Posts Tagged ‘Laura M. Kaplan’
Lease Guarantees: What Landlords Should Know When Negotiating
While landlords prefer tenants with the strongest financial positions to sign leases, they may sometimes accept a “shell” entity — created solely to operate the business at the leased premises — provided that an upper-tier entity with substantial assets or the tenant’s principals sign a lease guarantee. A lease guarantee, if enforceable and signed by…
Read MoreWhen Silence Is/Isn’t Golden in Commercial Real Estate P&S Agreements
While sellers typically initiate the first drafts of commercial real estate purchase and sale agreements, some larger buyers have the leverage to require use of their own form agreements. Sellers in these situations should be aware of the effect of omission of certain “standard” seller-favorable contract terms. Inclusion of these terms is critical for sellers…
Read MoreMastering the Art of Lease Negotiation: Crafting Win-Win Agreements
Clients often request that their counsel focus lease negotiations exclusively on those terms most likely to have the most significant impact on economics and the long-term relationship with the counterparty. This request comes up most frequently from tenants who are presented with a standard lease form for a relatively short-term lease at a particular landlord…
Read MoreEstate Planning for Your Real Estate Business: Tips to Preserve Value
Real estate business owners face unique challenges that many business owners in other industries do not experience. The real estate market climbs and falls, contractor fees and material costs rise with inflation, and high interest rates can destroy the profitability of a real estate portfolio. These added complexities mandate more complex planning for ownership and…
Read MoreTitle Insurance or Not, Don’t Dismiss the Value of Title Search
For those of you who question whether an owner’s policy of title insurance is a waste of money, please remember that examining title is still an essential component of due diligence investigations. Real estate investments are usually significant transactions, whether for individuals or businesses. If you are focused on protecting your financial interests, a careful…
Read MoreAllocating Risk in Real Estate Sales: Representations and Warranties
Although a majority of buyers in real estate transactions rely on their own inspections of property, most real estate purchase and sale agreements contain some seller representations and warranties regarding key factual matters that the buyer cannot independently verify. These representations and warranties serve as closing conditions as well as a basis for post-closing indemnification.…
Read MoreRent is Due: Strategies for Landlords with Financially Unstable Tenants
Even landlords who conduct in-depth analyses of tenant credit and financial health will experience some tenants who become financially unstable during the term of the lease. In an environment where replacing tenants can be challenging, many landlords should consider the potential benefits of negotiating a restructuring of the tenant’s lease obligations or offering an agreed…
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