Table of contents for A practical guide to commercial real estate transactions / by Gregory Stein, Morton P. Fisher, Jr., Marjorie P. Fisher.

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Contents
Preface and Acknowledgments xvii
Part I: Introduction 1
CHAPTER 1
Introduction 3
§ 1.01	Bridging the Gap between Law School and Real Estate Practice 3
§ 1.02 	Format of the Book 4
§ 1.03 	The Mechanics of a Transaction: Drafting, Negotiation, and Revision 4
§ 1.04 	Gathering Information and Allocating Risk 5
Part II: Conveyancing Transactions 7
CHAPTER 2
The Contract of Sale 9
§ 2.01 	The Need for a Contract 9
§ 2.02 	Buyer's Perspective 10
§ 2.03 	Seller's Perspective 11
§ 2.04 	Statute of Frauds 12
§ 2.05 Caution: Letter of Intent 12
§ 2.06 Form: Letter of Intent 12
§ 2.07 	Parties 12
§ 2.08 Caution: Entities Still to Be Formed 13
§ 2.09 Form: Contract of Sale 13
§ 2.10 	Recitals 14
§ 2.11 	Definitions 14
§ 2.12 	Identity of Property 15
§ 2.13 	Agreement to Buy and Sell the Property 16
§ 2.14 	Purchase Price 17
§ 2.15 Purchases Subject to Existing Financing 18
§ 2.16 Portion to Be Paid by Assumption of Existing Debt 18
§ 2.17 Caution: Assumptions and Purchases "Subject To¿ 19
§ 2.18 Portion to Be Paid by Amount Borrowed from a Third-Party Lender 19
§ 2.19 Portion to Be Paid by Seller Financing 19
§ 2.20 Caution: Seller Financing 20
§ 2.21 	Down Payment 21
§ 2.22 Caution: Interest on Down Payment 22
§ 2.23 Caution: Brokerage Commissions 23
§ 2.24 	Escrow for Down Payment 23
§ 2.25 Caution: Lawyers Serving as Escrow Agents 23
§ 2.26 	Sale or Removal of Personal Property 25
§ 2.27 Caution: Liquor Licenses 26
§ 2.28 Caution: Sales Tax 26
§ 2.29 	Seller's Representations, Warranties, Covenants, and Indemnities 26
§ 2.30 Caution: Continuing Representations 29
§ 2.31 Caution: "As Is¿ Representations 30
§ 2.32 Due Organization of Seller 30
§ 2.33 Caution: Seller's Good Standing 31
§ 2.34 Authority of Seller; No Approvals Required; No Violations of Other Agreements 31
§ 2.35 Entire Premises 32
§ 2.36 No Options 33
§ 2.37 Caution: Inquiring about Options 34
§ 2.38 Condition of Property and Improvements 34
§ 2.39 Caution: Condition of Property and Caveat Emptor 35
§ 2.40 Maintenance and Operation of Property until Closing 35
§ 2.41 Seller's Title and Permitted Encumbrances 36
§ 2.42 Schedule of Tenant Leases; Status of Tenant Leases 37
§ 2.43 Caution: Accuracy of Tenant Lease Schedules 38
§ 2.44 No Brokerage Commissions on Leases 38
§ 2.45 Access to the Property 39
§ 2.46 Caution: Scope of Easements 40
§ 2.47 Utilities 40
§ 2.48 Certificates of Occupancy and other Permits 41
§ 2.49 Compliance with Law 42
§ 2.50 Zoning 42
§ 2.51 Claims and Litigation 43
§ 2.52 Environmental Matters 44
§ 2.53 Employment Matters; Service Contracts 45
§ 2.54 Covenants, Servitudes, Easements, and Reciprocal Easements 46
§ 2.55 Licenses and Franchises 47
§ 2.56 Caution: Franchisor's Approval 47
§ 2.57 Trademarks; Copyrights; Visual Artists' Rights 48
§ 2.58 Insurance 48
§ 2.59 Casualty 49
§ 2.60 Condemnation 50
§ 2.61 Real Property Taxes and Assessments 50
