Covid-19 Considerations In Real Estate Purchase And Sale Agreements | USA – ICLG.com

Commercial real estate transactions have suffered a sharp decline during the COVID-19 pandemic. According…

Commercial real estate transactions have suffered a sharp decline during the COVID-19 pandemic. According to real estate data provider Real Capital Analytics (as cited to The Real Deal[1]), commercial real estate deal volume totaled $11 billion in April 2020, a 71 percent year-over-year drop as compared to April 2019. Similarly, the number of commercial real estate deals fell 61% between March and April of 2020.[2] With meaningful recovery not expected until 2021 even under the most optimistic of predictions and with varying recovery timelines predicted for different asset classes, commercial real estate deals will need to happen in an environment of economic uncertainty. Therefore, it will be critically important to create certainty wherever possible in negotiating purchase and sale agreements (“PSAs”). This article is intended to provide guidance to both sellers and buyers on drafting PSAs in order to achieve a greater degree of certainty during these uncertain times.

Defining Disease Event as a Trigger for Rights and Obligations

The unique circumstances presented by COVID-19 have presented numerous
Source…

Global Real Estate

Author: Global Real Estate