Strasburger Real Estate Newsletter

THE TEXAS LEGISLATURE MAY HAVE JUST REWRITTEN YOUR REAL ESTATE LOANS - Strasburger Real Estate Newsletter, June 24, 2011

Fri, 24 Jun 2011 09:00:00 CST

by Stephen A. Roberts
The Texas legislature just rewrote all real estate loan documents in Texas which include an assignment of rents to the lender (and almost all commercial real estate loans do.) As of now, a landlord cannot collect or use any rents after its lender gives it notice of default and demands the rents. As of now, a commercial Tenant cannot pay the landlord after it receives notice from the landlord’s lender demanding the rents, or the tenant may have to pay rent twice. Here are some KEY FEATURES of a new Texas law, which applies to all existing real estate loan transactions, and supersedes the terms of the loan documents...

When Your Commercial Tenant Faces Bankruptcy: A Primer for Landlords - Strasburger Real Estate Newsletter, November 11, 2010

Thu, 11 Nov 2010 09:00:00 CST

by Stephen A. Roberts
The Bankruptcy Code contains a number of provisions specific to nonresidential leases. When the prospect of a tenant’s bankruptcy arises, a landlord should have a basic understanding of these provisions and prepare to move diligently to protect its rights and minimize harm. In bankruptcy, a creditor who sleeps on its rights often loses them...

When Your Bank Tenant Fails: Understanding the Pitfalls of FDIC Receivership - Strasburger Real Estate Newsletter, March 08, 2010

Mon, 08 Mar 2010 09:00:00 CST

by Alison J. Semrau
With bank analysts predicting even more bank failures in 2010 than in 2009, landlords of bank tenants may likely feel nervous. Unlike other commercial tenants, failing banks are not subject to the provisions of the Bankruptcy Code. Instead, they are subject to the FDIC receivership process, which affords far fewer protections to landlords. Understanding the basics of the FDIC receivership process is the first step for landlords in proactively dealing with this difficult situation.....

Success of Short Sales May Fall Short - Strasburger Real Estate Newsletter, July 01, 2009

Wed, 01 Jul 2009 12:00:00 CST

by Mathew A. Thompson and Carolyn Park
A short sale is the sale of real estate in which the proceeds of the sale fall short of what the owner/debtor still owes on the mortgage. In a short sale, the owner/debtor sells the mortgaged property for less than the outstanding balance of the loan and then turns over all the proceeds of the sale to the lender, sometimes in full satisfaction of the debt....

Should the Texas Margin Tax be passed through as an operating expense by landlords? - Strasburger Real Estate Newsletter, June 03, 2009

Wed, 03 Jun 2009 09:00:00 CST

Should the Texas Margin Tax be passed through as an operating expense by landlords? by Joe Bill Whittenburg
With the advent of the revised Texas franchise tax (i.e., margin tax), limited partnerships are no longer exempt entities, so Texas real estate investors, including landlords, now must deal with a franchise tax expense that has not previously been part of their business model. In the long run, the new franchise tax will be born primarily by consumers. In this sense, commercial landlords and tenants could be thought of as conduit or pass-through entities with respect to the new franchise tax. The following market dynamics, though, create very real implications for landlords and tenants with respect to the contractual allocation of the tax burden...

When The Going Gets Tough, The Tenant Gets Going - Strasburger Real Estate Newsletter, January 13, 2009

Tue, 13 Jan 2009 09:00:00 GMT

When The Going Gets Tough, The Tenant Gets Going by Matthew H. Marchant
A slowing economy produces a large number of tenants struggling to meet their contractual commitments. To protect their contractual rights and cash flows, Landlords should be on guard against certain activities of their tenants...

Landlords, Don't Forget About Your Statutory Lien - Strasburger Real Estate Newsletter, December 15, 2008

Mon, 15 Dec 2008 09:00:00 GMT

Landlords, Don't Forget About Your Statutory Lien Potential Environmental Liability by Alison Battiste
In the present economy, commercial landlords are often faced with the daunting task of collecting money from defaulting tenants. The landlord may consult its lease only to find that the contractual landlord's lien provision was negotiated out of the lease. Texas law provides such commercial landlords with some relief, in the form of a statutory preference lien on the tenant's property in the building. The law allows the landlord to judicially enforce its lien for past due rent and, under some circumstances, prevail over secured creditors...

New Standards for Assessment of Indoor Air Quality May Impact Buyers' Potential Environmental Liability - Strasburger Real Estate Newsletter, May 22, 2008

Thu, 22 May 2008 09:00:00 GMT

New Standards for Assessment of Indoor Air Quality May Impact Buyers' Potential Environmental Liability by Richelle Campbell
New commercial standards could require real estate purchasers to conduct certain vapor intrusion assessments to protect themselves from potential environmental liability. The American Society for Testing and Materials (ASTM) recently released a new standard practice for assessing and mitigating the risk that vapors from sub-surface environmental hazards might invade buildings and affect indoor air quality. ASTM's pronouncements are not legally binding, but past ASTM standards have been relied on by courts and ...