Follow the CC&R's Because it's the Rules!
There are seemingly two types of people who live in houses or condominiums that are subject to rules and regulations, known as Codes, Covenants and Restrictions, or "CC&R's." There are those who live there because there are CC&R's, and there are those who live there despite the fact that there are CC&R's. The concept behind CC&R's is quite simple. If a group of people who own … Read More
Options and the Right of First Refusal in Commercial Leases
In commercial leases, it is common for the tenant to be given the "option" to continue to lease their premises for a new term commencing immediately upon the expiration of the existing term. Although the option only favors the tenant, who has the sole right to either exercise or decline to exercise it, there is usually little reason for a landlord to refuse to give such right to the tenant, in that under … Read More
How do I 'Take Title' When Acquiring Real Estate?
While it is true that you most often cannot tell much about a book by its title, the same does not hold true when it comes to real estate, as how title is held to real estate, does tell you a lot. The question faced by a person acquiring real estate in Arizona concerning how they wish to take title is usually posed to them by their real estate agent or by the title company during the escrow process. & … Read More
When In Doubt, Disclose, Disclose, Disclose
So Joe, who lives and works in Chicago, has decided that he wasn't getting enough use out of his second home in Scottsdale, located on the 15th fairway of a very challenging golf course, and has, with some regret, put it up for sale. A buyer is quickly procured, and Joe's listing broker presents him with form entitled "Residential Seller's Property Disclosure Statement," commonly referred to as a "SPDS" ( … Read More
What is a Subordination, Non-Disturbance and Attornment Agreement, and Why Do I Need One?
While most commercial leases contain a requirement that the tenant will execute a "Subordination, Non-Disturbance and Attornment Agreement," commonly referred to a an "SNDA," a majority of tenants who have signed such leases, and most likely several of the real estate agents who have represented those tenants, would be hard pressed to explain the meaning of an SNDA, and why they are needed by both commercial … Read More
Better Safe Than Sorry Always File UCC Termination Statements
If you are negotiating a new business loan, you know that your due diligence investigation on the borrower should include a search of the Secretary of State's records* to confirm that the assets being pledged as collateral are "free and clear" and not subject to the security interest or other lien of another lender, lessor or other secured party. A UCC lien search of the Secretary of State's records will … Read More
To SPDS or Not to SPDS: Is the Standard Disclosure Form in the Best Interest of Sellers?
It is a common misconception that a seller's completion of the Arizona Association of Realtor's Seller Property Disclosure Statement ("SPDS") is required by law and will eliminate litigation regarding non-disclosure. The Arizona Association of Realtor's form residential purchase contract—the most commonly used form purchase contract in the state— requires the seller to complete and deliver a SPDS … Read More
Categories: Real Estate
Top Tips About Binding Arbitration Clauses
When faced with a contract dispute, parties frequently hire attorneys and use the court system to resolve their dispute. However, there is an alternative dispute mechanism - Binding Arbitration - which is available to resolve disputes if the parties have already agreed to use that method of dispute resolution. In boilerplate contract language, binding arbitration provisions may exist. Such … Read More
Letter of Intent
In a typical residential sales transaction, the first formal document usually exchanged is an offer, usually by the buyer to the seller. The seller then either accepts or submits a counter-offer, and back and forth it goes until one side either accepts the other's counter-offer or calls off the negotiations. Upon the acceptance being communicated the two sides have successfully entered into a legally binding … Read More
Confirm Your Easement Access
Have you purchased or handled a sale of rural land with a winding, dusty private driveway that crossed neighboring property once or twice before reaching the public road? Did you compare that driveway with the property deed, to see if the deed included an "easement" for the driveway? Did the legal description of the easement actually match the driveway's layout? When you are buying unimproved land, it is essential … Read More