§ 2.62 No Prior Mortgages 51
§ 2.63 No Other Liens 52
§ 2.64 	Buyer's Representations, Warranties, and Covenants 52
§ 2.65 Due Organization of Buyer 54
§ 2.66 Caution: Forming Buyer Entity before Executing Contract 55
§ 2.67 Authority of Buyer; No Approvals Required; No Violations of Other Agreements 55
§ 2.68 	Survival of Representations, Warranties, Covenants, and Indemnities; Relationship to Due Diligence 55
§ 2.69 Caution: Survival Clause 57
§ 2.70 Technique: Survival Clause 57
§ 2.71 	Conditions Precedent to Buyer's Obligation to Close 57
§ 2.72 Review Period --
§ 2.73 Continuing Accuracy of Seller's Representations and Warranties; Performance of Covenants 61
§ 2.74 Caution: Continuing Accuracy of Seller's Representations and Warranties 64
§ 2.75 Buyer's Access to the Property during Due Diligence Period 64
§ 2.76 Financing 64
§ 2.77 Caution: Financing Condition 67
§ 2.78 Authority of Seller 68
§ 2.79 Condition of Property and Improvements 68
§ 2.80 Delivery of Deed 70
§ 2.81 Caution: Types of Deed Warranties 70
§ 2.82 Title Insurance Policy 70
§ 2.83 Affidavit to Title Company 72
§ 2.84 Caution: The Title Insurance Policy, the Title Affidavit, and Mechanics' Liens 73
§ 2.85 Technique: The Seller's Title Affidavit 74
§ 2.86 Survey 74
§ 2.87 Caution: Inconsistent Legal Descriptions 74
§ 2.88 Appraisal 74
§ 2.89 Assignment of Seller's Interest in Leases 75
§ 2.90 Tenant Estoppels 75
§ 2.91 Technique: Tenant Estoppels and Landlord 
	 Affidavits 76
§ 2.92 Form: Tenant Estoppel Certificate 76
§ 2.93 Notices to Tenants 78
§ 2.94 Delivery of Security Deposits 78
§ 2.95 Opinion of Seller's Counsel 79
§ 2.96 Caution: Risks to Seller's Counsel in 
	 Preparing Opinions 81
§ 2.97 Assignment of Seller's Interest in All Other 
	 Property and Agreements 81
§ 2.98 FIRPTA Affidavit 82
§ 2.99 Form: FIRPTA Affidavit 82
§ 2.100 Permits, Certificates, Plans, Warranties, and
	 Keys 83
§ 2.101	Conditions Precedent to Seller's Obligation to Close 83
§ 2.102 Payment of Purchase Price 84
§ 2.103 Caution: Confirmation That Wired Funds Have
	 Been Received 85
§ 2.104 Continuing Accuracy of Buyer's
	 Representations and Warranties; Performance 
	 of Covenants 85
§ 2.105 Authority of Buyer 86
§ 2.106 Opinion of Buyer's Counsel 86
§ 2.107	Waiver of Closing Conditions 87
§ 2.108 Technique: Waiver of Closing Conditions and
	 Drafting the Conditions Section 88
§ 2.109	Casualty or Condemnation before Closing 88
§ 2.110 Closing Date, Time, Location, and Mechanics 91
§ 2.111 Caution: Outside Closing Date 92
§ 2.112	Defaults and Remedies 92
§ 2.113 	Nonrecourse 95
§ 2.114 	Transfer Taxes, Gains Taxes, Sales Taxes 95
§ 2.115 	Apportionments and Adjustments 96
§ 2.116 	Brokerage Commissions 99
§ 2.117 Caution: Brokerage Indemnities 100
§ 2.118	Recording of Contract 100
§ 2.119 Caution: Releasing Recorded Contracts 101
§ 2.120	Payment of Expenses 101
§ 2.121	Time Is of the Essence 102
§ 2.122 Caution: Time Is of the Essence 103
§ 2.123	Assignment of Contract 103
§ 2.124 Caution: Assignability by Buyer 104
§ 2.125 Caution: Signing on Behalf of Entities to Be
