Tag Archives: Construction

The Modern Slavery Act 2015: Effects on the Property Industry one year on

Modern Slavery is broadly a term covering slavery, forced labour, servitude and human trafficking. It has been described as “the great human rights issue of our time” by Theresa May. The Modern Slavery Act 2015 was introduced as part of an effort to tackle the issue by imposing a requirement on every large business carrying … Continue Reading

(US) High Volatility Commercial Real Estate: New Rules Have Effect on Cost and Availability of Mortgage Capital

On January 1, 2015, the final Basel III rules regarding regulatory capital for banks with greater than $500 million in assets and all savings and loan holding companies took effect. Basel III imposes new rules for high volatility commercial real estate (HVCRE) which the regulations define as a credit facility that finances the acquisition, development … Continue Reading

(US) Pennsylvania Legislature Clarifies Open-End Mortgage Exception to Priority of Mechanics’ Liens

On July 9, 2014, Governor Corbett signed Act 117 of 2014, amending Pennsylvania’s Mechanics’ Lien Law of 1963 (Act of August 24, 1963, P.L. 1175, No. 497, 49 P.S. §1101, et seq.). One of the principal purposes of the amendments appears to be the overruling of the Pennsylvania Superior Court’s decision in Commerce Bank/Harrisburg, N.A. … Continue Reading

(US) Construction Allowance in Commercial Leases: Do You Want Income Taxes With That?

Negotiation of the construction allowance is an important part of most commercial lease transactions and usually centers around the size of the allowance and the type of improvements to be constructed. However, the tax consequences flowing from the construction allowance are frequently subject to far less negotiation. If the tenant owns the improvements after construction, … Continue Reading

(US) Creative Financing-Let the Purchaser Do It

Despite the recent low interest rate environment, some projects just will not support market rate construction loans. What then is the developer to do? Over the last few years developers have begun to turn to the purchaser to finance construction of a project. This technique can be used for both residential and commercial development. Many … Continue Reading
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