The Power of Email in Real Estate with Patrick Boland of Your Realty Insider

Mezzanine loans have become the preferred vehicle for subordinate financing in real estate transactions. The repayment obligation is typically secured by a perfected UCC security interest in the mortgage borrower's equity interests. Counsel should have a thorough understanding of how the foreclosure remedy is exercised under Article 9 and the mezzanine foreclosure ramifications for the mortgage borrower, mortgage lender, and other parties to the transaction. Before commencing foreclosure, the mezzanine lender must review all relevant transaction documents, including UCC insurance policies. If the debtor "opted into" Article 8, the lender must locate the certificate. Counsel must understand the mortgage lender's rights and the rights of any senior mezzanine lenders, ground lessors, or other parties with interest in the underlying property. An intercreditor agreement will likely provide the most significant input into the timing and nature of remedies vis a vis other lenders. Article 9 provides that a public sale must be conducted in a "commercially reasonable" manner, with advance notice to all relevant parties under Sections 9-611 and 9-612. The public must have a "meaningful opportunity" for competitive bidding, requiring some form of advertisement or public notice preceding the sale. The location and manner of the sale should be appropriate to allow for public access to the disposition. Recent New York case law indicates that "commercially reasonable" may entail more stringent standards in light of foreclosure moratoriums and the continuing impacts of the pandemic on real estate properties. The mortgage may limit the transfer of ownership interests in the mortgage borrower to a "qualified transferee," generally defined as either the mezzanine lender itself or an institutional investor meeting specific requirements. This significantly restricts the potential universe of purchasers at a foreclosure sale, and the process of "qualifying" the winning bidder may inject uncertainty surrounding the ability of a buyer to close.

Whether you know it or not, anyone who works in the housing industry is likely impacted by the historical practice of redlining. Redlining is the discriminatory and systemic denial of services to those residing in communities associated with a certain racial or ethnic group. By hindering the economic development in neighborhoods populated by ethnic minorities, redlined areas become underdeveloped and undervalued while their residents become poorer.

The importance of drafting CC&Rs in mixed-use projects cannot be overstated. CC&Rs create complex contractual rights and obligations and property rights and obligations that impact the owners' ability to use, sell, and finance the property. A significant component of CC&Rs is creating easements that impact daily business operations and other users of the property subject to the document. Properly drafted easements will address critical business issues such as access, construction, shared parking, signage, and maintenance. Counsel must avoid pitfalls and conflicts to minimize owner disputes and operational problems when drafting or amending CC&Rs. Using boilerplate language is ineffective at best and, at worst, is a risky means of dealing with the specific needs and demands of a developer or business owner. Listen as our authoritative panel provides practitioners with a clear understanding of how to draft effective CC&Rs for mixed-use projects, avoid common pitfalls, and amend existing documents.

Realvolve Webinar: Mark Stepp & Kendyl Young discuss the Client Lifecycle - This webinar begins by looking at the client lifecycle of a contact from LEAD - CLIENT - PAST CLIENT and the workflows that Kendyl put in place to handle each milestone. The we have a discussion on some of the particular actions and checklists to handle challenges in the cycle.