If you are like me, you probably have gotten tired of
the 'lets wait and see' mentality many people have with respect to the
economy. Many seem to be waiting for the economy to make some sort of quick
shift back to the way things were a few years ago.
I hate to say it,
but I do not think this is not going to happen. We are very likely to drag
along at this rate and pace for quite some time with slight ups and downs.
As in most cases, business operators who continue to be active in
working their plan around the current conditions are going to continue to
benefit. There is no doubt that many business strategies and plans will
need to change.
If you are confused or frustrated about how you are
using the real estate you own or lease for your business in the best
possible manner, please give me a call. We can discussit and simply see of
there is a fit and something that can be done!
Best regards, Rob Cassam
Carolina
Realty Advisors
704-442-1774 Ext. 100
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Eight Critical Questions To Ask Regarding The Condition of Your Next Space You
Lease |
Knowing what the condition is of the space you are considering leaseing
is important! Failure to discuss these issues and address them on
your lease could lead to lots of unwanted problems and potential
charges.
Consider these important questions:
1. Is
the tenant accepting the premises AS IS and without any build-out
obligation from landlord? Even so, the landlord should still represent
and warrant that the condition of the premises, building and project
comply with applicable laws as of the commencement date, including those
relating to disability access and hazardous materials (including
asbestos), and that the building systems serving the premises are in
good working order.
2. Is the landlord delivering a cold shell,
warm shell or turn-key tenant improvements?
3. Can you describe
the line between the work the landlord is to perform (and pay for) and
the work the tenant is to perform (and pay for)? Misunderstandings about
the parties' build out responsibilities are a major source of conflict,
so be sure to discuss these responsibilities in great detail.
4.
What is the tenant improvement allowance and how is it calculated? Per
rentable or usable square foot? Is the landlord open to providing an
additional allowance which would be amortized and repaid over the term
of the lease as additional rent?
5. If the entire allowance is
not applied, who gets the remainder? Preferably it would be credited to
rent. Alternatively, the funds remain available to the tenant for
alterations later in the lease term.
6. Are there any unusual
build-out requirements, such as internal staircases, high density file
cabinets, showers, training or childcare facilities, satellite dishes or
extra HVAC? Have those been approved by the landlord at least in
concept?
7. Has the landlord approved the tenant's finishes?
8. Does the lease provide a mechanism for delivering a punchlist and
when is the punchlist due?
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North Carolina Becomes Third State in 10 Months to Enact Broker Lien Law |
By Randyl Drummer- NCCCIM June 22, 2011
North Carolina last
week became the 29th state to enact a law allowing commercial real
estate brokers to obtain a lien as a legal remedy against a property if
the buyer, seller, lessee or lessor fails to pay the agreed-upon
commission or fee.
The Tar Heel State follows Colorado and
Michigan, which adopted similar laws in August and October of 2010,
respectively. Legislation has been introduced in a number of other
states over the last year, including Oregon, North Dakota and Delaware.
The laws have a common purpose: to protect brokers by statute from
clients who can't or won't pay commissions, often forcing a
time-consuming and costly legal standoff where costs may far exceed the
disputed commission or fee. Without the protection of a lien, proponents
of the law say, the real estate broker may get stiffed on the
commission, or forced to accept a reduced fee or "commission-ectomy," as
it's known in the business.
The past real estate downturn was
rife with examples of brokers losing out on commissions, often by
financially distressed buyers, sellers, landlords and tenants.
North Carolina Gov. Bev Perdue on June 17 signed HB174, the Commercial
Broker Lien Act. The legislation, co-sponsored by Reps Darrell McCormick
(R-Iredell), Pryor Gibson (D-Anson), Leo Daughtry (R-Johnston) and Tom
Murry (R-Wake), culminates an effort that started in 1997.
The
legislators worked in cooperation with the North Carolina Association of
Realtors to steer the bill through the Legislature. In most states,
Realtor groups, with support from the National Association of Realtors
(NAR) and its affiliates, the Society of Industrial and Office Realtors
(SIOR), the CCIM Institute, the Institute of Real Estate Management
(IREM), and the Realtors Land Institute (RLI), have led legislative
initiatives to introduce and enact the state laws.
Opposition to
the laws historically has come through State Bar associations, banks and
other groups opposed to the addition of another lien to the property
transaction process. Opponents claim the liens may complicate deals,
cloud a property's title, impede financing, interfere with basic
property rights and even violate due process.
James A. Hochman, a
commercial real estate attorney with Coman & Anderson P.C. based in
Lisle, IL, said such arguments are an attempt to exploit "fear of the
unknown" and are not grounded in facts, based on his experience
asserting and litigating broker lien claims in several states over the
last two decades. Hochman has consulted for and represented real estate
groups and testified before several legislatures in pushing for broker
lien acts, including the first significant law, enacted in Illinois in
1992. He worked as legal counsel for CB Richard Ellis when several of
the early laws were adopted.
