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When representing a client in core real estate work, such as buying or selling real property or negotiating a lease, alcohol may be the last thing an attorney is likely to take into consideration. Clients are often looking for high-quality work on the specific issue presented to the attorney, with a quick turnaround and acceptable cost. A client who retains an attorney for representation in the purchase or sale of real property, or in the negotiation of a lease, may not necessarily bring liquor licensing concerns to the attorney's attention.
As with many other business considerations related to the use of real property, liquor licensing issues can significantly impact real estate transactions. These items may delay, or even derail, negotiations and closings of purchase/sale contracts and leases.
In the course of working with a potential buyer or tenant of commercial real estate, it is important to consider the licenses and other approvals the client will need to operate the intended business at the property. Many businesses may require a liquor license to remain sufficiently profitable to operate. However, both the location and physical layout of the property being purchased or leased can cause several issues for a client applying for a liquor license. These factors should be considered in the contract or lease negotiations, as well as in the due diligence phase of any real estate transaction involving a business that will sell alcoholic beverages.
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