Commercial Investment Real Estate

JUL-AUG 2017

Commercial Investment Real Estate is the magazine of the CCIM Institute, the leading provider of commercial real estate education. CIRE covers market trends, current developments, and business strategies within the commercial real estate field.

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Page 23 of 54

CCIM.COM July | August 2017 19 be tossed in the garbage. In reality, the buyer's concern was that the property value had dropped to $33 million. Transparent Communications To identify red fl ags from a buyer, a broker and seller must pay attention to changes in a buyer's behavior. For example, a buyer may start communicating less frequently or continually request extensions of the closing date. If a seller notices these changes, he should discuss them with the buyer. He also should create a comprehensive paper trail showing his adherence to the contract and write every commu- nication as if it is going to be used as an exhibit for litigation. If a buyer fails to remit the balance of the purchase price to the escrow agent and fails to close in a timely manner, the seller should immediately send a letter showing the default and exercis- ing his right to terminate the agreement and retain the deposit. Should this result in litigation, the seller will be well-equipped to successfully defeat a buyer's claims. Reaching the Finish Line Thinking moves ahead is important in a chess game and in closing a deal. Unforeseen circumstances, however, are a part of the process. Commercial real estate professionals should always review the draft contracts, while keeping potential litigation in mind. For any questions, they should ask the real estate attorney. Typically, the contract will be the most scrutinized document in this type of litigation. Having safety valves in place, a clean and easily understood contract, and mechanisms to make the other side think twice before backing out will help keep the closing on track. For those engaged in a transaction, it is essential to maintain communication throughout the closing process. Fol- lowing these steps will prevent the necessity of wasting time and money in litigation. Javier A. Lopez, a partner with Kozyak Tropin & Throckmorton, and Stephanie M. Gomez, an attorney with Kozyak Tropin & Throckmorton, focus their practice on commercial, business, and real estate litigation. Contact Lopez at and contact Gomez at Real estate investors and professionals must have safety valves placed into a sale and purchase contract, fi rst gently and then more rigorously, to remind the buyer about the pain of backing out. Various options are available on how to dissuade a reluctant buyer from not signing a contract. Advertise in CIRE Magazine to connect with 13,000 members in the CCIM global community. Build More Business Referrals CCIM business owners receive a 20% discount on select ads. Learn more at

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