Avoiding Deal Killers in Real Estate Sale and Purchase Transactions

This CLE course will examine common obstacles to closing real estate deals, including environmental issues, defective or incomplete land use approvals, encroachments, flood issues, underperforming property, low basis sellers, and more. The panel will offer critical guidance on structuring the transaction to overcome these obstacles and drafting the terms of the purchase sale agreement.

Counsel to purchasers and sellers in real estate deals must anticipate and resolve potential deal killers that can derail a transaction. Some factors can cause delay or thwart a closing, including environmental issues, defective land use approvals, encroachments, and more.

Sellers should disclose all known problems, and buyers should obtain appropriate contingencies and reps and warranties to protect their interests. Further, counsel to all parties must develop a plan to cure or mitigate problems and prepare to negotiate a price reduction to compensate for the defect if needed. Carefully drafting critical terms of the purchase sale agreement is essential to overcoming these obstacles. In addition to the contingency and reps and warranties provisions, counsel should carefully scrutinize boilerplate clauses and tailor them to parties' specific needs.

Listen as our authoritative panel discusses best practices for anticipating and solving potential deal killers arising during the sale or purchase of real estate and offers guidance on structuring contract terms to clear potential hurdles.