What to consider when signing a commercial lease with a bank owned property

Read the proposed lease carefully, or have an expert review the lease. Most purchasers and sellers of shopping centers want there to be tenants. Purchasers are buying the leases as much or more than they are purchasing the land and improvements. The price the seller receives is determined by dividing the net operating income from rents by a capitalization rate, somewhere above or below 5%. Most buyers will not count a lease towards the purchase price, unless there are at least 3 years remaining in the term. Lenders often will not count leases with a remaining term less than 5 years. So I would be a little surprised to see a provision allowing the bank to kick you out on a sale, but it could be there. Look very very carefully. If you appreciate this free advice, please remember to refer me to any friends or acquaintances who need a lawyer. Referrals are still our best source of new business. Do you have a revocable living trust to protect your heirs against probate? Probate takes forever, is expensive, and is annoying. Do your family a favor. Set up a trust, and put all your property, especially any real property, into the trust. Since it is revocable, you can change it, add to it, take property out of it, or even cancel it completely, at any time. We set up such trusts, provide a pour-over will as a back-up for any property that does not make it into the trust, provide you with blank durable powers of attorney for health care and financial decisions, in case you become incapable of making such decisions while still alive, and convey one piece of real property to the trust, usually the family home, for $1500.00. If you would like to hire me to do this, let me know, and I'll send you a list of the information I need. Dana Sack