Tips on Closing Year-End Deals

4 Common Errors in Year-End Race to Seal Real Estate Deals
– Law360

Law360 interviewed Manatt's Michael Polentz, co-chair of the firm's Real Estate and Land Use practice, for an article on how to steer clear of common mistakes to help ensure real estate deals get done well and on time.

Law360 reports that real estate lawyers face considerable pressure in the final weeks of the calendar year, with many of their clients needing to complete deals before the year end. The publication looked at five things lawyers would do well to avoid.

"One of the biggest mistakes is to punt hard issues into the future in order to close a deal by year end," said Polentz. "It is very common to hear one side or the other say we do not have time to resolve that issue now; so let's close now and deal with the issue post-closing after New Year."

Polentz said such differences commonly crop up in joint venture deals. Equity partners know the sponsor wants to get the deal done before the end of the year, and thus equity partners often flex their muscle to get favorable terms.

But once the deal is signed, it's difficult to revisit specifics of the agreement in the New Year.

Read the article here

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