Real Estate Financing
In today’s stable property market, purchasing real estate easily passes as one of the safest investment options. Whether you are buying land, your first home, a rental, a property to flip, or simply diversifying your portfolio to include land or buildings, real estate lenders are willing to offer better financing now compared to a few years back.
The same goes for developers – getting the necessary funds to complete a project is a lot easier if you approach it correctly. Part of that means having an attorney who is sufficiently knowledgeable in real estate financing.
In fact, as far as real estate lending goes, attorneys are critically important to both parties of a financial agreement, i.e. the borrower and the lender. If you are a lender, you want to know that the process of lending to a real estate buyer, or developer, is completed with due diligence. You can ensure that you’re protected from financial losses and potential legal litigations. All that is covered under real estate law, so having an attorney is a sure way of staying safe.
At Versant Law, we represent borrowers and lenders in handling commercial real estate financing. We facilitate the completion of loans for construction, property purchases and sales (single and portfolio), leasebacks, bridge loans, mezzanine loans, hard money lending, and other real estate credit facilities that affect equity in one way or another.
Our Core Responsibilities as Your Real Estate Finance Attorneys
- Drafting documents: the legal documents of a real estate loan agreement (such as contracts) are usually technical and need to be handled by a professional real estate attorney. We do that from start to finish.
- Loan commitment: this involves writing a letter to a borrower informing them that they have passed the underwriting guidelines and are eligible to receive the loan. If we are representing the buyer, we may request for a loan commitment letter from the lender in order to get a bidding advantage in a property purchase.
- Title insurance: part of our job is to get insurance for any liens that may exist against a property. Whether you are a borrower or lender, this insurance will protect you from financial loss, even if the property in question is subjected to legal action. If you are a borrower it means you used the loan to purchase the property, and if you are a lender it means your money was used by the borrower to purchase the property. Either way, a lien could result in a loss. That’s why we work proactively by getting title insurance to prevent that.
- Escrow: a typical real estate escrow involves an attorney holding the title to a property until the buyer completes payment and each involved party fulfils any other stated conditions before the title is transferred to the buyer. It is a necessary measure in real estate lending because, among other things, it ensures that the borrower and lender fulfil their responsibilities before a transaction is completed.
- Closing: this involves bringing a transaction to completion. We ensure that funds are transferred from the lender to the borrower, and the property’s title is also transferred to the buyer. Our attorneys will explain the provisions of all contracts to the borrower and lender to make sure that each party understands their obligations, financially and otherwise.
- Workout and deed-in-lieu: workouts and deeds-in-lieu are ways of restructuring a loan in order to avoid or sidestep foreclosure. They give both the borrower a mechanism of fulfilling their duty to repay a loan without losing the property for which it was used to purchase.
We offer the above and many additional legal services that relate to real estate lending. Our extensive experience in the field not only guarantees a high quality delivery but also accounts for our responsive and personalized services.
Are you a lender or borrower? Let us help you make sure you have the upper hand when closing deals. Talk to us today and we will help you cover all the ins and outs of real estate finance law.