Coronavirus and Considerations for Real Estate TransactionsMarch 19, 2020
As the coronavirus (COVID-19) brings increasing uncertainty to world markets, the U.S. real estate market faces somewhat unprecedented challenges. While real estate markets have weathered many storms, Herrick’s Real Estate team has put together a primer on what owners, operators, tenants, lenders, borrowers, sellers, purchasers, investors and developers should be keeping top of mind as events continue to evolve.
While the landscape is changing quickly, Herrick continues to provide uninterrupted service to our clients, with both in office and remote locations and we look forward to discussing any of your business concerns during this time.
Increasingly, we are experiencing market disruptions and governmental restrictions that have far reaching impacts on landlord-tenant relationships. Herrick’s Leasing Team has been advising our landlord clients and tenant clients on a myriad of concerns relating to their commercial leases. Click here to read a sample of the most common questions raised.
To respond to the evolving disruptions in global markets, borrowers and lenders will need to review their agreements and the particular circumstance each party faces. Click here to read more from our Lending Team in terms of immediate preparations and issues discussing what parties should consider.
For real estate undergoing development or rehabilitation, the current and potential future impacts of the pandemic are far-ranging. Owners and developers are already experiencing delays in permitting and approvals, supply chain and labor disruptions, and project stoppages. Click here to read more on how the pandemic is likely to cause scheduling impacts to nearly all planned and ongoing projects.
PURCHASES & SALES
In the case of an existing real estate purchase and sale agreement, seller and purchaser each should review the terms of the agreement in light of uncertainty caused by the pandemic. Click here to read more about PSAs in the current landscape.
CONDOMINIUM & COOPERATIVE OFFERINGS & CLOSINGS
At this time, the staff of the Real Estate Finance Bureau (REFB) of the NYS Attorney General’s office are telecommuting and are continuing to review offering plan submissions, amendments, and no-action applications, subject to delays. Click here to read more from our Condominium and Cooperative Team on the state of affairs.
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© 2020 Herrick, Feinstein LLP. This article is provided by Herrick, Feinstein LLP to keep its clients and other interested parties informed of current legal developments that may affect or otherwise be of interest to them. The information is not intended as legal advice or legal opinion and should not be construed as such.