	 Formed 104
§ 2.126	Miscellaneous Contract Sections 104
§ 2.127 Further Assurances 105
§ 2.128 Integration, Merger, and Waiver 105
§ 2.129 Choice of Law; Choice of Forum 106
§ 2.130 Notices 107
§ 2.131 Other Miscellaneous Provisions 108
§ 2.132	Counterparts and Multiple Originals 109
§ 2.133	Signature Lines; Date 110
§ 2.134 Legal Description and Other Exhibits 111
CHAPTER 3
Post-Contract Due Diligence 119
§ 3.01 	What Is Due Diligence? Gathering Information, Reviewing Information, and Addressing Problems 119
§ 3.02 	Due Diligence and the Contract of Sale 120
§ 3.03 	Contract Remedies for Problems Unearthed during Due Diligence 120
§ 3.04 Checklist: Due Diligence and Closing Checklist 122
§ 3.05 Technique: Allocating Responsibility for Due Diligence Matters 123
§ 3.06 	Title and Survey Matters 123
§ 3.07 The Title Commitment 124
§ 3.08 The Form Title Insurance Policy 127
§ 3.09 Real Property Taxes and Assessments 129
§ 3.10 Caution: Real Estate Taxes, Local Law, and Non-Local Lawyers 131
§ 3.11 Covenants, Servitudes, Easements, and Reciprocal Easements 132
§ 3.12 Caution: Reviewing Covenants, Servitudes, Easements, and Reciprocal Easements 133
§ 3.13 Existing Mortgages 134
§ 3.14 Caution: Existing Mortgages and Prepayment Fees 135
§ 3.15 Tenant Leases and Parties in Possession 135
§ 3.16 Mechanics' Liens 136
§ 3.17 Violations 138
§ 3.18 Caution: Discovering Violations 139
§ 3.19 Judgments and Lis Pendens 139
§ 3.20 State and Federal Tax Liens 140
§ 3.21 Air Rights and Development Rights; Mineral Rights 141
§ 3.22 Permitted Encumbrances 142
§ 3.23 Title Endorsements 143
§ 3.24 Checklist: Title Endorsements 143
§ 3.25 Zoning and Subdivision Laws 144
§ 3.26 Coinsurance and Reinsurance 145
§ 3.27 Survey 147
§ 3.28 Access to the Property 151
§ 3.29 Utilities 151
§ 3.30 Torrens Registration 152
§ 3.31 	Lease Review and Estoppels 152
§ 3.32 Obtaining Tenant Leases 153
§ 3.33 Reviewing Tenant Leases 154
§ 3.34 Form: Lease Review Summary 155
§ 3.35 Permitted Uses; Radius Restrictions; Covenants of Continuous Operation 155
§ 3.36 Duration of Leases 156
§ 3.37 Caution: Determining Lease Commencement Dates 157
§ 3.38 Renewal Options 157
§ 3.39 Expansion Options 158
§ 3.40 Caution: Expansion Options 158
§ 3.41 Termination Options 158
§ 3.42 Purchase Options; Rights of First Refusal; Rights of First Offer 159
§ 3.43 Assignment and Subletting Rights 160
§ 3.44 Security Deposits 162
§ 3.45 Guarantees 162
§ 3.46 Landlord's Construction Obligations; Improvements by Tenants 163
§ 3.47 Leasehold Financing 164
§ 3.48 Caution: Leasehold Financing 164
§ 3.49 Tenant Estoppels 165
§ 3.50 Form: Tenant Estoppel Certificate 166
§ 3.51 Subordination, Nondisturbance, and Attornment Agreements 166
§ 3.52 Form: Subordination, Nondisturbance, and Attornment Agreement 169
§ 3.53 	Condition of Property and Improvements 169
§ 3.54 Suitability for Intended Use 169
§ 3.55 Caution: Responsibility for Ordering Inspections 170
§ 3.56 Suitability for Construction 170
§ 3.57 Availability of Necessary Permits 170
§ 3.58 Environmental Matters 171
§ 3.59 Caution: Liability for Hazardous Waste 171
