One of the most frustrating areas of maintaining a successful business is collecting on receivables. It has been said that “a sale to a customer is no more than a gift, until the payment for it has been collected and gets deposited in the bank.” Many businesses learn this truth the hard way, generating great sales and revenue, but suffering from terrible cash flow because payments due are not forthcoming in a timely manner.
It’s usually easier to buy an existing business than to start up your own. This is because everything is already in place, including a customer base. However, there are some things to look for when you buy a fully-operational business. Follow the tips listed below to give yourself a fair chance of success at converting someone else’s business into your own. Continue reading
Signing a commercial lease is a significant commitment for most businesses. Whether negotiating or renewing a commercial lease, it can be difficult to determine the best lease term for your business. Many companies settle for a “standard” 5-year term, which may be appropriate. But there are factors to consider that could make a shorter or longer term more advantageous for your particular business. The information in this discussion may be useful helping you arrive at an appropriate lease term. However, if you’re still not sure, the best approach might be to consult with commercial leasing attorneys to advise you. Continue reading
Purchasing commercial real estate in the Bay Area can be a solid investment. Whether you are considering buying property in Oakland, Pleasanton, San Leandro, or anywhere in the Bay Area you will likely find a wealth of appealing options available. However, you will need to consider certain details before signing a purchase agreement. The following are some of the steps worth taking prior to buying Bay Area commercial real estate. Continue reading
Have You Reviewed Your Trust Recently?
A common estate planning strategy prior to 2012 was to set up an “A-B” Trust distribution that created a Bypass Trust upon the death of the first spouse. The primary purpose of the Bypass Trust was to maximize a married couple’s total estate tax personal exemption. In 2012, though, the federal estate tax laws were substantially revised and, for most couples, simplified. Continue reading
Commercial Real Estate 1031 Tax-Deferred Exchanges Require Advance Planning and Coordination
To derive the maximum possible tax-advantaged benefit from a commercial real estate exchange, and properly comply with IRS Section 1031 Exchange timing and paperwork mandates, add an experienced legal advisor to oversee and coordinate the services provided by commercial real estate agents, CPAs and title companies. Continue reading
Landlord Tenant Attorney Examines Importance of Understanding Commercial Lease Terms
We recently represented a commercial tenant that the landlord attempted to evict. The landlord filed an unlawful detainer complaint based on the tenant’s failure to timely exercise the first of three five-year lease extension options. (By “timely exercise” we mean written notice from tenant to landlord of their intent to extend the lease, received by the landlord on or before the due date stated in the lease agreement.) This case has a specific aspect to it that created some doubt as to when notice was due: The commercial lease had been amended four times and extended by two years during the first five-year term.
Timing of 3-Day Notice to Pay Rent or Quit was not preceded by written notice that the lease in question was reinstated and that rent was again due.
In December 2014, the Appellate Court issued an Opinion in the Santa Clara County case of Kruger v. Reyes, 14 C.D.O.S. 14116 (December 17, 2014) that illustrates the importance of adequate notice to the tenant of rent due when a terminated lease has been reinstated, particularly in cases where the tenant pays rent by directly depositing funds into the landlord’s bank account. Continue reading
Foreclosing lenders in secured transactions who intend to make a claim under an insurance policy for pre-foreclosure damage should be wary of making a full credit bid at the foreclosure sale. Continue reading
Mortgage Lenders Estopped From Relying On Own Failure To Sign Modification Agreement As Basis For Invalidating Agreement
In the case of Chavez v. Indymac Mortgage Services (C.A. 4th; September 19, 2013; D061997), the Fourth Appellate District held that lenders who failed to execute and return a loan modification agreement to a borrower were equitably estopped from relying on the borrower’s inability to produce an executed loan modification agreement as grounds for the lenders’ demurrer. Continue reading