Like so many business sectors and industries, the real estate sector is experiencing a revenue decrease. COVID-19-related shelter-in-place orders are impacting families and family businesses drastically. Privately-held trusts and family-owned companies, lenders, borrowers, landlords, and tenants face unprecedented issues in the collection of revenue and payment of debt. This article examines some of the legal and business considerations in navigating these challenges.
On April 20th, Governor Baker signed into law a residential mortgage foreclosure and eviction moratorium bill (H 4647) which grants temporary relief to homeowners from foreclosures, and to residential tenants from evictions. Residential property managers and landlords, and residential mortgage holders, must exercise caution to avoid running afoul of the new law. The relief afforded by the legislation expires on the earlier of 120 days after enactment of the legislation (August 18, 2020) or 45 days after the COVID-19 emergency declaration has been lifted, but the governor may postpone expiration of the moratorium to a limited extent.
On April 20th, Governor Baker signed into law an eviction moratorium bill (H 4647) that benefits certain commercial tenants. While the new law grants extensive relief to homeowners from mortgage debt and foreclosures, and to residential tenants from evictions, it provides no relief from mortgage debt to commercial property owners, and limited relief to certain commercial tenants. This article addresses the limited relief provided by the legislation to commercial tenants.
The general economy continues to struggle due to COVID-19 closures and related effects, and the real estate market is no exception. Landlords are receiving requests from tenants for rent reductions, deferrals, abatements and other concessions. Although the terms of agreement vary, there are two common approaches to documenting these alternative arrangements, forbearance agreements and lease amendments.
It’s a difficult time with significant challenges facing retail operators. Whether it is social distancing, states of emergency or mandatory business shutdowns, businesses need to understand their rights and responsibilities during the COVID-19 pandemic:
Coronavirus, or COVID-19, is having an enormous impact on global financial markets, including major implications for the real estate industry.