated, and is the purchase price accurate?

3. Comparable Value Discrepancies are Grounds for a Property Tax Protest

If a property like yours receives a lower assessment, you might have a case for a property tax protest. For example, find several homes of similar age and square footage. Then, see how their assessments align with yours.

Search in your area for recent sale prices of homes similar to yours on a website such as Zillow.com or Realtor.com. Any sales in the past few months may have occurred after your assessor's latest property evaluation.

4. Economic Hardships

Events like regional economic downturns, pandemics, or natural disasters can affect property values. It's only fair that tax assessments reflect these changes.

5. Legal Changes

Tax laws evolve, so staying updated can reveal new exemptions or reductions applicable to your property type. Again, that's where a real estate lawyer can be a valuable resource.

How to File a Property Tax Protest

Most Pennsylvania counties have appeal deadlines 202 between late July and September 1. However, Philadelphia extends its deadline until October 2, 2023.

You can file an appeal with the appeal board via email or online, though this route may not be available in all counties. It's best to check with the specific county's Board of Assessment Appeals for their preferred filing method. More details are available from the Department of Revenue. You can file your appeal form here if you're living in Philadelphia.

One widespread myth is that challenging assessments will inevitably lead to higher taxes. This concern is only sometimes valid—presenting a solid case backed by evidence can lead to a reduction instead.

By the way, if you're transferring a commercial or residential property, you'll want to familiarize yourself with transfer taxes. For example, Philadelphia's transfer tax is among the highest in Pennsylvania.

The Importance of a Real Estate Attorney

You don't need a real estate attorney to file a property tax protest. However, the process requires experience to navigate the legal intricacies and address essential details for your tax appeal.

A local real estate attorney has valuable insights into real estate law. Additionally, they can simplify the process and reduce the risk of overlooking critical elements, significantly increasing the chances of a successful appeal.

Before meeting with an attorney, you'll need to document the current value of your property and its assessed value.

Our law firm serves clients in Bucks, Delaware, and Montgomery County, PA. Best Law Firms recognized in their 2024 edition for real estate law in Philadelphia. So, if you're ready to challenge your property tax assessments, call us.

Tom Gabor | July 16, 2024

High Swartz LLP Family Law Attorney Caitlin Foley Joins Montgomery Child Advocacy Project

High Swartz LLP is pleased to announce that Family Law Attorney Caitlin Foley has joined the Montgomery Child Advocacy Project (MCAP) as an advocate. Her involvement reflects a continued commitment to providing legal support to children in need in Montgomery County.

Caitlin will handle criminal and dependency cases referred by the courts and various agencies. Her role is to provide legal advocacy for children who are victims of abuse or neglect, ensuring their rights are protected.

Caitlin's dedication to family law and domestic litigation has earned her an empathetic and supportive reputation in the field. Caitlin focuses her family practice on divorce, custody, support, adoption, and mediation. She is a certified mediator with the American Council of Mediators and founded the mediation practice at her previous firm.

MCAP was founded in 2004 by District Attorney Ferman and Court of Common Pleas Judge Wendy Demchick-Alloy to address the gaps in the criminal justice system that often left child abuse victims unprotected. The organization ensures that the legal interests of abused and neglected children are defended.

MCAP’s advocates receive specialized training and volunteer their time to represent children involved in the criminal justice system. They are dedicated to protecting the best interests of the children they represent.

The organization receives requests for assistance from various sources, including the Montgomery County Courts for Protection from Abuse cases, the District Attorney’s Office, the Public Defender’s Office, the Office of Children and Youth, police departments, hospitals, and private social agencies. The Montgomery County Bar Association also supports MCAP.

High Swartz | July 15, 2024

PFA Order in PA

PFA Order in PA: A Comprehensive Guide

Domestic violence is a significant issue that affects millions of people worldwide. It encompasses various forms of abuse and can have severe physical, emotional, and psychological consequences on victims that create grounds for a PFA order.

To protect individuals suffering from abuse, Pennsylvania passed several laws, including the Protection from Abuse Act (PFA) in 1990.

The Act provides a procedure for obtaining a protection from abuse order in PA for those seeking protection from domestic violence. Talk to a family lawyer near you if you're a victim of domestic violence.

What Constitutes Domestic Violence?

Let's start by defining acts considered domestic violence. They include any abusive behaviors and actions that occur within the context of an intimate or familial relationship. That violence needn't be only physical or fear of bodily injury. It can also include emotional, psychological, sexual, and financial abuse.

Here are some everyday acts and behaviors that represent domestic violence requiring a PFA order:

Physical Abuse

Actions cover any physical harm or force directed at a family member or intimate partner. Acts can include hitting, slapping, pushing, kicking, choking, or using weapons.

Emotional or Psychological Abuse

This abuse involves control or manipulation of the victim's emotions, thoughts, or behavior. Examples include verbal insults, threats, isolation, and constant criticism.

