Commercial Real Estate Law Practice Manuals with Forms provides a quick, one-volume resource to help you answer most of the problems that can occur in a commercial real estate transaction. The book covers the steps in handling a commercial real estate transaction from start to finish, including those problems most commonly encountered in a transaction, such as brokerage problems, leases, mortgages, title insurance and surveys. In addition, the book covers material that may not be easily available to those who are a novice in this area. This book also includes a CD-Rom containing more than 800 pages of forms that have been developed over years in a real estate law practice.

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Table of Contents
List of Forms         xxi
Dedication         xxvii
Preface         xxix
Acknowledgments         xxxi
About the Author         xxxiii

Part 1: Conveyancing        1


CHAPTER 1
Real Estate Brokers        3
1.01        Introduction        3
1.02        License        3
1.03        Company Policy        5
1.04        Types of Agencies        6
1.05        Disclosure        7
1.06        Listing of Agreements        3
        1.07        Exclusive Right to Self        8
        1.08        Listing of Agreements        8
        1.09        Multiple Listing Service        8
        1.10        Open Listing        9
1.11        Duties of Broker and Principal (Seller)        10
1.12        Right to Commissions        10

CHAPTER 2
Options        13
2.01        Definitions        13
2.02        Types of Options        13
2.03        Disguised Options        14
2.04        Advantages and Disadvantages        15
2.05        Required Provisions        16
        2.06        Names of the Parties        16
        2.07        Description of Property        16
        2.08        Encumbrances        17
        2.09        Grant of Option        17
        2.10        Exercise of Option        17
        2.11        Extension of Option        18
        2.12        Rule Against Perpetuities        18
        2.13        Conditions        19
        2.14        Purchase Price or Rental        20
        2.15        Title and Survey        20
        2.16        Protations        20
        2.17        Right of Entry        21
        2.18        Other Provisions        21
        2.19        Broker        21
        2.20        Government Action        22
        2.21        Recording        22

CHAPTER 3
Contracts off Purchase and Sale        23
3.01        Introduction        23
3.02        Letters of Intent        23
3.03        Bilateral Contract Requirements        24
        3.04        Offer        24
        3.05        Acceptance        24
        3.06        Consideration        24
        3.07        Legality        25
        3.08        Capacity of the Parties        25
        3.09        Writing        25
3.10        Form of Contract        26
3.11        Matters Requiring Attention        26
        3.12        "Whereas" Clauses or "Recitals"        26
        3.13        Parties        26
        3.14        Premises        27
        3.15        Deed        27
        3.16        "As Is"        28
        3.17        Purchase Price        28
        3.18        Mortgage Financing        28
        3.19        Closing        29
        3.20        Title Insurance and Survey        29
        3.21        Adjustments        30
        3.22        Representations        30
        3.23        Conditions Precedent        31
        3.24        Escrow Instructions        31
        3.25        Miscellaneous Provisions        32
        3.26        Execution        32
3.27        Mistake-Basis for Termination        33
        3.28        Mutual Mistake of Fact        33
        3.29        Mistake as to the Subject Matter        33
        3.30        Mistake by One Party        33

CHAPTER 4
Property Interests, Deeds, and Miscellaneous Closing Documents        35
4.01        Introduction        35
4.02        Possessory Estates        35
4.03        Nonpossessory Estates        37
4.04        Manner of Accquiring an Interest        39
4.05        Types of Ownership        41
        4.06        Air Rights        41
        4.07        Subsurface Rights and Mineral Rights        43
        4.08        Condominium Unit        43
        4.09        Cooperative Apartments        45
        4.10        Planned Unit Development        45
        4.11        Co-Ownership        46
        4.12        Visual Artists Rights and Architectural Rights        47
4.13        Deeds        48
        4.14        General Warranty Deed        48
        4.15        Limited Warranty Deed        48
        4.16        Fiduciary Deed        49
        4.17        Quitclaim Deed        49
4.18        Occupying Claimant Law        49
        4.19        Miscellaneous Closing Documents        49

