Jessica Lomakin and Nancy Park Author Article on Carefully Structuring Purchase Agreements
Article Examines Key Considerations When Purchasing Newly Constructed Buildings
Best Best & Krieger LLP (BBK) attorneys Jessica Lomakin and Nancy Park have authored an article for the Daily Journal exploring how purchase agreements can address construction and closing risks.
In their Daily Journal article, Lomakin and Park examine the challenges that can arise when purchasing a newly constructed building that is still under construction. They explain that “substantial completion” may not necessarily mean a property is ready for the buyer’s business operations or ready to legally close. Lomakin and Park emphasize the value of distinguishing between a building being ready for access and use and being ready for closing. They also discuss the importance of carefully drafting delay provisions involving third parties, including setting clear limits on extensions and requiring the seller to diligently pursue outstanding approvals.
Ultimately, the authors explain that careful drafting can help keep the transaction on track while reducing uncertainty over what it means for a building to be “ready.”
Subscribers to the Daily Journal can read their full article here.
