Resources

Angel Law Offices is pleased to provide our clients and friends with articles, reports and other information useful to real estate professionals. Thank you for visiting our real estate law website.

• 5 Bottom-Line Issues to Consider when Negotiating a Lease Guaranty

  Landlords often require a personal or corporate lease guaranty. A commercial real estate lease guaranty, a separate document executed simultaneously with the lease, makes the guarantor liable for the tenant’s defaults under the lease.  The conflicting interests between landlord and guarantor are obvious: landlords want an unconditional and unlimited guaranty, while guarantors want a conditional and limited guaranty.  Below are five bottom-line issues to consider and a checklist to review when negotiating a commercial real estate lease guaranty.   

  Set a maximum dollar cap on guarantor’s liability.  The parties can set a maximum dollar cap on the guarantor’s liability.  For example, the landlord can agree to cap the guarantor’s liability at $100,000, $500,000, or any other amount.  The dollar amount of the cap generally bears some relationship to...[read more]

  Angel Law Offices - Commercial Real Estate Lawyers - Los Angeles | Denver | Boulder

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• 7 Practical Steps to Expedite the Sale of Commercial Real Estate

  Owners selling commercial real estate should consider these seven practical steps to expedite the due diligence period, decrease the negotiated reductions in sales prices, and speed up the eventual closing.

  Property Information. Collect and organize all available property information to provide to potential buyers as early as possible. Gather and organize property information prior to placing the property on the market. Your ability to promptly deliver well organized due diligence materials will shorten the buyer’s due diligence period. Information to collect includes: financial information (rent rolls, operating statements, tax bills and other expense information), leases, environmental reports, soil reports, physical inspection reports, termite reports, surveys, plans, permits and warranties.

  Title and Survey. Obtain a survey and title commitment to shorten buyer’s due diligence period. Obtaining and delivering a current title report, together with a copy of the underlying documents, from a financially sound title company may enable...[read more]

  Angel Law Offices - Commercial Real Estate Lawyers - Los Angeles | Denver | Boulder

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• Shopping Center Acquisitions - 4 Lease Clauses that Impact Value

  Before diving into the purchase of a shopping center, prospective buyers assess the value of the shopping center by considering location, tenant mix and financial strength, competing shopping centers, and the physical condition of the buildings. In addition to these considerations, potential buyers should be aware of four common types of lease provisions that can impact the overall value of the shopping center.

  Exclusive Use Provisions.  In order to attract a tenant, landlords often grant an exclusive right to sell a particular service or good within the shopping center.  It is not uncommon for a landlord to grant exclusive use rights to tenants that conflict with uses that are permitted under then-existing leases or that directly conflict with another exclusive use right.  For example, if one tenant is permitted to use its premises for “any lawful purpose,” exclusive rights granted to a second tenant to sell women’s shoes could be violated by the first tenant (even though its current use does not include the sale of women’s shoes). If an actual or potential conflict exists among exclusive use provisions of the shopping center’s leases, the buyer could later become embroiled in expensive litigation with one or more of the tenants.  This could lead to the buyer suffering the termination of a lease, lost rental income or liability for damages.  In response to use concerns raised by a buyer, a seller may...[read more]

  Angel Law Offices - Commercial Real Estate Lawyers - Los Angeles | Denver | Boulder

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• 8 Steps to Keep Your Letter of Intent Non-Binding

  You own commercial real estate and sign a letter of intent that contains the material deal points for your transaction.  At the end of the letter, it clearly states:  “Unless a formal agreement is entered into within 30 days of the date of this letter, this letter of intent shall be non-binding and of no further force or effect.”  Sounds clear enough. But be careful, you can be bound by a letter of intent, even if it states it is non-binding.  The two main issues used by courts to determine whether a letter of intent is binding or not are the parties’:

        •   Intent, as expressed in the letter of intent, and

         •  Actions, taken after the letter of intent is signed.

  Below are eight simple steps you can take, and a sample non-binding clause you can use, to help ensure that your letter of intent will remain non-binding:

       1. Language should not imply the existence of a binding agreement. Avoid using language that can be interpreted as creating a binding agreement.  Language included in a letter of intent such as “agree,” “offer,” “acceptance,” or “offer will be null and void if not accepted by xx/xx/xx"  may be interpreted as...[read more]

  Angel Law Offices - Commercial Real Estate Lawyers - Los Angeles | Denver | Boulder

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