Due Diligence in Commercial Real Estate Transactions

In commercial real estate transactions, “due diligence” refers to the investigation and analysis of real estate by a prospective buyer or tenant. The scope of due diligence varies from one transaction to another, depending on the location, history, existing improvements, proposed alterations, and intended use of the property. The scope of due diligence also depends […]

Three Alternatives for a Buyer to Keep a Seller’s Low Mortgage Interest Rate

As mortgage rates rise to their highest level in decades, potential home buyers face higher financing costs; some potential buyers are being priced out of the market. In many cases, the interest rate on the seller’s existing mortgage is approximately half of the interest rate that the buyer might obtain on a new mortgage. If […]

Escalation Clause Tips and Traps for Buying a Home (or an Island)

A purchase price escalation clause provides that an offer to buy real estate will automatically increase to exceed any other offer by a certain amount (see examples below). An escalation clause may be an effective way to make the highest bid; however, an escalation clause should be used only in appropriate circumstances and should be […]

Subleasing and Assignment Provisions in Commercial Leases

Before the COVID-19 pandemic, many business owners paid little attention to subleasing and assignment provisions when negotiating commercial leases. It was common to focus on rent, maintenance, taxes, and insurance, which affect a tenant’s bottom line, and options to renew the lease if the business thrives. Recently, however, one of the top concerns of commercial […]

On-Demand Webinar – COVID-19 and HOAs: How to Operate During the Pandemic

Michael Klemm, David Hellmuth, Phaedra Howard, and Nancy Polomis of our Homeowners Association Team have created a concise collection of information to help the boards and residents common interest communities face new challenges brought on by the COVID-19 pandemic. Even as the Governor’s stay home order is set to expire on May 4, social distancing guidelines and new practices related to […]

COVID-19 and Commercial Real Estate Leases in Minnesota

Coronavirus disease 2019 (“COVID-19”) has become a global pandemic, and Minnesota’s efforts to contain the spread of the disease are directly impacting commercial landlords and tenants. As of the date of this writing, Governor Tim Walz has issued Executive Orders closing bars, restaurants, and other places of public accommodation (see Executive Orders 20-04, 20-08, and 20-18) and directing Minnesotans […]

January 1 Deadline for Preventative Maintenance Plans, Schedules and Budgets

Minnesota Statutes Chapter 515B, the Minnesota Common Interest Ownership Act (“MCIOA”), was amended in 2017 to establish new requirements regarding preventative maintenance plans, maintenance schedules and maintenance budgets.   The specific requirements vary depending on the date that the common interest community (“CIC”) was created.  This article is limited to the requirements that apply to CIC’s […]

Crossing the Line? Obtaining Building Permits for Decks in CIC’s

As summer gets into full swing, Minnesotans spend more time outdoors, and some community association members make plans to build or replace decks attached to their homes.  In many cases, such decks extend beyond the unit boundaries and encroach upon the common elements that are owned by the association or by all association members jointly. […]

New Requirements Under MCIOA: Preventative Maintenance Plans and Construction Defect Claims

 Important changes to Minnesota law were recently made that will affect real estate developers, builders, associations and unit owners.  Minnesota Statutes Chapter 515B, the Minnesota Common Interest Ownership Act (“MCIOA”), was amended to establish new requirements regarding preventative maintenance plans and construction defect claims (see 2017 Minnesota Session Laws Chapter 87, House File No. 1538).   The […]

Criminal Records & Fair Housing

It is common practice for landlords to screen prospective tenants, and many associations require owners to conduct background checks before leasing units in common interest communities. Credit reporting agencies offer inexpensive tenant screening services that compile credit information, residential history, employment history, and public information regarding judgments, bankruptcies, evictions and criminal convictions. In the interest […]