Business Owners Renegotiate Leases

Home owners are getting loan modifications as a way to mitigate losses for both the borrower and the bank. Similarly, business owners may be able to obtain a lease modification as a way to mitigate losses for both the landlord and the tenant. Commercial vacancy rates are increasing, and landlords are increasingly willing to modify lease terms instead of pursuing eviction. Landlords understand that some rent is better than no rent. Small businesses, like individuals, need to talk to their creditors if they are facing financial difficulties. A lease is often one of the larger expenses for a business, and thus a landlord is one of its primary creditors. Business tenants facing financial difficulties should contact their attorney to explore lease modification negotiation.

Small Businesses Struggle to Survive; but some Entrepreneurs see an Opportunity

In a recession, small businesses are usually among the first victims. Banks and consumer credit cards know this, and continue to tighten credit lines and close accounts. Small businesses, who in tough times often use credit cards and lines of credit to pay employees or buy inventory, are now left with no option but to decrease expenses and lay off employees. Entrepreneurs seeking to start a new small business face similar hurdles in a recession. However, opportunities still exist for new business start-ups backed by adequate capital and/or owner-supplied financing. The costs of start-up are decreasing. For example, landlords are offering better lease terms in light of the rising vacancy rates, and build-out quotes are becoming increasingly competitive.

Home Buyers Learning To Hire Lawyers

In many states, it is regular course to hire an attorney when buying or selling real estate. In some states it is mandated. In California, it has been uncommon to involve an attorney when buying or selling a home. In California, real estate agents, rather than an attorney, commonly assist a buyer or seller with their purchase or sale. While real estate agents are often very knowledgeable about the local market and do provide valuable assistance, they cannot replace the assistance of counsel. Only an attorney can advise a buyer or seller about the legal ramifications of purchase agreement terms. Only an attorney can review mortgage documents for RESPA and Truth in Lending violations. Many buyers over the last 1-5 years are now regretting not hiring an attorney for their recent purchase. Many of the problems California homeowners find themselves in now could have been avoided had they taken precautions during their purchase. Lesson learned. More and more California buyers and sellers are now hiring an attorney to consult with during a purchase or sale of their home.