Sexual Abuse

Physical or sexual abuse within an intimate relationship includes any non-consensual activity, coercion, or manipulation. It can involve rape, sexual assault, or forced participation in sexual acts.

Financial Abuse

Financial abuse occurs when one partner controls or exploits the other person's financial resources. Actions can include limiting access to money, preventing employment or education, or stealing money or property.

Stalking

Harassing or stalking involves unwanted and obsessive attention or monitoring of the victim's activities in person, online, or through other means.

Threats and Intimidation

Threatening behavior and intimidation are forms of abuse that create fear and a sense of insecurity. These actions may include threats of violence, harm to loved ones, or destruction of property.

Child Abuse

Exposing children to abusive acts is also domestic violence. The law considers directing abusive behavior toward them as domestic violence.

Coercive Control

Coercive control is a pattern of behaviors aimed at gaining power and control over the victim. It involves a combination of tactics such as isolation, manipulation, intimidation, and surveillance.

Cyberbullying

Technology offers another source for domestic abuse. For example, using social media, email, or text messages to harass, threaten, or intimidate a partner or family member.

Any of these abuse forms provides the framework for protecting from abuse orders. Again, contacting law enforcement officials or a family lawyer is important. They can help file a petition for an abuse order.

Common Questions About PFA Orders in PA

Here are some of the most common questions about PFA orders.

Is domestic violence a felony?

Domestic violence encompasses a range of criminal charges, some classified as felonies. The severity of charges depends on the specific acts committed, the state's laws, and the evidence available. Common felony charges related to domestic violence include aggravated assault, strangulation, and certain sexual offenses. If charged, consult a family lawyer to understand your jurisdiction's specific charges and penalties.

Is verbal abuse domestic violence?

Yes, verbal abuse is a form of domestic violence. Many people view domestic violence as physical abuse. However, it can include emotional, psychological, and verbal abuse as well. Like physical abuse, these other forms can have profound and lasting effects on victims.

What is a PFA order?

In Pennsylvania, a protection order serves a similar purpose to a restraining order in other states. A PFA order is a court order that aims to protect victims of domestic violence or abuse. It typically orders the abuser to stay away from the victim, their home, workplace, and children. It may include other provisions to ensure the victim's safety.

How do you file a PFA order in PA?

To file a PFA order in the Commonwealth, you can generally follow these steps:

Visit your local courthouse or visit their website to obtain the necessary PFA order forms. You can also talk with a family lawyer.
Complete the forms accurately, providing detailed information about the abuse and the abuser.
File the forms with the court clerk and request a PFA hearing date for a temporary order.
Attend the hearing, where you'll present your case to the judge.
If the judge grants a temporary protection order, it will be served on the abuser. The court will then schedule a final PFA hearing.
Attend the final hearing, where both parties present their cases, and the judge decides on a final order.

Consulting with a family lawyer can be helpful during this process.

What happens after the court issues a PFA order?

After issuing a protection order in PA, the court typically orders the abuser to stay away from the victim. That may include staying away from the victim's home, workplace, school, and other places they frequent. The court may also grant temporary custody of children to the victim. It can also establish visitation or custody arrangements for the abuser, ensuring the safety of the children.

What happens to children, if any?

When courts issue a PFA order in PA, they may address child custody and visitation arrangements. Their goal is to ensure the safety and well-being of the children involved. The court may grant temporary custody to the victim and specify visitation rights for the abuser.

What protection does a protection from abuse order in PA afford?

A PFA order in Pennsylvania typically offers various forms of protection to the victim, including but not limited to:

Ordering the abuser to stay away from the victim, their residence, workplace, and other specified locations.
Prohibiting contact, including phone calls, texts, emails, or social media communication.
Establishing temporary custody or visitation arrangements for children, ensuring their safety.
Requiring the abuser to surrender firearms and ammunition if they possess any.
Granting any other relief the court deems necessary to protect the victim from abuse or harm.

How long does a PFA order in PA last?

The duration of a PFA order can vary depending on the circumstances and the court's decision. In Pennsylvania, protection orders are initially temporary, typically lasting up to 10 business days. However, courts can issue a final PFA order after a hearing, lasting up to three years.

What if my abuser violates the PFA order?

If your abuser violates the protection order, take immediate action to protect yourself. Inform law enforcement or your family lawyer about the violation. They can help you take any of the following steps:

Document the Violation: Record any evidence of the violation. That includes photographs, text messages, voicemails, or emails that demonstrate the abuser's non-compliance with the order. This documentation can be valuable in court.
Seek Legal Advice: Contact your family lawyer or legal aid organization specializing in domestic violence cases. They can guide you on how to proceed legally and help you navigate the legal process.
Safety Planning: Develop a safety plan with a domestic violence counselor or advocate. The plan may include changing locks, installing security systems, or temporarily staying with a trusted friend or family member.
Notify the Court: Report the violation to the court that issued the PFA order. Provide the court with details of the violation and any evidence you have gathered. The court may schedule a hearing to address the breach and modify the order.
Consider Additional Protective Measures: Depending on your safety concerns, you may wish to explore additional protective measures. You can ask for changes to the PFA order, get a new order, or take legal action against the abuser.

