Articles

How to Maximize Your 1031 Exchange - Simple rules help prevent taxpayers from getting the “boot”

Section 1031 “like-kind” exchanges are a valuable method of deferring the payment of capital gains taxes on the sale of qualified property. To avoid possible boot, a taxpayer intending to purchase personal property together with real property should purchase those items in a separate transaction. The taxpayer can also allocate the purchase price between the personal property and the real property and pay for the personal property with other funds and not exchange proceeds.

• Published: March 29, 2010
• By Steven Gellerstein
• Real Property Law

8 Biggest Mistakes Made by Transactional Attorneys that Prevent Them from “Getting the Deal Done”

Getting the Deal Done take personal negotiating skills. The same mistakes are made over and over and over again, by first year associates, more experienced associates, and even by partners – mistakes that accomplish nothing other than creating a more adversarial relationship and delaying the deal from completion. Here are eight common mistakes and how to avoid them.

• Published: March 29, 2010
• By Karen E. Abrams
• General Interest

Employers Beware! Repeat Violations of Wage, Benefits, and Tax Laws Could Cost Business its License

If the New Jersey Commissioner of Labor and Workforce Development determines that an employer failed to properly maintain and report records concerning wages, benefits or taxes of one or more employees, and, in connection with that failure, has failed to pay such wages, benefits or taxes or other contributions or assessments as required by those laws, then the Commissioner can audit the employer and any successor firm within 12 months after its determination.

• Published: March 21, 2010
• By Steven Gellerstein
• Business Law

Ordering Title Searches When Negotiating a Lease: Is the Failure to do so Malpractice?

As tenant’s counsel, did you ever think it was good practice to order a title search when your client contemplated putting in expensive improvements or in other situations where the lease may have value? The cost is modest and the information obtained by such a search can reduce the risk of your client being hurt by unintended adverse title matters.

• Published: January 17, 2010
• By Mark Morfopoulos
• Real Property Law

Memorandum of Lease Clause: No More Significant than the Gender Clause??

A Memorandum of Lease or Short Form Lease (MOL) is usually a very short document (one to five pages in length, on average, depending on the complexity of the lease and the jurisdiction of the premises). The MOL typically contains only the most critical, but not confidential, provisions of a lease (e.g., a description of the premises; the term of the lease, including renewal rights; right[s] of first refusal; exclusive use clauses; etc.). A MOL is recorded wherever deeds are recorded, and the recording fees are typically paid either by the party designated in the lease, or, if not so designated, by the party requesting the MOL. Depending on the jurisdiction, the costs to record a MOL can be nominal or quite large.

• Published: January 17, 2010
• By Karen E. Abrams
• Real Property Law

The Art Of Reviewing A Leasehold Title Insurance Commitment

Often overlooked, leasehold title insurance policies and the title commitment that precedes them are not to be ignored. The commitment, itself, is a prime part of a thorough due diligence review for a leasehold because it reveals information that may not affect title to the property or to the leasehold but expose the rights that others have at the property that can inhibit the tenant’s intended use. For example. it may show maintainance obligations or exclusive use rights held by others. Ignore a leasehold title insurance commitment at your own risk.

• Published: January 17, 2010
• By Mark Morfopoulos
• Real Property Law

The Application of the New Jersey Realty Transfer Fee to Transactions Between Related Entities

The New Jersey Tax Court has rejected the Division of Taxation’s regulations that sought to require payment of a realty transfer fee in connection with deeds to some related entities.

• Published: November 12, 2009
• By Steven Gellerstein
• Real Property Law

Be Ambiguous at Your Own Risk: Sloppy Draftsmanship Bites Again!

Ambiguous or vague contract provisions are an invitation for a court to undo the actual intentions of parties to an agreement. Be careful to write what you mean because failing to do so will upset the predicabilty of your contract or lease and allow a court to rewrite your agreement after the fact.

• Published: November 2, 2009
• By Mark Morfopoulos
• Real Property Law

Crafting Letters of Intent in Purchase Contracts

A letter of intent or “LOI” is a valuable tool to be used when negotiating a deal for the purchase or sale of commercial property. It can clarify the key terms, making it easier to draft the contract. Here are some common items to address when preparing an LOI. Remember that each deal is different, so the LOI must be tailored to your specific deal.

• Published: August 23, 2009
• By Steven Gellerstein
• Real Property Law

Exclusive Use Clauses

When a retail tenant signs a lease, it does so with the intention of operating a particular business. In order to be successful, a tenant needs to maintain a competitive advantage over other tenants in the same center. With this in mind, many commercial retail leases include a very thorny and hotly-negotiated provision, called the “exclusive use” clause. The inclusion of an exclusive use clause, or a decision not to do so, is a critical issue, and is one that is commonly glossed over by the parties.

• Published: August 23, 2009
• By Karen E. Abrams
• Real Property Law