Author: Benjamin J. Smith

Is a commercial tenant’s leasehold interest protected when the property is sold in a bankruptcy trustee’s sale?

In the Matter of Spanish Peaks Holdings II, LLC Facts: A commercial landlord and a tenant enter into a long-term lease. The landlord later files for bankruptcy. The bankruptcy trustee sells the property to a buyer in a bankruptcy trustee’s sale, stating it is free and clear of the tenant’s lease encumbering the property. The bankruptcy trustee does not formally reject the terms of the tenant’s lease. Claim:  The tenant seeks to retain possession of the property, claiming they have a right to do so since federal bankruptcy law protects a tenant’s leasehold interest in a property after a bankruptcy. Counterclaim:...

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Is a lender who forecloses on a leasehold estate required to honor the lease agreement as the tenant’s successor-in-interest?

BRE DDR BR Whittwood CA LLC v. Farmers & Merchants Bank of Long Beach Facts: A landlord and tenant enter into a long-term commercial lease. The lease terms state the tenant may encumber their leasehold interest with a mortgage, designating the lender as the successor-in-interest and obligating the lender to perform under the lease. The tenant obtains a mortgage secured by their leasehold estate, then defaults. The lender forecloses on its interest and takes possession of the property. At the landlord’s request, the lender confirms it is the tenant’s successor-in-interest. Prior to expiration of the lease, the lender stops...

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Zestimates are great conversation starters with sellers and buyers. Zillow has done more for our bottom line than NAR ever has or will. Don’t fight the current of the river, learn to run with it. Disruption is inevitable in any industry that is fragmented or inefficient. Granted, it does feel like armchair experts and platforms are plentiful in real estate these days, but when the tide rolls out we will see the value proposition of the truest professionals in this industry shine once again.

Justin Bonney, on Zillow’s impact on the real estate industry

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