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 [...]
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.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 [...]
The “Split Roll” Initiative recently qualified for the November 2020 ballot, and is numbered Proposition 15. If passed, many commercial and industrial property owners would lose their “Prop. 13 protection,” and their properties would then be assessed at market value. This article is the first in a multi-part series discussing Prop. 15. In this first [...]
After you sell a property, do you want to ensure that the buyer does not make a claim against you? Part 3 of this series discusses the most effective modifications Sellers make to the AIR purchase agreement to avoid (or limit) post-Closing claims by Buyers. “Cap” on Liability: Many custom purchase agreements will include a [...]
Could a quick e-mail from a Buyer’s broker to a Seller’s broker stating “Buyer finds the environmental report unacceptable” accidentally terminate a purchase and sale agreement? Could an e-mail from a tenant's broker to a landlord's broker stating "tenant is going to exercise the option” be an unintentional exercise of an AIR option to extend [...]
In Part 1 of Modifications to the AIR Purchase Agreement, I discussed four areas of the AIR purchase agreement that Sellers frequently modify. Part 2 focuses on perhaps the greatest area of liability to Seller after the Closing – Seller’s 12 representations and warranties that it makes to Buyer. Paragraph 12.1 of the AIR purchase [...]
In a prior article, I addressed the issue of Should You Use the AIR Purchase And Sale Agreement? Some sellers believe that the AIR purchase agreement does not contain protections afforded sellers in custom agreements. It is correct that a custom agreement drafted by a seller’s attorney will typically favor Seller more than the AIR [...]
Generally, yes. The AIR purchase and sale agreement form is well-drafted and does not substantially favor either the buyer or the seller. As a result, it is frequently used for the purchase of real estate in California. There are many advantages to using the AIR purchase and sale agreement. Brokers, lawyers, buyers, and sellers are [...]