§ 3.60 Assignability of Contracts and Licenses to Buyer 171
§ 3.61 	Corporate, Partnership, and Limited Liability Entity Matters 172
§ 3.62 Due Organization of Parties 172
§ 3.63 Authority of Parties 173
§ 3.64 Opinions of Counsel 174
§ 3.65 	Financing Matters 175
Part III: Loan Transactions 177
CHAPTER 4
The Loan Commitment 179
§ 4.01 	The Need for a Loan Commitment 179
§ 4.02 	Similarities to and Differences from the Contract of Sale 181
§ 4.03 	Lender's Perspective 182
§ 4.04 	Borrower's Perspective 183
§ 4.05 	Terms of the Loan Commitment 184
§ 4.06 Caution: Loan Commitment Issues and Loan Document Issues 185
§ 4.07 Form: Loan Commitment 186
§ 4.08 Tenant Leases; Lease Priorities 186
§ 4.09 Environmental Matters 187
§ 4.10 Insurance 188
§ 4.11 Assignability of Contracts and Licenses 190
§ 4.12 Real Property Taxes and Assessments 191
§ 4.13 Prior Mortgages 192
§ 4.14 Appraisal 192
§ 4.15 Creditworthiness Matters 193
§ 4.16 Loan Guarantees and Other Forms of Credit Enhancement 194
§ 4.17 Opinion of Borrower's Counsel 194
§ 4.18 Nonrecourse Provision 195
§ 4.19 Loan Commitment Fee 196
§ 4.20 Loan Expenses 196
CHAPTER 5
Post-Loan Commitment Due Diligence 199
§ 5.01 	Due Diligence and the Loan Commitment 199
§ 5.02 	Loan Commitment Remedies for Problems Unearthed during Due Diligence 201
§ 5.03 	Title and Survey Matters 201
§ 5.04 The Title Commitment to Lender and the Form Title Insurance Policy 203
§ 5.05 Mechanics' Liens 204
§ 5.06 	Lease Review 205
§ 5.07 Renewal, Expansion, and Termination Options 206
§ 5.08 Purchase Options and Rights of First Refusal 207
§ 5.09 Landlord's Construction Obligations 207
§ 5.10 Tenant Estoppels 208
§ 5.11 Subordination, Nondisturbance, and Attornment Agreements 209
§ 5.12 	Creditworthiness Matters 210
§ 5.13 	Environmental Matters 211
§ 5.14 	Insurance 211
§ 5.15 	Contracts and Licenses 212
§ 5.16 	Prior Mortgages 212
§ 5.17 Caution: Prior Mortgages 213
§ 5.18 	Appraisal 213
CHAPTER 6 
Loan Documents 215
§ 6.01 	Document Preparation 215
§ 6.02 	Note 216
§ 6.03 Form: Simple Secured Note 218
§ 6.04 	Mortgage 218
	§ 6.05	 Similarities to and Differences from the Loan Commitment 219
§ 6.06 Form: Mortgage ---
§ 6.07 Granting Clause 219
§ 6.08 Due-on-Transfer 221
§ 6.09 Prepayment 222
§ 6.10 Technique: Yield Maintenance and Defeasance ---
§ 6.11 Limitations on Junior Financing 224
§ 6.12 Cross-Default 226
§ 6.13 Maintaining the Property 227
§ 6.14 Events of Default 228
§ 6.15 Caution: Lender Advances to Cure Defaults 229
§ 6.16 Preforeclosure Remedies 229
§ 6.17 Foreclosure 230
§ 6.18 Nonrecourse Provision 232
§ 6.19 Releases and Partial Releases 235
§ 6.20 Escrows for Payment of Taxes and Insurance 236
§ 6.21 Usury 237
§ 6.22 Bankruptcy 238
§ 6.23 Caution: Bankruptcy Stays 239
§ 6.24 	Deed of Trust 239
§ 6.25 	Assignment of Leases and Rents 240
§ 6.26 Form: Collateral Assignment of Leases and Rents 242
§ 6.27 	Security Agreements and Financing Statements; Fixture Filings 242
§ 6.28 Form: Security Agreement 243
§ 6.29 	Guarantees 243
§ 6.30 Form: Loan Guarantee 244
