http://www.smithsholar.com/news/Real_Estate_Law_-_Commercial.xml Mon, 15 Mar 2010 21:11:45 -0600 FeedCreator 1.7.2 http://www.smithsholar.com/single_tip.php?id=413 Yes and No... The title policy that is issued to the purchaser of a commercial piece of property is typically the same type of policy as a policy issued to a purchaser of a residential piece of pro... Real Estate Law - Commercial Sat, 05 Dec 2009 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=413 http://www.smithsholar.com/single_tip.php?id=457 In Kerney v. Endres (Tenn. App., July 2009), the Court held that a home based business violated residential- only restrictions even though the business was incidental to residential use. The plaint... Real Estate Law - Commercial Mon, 19 Oct 2009 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=457 http://www.smithsholar.com/single_tip.php?id=454 First, you need to speak with your landlord regarding your situation. He/she may have some options for you. However, if the lease agreement states that subletting is not permitted and the landlord wil... Real Estate Law - Commercial Mon, 20 Jul 2009 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=454 http://www.smithsholar.com/single_tip.php?id=385 Yes... you both should be concerned about the potential ramifications from this transfer. If she has judgments against her, these judgments will attach to the property. Judgments follow the debtor to ... Real Estate Law - Commercial Fri, 13 Mar 2009 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=385 http://www.smithsholar.com/single_tip.php?id=386 It depends on if there is a mortgage lien on it. If so, then technically.. yes. The Deed of Trust that was signed at closing states that upon any transfer of the real property that is being held as se... Real Estate Law - Commercial Fri, 27 Feb 2009 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=386 http://www.smithsholar.com/single_tip.php?id=392 It depends on several factors. My first suggestion would be to consult an accountant with that question. The Tennessee Department of Revenue can enforce a gift tax to certain transfers and there is th... Real Estate Law - Commercial Fri, 20 Feb 2009 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=392 http://www.smithsholar.com/single_tip.php?id=393 It depends on several factors. One factor... Is there a mortgage on the property? If so, this may be problematic to transfer the property. Typically, in a Deed of Trust, there is a due on Sale clause ... Real Estate Law - Commercial Fri, 13 Feb 2009 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=393 http://www.smithsholar.com/single_tip.php?id=396 That is a personal decision for the landlord to make. It has been the "norm" to charge the tenant a Security Deposit equal to one month of rent. However, some landlords are attempting to entice tenan... Real Estate Law - Commercial Fri, 06 Feb 2009 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=396 http://www.smithsholar.com/single_tip.php?id=400 Probably yes... Typically in this type of setting, landlords will require that the principals of the LLC or other type of company personally guarantee the terms of the lease agreement. There is a risk... Real Estate Law - Commercial Fri, 30 Jan 2009 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=400 http://www.smithsholar.com/single_tip.php?id=402 Typically yes... Most lenders require the attorney's office issuing the policy to remove the survey exception. Then in turn, the attorney's office will let the borrower know what needs to be done ... Real Estate Law - Commercial Fri, 09 Jan 2009 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=402 http://www.smithsholar.com/single_tip.php?id=408 Yes and No... One of the main differences in a policy that is issued to a buyer in a residential piece of property versus the policy that is issued to the buyer of a commercial piece of property m... Real Estate Law - Commercial Fri, 19 Dec 2008 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=408 http://www.smithsholar.com/single_tip.php?id=415 This term is used in the commercial arena when a property is not currently zoned commercial. It may be zoned residential, agricultural or any number of zoning classes. Please be aware that this term o... Real Estate Law - Commercial Fri, 28 Nov 2008 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=415 http://www.smithsholar.com/single_tip.php?id=416 By not being aware of potential mechanics' and materialmen's liens issues, it can leave a buyer with liens on their "dream home." What this means is that the buyer could be stuck with liens after clo... Real Estate Law - Commercial Fri, 21 Nov 2008 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=416 http://www.smithsholar.com/single_tip.php?id=450 It is of the ultimate importance to be aware of mechanics' and materialmen's liens issues. If you or your client is purchasing a new home or a remodeled home, speak with an attorney so that this trans... Real Estate Law - Commercial Fri, 31 Oct 2008 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=450 http://www.smithsholar.com/single_tip.php?id=449 After the Notice of Completion document has been completed in full, it has to be recorded at the Register of Deeds Office in the county where the property is located. After recording, most attorneys ... Real Estate Law - Commercial Fri, 17 Oct 2008 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=449 http://www.smithsholar.com/single_tip.php?id=447 A Notice of Completion is a document that gives a multitude of information. It states the owner of the property and the contractor of the property and the property address. It also gives the date of f... Real Estate Law - Commercial Fri, 03 Oct 2008 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=447 http://www.smithsholar.com/single_tip.php?id=444 Different title insurance underwriters require different steps to be taken in order for title insurance to be underwritten on a certain real estate transaction. Please consult with your closing attorn... Real Estate Law - Commercial Fri, 26 Sep 2008 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=444 http://www.smithsholar.com/single_tip.php?id=442 With a changing real estate market, it is very important to protect your clients when dealing with the potential for mechanics' and materialmen's liens. This is obviously more important when purchasin... Real Estate Law - Commercial Fri, 12 Sep 2008 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=442 http://www.smithsholar.com/single_tip.php?id=434 Mechanics' and Materialman's lien laws are very important concepts for anyone in the real estate or construction industry to be aware of. The concept behind these laws is that the laborers and supplie... Real Estate Law - Commercial Fri, 29 Aug 2008 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=434 http://www.smithsholar.com/single_tip.php?id=432 Yes, most commercial pieces of real estate are sold "AS IS". That is not to say that negotiations cannot be made otherwise. Sellers are not as legally obligated to make repairs and disclose items as a... Real Estate Law - Commercial Fri, 22 Aug 2008 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=432 http://www.smithsholar.com/single_tip.php?id=427 There are much fewer required disclosures when dealing with commercial real estate. There is a Commercial Real Estate Property Disclosure that exists. However, few transactions require it. However, th... Real Estate Law - Commercial Fri, 15 Aug 2008 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=427 http://www.smithsholar.com/single_tip.php?id=425 Some of the items that are to be considered for the feasibility of the real estate transaction are as follows: (f) Copies of existing appraisals, environmental reports (g) Copies of existing leases... Real Estate Law - Commercial Thu, 31 Jul 2008 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=425 http://www.smithsholar.com/single_tip.php?id=341 Another difference between residential versus commercial real estate are the lien and title issues. The bigger the development, the more tenants in the leasehold, the risk become greater and there may... Real Estate Law - Commercial Fri, 15 Feb 2008 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=341 http://www.smithsholar.com/single_tip.php?id=349 Yes. There are huge differences in residential real estate versus commercial real estate. One of the differences is as follows: (1) Risks- Any real estate transaction has the potential for problems or... Real Estate Law - Commercial Tue, 05 Feb 2008 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=349 http://www.smithsholar.com/single_tip.php?id=348 Commercial Real Estate can be defined as dealing with any real property in a business context. It can vary along a broad spectrum of business dealings. It can involve the leasing or selling of office ... Real Estate Law - Commercial Fri, 01 Feb 2008 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=348 http://www.smithsholar.com/single_tip.php?id=332 In the event of death of any partner, the partnership is deemed to be terminated. This is even if the remaining partners wish to continue the partnership. For instance, if there are three partners in ... Real Estate Law - Commercial Fri, 28 Dec 2007 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=332 http://www.smithsholar.com/single_tip.php?id=329 There are also vast differences in how a partnership and an LLC can be terminated. A partnership can terminate by the intent of any partner. Upon the death of any partner, the partnership automaticall... Real Estate Law - Commercial Wed, 12 Dec 2007 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=329 http://www.smithsholar.com/single_tip.php?id=326 A similarity between partnerships and LLC's is the tax treatment. If the LLC qualifies as a flow through entity, both the LLC and partnership will be treated the same for federal income tax purposes. ... Real Estate Law - Commercial Thu, 15 Nov 2007 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=326 http://www.smithsholar.com/single_tip.php?id=322 Likely, the greatest difference between partnerships and an LLC is the partner's or member's personal liability for the debts and obligations of the entity. In a general partnership, all partners are ... Real Estate Law - Commercial Fri, 09 Nov 2007 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=322 http://www.smithsholar.com/single_tip.php?id=324 Partnerships are usually operated and managed equally by its partners. However, an LLC does not have to be operated by its members or owners and can be managed by elected officers. ... Real Estate Law - Commercial Thu, 25 Oct 2007 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=324 http://www.smithsholar.com/single_tip.php?id=317 Partnerships and LLC's have characteristics that are similar. However, there are many differences between the two also. A Partnership does not require an agreement. However, some partnerships do have... Real Estate Law - Commercial Fri, 12 Oct 2007 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=317 http://www.smithsholar.com/single_tip.php?id=319 Limited liability companies (LLC's) are comparable in many ways to general partnerships due to the fact that they can be structured and operated similarly to a general partnership. Both entities can b... Real Estate Law - Commercial Thu, 04 Oct 2007 