CHAPTER 5
Easements and Licenses        51
5.01        Defining Easements and Licenses        51
5.02        Types of Easements        52
5.03        Creation of an Easement        52
        5.04        Express Easement        52
                5.05        Grants, Reservations, and Agreements        53
                5.06        Typical Provisions        54
        5.07        Implied Easements        54        
                5.08        Prior Use        55
                5.09        Necessity        56
                5.10        Other Implied Easements        56
        5.11        Easements by Perscription        56
5.12        Location and Dimension of Easements        58
        5.13        Designating Easement Areas        58
        5.14        Changing Location or Dimensions        59
5.15        Uses of Easements        60
        5.16        Types of Uses        60
        5.17        Scope of Use        60
        5.18        Use of Easement Area by Servient Owner        61
5.19        Remedies        62
        5.20        Interference        62
        5.21        Overburden        62
5.22        Repair, Maintenance, and Improvements        62
5.23        Transferability of Easements        63
        5.24        Easements Appurtenant        63
        5.25        Easements in Gross        63
5.26        Terminations of Easements        64
        5.27        Express and Inherent Duration Limits        64
        5.28        Abandonment        64
        5.29        Estoppel        65
        5.30        Prescription        65
        5.31        Merger and Misuse        65
        5.32        Release        65
        5.33        Bona Fide Purchaser Without Notice        66
        5.34        Tax Sale        66
        5.35        Marketable Title Act        66
5.36        Reciprocal Easement Agreements        66
        5.37        Typical Provisions        67
5.38        Licenses        69
        5.39        Creation        70
        5.40        Termination        70
        5.41        Remedies        71

Part II: Leases        73

CHAPTER 6
Ground and Net Leases        75
6.01        Introduction        75
6.02        Distinctions Between Ground Leases and Occupancy Leases        76
6.03        Advantages and Disadvantages to Landlord        76
6.04        Advantages and Disadvantages to Tenant        78
6.05        Nature of the Ground Lease        78
        6.06        Descent and Distribution        80
        6.07        Judgements and Execution        80
        6.08        Taxation and Assessments        80
        6.09        Conveyances        81
6.10        Perpetual Lease        83
6.11        Characteristics of Ground Lease        83
        6.12        Rents Must Be Fixed        83
        6.13        Long-Term        84
                6.14        Broad Use Clause        84
                6.15        Insurance Proceeds Must Be Used to Restore Property        85
                6.16        Condemnation Award for Building Must Be Paid to Tenant        86
                6.17        Must Be Freely Assignable        87
                6.18        Absolute Right to Sublet        88
                6.19        Estoppel Certificates        88
6.20        Considerations for Mortgageability        89
        6.21        Ground Lease Differences        89
        6.22        Long-term        90
        6.23        Lease Term Options        90
        6.24        Purchase of Option        90
        6.25        Mortgage on Fee Interest        90
        6.26        Amendments and Modifications        91
        6.27        Mergers        91
        6.28        Right to Cure        91
        6.29        Monetary Defaults        91
6.30        Rights After Default        92

CHAPTER 7
Commercial Leases        93
        7.01        Introduction        93
        7.02        Leased Premises        93
        7.03        Rentable v. Usable Space        94
        7.04        Term of the Lease        94
        7.05        Commencement Date        94
        7.06        Duration of Lease        95
        7.07        Renewal Terms        96
        7.08        Termination        96
7.09        Rent        97
        7.10        Escalator or Pass-Through Provisions        97
                7.11        Step-up Charges        97
                7.12        Adjustments        98
                7.13        Common-area Charges        98
                7.14        Taxes        98
        7.15        Late Payment        98
        7.16        Offset        99
7.17         Obligations of Landlord and Tenant        99
        7.18        Services        99
        7.19        Repairs        101
        7.20        Habitability        101
7.21        Compliance with Law        102
7.22        Use Clause        102
7.23        Assignment        103
7.24        Subletting        105
7.25        Recapture Clause        105
7.26        Insurance        105
        7.27        Typical Coverage        106
                7.28        Casualty Insurance        106
                7.29        Consequential Loss Insurance        106
                7.30        General Liability Insurance        107
        7.31        Use of Proceeds        107
        7.32        Waiver of Subrogation        107
        7.33        Standard Mortgagee Endorsement        108
        7.34        Insurable Interest        108
        7.35        Restoration        108
7.36        Condemnation        109
        7.37        Damages Available to Tenant        109
        7.38        Specific Elements or Items of Damages        109
        7.39        Apportionment of Damages        110
        7.40        Condemnation Clause        110
7.41         Default        110
        7.42        Timing        110
        7.43        Notice and Opportunity to Cure        110
        7.44        Landlord's Remedies        111
        7.45        Mitigation of Damages        111
7.46        Options        112
        7.47        Option to Lease Additional Space        112
                7.48        Fixed Right of Expansion        112
                7.49        Right of First Offer        113
                7.50        Right of First Refusal        113
                7.51        Pocket Space Arrangements        113
                7.52        Puts        114
        7.53        Option to Terminate        114
        7.54        Option to Purchase the Leased Premises        114
        7.55        Recordation        114
7.56        Subordination        115
        7.57        Foreclosure        115
        7.58        Non-Disturbance Agreements        115
7.59        Estoppel Certificate        116

