In today’s landscape, having an experienced and seasoned representative in your corner to understand your options in disaster situations is priceless.
Jeff Hornstein was able to provide us with some examples of common law and the situations and judgments that arose as a result of these cases. One of the more common situations that have been coming up during this crisis are rents and leases for businesses.
Jeff was able to identify a few different auto-dealer lots during other crises in history. These cases ended up in judgments that serve as the defining rule for many other cases that are brought up during this time. Unfortunately, these judgments may not offer protection for business owners, and typically side with the landlords of the property, due to the obligations written out in the lease.
Another situation Jeff discussed was a multi-family apartment complex that was undergoing a change of ownership right around the time of the ’07-’08 housing market collapse. Jeff mentioned that because the purchasers of the property did not have a mortgage contingency clause in the offer contract, they were on the hook for the full purchase of the property on the agreed upon amount, which was negotiated prior to the collapse. Because funding was not able to be secured, over $6M in earnest money deposits had to be forfeited by the potential buyers, with nothing to show for it in return.
To make sure you don’t make a colossal mistake with your business, make sure you have a professional review all the nuts and bolts of your agreements. Even if you have an agreement in place and would like a once over, make sure to contact Jeff Hornstein by visiting his website at http://jeffhornsteinlaw.com/