About Usman Mohammed

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So far Usman Mohammed has created 44 blog entries.

AIR CRE Revamps Option To Extend Addendum

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: [...]

By | 2023-01-24T06:18:49+00:00 January 24th, 2023|Leasing|0 Comments

After Waiver of Contingencies, is Buyer’s Deposit Ever Refundable?

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 [...]

By | 2022-07-14T16:50:23+00:00 July 14th, 2022|Purchases/Sales|0 Comments

Does Lessee Forfeit its Option To Extend if it Subleases its Premises?

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) [...]

By | 2021-11-03T19:42:03+00:00 November 2nd, 2021|Leasing|0 Comments

Does Buyer’s Disapproval of a Contingency Terminate the AIR CRE Purchase Agreement?

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 [...]

By | 2021-05-26T20:53:44+00:00 May 26th, 2021|Purchases/Sales|0 Comments

BREAKING: Prop. 15 Defeated

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 [...]

By | 2020-11-11T06:09:35+00:00 November 11th, 2020|Leasing|2 Comments

Mixed-Use Properties are Partly Exempt From Prop. 15

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 [...]

By | 2020-10-13T06:16:17+00:00 October 13th, 2020|Leasing, Purchases/Sales|0 Comments

Should Brokers Add “Prop. 15 Protection” to LOIs?

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 [...]

By | 2020-09-23T15:20:15+00:00 September 23rd, 2020|Uncategorized|0 Comments

The Hidden Small Business Tax Cut in Prop. 15

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 [...]

By | 2020-09-23T04:25:54+00:00 September 15th, 2020|Leasing|0 Comments

Many Owner-Users To Pay Increased Property Taxes Under Prop. 15

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 [...]

By | 2020-09-03T19:40:29+00:00 September 2nd, 2020|Leasing, Purchases/Sales|4 Comments

“Split Roll” Initiative (Prop. 15): Will Tenants Pay the Increased Property Taxes?

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 [...]

By | 2020-08-26T18:52:01+00:00 August 26th, 2020|Leasing, Purchases/Sales|6 Comments