In North Carolina, he represented
NAR and its affiliate SIOR, working with Rep. McCormick and the state
association to craft and fine tune the legislation, and address
objections.
"[Broker liens] don't hurt anybody other than
somebody who agrees in writing to pay a commission and then doesn't do
it," Hochman tells CoStar. "When brokers have lien rights, they
typically get paid without the need for litigation. The mere threat of the
broker lien leads to payment at closing in exchange for a lien waiver."
The NAR supports enacting legislation in the remaining
21 states where no broker lien law exists, the association said in a
statement.
Litigation to recover commissions is not always
economically feasible and invariably results in delays, to the detriment
of the real estate brokerages and commissioned agents involved in the
transaction, CCIM Institute said in a public policy statement published
on its Web site this week. However, because attorney's fees can be
recovered by the successful lien claimant, brokers in states protected
by the law can threaten or pursue litigation to protect their interests
that otherwise wouldn't make financial sense, Hochman said.
Language varies from state to state, but most laws require that the lien
language be placed in the written agreement signed by both the client or
party the broker represents, and the real estate brokerage agency.
Typically the agreement is valid only for the principal broker.
In its position statement, CCIM Institute "supports the enactment of
commercial broker lien laws in all states to serve as a safety net for
brokers who previously had no means of insuring payment of the agreed
upon fee for their services, other than costly legal battles." Further,
lien laws should be forceful and efficient in protecting brokers in
commercial lease transactions as well as property sales.
"As more
and more states contemplate creation of such laws, commercial brokers
will have a greater sense of security when completing a transaction,
which is beneficial to not only the brokers themselves, but their
clients and the commercial real estate market as a whole," CCIM said.
Although brokers take haircuts on commissions in good times and bad,
the weak economy and pressure on small brokerages played a role in
finally pushing the law through in North Carolina after 14 years.
"Because of the economic situation we're in, and what we're seeing
happening to our brokers, this definitely gave us a better leg to stand
on to get this done," said Cady Thomas, director of government affairs
for the North Carolina Association of Realtors, who pushed for the
recent legislation. "We've been trying to enact this law since 1997. We
couldn't even get a hearing back then."
Realtors in North
Carolina resurrected the issue two years ago during the recession but
could not get the state legislature to bring the matter to a vote.
The North Carolina law gained impetus from the case of a Raleigh
broker who had been working on a transaction for several years with an
investor based in Texas, which has lien rights for brokers. "Whenever
they sent a closing packet, it included a lien waiver. The broker
promptly called the investor and said 'we don't need this, we don't have
lien rights,'" Thomas said.
The Texas investor then said they
intended to renegotiate the broker's commission, at a loss of $170,000.
"That gave us a real-life example of our brokers being taken
advantage of," Thomas said.
Some claim the broker lien laws
afford more protection for smaller firms that may lack the legal
resources of larger ones, Thomas said. Larger companies tend to have
more clout, contacts and resources than boutique shops, ensuring their
participation in a transaction from start to finish, and often
representing both sides in deals.
"The broker is the easiest
party to cut out of a transaction when they don't have lien rights
because in most cases it's not economically feasible to sue for their
commissions," added Thomas. |
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How to Block Your Phone Number from Spies
You normally do not want to have your phone number
blocked when calling from home or on your cell phone. But there are times
when you really don't want someone or a company you need to call to have
access to your phone number -- particularly your cell number.
Fortunately there's a pretty easy solution to this dilemma.
If
you are using either a land line phone or a cell phone all you need do to
block your phone number is dial *67 before dialing the number you wish to
call.
This trick works across carriers and on all telephone networks.
It is the standard way to hide your phone number. And it works on both
landline and cell phones.
Some smart phones are set up so you can set
your cell phone to always block your number if you wish. For example, on the
AT&T iPhone simply go to Settings/Phone/ Show My Caller ID. Just set the
switch to Off.
Now you can go anonymous whenever you want!
CLICK HERE
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Contact Information |
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What I do... |
I
provide
real estate brokerage services for small and medium sized businesses, investors,
and individuals who are fed up with loosing money, paying too much, spending too
much time not getting the right piece of property for their particular
situation.
I act as the quarterback in the real estate transaction for my clients who coach
me in managing all of their different needs.
My clients love not needing to worry about making bad decisions or bad
investments and love winning negotiations.
Ask yourself these questions:
What types of growing pains is your company facing with your location?
Are rising occupancy costs a challenge your company is facing?
Is having too much space or not enough space a challenge your company is
facing?
How much of a problem is dead equity in your property for you?
How long are you prepared to go on doing nothing about situations in
your business that are not quite right?
Give me a call, I may be able to help with your lease or purchase!
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How To
Lease Commercial Property |
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