CHAPTER 8
Retail Leases        119
8.01        Introduction        119
8.02        Construction        120
8.03        Easements        121
8.04        Common Areas        121
8.05        Operating Covenants        122
8.06        Percentage Rent        123
8.07        Use Clauses        124
8.08        Restrictive Use Covenants        124
8.09        Exclusives and Radius Clauses        125
8.10        Damage and Destruction        128
8.11        Condemnation        128
8.12        Miscellaneous Provisions        129

Part III: Title Insurancce and Survey        131

CHAPTER 9
History of Title Insurance and ALTA Forms        133
9.01        History        133
        9.02        First Title Insurance Company        134
        9.03        Development of the Standard From        134
        9.04        Forms of Policies        135
9.05        American Land Title Association Approved Forms        136
        9.06        Policy Forms        136
        9.07        Reinsurance Agreements        137
        9.08        Commitment Forms        138
        9.09        Endorsements        138

CHAPTER 10
Basic Title Coverage and Related Agreements        141
10.01        Title Policy        141
         10.02        Exclusions from Coverage        142
         10.03        Schedule A         144
         10.04        Schedule B        145
        10.05        Liens, Encumbrances, and Easements        146
         10.06        Schedule C        147
10.07        Title Guaranty Policy        147
10.08        Facultative Reinsurance Agreement        148
10.09        Direct Access Agreements        150
10.10        Closing Protection Letter        150

CHAPTER 11
Title Policy Endorsements        153
11.01        Forms of Endorsements        153
11.02        Other Endorsements        154
         11.03        Creditor's Rights Exception        155
         11.04        Homeowner's Inflation Protection Endorsement        155
         11.05        Option Endorsement        155
         11.06        Public Records Endorsement        155
         11.07        Restrictions Coverage Endorsement        156
         11.08        Commercial-Industrial Revolving Credit Endorsement        156
         11.09        Assignment of Beneficial Interest        156
         11.10        Aggregation or Tie-in Endorsement- Endorsement for Multiple Policies        156
         11.11        Fairway Endorsement        156
         11.12        Endorsement Limiting an "Exclusion from Coverage"        156
         11.13        Navigational Servitude Endorsement        157
         11.14        Endorsement as to Contiguity        157
         11.15        Comprehensive Endorsement I (Loan Policy)        157
         11.16        Conformity of Foundation Endorsement (Loan Policy)        157
         11.17        Release of Personal Liability-Nonimpairment of Liens        158
         11.18        Pending Disbursement Coverage (Loan Policy)        158
         11.19        Insurance Over Liens in Schedule B        156
         11.20        First Loss Endorsement        158
         11.21        Mineral Excavating Endorsement        158
         11.22        Usury Endorsement        158
         11.23        Last Dollar Endorsement        158
         11.24        Doing Business Endorsement        159
         11.25        Survey Endorsement        159
         11.26        Access Endorsement        159
         11.27        Installment Contract Purchaser's Endo        159
         11.28        LLC/Partnership "Fairway" Endorsement        159

