Published by JR KASMAN, PLLC
During the Great Recession, it was not uncommon for a mechanics lien to be part of a messy commercial real estate deal. For starters, a number of distressed owners ran out of money. Unfortunately, budgets were not followed and reserves to pay contractors were depleted or non-existent on a number of deals. Mechanics lien litigation can be expensive and time consuming. In some jurisdictions, delays in the judicial system or outright moratoriums on cases during the Great Recession made resolution of claims impossible for extended periods of time.
We already know that there is some distress in the current market. Although we can hope that lending and budget standards in the years following the Great Recession have tightened for construction and renovation projects, things happen and the current pandemic is a wild card. Among other things, we already see that the pandemic had led to changes in the timing of …
Published by JR KASMAN, PLLC
If you are considering the acquisition of property from a seller in connection with a short sale, have you reviewed the short sale agreement the lender entered into with your seller? Does your contract of sale allow you to terminate and get your deposit back if the seller and lender amend the short sale agreement without your consent? How is the short sale price the bank accepts defined in the short sale agreement? Is the bank only agreeing to the short sale at the stated price or will they allow for reduction of that price for closing costs, adjustments, and prorations? These are just a few examples of things buyers should consider in the short sale deal. Believe it or not, a few years ago a buyer came to me at the 11th hour before closing and had not asked counsel to review the short sale agreement. As it turned …
Published by JR KASMAN, PLLC
A judge in New York recently ruled in favor of a title company and against an owner related to the fact that the owner should have known what easements etc. were (or would be) disclosed on a survey. Every time I hear an owner, buyer, or lender say “as long as the survey exception is deleted from title I should be ok” — I cringe (and quickly explain why that is not the case). Simply having a general survey exception deleted from a title insurance policy is not enough — because simply having a general survey exception deleted from a title insurance policy does not offer an owner, buyer, or lender adequate protection. It is critical to see and understand what is disclosed on an ALTA survey and obtain necessary affirmative title insurance beyond the survey exception being deleted. The costs and consequences of the negative outcome(s) an owner, buyer, …
Published by JR KASMAN, PLLC
I am excited to bring back our transaction tip series starting today. At some point in this new “pandemic business” world, there may be a chance that your opportunity to buy (and borrow) has to move fast (particularly if an asset is distressed). We look forward to sharing some transaction tips that buyers and owners may want to consider in a fast paced deal environment (in the interest of being “more of a realist than an alarmist” — thanks for that quote Fauci!).…
