The process of buying, selling, or developing real property is one of the most complex areas of law. It can potentially involve a variety of intricate elements like multiple stakeholders, complicated financing arrangements, and stringent regulatory requirements. As a result, complex real estate transactions require real estate attorneys with significant and specialized experience in these areas. One minor oversight can create major, and often expensive, problems for one or more of the involved parties.
At Palumbo Law, our attorneys have decades of complex real estate transaction experience. Lead attorney Richard Palumbo combines his practical experience as a business owner and investor, with his extensive legal experience in buying and selling real estate, insurance matters, condominium law, commercial real estate, green and sustainable housing, and not-for-profit developments. Attorneys in our firm have represented major commercial lenders and developers in large and complex commercial real estate throughout Rhode Island and Massachusetts. When dealing in complex real estate transactions and litigation, our depth of experience and success ensures that you will be protected every step of the way.
As a result of our attorneys’ vast experience and unparalleled representation in real estate (as well as business law), we regularly receive industry recognition for outstanding legal practice and our clients agree. Our industry recognitions include the Martindale-Hubbell Platinum Client Champion Award; Martindale-Hubbell Peer Review Rating 5.0 out of 5.0; AVVO Review Rating of 5.0 out of 5.0; invitee for America’s Top 100 Attorneys – Lifetime Achievement Award; and Top Lawyers in Rhode Island among many other recognitions. If you have a real estate matter in Rhode Island, Massachusetts, or Connecticut, contact Palumbo Law to schedule a consultation.
What Are Complex Real Estate Transactions?
Here are some examples of complex real estate transactions that you might find yourself involved in:
Lease-Option to Buy
An individual or commercial entity leases a property with an option to purchase it later, usually at a predetermined price and possibly within a specific time frame. These transactions involve multiple parties, contracts, and financial instruments, making them much more complicated than the average real estate transaction.
Tax-Deferred 1031 Exchanges
An investor sells one property and uses the proceeds to purchase another ‘like-kind’ property, deferring capital gains tax. This transaction must meet specific IRS guidelines, involve another party, and be completed within specified timelines to qualify for the tax deferral.
A business sells its real estate assets to an investor and then leases them back. Sale and lease-back transactions can provide much-needed cash for businesses, and an opportunity for investors to pursue higher-returning investments, such as capital expenditures to upgrade equipment.
Condominium ownership offers a unique opportunity where the condominium unit owners have exclusive rights to their individual units and a collective interest to use and enjoy the whole property, but within the limitations set forth by the condo bylaws. Developers have an investment opportunity to create homes and obtain returns on the sale of the units, but there are stringent rules and developers must be careful to abide by the State, County, and Town/City condominium rules and regulations. This type of ownership and development arrangement sometimes results in complex disputes.
Sale of Foreclosure Properties
The sale and purchase of a foreclosed property may seem like a straightforward transaction but usually requires extensive experience to ensure that the transaction is valid under state and local laws. Issuing a notice period by even just one day can ultimately render the sale and purchase invalid.
Public-Private Partnerships (PPP)
A city and a private developer may partner to develop a mixed-use project that involves residential, commercial, and public facilities. These transactions may involve tax incentives, special zoning considerations, and complicated contractual agreements that outline the responsibilities and benefits for each party.
Multiple buyers may sometimes jointly purchase a large commercial property. In such cases, establishing a clear agreement that delineates the rights, responsibilities, and profit-sharing among all parties can be complex and requires great attention to detail.
Commercial Mortgage-Backed Securities (CMBS)
These are financing transactions where a lender provides a commercial loan for a property, then packages that loan with other similar loans and sells it as a security. These can be incredibly complicated transactions because they often involve multiple properties, lenders, and financial structures.
Real Estate Investment Trusts (REITs)
REITs are a great tool for investors and developers, but become complex transactions where the REIT pools money from multiple investors to buy, operate, and potentially sell income-producing real estate such as shopping malls, office buildings, or hotels. This requires experience and expertise in multiple areas of law, such as estate planning, real estate, and business planning.
Urban renewal may involve negotiating with various stakeholders such as local government, residents, and businesses. The project may also require special environmental clearances.
These projects combine residential, commercial, and sometimes industrial uses into one development. The transaction may require multiple types of financing, special zoning approvals, and agreements with local governments.
Land Assembly involves purchasing multiple parcels of land from different owners to create a single large property for development. Each purchase could involve separate negotiations, making the overall transaction very complex.
Projects developed with public subsidies or low-income housing tax credits involve complicated agreements with governmental agencies and must meet specific regulatory requirements to maintain their affordable status.
Each of the above examples involves a unique set of challenges that require expertise in real estate law, finance, and often multiple other specialized disciplines.
Real Estate Lawyers Serving Rhode Island, Massachusetts, and Connecticut
At Palumbo Law, we are highly experienced real estate attorneys. Our diverse experiences and background in multiple areas of law allow us to anticipate and eliminate the unknown. We have a broad array of collective legal experience representing local and multinational businesses, retail and institutional investors, and a variety of other complex real estate transactions. If you have a real estate matter requiring advice or urgent action, please contact Palumbo Law to schedule a consultation.