CHAPTER 12
History of and Reading Surveys        161
12.01        History of Survey Standards        161
12.02        Reading and Understanding a Survey        163
         12.03        Rectangular Survey System        163
         12.04        Metes and Bounds Description        164
         12.05        Description of Curves        166
         12.06        Rural or Farm Areas        168
         12.07        Air Rights        168
         12.08        Urban Areas        169

CHAPTER 13
Survey Requirements        171
13.01        Types of Surveys        171
13.02        ALTA/ACSM Survey Requirements        173
13.03        Mortgagee's Survey Requirements        176
13.04        Considerations Relative to Surveys and Descriptions        179

Part IV: Mortgage Financing        191

CHAPTER 14
Mortgage Loan Commitments        193
14.01        Applicable Laws        193
14.02        Types of Commitments        193
14.03        Commitment Provisions        196
14.04        Agreement        196
14.05        Amount of Loan        196
14.06        Interest Rate        197
14.07        Term of Loan        197
14.08        Payment Provisions        197
14.09        Exculpation        197
14.10        Property Encumbered by a Lien as Security        197
14.11        Prepayment Rights        198
14.12        Escrow Payments        198
14.13        Borrower's Covenants        198
14.14        Mutual Covenants        199
14.15        Conditions and Considerations        200
14.16        General Provisions        200
14.17        Additional Provisions        201
14.18        Defaults by Borrower        201
14.19        Lender's Defaults        202

CHAPTER 15
Mortgage Note-Deed of Trust Note        193
15.01        Negotiable or Nonnegotiable        205
15.02        Holder in Due Course        206
15.03        Principal Provisions of a Note        207
         15.04        Principal Amount and Term        207
         15.05        Payments        208
         15.06        Interest        209
                15.07        Fixed Interest        209
                15.08        Contingent or Percentage Interest        211

CHAPTER 16
Mortgage-Deed of Trust        193
16.01        Mortgage Theories        217
16.02        Deed of Trust        218
16.03        Types of Mortgages        220
         16.04        Land Contract        220
         16.05        Purchase Money Mortgage (PMM)        221
         16.06        Wraparound Mortgage        221
         16.07        Leasehold Mortgage        221
         16.08        Bridge or Gap Mortgages        222
         16.09        Participating Mortgages        222
         16.10        Participation Mortgage        222
         16.11        Graduated Payment Mortgages (GPM)/Graduated Payment Adjustable Mortgages (GPAM)        223
         16.12        Roll-Over Mortgage (ROM)/Renegotiable-Rate Mortgage (RRM)        223
         16.13        Reverse Annuity Mortgage (RAM)        224
         16.14        Flexible Loan Insurance Program (FLIP)        224
         16.15        Construction Loans/Acquisition and Construction Loans (A & C Loans)        224
16.16        Mortgage Provisions        225
         16.17        Grant of Lien or Title        225
         16.18        Debt Secured        226
         16.19        Other Provisions        228
                 16.20        Taxes and Assessments        228
                 16.21        Utility Charges        228
                 16.22        Insurance        228
                 16.23        Property Alterations        229
                 16.24        Subordinate Liens        229
                 16.25        Brundage Clause        229
                 16.26        Awards        230
                 16.27        Litigation        230
                 16.28        Property Damage        230
                 16.29        Estoppel Letter        230
                 16.30        Financial Statements        230
                 16.31        Broad Default        230
                 16.32        Notice Waiver        230
                 16.33        Usury        230
                 16.34        Protections        231
                 16.35        Escrow        231
                 16.36        State Laws        231
                 16.37        Security Agreement        231
                 16.38        Leasehold Mortgage        231
                 16.39        Dragnet Clause        231
                 16.40        Foreclosure Site        232

CHAPTER 17
Leasehold Mortgages        233
17.01        Mortgageable Leases        233
17.02        Subordinated Ground Lease        234
         17.03        Advantages        235
         17.04        Disadvantages        235
         17.05        Principal Considerations        235
                 17.06        Term of Lease        235
                 17.07        Demised Premises        236
                 17.08        Rent        236
                 17.09        Use        236
                 17.10        Insurance and Restoration        236
                 17.11        Condemnation        236
                 17.12        Right to Assign        237
                 17.13        Right to Sublease        237
                 17.14        Fee Mortgage        237
                 17.15        Defaults        237
                 17.16        Estoppel Certificates        237
                 17.17        Contests        237
                 17.18        Easements        238
                 17.19        Rights of Leasehold Mortgagee        238
17.20        Bankruptcy Considerations        238
17.21        Leasehold Mortgage Provisions        239
17.22        Title Insurance        240

