GLOBAL QUARTERLY PROPERTY FUND INDEX, Q2 2018

From the rise of electric vehicles to the proliferation of the "work from home" movement, homeowners today demand more from their living spaces than ever before. Homeowners, builders, and remodelers, increasingly are relying on smart and connected devices and novel automation systems to help manage and control energy consumption, energy sources, network connectivity, air quality monitoring, lighting, appliances, entertainment systems, and heating, cooling, and ventilation.

In construction loans, the lender advances a small portion (or none) of the loan at closing since the proceeds are intended to fund construction costs as incurred. The conditions for advancing funds are often complicated because there are three participants--the lender, the borrower, and the contractor--and in part, because actual costs may vary from the construction budget. Most construction loan agreements provide for shifting cost savings for one item to another item in the budget. Construction budgets will usually incorporate "contingency" to be applied by the borrower to pay for cost overruns for items in the budget, subject to certain conditions. Documents must provide for retainage for unforeseen costs to ensure the completion of the project. A construction loan is unique for title insurance because disbursements are made post-closing, and property increases in value with each disbursement. Title insurance must be in place to cover the loan amount as it is funded. Counsel to the lender must structure the loan to ensure the priority of advances and procure title insurance (including appropriate endorsements at closing) consistent with that priority. Also, the borrower will typically need to obtain lien waivers or lien subordination as disbursements are made. Listen as our authoritative panel discusses the construction loan funding process and the need for increasing title insurance coverage as funds are disbursed. The panel will discuss budgeting and construction draw provisions in loan agreements, future advance clauses, and other practices for preserving the senior position of the mortgage over mechanic's liens and the title endorsements to obtain at closing.

From opportunity zones to crowdfunding to off-market deals, there are more opportunities now than ever before to invest in commercial real estate. And leveraging data and technology can really help to differentiate your firm in these scenarios. But how can CRE professionals locate and execute these potential deals, or even choose which one(s) to invest in? And once they identify the best-fit for their portfolio, how should they go about managing the investment?

ENotes and other electronic loan documentation are now routine in residential mortgage lending and have gained more acceptance in commercial real estate lending. The industry is gradually moving toward the digital transformation of the mortgage lifecycle: application, closing, documentation, notarization, recording, and securitization. ESIGN and UETA establish the legality of electronic records and signatures. MERS provides a platform for filing and tracking transfers of "control" of real estate notes from one party to another. However, electronic documents must comply with the UCC and recording statutes (which might require a paper original of the mortgage) and other applicable state laws. If litigation ensues surrounding electronic loan documents, counsel must understand and address enforceability, authentication, and admissibility issues of electronic communications and e-signatures. Listen as our authoritative panel discusses the use of eNotes and electronic loan documentation in commercial and residential mortgage lending. The program will also examine legal and practical issues regarding transferability, UCC perfection, the authentication of electronic signatures, and the admissibility of electronic communications and e-signatures in litigation.