- Use a Lifeline
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Mired in a difficult market, real estate agents, brokers, and property managers are encountering adversarial situations and hostile clients. When deals don’t work out as hoped, buyers and sellers look for someone to blame. Increasingly, they are finding fault with
- Disclosure Duty
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Do you have to tell your commercial tenant that its space is in a flood plain? The opinion of the U. S. District Court for the Middle District of Tennessee is that under Tennessee law, you do not. While this
- Foreign Aid
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While the broader economy is still seeking firm footing, commercial real estate appears to be among the early engines of growth. Sustaining momentum in property markets comes with the ever present challenge to secure funding, as lending and capital markets
- TIC 2.0
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As the markets continue their recovery in 2013 and beyond, investors face a more challenging tax environment. Federal capital gains taxes have increased from 15 percent to 20 percent for high income taxpayers, passive investment income is now subject to
- Proactive Profitability
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The bad news is that investment property costs increased when taxes increased in January. Interest rates have also increased. The good news is that savvy landlords can take proactive measures to improve the bottom line now and in the upcoming
- Bankruptcy for Landlords
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You’re the owner of a commercial real estate property. One of your tenants is experiencing financial difficulty, falls behind in paying its rent, and then files for bankruptcy. The following questions and answers cover what you can and should do
- Limited Guaranties
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Landlords want to be assured of the economic strength of their tenants however, determining what is the right amount of security can be difficult. In a perfect world, the landlord takes a full guaranty from a creditworthy person, especially if
- Lease Language
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Although the basic ingredients for commercial leases are the same, they can vary widely in length and number of issues covered. While many aspects of landlord tenant agreements are tried and true, what happens when an aggressive and creative landlord
- Deduction Denied
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In the recent case of Joseph Mohamed Sr., et. ux. v. Commissioner, T.C. Memo 2012 52, the U.S. Tax Court determined that a taxpayer and his spouse, after making almost $20 million worth of charitable real estate gifts to qualified
- Seeking Comfort
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When providing loans on branded hotel properties, mortgage lenders usually seek a “comfort” or “recognition” letter from the brand’s licensor or franchisor. A comfort letter is a tri party agreement among the owner, the lender, and the licensor. Its purpose
- Gov’t Issues
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You are an investor who has just snapped up a distressed property that includes a lease with the federal government. In the best scenario, you gain a desirable tenant with a long term lease, and the U.S. General Services Administration
- Healthcare Headaches
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During fourth quarter 2011, real estate investment analysts predicted that demand for medical office buildings and healthcare facilities would continue to be strong over the next decade, due in part to high demand for healthcare services. While demand for healthcare
- Nervous TIC
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For many years I have written articles on the implications if tenant in common interests are determined to be securities. One such concern is whether TIC interests can be employed in tax deferred exchanges. Historically, a taxpayer might have exchanged
- Exclusive Use
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As the nature of office space changes and as the mixed use concept proliferates, it’s not surprising that battles over exclusive use rights are spreading beyond their traditional arena at retail centers. It is common in retail settings for tenants
- Accessibility Litigation
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The number of lawsuits filed against business owners based on violations of the Americans With Disabilities Act and Federal Housing Administration accessibility requirements grows every year. The best way to avoid a lawsuit is to find and fix any violations
- Letters of Intent
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No one wants to waste time and money on a deal that the parties will never complete. A well drafted, nonbinding letter of intent can be a valuable first step in determining whether there is a deal to be made
- Oil and Gas Exchanges
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No doubt some participants in the thriving oil and gas business are looking — or probably should be looking — to move some wealth out of the highly cyclical energy field. An obvious tactic for diversification into real estate is
- Practice Due Decency
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Your mother always told you to be a good person, but was her concern your values or your business prospects? Decency during business negotiations may be the right thing to do, but it can also further personal relationships that create
- Commercial Calculations
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Rent, operating expenses, tax obligations, and several other economic matters are tied to the square footage of leased premises. Generally speaking, a higher square footage yields higher rent and other payments for the leased premises. Therefore, landlords and tenants often
- States Speak Out on Free Speech in Malls
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Across the country, courts have weighed the right of free speech against private property rights with differing results. While the majority view says that speech is not protected on private property, some courts have held that free speech exercised in
- Swap Rent for Dot-Com Stock? Ask Tough Questions Before Proceeding
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With the explosion of dot com and high tech companies, some property owners are experiencing a new phenomenon tenants offering stock options or warrants in lieu of other forms of payment for lease transactions. This trend raises legal and business
- U.S. Supreme Court Takes Another Look at Regulatory Takings
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The landmark 1994 U.S. Supreme Court decision of Dolan v. City of Tigard established the "rough proportionality" test for determining whether government regulation of land is so intrusive as to constitute a taking for which compensation must be made. In
- Transfer Request
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Bundle of sticks is the idiom commonly used to describe the rights that constitute fee simple property ownership. The common law right to receive compensation for injury to real property can be the most important “stick” within that bundle. It
- Understanding Equal-Access Requirements
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When considering requirements relating to accessibility for the disabled, commercial property owners, managers, and developers must keep in mind two separate federal bodies of law the Americans with Disabilities Act and the Fair Housing Act. Although both federal acts address
- Write Lease Exclusivity Provisions Carefully to Avoid Conflicts With Tenants
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Exclusivity provisions in commercial real estate leases are quite common, especially for retail properties. They give particular tenants exclusive rights to operate certain businesses in shopping centers. However, in order to avoid legal action, provisions should be drafted carefully so