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Recent Blog Posts
What Forms of Due Diligence Need to Be Performed in the Purchase of Commercial Real Estate?
Investments in commercial real estate can be very lucrative but can also be very costly if mistakes are made. There are a variety of concerns that will need to be addressed when purchasing commercial property. This article is brief summary of some of the main due diligence items but is not exhaustive. If a buyer will be assuming ownership of property that tenants currently occupy, they will need to be prepared to assume existing leases and understand any other contracts that are in place that will survive the Closing such as service contracts, Declarations of Restrictions and Easements, and other agreements. To ensure that the Due Diligence Process is done correctly and critical items are not missed by the Purchaser, it is crucial to work with an attorney who can help perform due diligence or guide the client in what matters of due diligence are most important during the due diligence period under the subject Purchase Contract in a transaction.
Commercial Lease Modifications for Tenants Affected by COVID-19
Since the onset of the COVID-19 pandemic in 2020, businesses in Illinois and throughout the United States have encountered financial difficulties. As the country is beginning to return to normalcy, some businesses have been able to resume their regular activities and continue operating successfully. However, many businesses are still struggling as they determine how to respond to the loss of revenue that occurred due to the pandemic. These issues have affected many commercial leases, and both landlords and tenants may need to determine how to address situations where a business has been unable to pay rent on a short-term or long-term basis.
Negotiating Lease Modifications for Commercial Landlords and Tenants
As commercial tenants have encountered financial struggles, this has put many landlords in a difficult position. While some landlords many have pursued lease enforcement actions, others may have been hesitant to do so due to the difficulty of finding new tenants in the current marketplace. Rather than pursue evictions or take steps to terminate a lease, it may be beneficial for both parties to negotiate lease modifications that will allow a tenant to continue occupying a space as they attempt to address their ongoing financial issues.
How to Successfully Navigate Through the Zoning and Development Process For Existing or New Commercial Real Estate Development Projects
Real estate developers and investors will typically have multiple opportunities to pursue projects involving commercial real estate which may include retail, industrial, office and various mixed-use developments. A development project will typically involve the construction of on-site and off-site improvements, the construction of new buildings or structures, and a variety of other changes that will allow a property owner to generate revenue by leasing space to commercial tenants. However, when planning to purchase commercial property or begin a development project, owners and investors will need to understand how zoning laws will apply to them and their options for addressing any issues that may affect their ability to carry out their plans. Any mistakes with this process can be very costly and fatal to a project. The zoning and land use attorneys at Lindell & Tessitore P.C. have extensive experience in helping buyers and owners navigate through the zoning and development process, including, but not limited to, due diligence matters and in seeking to obtain all zoning and development entitlements needed for the zoning or development project.
What You Need to Know About Construction Defect Litigation
Few things are more frustrating than finding that your home or building was built with some type of defect. These defects may not be discovered for years down the road after any warranties have long expired. Sometimes even your commercial general liability (CGL) insurance will not help you recoup the costs to fix the construction defect.
Why Your Insurance May Not Cover You for Construction Defects
The way Illinois courts have interpreted CGL coverage issues differs significantly from many other states. Most CGL insurance policies state that coverage does not kick in until there has been an occurrence. Illinois courts have interpreted occurrence to exclude defects introduced during the construction process because those acts were intentional and not accidental as the case with other types of covered occurrences.
This leaves many owners of defective buildings unable to collect from their CGL policies for the defects. Sometimes their only option is to sue the general contractor or subcontractor.
Perfecting Your Mechanic's Lien in Illinois
A mechanic's lien, also called a materialman's lien, is intended to prioritize the rights of contractors and suppliers to be paid for the construction or improvement of property. A claim filed on a mechanic's lien generally takes precedence over mortgages, leases, and other financial obligations of the property owner or lessor. A mechanic's lien can be a valuable tool for contractors and subcontractors, but only if the proper procedures have been followed.
Perfecting a Mechanic's Lien
A contractor or other party looking to enforce a mechanic's lien will often be limited in their ability to do so unless the lien has been perfected. To begin this process, subcontractors and material suppliers must follow a few steps under Illinois law, since such individuals and companies often do not have a direct contract with the owner of the property. The specifics of the notice required for perfecting the lien depend on the type of project, with different mandates for single-family residences and all other properties.
Buying Residental Real Estate For Retirement Days
As times and people progress, old traditions are updated. Retirement is one of the things that is going through constant evolution. Nowadays, not everyone wants to stay in their age-old home of 30 years for their retirement. That is why we are going to discuss the purchase of residential real estate for your retirement for a little bit. Information on retiring with real estate can be found, for example, in this article in Forbes.
