Recent news has shown that the State of California has not been a wise landlord, leaving millions in uncollected rent. This articles outlines some of the advantages of the commercial landlord over the residential landlord in California. Historically parties negotiating a commercial tenancy are more likely to have equal bargaining…
Last week I discussed the use of the all-inclusive or wrap deed of trust. First, some definitions. The Seller owns property and pays the underlying note secured by the underlying deed of trust. The Buyer is the person who commits to pay the overriding note to the Seller secured by…
The last period of high inflation in California mortgage loan rates this author saw the use of all-inclusive deeds of trust (a.k.a. wraparound deed of trust) to allow borrowers to acquire property when it was difficult to qualify for a high interest rate loan for the entire purchase price. Given…
Receivers have recently been in the Sacramento news concerning the status of the Senator Hotel, a situation where the loan was in default and the lender had a receiver appointed.. With distressed properties at record levels, an increasing number of Lenders are turning to receivership to help salvage troubled properties.…
Lenders on commercial properties usually require a Deed of Trust that gives them an assignment of rents and profits. The idea is that, if the borrower defaults, the lender is entitled to all rents and profits which have accrued and are collected after the default. Profit is short for” profit-à-prendre“,…
California Civil Code section 1950.7 controls the commercial Lessor / Landlord’s use of the deposit. A commercial landlord got a surprise in decision involving a San Francisco commercial lease. The tenant had already leased the premises for five years when PERS (Public Employee’s Retirement System, California’s state employee retirement program)…
A recent decision granted a judgment to a neighbor for a fire in Santa Clara County. The plaintiff owned several original documents written by Albert Einstein; the plaintiff’s father & Einstein were friends. To go through the papers, the plaintiff had brought them to his get-away trailer parked on rural…
A “Power Coupled With An Interest” is an ancient legal concept that is different from an ordinary power of attorney. A power of attorney gives the attorney-in-fact or agent (the holder of the power) the ability to act on behalf of the principal, who is the person who granted the…
A California mortgage lender does not owe fiduciary duty to a borrower; a mortgage broker does. The difference is substantial, and a loan officer in Ventura County learned the hard way. A fiduciary duty is a duty of both loyalty and good faith. Borrower Tonya contacted loan officer Anthony in…
The California Limited Liability Company (“LLC’) is often used as an entity to limit personal liability in operating a business or holding assets such as real estate. An LLC’s members do not have personal liability for the debts of the LLC, as long as they respect the separateness of the…