The Business Litigation Blog

Archive for tag: Commercial Real Estate Litigation

Landlord Loses Commercial Real Estate Action for Rent Accruing Before it Purchased the Property

In most cases, the buyer of property wants to know whether the tenants have paid the rent and, if they haven’t, how much they owe.  The purpose of obtaining that information is to decide what to do about it, however.  Simply buying commercial real estate does not give the purchaser any right to rent that wasn’t paid by the tenant before the purchase, according to a recent case decided by the Appellate Court of Illinois, First District:  1002 E. 87th Street LLC v. Midway Broadcasting Corp., et al. This could have been handled in the real estate contract or a separate agreement transferring account receivables to the purchaser.  If there was a substantial arrearage, a discount to the purchase price perhaps could have been negotiated.  Here, however, there was no lease provision or separate contra...

LLCs Protect Real Estate Investors

The New York Times of April 30, 2018, had an article about Limited Liability Companies, some of which own real estate, and take advantage of the anonymity and limited liability features offered by the Limited Liability Company Acts existing in most states.  These protections are not available to most small real estate investors.  Most banks will not finance the purchase of a two-flat or a three-flat by an LLC.  Only the larger investors such as Sean Hannity, who invested in troubled properties through a large LLC, can take advantage of this.  The Times missed another issue, one that affects corporations and LLCs.  The proliferation of corporate and LLC affiliates, subsidiaries, and parents can work a fraud on the unsuspecting.  One LLC will have two members, each an LLC, each of those LLC...

What Do You Do If Your Landlord Charges You an Exorbitant Common Area Maintenance Fee?

You lease a commercial property in Chicago for a retail business in a shopping center.  You have a 10-year lease that you negotiated with the landlord.  For the last couple of years, you have paid $100,000 a month along with about $10,000 in common area maintenance (CAM) fees.  This month, though, you received a bill for $60,000 for CAM fees.  You have no idea why.  You have enough cash flow to pay the bill, but you had earmarked that money for some new fixtures.  What recourse do you have? Terms of the Lease While Illinois has laws that govern commercial leases, the most important thing that controls the terms and conditions of your lease is, of course, your lease.  You negotiated the lease two years ago, so you should know what it says, right?  If you negotiated the lease on...

 
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