Firstly, not being able to maintain a big, old house by yourself is not a reason to rush into a retirement home. You can switch to a more convenient location where you don’t need go on a lawnmower frenzy for two hours every two weeks. A condominium might be a better choice than a huge house.
Of course, buying real estate for retirement is not only about buying a home for yourself. Investing in real estate is a good way to keep a steady income while retired. Just bear in mind that purchases of this caliber will also involve some legal aspects. Whenever there are larger amounts of money exchanging hands, there is a need for contracts. Real estate is bought and sold constantly, so it has its own set of rules and laws. Fortunately, there are attorneys who focus mainly on real estate law, so you don’t have to go through all the legal issues alone and no guesswork is necessary.
Home Prices on the Rise
According to Bloomberg, home prices in some of the best areas of Chicago are on the rise again. These prices are better than a lot of the homes in southern Chicago and reflect the changing scene in some of the area.
Homes in areas such as the West Loop and Lincoln areas are coming along nicely with the price increases. These areas offer homes with many high end appliances as well as other fixtures in the homes. This also helps with the price rebounds and making the best amounts with these homes.
The prices in the homes that are in the higher end areas are also climbing because there are more people looking at buying homes that work for them. They may be looking for homes that have these great appliances as well as some of the items that make a home really nice in general. They may also have a home to sell and are now able to sell it so they can purchase a new home that is nicer like this.
Homes on the south side of the city are not seeing the price jumps that are being enjoyed in the rest of the city because of the common problems that go with the area. These homes are lower priced, but the homes are also priced lower because of the area they are in and the crime rates that are associated with the neighborhood.
Governor Quinn Extends Enterprise Zone Tax Breaks
Illinois has maintained a tax incentive program for businesses in enterprise zones since 1982. The law authorizing this program had been set to expire next year. According to the Chicago Sun-Times, Governor Pat Quinn signed a law, effective immediately, which extends the Illinois Enterprise Zone Program for another 25 years.
Illinois currently has 97 enterprise zones in which businesses can obtain tax breaks pursuant to the Illinois Enterprise Zone Program. Essentially, the enterprise zone tax break program gives businesses that locate or expand within certain designated areas tax breaks. These tax breaks include the following:
- exemption on the retailers’ occupation tax paid on building materials
- investment tax credit of 0.5 percent of qualified property
- tax credit for any jobs that the businesses create
According to the Illinois Department of Commerce and & Economic Opportunity, businesses locating or expanding in enterprises zones that meet certain requirements, such as creating or retaining a certain amount of jobs, also may be entitled to additional tax breaks, such as:
Holding Title to Illinois Real Estate
When you take legal title to real estate as an individual, there is no question as to how title to the real estate is held. However, when one or more persons take legal title of real estate, Illinois law allows title to be held in three different ways. A knowledgeable real estate lawyer can help you determine which type of ownership best suits you.
The first option for multiple owners is that parties can hold real estate as “tenants in common.” This is the most typical and basic type of joint ownership. If no other type of joint ownership is specified, then it is presumed that the property is held as tenants in common. The joint owners can hold the property in equal or unequal shares, but they both or all have the legal right to utilize all of the property.
Another option for when more than one owner is involved is that joint owners can hold title to property as “joint tenants with right of survivorship.” In this situation, the owners must take title to the property at the same time, by the same document or deed, in equal shares and having equal rights to possession. If one of the owners dies, then the remaining owners are entitled to the shares of the deceased owner. In Illinois, the Joint Tenancy Act governs joint tenancies.
Supreme Court Sides with Real Estate Fees
The Supreme Court has ruled in favor of Quicken Loans in the case brought against them by three families from Louisiana. The result may make it ultimately more expensive for families to purchase new homes. Many families have proposed in the past that administrative fees were unfairly levied against them by mortgage companies when services were not provided.
The families from Louisiana have all claimed that the company Quicken Loans had improperly charged them up to $1,100. These fees were from three separate residential mortgage closures back in 2007. It was supposed that the fees were paid in order to receive an interest rate reduction that was never given. The Detroit-based company maintained throughout the litigation that these families did receive the reductions.
The crux of the legal argument was a real estate law meant to be a provision for consumer protection back in 1974. These rights are afforded to any homebuyer under the Real Estate Settlement Procedures Act. This act is designed to protect homebuyers from excessive fees and kickbacks while financing their home. It also requires the full disclosure of fees, interest rates, and any additional costs associated with the financing process.
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630-778-3818
