Real Property

Acquisition Responsibilities

Purchase Agreement

• Prepare initial draft of purchase agreement from attorney notes or interview.
• Coordinate with other parties (buyer, seller, title company, opposing counsel, lender).
• Take comments about purchase agreement and revise as necessary.
• Arrange for execution of purchase agreement.
• Review purchase agreement for critical dates and contingencies and calendar same.
• Prepare closing checklist.
• Draft deed.

Due Diligence Responsibilities

Matters of Title

• Conduct or arrange for title search and request abstract of title. Order title commitment and/or preliminary title report.
• Negotiate title insurance coverage.
• Review legal description of the property and track against map, if available.
• Review exceptions (standard exceptions regarding survey, taxes and assessments, etc.) and cumbrances of record.
• Arrange for discharge/satisfaction of deed trust/mortgage (existing mortgages of record on the property) and obtain payoff figures.
• Draft and review any permits and easements. If necessary, plot against legal description.
• Review and determine validity of mineral claims through search of Bureau of Land Management records.
• Draft escrow instructions.
• Arrange for issuance of title policy.

Existent Contracts/Lease Declarations

• Review contracts and leases for assignment, due on sale and due on encumbrance provisions; prepare abstracts regarding same.
• Draft requisite assignment, amendment or extension documentation.
• Review condominium declaration/resale certificate for due on sale provisions/rights of first refusal.

Purchaser/Seller Representations

• If necessary, obtain corporate organizational documents, including authorization of the applicable parties to purchase and/or sell, for all parties.
• Review corporate documents for prohibitions against borrowings, power of decision making bodies, and so forth.
• If necessary, obtain certificates of good standing/certificates of existence.
• Conduct public records search of the parties, including judgments, tax liens, and UCC filings.

Environmental

• If necessary, order environmental assessment.
• Review environmental assessment and prepare releases.

Insurance

• If residential, provide purchasers with information about homeowner's insurance.
• Coordinate with lender and purchaser to ascertain lender insurance requirements.
• Obtain and review required evidence of insurance from purchase or insurance agent.

Closing Matters

Prorations

• Prorate real and personal property taxes and utilities, and adjust for closing figures.
• Obtain closing figures from bank and prorate all closing costs.
• Exchange all figures with other parties.
• Review figures with client.

Purchase Money Loan

Loan Documentation

• Perform financial calculations (amortization, net present value, discounting, annual percentage rate).
• Draft loan agreement, promissory note, deed of trust/mortgage, security agreement, assignment of leases and rents, guaranties, and Truth-In-Lending disclosure statements.
• Obtain and/or draft necessary corporate, partnership, or limited liability company documentation and resolutions in connection with loan transaction. (See Business/Corporate Section, supra, for more detailed information.)
• As necessary, draft any leases and/or assignments, extensions or modifications to lease.
• If necessary, draft Uniform Commercial Code (UCC) financing statements, amendments, extensions, and/or terminations.

Closing

• Finalize closing checklist.
• Organize closing folders.
• Attend closing and assist attorney in activities regarding execution of closing documents.
• Educate signatories with respect to the documents being executed.
• If appropriate, notarize documents upon execution.
• Coordinate recording of real estate documents and filing of UCC financing statements.

Post-Closing

• Obtain documents to be executed post-closing.
• Coordinate with all parties concerning post-closing questions and, if necessary, provide documents.
• Follow-up on recorded/filed documents.
• Prepare closing binders.

Tax-Related Matters

• Obtain solicitation form from seller, if applicable, and prepare and file Form 1099.
• Record capital gains/loss on client's income tax return.
• Draft appropriate capital gains tax affidavit.
• Assemble tax bills and payments.
• Obtain and analyze property information and current valuation.
• Draft complaint on real property assessment.
• Draft discovery requests and responses to discovery requests in conjunction with real property assessment.
• Coordinate formal property appraisal and report.
• If appropriate, prepare notice of appeal on valuation of property.

Leases

• Obtain terms of lease from attorney notes or interview.
• Prepare initial draft of lease.
• If necessary, negotiate and revise lease.
• Conduct due diligence to the extent necessary.
• Arrange for any existent contract modifications.
• If necessary, draft subleases.
• If necessary, prepare memorandum of lease.
• Facilitate execution of lease and memorandum of lease.
• If necessary, record memorandum of lease.
• Review or draft estoppel certificates and/or subordinates, non-disturbance and attachment agreements.

Foreclosure

• Prepare notice of intent to accelerate.
• If necessary, appoint substitute trustee.
• Draft foreclosure notice.
• Facilitate posting of foreclosure notice.
• Attend foreclosure sale.
• Prepare judicial foreclosure documentation.
• As necessary and appropriate, negotiate with owner/lender.
• See Foreclosure Section, supra, for more detailed information.

Miscellaneous

• Prepare subdivision, condominium, and timeshare registrations for in-state and out-of-state registrations.
• Prepare registrations of recreational subdivisions for federal registrations.
• Assist with probate and trust transfers and property investigations.
• Draft notice of mechanic's lien; determine validity of existing mechanic's liens; prepare releases or waivers of rights and assist with foreclosing mechanic's liens. (See Construction Section, supra, for more detailed information.)

Note - Some of the information contained in the Business/Corporate, Construction, Environmental, Domestic Relations/Family Law, Foreclosure and Landlord/Tenant, Probate/Estate Planning sections of this publication also includes work performed in the Real Estate specialty area.