§ 6.31 	Participation Agreements 244
§ 6.32 Caution: Loan Participations 245
§ 6.33 	Seller Financing 245
§ 6.34 	Assumption of Existing Financing 246
§ 6.35 	Acquisition Subject to Existing Financing 248
§ 6.36 	Subordinate Lending 249
Part IV: The Closing 253
CHAPTER 7
Preparing for the Closing 255
§ 7.01 	The Need for a Closing 255
§ 7.02 	The Closing Checklist 256
§ 7.03 Checklist: Due Diligence and Closing Closing Checklist 257
§ 7.04 	Document Preparation 257
§ 7.05 Caution: Reliance on Form Documents 258
§ 7.06 Deed 258
§ 7.07 Corporate, Partnership, and Limited Liability Entity Documents; Power of Attorney 260
§ 7.08 Form: Certificate of Secretary, with Attached Resolutions 262
§ 7.09 Bill of Sale 262
§ 7.10 Form: Bill of Sale 263
§ 7.11 	Title Insurance 264
§ 7.12 	Payoff Letters and Satisfactions of Existing Mortgages 266
§ 7.13 	Opinions of Counsel 268
§ 7.14 	Method of Payment 268
§ 7.15 	Insurance Coverage 270
§ 7.16 	Employment Agreements, Service Contracts, Licenses, and Other Agreements 270
§ 7.17 	Permits, Certificates, Warranties, Plans, and Keys 271
§ 7.18 	Utility Readings 271
§ 7.19 	Calculating Closing Apportionments and Adjustments 272
§ 7.20 	Calculating Fees, Commissions, Taxes, and Other Closing Costs 273
§ 7.21 	Notices 275
§ 7.22 	The Walk-Through 275
§ 7.23 Form: Post-Closing Agreement 276
§ 7.24 	The Closing Statement 276
CHAPTER 8 
Running the Closing 279
§ 8.01 	Structure of a Typical Closing 279
§ 8.02 The "Table¿ or "New York¿Style¿ Closing 279
§ 8.03 The Escrow Closing 280
§ 8.04 	Following the Closing Checklist 281
§ 8.05 Form: Closing Instruction Letter from 	Buyer 282
§ 8.06 	Title Insurance 282
§ 8.07 	Execution and Acknowledgment of Documents 284
§ 8.08 	Multiple Copies 285
§ 8.09 	Delivery and Distribution of Funds 286
§ 8.10 Caution: Confirming That Funds Have Been Wired 287
CHAPTER 9 
Post-Closing Matters 289
§ 9.01 	Recordation of Documents 289
§ 9.02 	Distribution of Documents 290
§ 9.03 	Following Up 291
§ 9.04 	Organizing the File 291
Appendices 293
Appendix A: 	Form of Letter of Intent 295
Appendix B: 	Form of Contract of Sale 298
Appendix C:	Form of Tenant Estoppel Certificate ---
Appendix D:	Form of FIRPTA Affidavit ---
Appendix E:	Due Diligence and Closing Checklist ---
Appendix F:	Checklist of Title Endorsements ---
Appendix G:	Lease Review Summary Form 301
Appendix H:	Form of Subordination, Nondisturbance, and Attornment Agreement 309
Appendix I:	Form of Loan Commitment 316
Appendix J:	Form of Simple Secured Note 330
Appendix K:	Form of Mortgage ---
Appendix L:	Form of Collateral Assignment of Leases and Rents 335
Appendix M:	Form of Security Agreement 342
Appendix N:	Form of Loan Guarantee 351
Appendix O:	Form of Certificate of Secretary, with Attached Resolutions 364
Appendix P:	Form of Bill of Sale ---
Appendix Q:	Form of Post-Closing Agreement 368
Appendix R:	Form of Closing Instruction Letter from Buyer 375
About the Authors 379
Index 381

Library of Congress Subject Headings for this publication:

Vendors and purchasers -- United States.
Commercial real estate -- United States.