CHAPTER 18
Construction Loan Financing        241
18.01        Information Initially Required        241
18.02        Note        241
18.03        Construction Loan Agreement        242
18.04        Construction Mortgage        243
18.05        Miscellaneous Documents        243
         18.06        Assignment of Construction Contract to Lenderwith Contractor's Agreement to Continue Work        243
         18.07        Assignment of Subcontracts        244
         18.08        Architect/Lender Agreement        244
         18.09        Consent by Architect-Promise of Continuing Performance for Lender        244
         18.10        Completion Guaranty        245
         18.11        Guaranty of Payment        245

CHAPTER 19
Wraparound Mortgage-Second Mortgage        247
19.01        Wraparound Mortgages        247
         19.02        Characteristics        248
         19.03        Advantages        248
         19.04        Pitfalls        249
19.05        Second Mortgage        250
         19.06        Requirements of First Mortgagee        251
         19.07        Gap Mortgage        252

CHAPTER 20
Collateral Security Document        253
20.01        Security Agreement and Financing Statement        253
20.02        Assignment of Leases        254
20.03        Title Commitment and Title Policy        255
20.04        Surveys        255
20.05        Corporate Officer, Partner, or Trustee Authority        255
20.06        Appraisal        256
20.07        Insurance Coverage        256
         20.08        Hazard Insurance        256
         20.09        Public Liability Coverage        256
         20.10        Rent Insurance        256
         20.11        Boiler Insurance        257
         20.12        Dram Shop Insurance        257
         20.13        Motor Vehicle Insurance        257
         20.14        Workers' Compensation Insurance        257
20.15        Purchase Contract        257
20.16        Torrens Certificate        257
20.17        Guaranty Agreement        257
20.18        Affidavits        258
20.19        Leases        258
20.20        Rent Roll        258
20.21        Estoppel Letters        258
20.22        Subordination Agreements        259
20.23        Non-Disturbance and Attornment Agreement        259
20.24        Assignments of Agreements        259
20.25        Completion Guaranty-Payment Guaranty        260
20.26        Performance Bonds and Payment Bonds        260

CHAPTER 21
Guaranties        261
21.01        Types of Guaranties        261
         21.02        Guaranty of Payment of Debt        261
         21.03        Completion Guaranty        263
         21.04        Guaranty of Net Worth        257
21.05        Problems        263
         21.06        Limited Guaranty        263
         21.07        Consideration        264
         21.08        Foreclosure of Security        264
         21.09        Modification of the Basic Documents        264
         21.10        Release of Security        265
         21.11        Other Defenses Available to Guarantors        266
         21.12        Other Defenses Available to Guarantors        266
21.13        Conclusion        267

CHAPTER 22
Financing Special Projects        269
22.01        General Discussion        269
22.02        Hotels        270
        22.03        Security Requirements        270
22.04        Homes for the Elderly-Nursing Homes        282
22.05        Bowling Alley Buildings        273
22.06        Shopping Centers        274
22.07        Mixed-Use Developments        275
22.08        Apartment Buildings        276
22.09        Office Buildings        277
22.10        Air Rights        278

CHAPTER 23
Buy-Sell Agreements        281
23.01        Introduction        281
23.02        Parties        281
        23.03        Construction Lender        282
        23.04        Permanent Leader        282
        23.05        Developer        283
        23.06        Participants        283
23.07        Other Considerations        283
23.08        Principal Provisions of Agreement        285

CHAPTER 24
Workouts-Mortgage Defaults        287
24.01        General Discussion        287
24.02        Deeds in Lieu of Foreclosure        288
24.03        Workouts        289
        24.04        Mortgagee's Position        289
        24.05        Mortgagor's Position        289
        24.06        Workout Agreements        290
        24.07        Possible Courses of Action        291