Title and Survey Red Flags Unique to Industrial Sites
When evaluating an industrial site—whether for acquisition, development, or leasing—the title report and survey can reveal issues that aren’t as common in other asset classes. While every commercial property raises the usual concerns of access, encroachments, and...
Caps and Floors on Seller Liability in Commercial Real Estate Purchase Agreements
When negotiating a commercial real estate purchase agreement, one of the most important—and often misunderstood—topics is the allocation of risk between buyer and seller after closing. While the purchase price is the headline number, the contract provisions governing...
Drafting Tip: Addressing Direct Claims in Indemnity Provisions in Commercial Real Estate Contracts
In commercial real estate contracts, indemnity provisions are a foundational risk allocation tool. They are commonly used to shift responsibility for certain claims and losses from one party (the indemnified party) to another (the indemnifying party). At a high level,...
A Beginners Guide to 1031 Exchanges
The replacement property must be equal or greater in value. Paying taxes on a successful real estate transaction can significantly reduce an investor's return. Fortunately, a well-established legal strategy allows investors to defer capital gains taxes while...
What is a Memorandum of Lease and Why is it Important in Massachusetts?
In Massachusetts commercial real estate, understanding when and how to record lease-related documents can help protect long-term interests. One document that often comes into play for leases longer than seven years is the memorandum of lease—also known as a notice of...
What Happens to Commercial Real Estate Leases When a Property Is Sold?
In Massachusetts, commercial real estate transactions often raise an important question for both landlords and tenants: What happens to an existing commercial lease when a property is sold? The short answer is that the lease typically remains in effect, and the new...
Escrow Provisions in a Commercial Purchase and Sale Agreement
A commercial real estate Purchase and Sale Agreement ("PSA") typically requires the buyer to make a good faith deposit concurrently with or shortly after signing the agreement. This deposit plays an important role in the transaction. Typically the deposit will...
Negotiating Access Rights in a Commercial Real Estate Purchase Agreement
In a commercial real estate transaction, the Purchase and Sale Agreement (PSA) typically grants the buyer the right to access the property during a defined due diligence period. This period allows the buyer to inspect the property’s condition and discover any...
Estoppel Provisions in Commercial Real Estate Leases
Commercial leases generally provide landlords the right to request an estoppel certificate from a tenant at certain times or under certain circumstances. An estoppel certificate is a signed statement by a tenant that certifies the accuracy of certain facts about...
Understanding Casualty and Condemnation Provisions in a Commercial Purchase Agreement
One of the things that a commercial real estate purchase agreement does is allocate the “risk of loss” for the property prior to closing. Typically there is a period of time, frequently 60-90 days, but sometimes as long as a year or more, between when the...