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=319 http://www.smithsholar.com/single_tip.php?id=316 Yes, a sole proprietorship can be converted to an LLC. The sole owner of the sole proprietorship can transfer the sole proprietorship's assets to the LLC. Along with this transfer, there may be tax c... Real Estate Law - Commercial Thu, 27 Sep 2007 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=316 http://www.smithsholar.com/single_tip.php?id=313 There are differences in the tax treatment between a sole proprietorship and an LLC. These differences would need to be discussed with a licensed accountant or tax attorney. There are also differen... Real Estate Law - Commercial Fri, 14 Sep 2007 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=313 http://www.smithsholar.com/single_tip.php?id=312 Likely, the greatest difference between a sole proprietorship and an LLC is the liability. In a sole proprietorship, the owner is personally liable for the business's debts and obligations. However... Real Estate Law - Commercial Fri, 07 Sep 2007 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=312 http://www.smithsholar.com/single_tip.php?id=294 A Sole Proprietorship is generally operated and managed by its owner. An LLC can be operated several different ways, dependent upon the setup of the LLC. For instance, the LLC could be operated by th... Real Estate Law - Commercial Fri, 31 Aug 2007 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=294 http://www.smithsholar.com/single_tip.php?id=291 The first main difference between a sole proprietorship and an LLC is the way that they are set up. A sole proprietorship does not require any paperwork to be filed. It can be created just by one's sp... Real Estate Law - Commercial Fri, 17 Aug 2007 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=291 http://www.smithsholar.com/single_tip.php?id=283 Sole proprietorships are usually operated and managed by the sole owner. However, the sole owner can hire managers to run the company. They are similar to LLC's in some ways including the tax treatme... Real Estate Law - Commercial Fri, 27 Jul 2007 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=283 http://www.smithsholar.com/single_tip.php?id=288 Generally, any individual, corporation, partnership (general or limited), trust, business trust, association, estate, or other LLC can be a member of an LLC. Previously, LLC statutes required at least... Real Estate Law - Commercial Fri, 29 Jun 2007 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=288 http://www.smithsholar.com/single_tip.php?id=280 LLC's have a flexible organizational structure. The owners can adopt an Operating Agreement which allows owners to determine, with some limitations, how the LLC will be managed, controlled and structu... Real Estate Law - Commercial Fri, 15 Jun 2007 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=280 http://www.smithsholar.com/single_tip.php?id=279 An LLC is typically formed to accomplish two things: (1) Limit Liability and (2) to provide Pass- Through Tax Treatment LLC... Real Estate Law - Commercial Fri, 08 Jun 2007 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=279 http://www.smithsholar.com/single_tip.php?id=277 ... Real Estate Law - Commercial Fri, 18 May 2007 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=277 http://www.smithsholar.com/single_tip.php?id=269 Recent cases have reflected that the courts are looking closely at exactly how documents are signed when an entity (LLC, corporation, partnership etc.) is involved. When an entity is a party to a real... Real Estate Law - Commercial Fri, 13 Apr 2007 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=269 http://www.smithsholar.com/single_tip.php?id=249 There is a common law duty on the part of the landlord to mitigate their damages in the event that the tenant does not fulfill their lease obligations. What this means is that the landlord still ha... Real Estate Law - Commercial Fri, 05 Jan 2007 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=249 http://www.smithsholar.com/single_tip.php?id=246 Maybe yes.. Maybe no... Many leases provide a clause similar to an acceleration clause in a Deed of Trust. This is a clause where if the tenant defaults on his/her obligations under the rent, the l... Real Estate Law - Commercial Thu, 28 Dec 2006 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=246 http://www.smithsholar.com/single_tip.php?id=244 If a commercial landlord is successful at trial when suing the tenant for non-payment, he/she will not only be awarded legal possession of the premises, but also recover a monetary judgment. This can ... Real Estate Law - Commercial Fri, 22 Dec 2006 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=244 http://www.smithsholar.com/single_tip.php?id=238 The exception to the rule that landlords cannot use “self help” to evict tenants is that the tenant has clearly and unequivocally abandoned the property. The problem in making this determination is th... Real Estate Law - Commercial Thu, 30 Nov 2006 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=238 http://www.smithsholar.com/single_tip.php?id=222 Tennessee holds that if a landlord resorts to self-help (taking matters into your own hands), the damages recoverable by the tenant for a wrongful trespass/eviction can include not only punitive damag... Real Estate Law - Commercial Fri, 10 Nov 2006 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=222 http://www.smithsholar.com/single_tip.php?id=224 No.... Some landlords believe in the “old school” way of evicting their tenants if they are not paying or if they are exhibiting some other undesirable behavior for the landlords. This is not allowed ... Real Estate