Do PFA orders show up in background checks?

PFA orders can appear on background checks, especially if they are final orders and not sealed or expunged. When someone undergoes a background check, it may present a PFA order. That may impact employment, housing, or legal matters.

Seeking a Protection from Abuse Order in PA?

Contact our law offices if you need a family lawyer in Bucks, Delaware, or Montgomery County, PA. Our family law attorneys can provide guidance. They can petition for a PFA order to keep you safe from domestic violence.

We have offices in Norristown, Doylestown, and Wayne, PA. Call today.

High Swartz | July 10, 2024

John Finnegan: Summer Law Clerk at High Swartz LLP

What attracted John Finnegan into law was the opportunity to use his education and interpersonal skills to advocate for clients and navigate legal complexities. Recently we spoke with the summer law clerk about his aspirations, experiences, and advice for aspiring law students.

"I am from Newtown, Connecticut, a town in Fairfield County that is about 25 minutes from the New York State border," John shared. In his free time, John enjoys traveling, playing golf, and attending sporting events. John is also interested in waterskiing and wakeboarding.

John aims to be diligent and thorough in the work put in front of him. “Representing the firm in a way that is aligned with how they serve clients is important," John stated.

Summer Clerkship at High Swartz LLP

At this stage, John is open to various sectors of law. "More importantly, I want to find my niche skillset that will allow me to stand out to firms and clients. So far at High Swartz, I have really enjoyed the family law work."

John was drawn to the firm because of its general practice capabilities. "High Swartz offers a wide variety of legal services, which drove me to seek a clerk position," John explained. "I wanted to obtain a well-rounded summer experience and create genuine relationships with each of the attorneys."

Advice for Future Law Students

John stresses the importance of mentorship in school and after. "Develop genuine and personal relationships with your professors, regardless of what kind of grade you receive, or you think you will receive," John advised. "Professors can be the best form of guidance outside the classroom."

Looking Ahead

John will continue his legal studies in the fall at George Washington University Law School in D.C. He expressed his gratitude for his professors and peers at Rutgers. "I want to thank my teachers and friends at Rutgers for a tremendous year of personal growth, made possible through their valued counsel at every turn," John stated.

Tom Gabor | July 1, 2024

Eliz Baydar: A Rising 2L Making Her Mark at High Swartz LLP

Eliz Baydar, a rising 2L at the Charles Widger School of Law at Villanova University, is spending her summer as a law clerk at High Swartz LLP in Montgomery County. Eliz was placed with the firm through the Robert E. Slota Diversity Program, organized by the Montgomery Bar Association.

Early Inspirations and Education

From a young age, Eliz says she was naturally argumentative, a trait she says hinted at a possible future in law. Growing up in Westchester County, NY, she found inspiration in her father, a practicing attorney. His dedication to helping others through his legal work influenced her decision to pursue a similar career.

Eliz attended Stony Brook University, where she majored in Political Science and minored in Journalism. She was active in honor societies such as Pi Sigma Alpha and the University Scholars Program at the school, which helped her gain leadership experience.

Choosing Villanova University for law school was a key decision for Eliz. She appreciated Montgomery County's proximity to her hometown and the supportive community she found there. Now living in the area, she is fully engaged in her legal studies and extracurricular activities.

Summer Clerkship at High Swartz LLP

This summer, Eliz is working with real estate attorneys Don Petrille, Sean Livesey, and Bill Kerr and gaining practical experience in real estate matters. She finds the hands-on aspects of her work, such as dealing with real estate documents more engaging than classroom learning. Visiting actual properties and meeting clients has added a human element to her summer experience.

“Working with real life matters at the firm is a much different experience than learning about real estate documents in school,” she says. “We were able to travel to the locations and meet with the buyers, which helped put names to faces.”

Commitment to Community and Advocacy

Eliz volunteers at the Ardmore Food Pantry, helping distribute meals to residents in need in Montgomery County. At law school, she serves as the secretary of the Latin American Law Students Association and the treasurer of If/When/How, an organization advocating for reproductive justice as fundamental civil and human rights.

Advice for Future Law Students

Eliz encourages future law students to establish a support system. “Whether it’s your family or friends, having people who understand you and your experience is important. Law school demands a lot of hard work and willpower, and being mentally prepared is crucial,” she says.

Looking Ahead

With her first year of law school behind her, Eliz is eager to focus on real estate and personal injury law. Her goal is to continue learning from experienced attorneys here and ultimately to advocate through her legal career. “My main goal is to help people, and law is a way I feel I can do the most good,” she says.