The AIR CRE Option To Extend Addendum has been a staple of California leasing transactions for decades. AIR CRE recently made a number of important changes to further improve the addendum, particularly to the process for determining Fair Market Value (FMV). Below is a summary of key aspects of the new procedure to determine FMV: [...]
After an AIR CRE purchase agreement is signed, Buyer commences its due diligence. If Buyer is satisfied with its inspections, Buyer may waive Buyer’s Contingencies, and proceed with the transaction. Once Buyer’s Contingencies have been waived, Buyer’s Deposit is often described as “non-refundable.” Question: After waiver of Buyer’s Contingencies, is Buyer’s Deposit ever refundable? Short [...]
Many lease transactions include an option for the tenant to extend its lease term. The AIR CRE Option(s) To Extend Addendum is frequently added as an afterthought when completing an AIR CRE Lease. This well-drafted addendum does provide that Lessee can lose its option under certain circumstances. Question: If Lessee subleases all (or a portion) [...]
In many purchase agreements, at the expiration of the due diligence period, Buyer is required to make a decision. A buyer decides whether it will: (1) disapprove of a contingency (and terminate the purchase transaction); or (2) waive its contingencies, causing its deposit to become non-refundable, and proceed to purchase the property. Question: Under the [...]
The Associated Press projects that Prop. 15 will fail with 52% of Californians voting against the measure. The Associated Press article is here. The LA Times article on Prop. 15’s defeat is linkedhere. If passed, Prop. 15 would have created a “split” property tax roll. Many commercial and industrial properties would have lost “Prop. 13 [...]
In general, Prop. 15 requires commercial properties to be re-assessed to market value, but excludes residential properties from re-assessment. Mixed-use properties are unique in that they are used for both commercial and residential purposes. Question: Will mixed-use properties be re-assessed to market value if Prop. 15 passes? Short Answer: There are three key rules for [...]
Background on Prop. 15: On November 3, 2020, California voters will decide whether to adopt the “Split Roll” Initiative, Prop. 15. If passed, many commercial and industrial properties would lose “Prop. 13 protection,” and would be re-assessed and taxed based upon market value. Residential and agricultural properties would notlose “Prop. 13 protection.” Commercial properties can [...]
Background on Prop. 15: On November 3, 2020, California voters will decide whether to adopt the “Split Roll” Initiative, Prop. 15. If passed, many commercial and industrial properties would lose “Prop. 13 protection,” and would be re-assessed and taxed based upon market value. Residential and agricultural properties would not lose “Prop. 13 protection.” Commercial properties [...]
Background on Prop. 15: On November 3, 2020, California voters will decide whether to adopt the “Split Roll” Initiative, Prop. 15. If passed, many commercial and industrial properties would lose “Prop. 13 protection,” and would be re-assessed and taxed based upon market value.Properties can be reassessed as early as the July 1, 2022 – June [...]
On November 3, 2020, California voters will decide whether to adopt the “Split Roll” Initiative, Prop. 15. If passed, many commercial and industrial properties would lose “Prop. 13 protection,” and would be re-assessed and taxed based upon market value. Properties can be reassessed as early as the July 1, 2022 – June 30, 2023 fiscal [...]