For many businesses, dealing with real estate transactions is a part of everyday business. Companies that own retail stores are often seeking new property to purchase in order to expand their business.

But for a number of different reasons, some companies may need to sell property as well. This process is rarely simple and involves many steps that can include negotiations, drafting contracts and researching different aspects of the transaction. Sears Holding Corp. may soon be handling a number of real estate transactions after announcing the closings of nearly 120 Sears and Kmart stores.

Apparently, sales in stores were down from previous years. Much of the decrease occurred in the electronics department in both Sears stores and Kmart stores. There were also noticeable sales drops in other areas of Kmart stores.

However this was not the sole reason why the company has chosen to close a number of stores across the nation. In fact, in the past Sears Holdings Corp. has avoided closing stores, even those with poor performance.

But if stores are closed, Sears could bring in more profit through potential real estate transactions. The company is expecting several hundred million dollars to come in after the inventory in the stores is sold and the property is sold or sublet.

With any real estate transaction, there are many things to consider before the transaction is complete. In some instances, poorly drafted documents or agreements can lead to complications for companies in the future. Seeking the help of a real estate attorney can help reduce the risk of ambiguities in contracts and lease agreements.

Source: Crain's Detroit Business, "Kmart parent Sears Holdings to close 100 to 120 stores," Dec. 27, 2011