Creative Methods of Structuring Real Estate Acquisitions

It is not possible to survive in the real estate business today using the old, common methods of structuring real estate transactions. To succeed, real estate professionals must be creative. To that end, this article will provide a brief summary of the advantages and disadvantages of some of the alternative methods of structuring real estate acquisition.

Seller Can’t Hide Behind An “As-Is” Clause

A common misunderstanding is that an “as-is” provision in a real estate purchase and sale contract relieves the seller of the duty to disclose to the buyer any of the property’s defects. Generally, even with an as-is provision, the seller must disclose facts known to seller that materially and adversely affect the value of the property, which facts are not known to or not readily ascertainable by the buyer.

Achieving Flexibility in Leases

The long recession coupled with a decline in rents has created a new marketplace reality for commercial tenants and landlords. More tenants now ask for lease flexibility, such as the right to cancel their lease early, to fit with their business needs.