Commercial real estate is a big part of the economy in Miami. Given that the city is so attractive as a place to live and visit, building and commercial real estate transactions are unavoidable. With some of these, there are disputes between developers, construction companies and others involved in the business. If, for example, there is an attempt for commercial foreclosure, businesses and commercial companies need to defending against it.
When there is a construction lending agreement, there could be legal issues regarding the lender committing misconduct or a note between the predecessors in interest. For this to be enforceable by the borrower, all agreements are required to be in writing. When the lender does not have a promissory note that was secured through a mortgage, the lender cannot enforce the note or foreclose on the property. A lender can try to fix this issue by re-establishing the promissory note. When this cannot be done, the lender will have an issue proving the debt and foreclosure is not possible. A method that might be used to help both lender and borrower is to sell the property to a third party at a higher price.
With lender liability, there are often strategies used by the lender to stop funding prior to the borrower defaulting to get the borrower to surrender the property. This might happen in a project that is nearly finished with the lender suddenly stopping funding. The company or individual building the project will then have the right to file a case to deal with such a tactical and underhanded strategy. When building commercial real estate, office complexes, apartments and more, it is important to get the point of view of the lender and the borrower.
Real estate can be lucrative, but it can also be complicated and difficult. Those who are embarking on a real estate project or who are providing the funding need to have a grasp on the various legal issues that can come up before, during and after. At our law firm, we attempt to help our clients with commercial real estate litigation problems.