Law - Commercial Fri, 27 Oct 2006 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=224 http://www.smithsholar.com/single_tip.php?id=139 This issue of changing agency status comes up in a number of different contexts. For example, one common situation is when you are working with a buyer as a buyer’s agent and show the buyer your own ... Real Estate Law - Commercial Wed, 02 Aug 2006 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=139 http://www.smithsholar.com/single_tip.php?id=22 There are many different forms for construction contracts. In commercial jobs, the developer or owner will generally decide which form to use. Forms are published by the American Institute of Archite... Real Estate Law - Commercial Thu, 22 Jun 2006 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=22 http://www.smithsholar.com/single_tip.php?id=14 Constructions loans are another tool that are used frequently in the commercial and residential world of real estate. There are issues that arise in a construction loan that do not exist in other form... Real Estate Law - Commercial Fri, 16 Jun 2006 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=14 http://www.smithsholar.com/single_tip.php?id=13 SMITH.SHOLAR.ASSOCIATES.PLLC REAL ESTATE LEGAL TIP OF THE WEEK Commercial Real Estate Issues 101-Ground Leases Part 3 of a Multi-part tip TIP 250 An example of where a ground lease wo... Real Estate Law - Commercial Fri, 09 Jun 2006 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=13 http://www.smithsholar.com/single_tip.php?id=12 SMITH.SHOLAR.ASSOCIATES.PLLC REAL ESTATE LEGAL TIP OF THE WEEK Commercial Real Estate Issues 101 Part 2 of a Multi-part tip TIP 249 Our first topic covered real estate financing. Le... Real Estate Law - Commercial Tue, 30 May 2006 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=12 http://www.smithsholar.com/single_tip.php?id=9 For the next few weeks, we are going to briefly address commercial real estate issues. Some will relate to residential transactions also. However, for the most part, commercial transactions exist in a... Real Estate Law - Commercial Fri, 19 May 2006 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=9 http://www.smithsholar.com/single_tip.php?id=252 The tenant may have some defenses when it comes to their being evicted from the commercial property. If the landlord files a bankruptcy petition, the automatic stay will prohibit the landlord from pro... Real Estate Law - Commercial Thu, 19 Jan 2006 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=252 http://www.smithsholar.com/single_tip.php?id=28 The Tennessee Court of Appeals has said “Yes”, installment sales contract for real estate are enforceable in Kafozi v. Windward Cove, LLC (Tenn. App., August 2005). In this case, the court allowed a ... Real Estate Law - Commercial Thu, 08 Dec 2005 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=28 http://www.smithsholar.com/single_tip.php?id=37 In Metropolitan Government v. Cain (Tenn. App., March 31, 2005), the Court of Appeals held that a taxpayer could not contest the loss of greenbelt status in a delinquent tax suit. The taxpayer in Cain... Real Estate Law - Commercial Tue, 12 Jul 2005 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=37 http://www.smithsholar.com/single_tip.php?id=116 Some agents and buyers are skeptical about properties being sold “As Is,” fearing that the owner has something to hide. This is probably not the case, however, because there are many reasons to sell ... Real Estate Law - Commercial Thu, 02 Jun 2005 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=116 http://www.smithsholar.com/single_tip.php?id=138 Yes The Tennessee statues that govern agency laws and representation by real estate agents does apply, for the most part, to commercial transactions. For example, the duties owed to all parties in 6... Real Estate Law - Commercial Thu, 02 Jun 2005 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=138 http://www.smithsholar.com/single_tip.php?id=140 T.C.A. Sec. 62-13-404 sets forth the duties you owe to your client. These duties are in addition to the ones you owe all parties covered in our last Tip of the Week. The statute states: 62-13-404 ... Real Estate Law - Commercial Thu, 02 Jun 2005 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=140 http://www.smithsholar.com/single_tip.php?id=141 T.C.A. 62-13-403 sets forth the duties all licensees have to all of the parties involved in the transaction. The statues provides: 62-13-403 Duty owed to all parties- A licensee who provide... Real Estate Law - Commercial Thu, 02 Jun 2005 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=141 http://www.smithsholar.com/single_tip.php?id=142 Tennessee Code Ann. Section 62-13-405 provides as follows: Written disclosure: (a) If a licensee personally assists a prospective buyer or seller in the purchase or sale of a property, and suc... Real Estate Law - Commercial Thu, 02 Jun 2005 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=142 http://www.smithsholar.com/single_tip.php?id=143 When first meeting a prospective buyer or seller, you must first ask yourself “Who do I represent in this transaction?” The answer to this can be found first by consulting your Broker’s office policy ... Real Estate Law - Commercial Thu, 02 Jun 2005 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=143 http://www.smithsholar.com/single_tip.php?id=40 Here’s a word to the wise about closings in May, June and August-close early in the month! These are the three busiest closing months of the year and all of them have a three day weekend at the end.... Real Estate Law - Commercial Thu, 12 May 2005 00:00:00 -0600 http://www.smithsholar.com/single_tip.php?id=40