There are various types of clauses, so it's important to understand how they work.
Contingency clauses are certain conditions that must be met for the real estate deal to go through. They offer protection to both buyers and sellers because these clauses allow either party to back out of the agreement under certain conditions without legal or financial repercussions.
The most common contingency clauses in commercial real estate include:
Contingency clauses can also protect the seller by allowing them to continue to market the property in the event the buyer can't meet their obligations within a specified period. While contingencies are essential in real estate agreements to protect both parties, they can cause delays because each contingency needs to be fulfilled before the deal can proceed.
The wording in contingency clauses is crucial, so it's always best to have someone review the contract before moving forward with your commercial real estate deal.
]]>To ensure the collection of a monetary judgment, a judgment lien may be imposed on the property of a debtor. This grants the creditor the right to receive a specific amount of money from the proceeds of the debtor's property sale. This means that the bank has a legal claim over the assets until the debt is repaid. If the debtor fails to repay the loan, the creditor can sell the property to recover the lost revenue. The creditor will need to apply for the lien in court.
Debtors need to keep in mind that over time, interest accrues on a judgment lien, which increases the debt. They do have a right to ask the court to remove the lien if they can't pay. Should the creditor agree, they may choose to accept a financial settlement offer from the debtor based on their company's policies. This allows the creditor to recoup some of their losses.
If the debtor believes the lien is incorrect, they may contest it. However, if the creditor disagrees that the lien should be lifted, they may have to sue the debtor.
When a debtor purchases a property that is tied to a prior order, they may request that the creditor remove the lien.
If you're having difficulty making your payments on a commercial property, it's best to seek assistance from someone who understands your legal rights. This can make the process of getting back on track easier and faster compared to doing it alone.
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