Construction Lending: Negotiation and Documentation Issues
Construction Draws, Balancing, Retainage, Payment and Completion Guaranties, HVCRE ADC Equity Requirements
Recording of a 90-minute premium CLE video webinar with Q&A
This CLE course will provide lender's counsel with guidance in negotiating and documenting construction loans, including provisions for making loan advances, budgeting and loan balancing, payment and completion guaranties, pre-leasing requirements, retainage, and project completion. The panel will also discuss best due diligence practices and how construction loans can be documented to avoid HVCRE ADC classification.
Outline
- Parties involved in a construction loan
- Construction loan risks
- Due diligence
- Construction loan documents
- Other crucial issues
Benefits
The panel will review these and other critical issues:
- What additional risks and concerns arise in construction lending as opposed to standard commercial property loans?
- What are the contentious provisions in construction loan documents and the points of negotiation?
- How do plans and specs, budgeting, and retainage figure into the loan funding process?
- How do payment and completion guaranties address construction risks, and how do they vary?
Faculty
Jason E. Goldstein
Shareholder, Co-Chair Mortgage Banking Group
Buchalter
Mr. Goldstein specializes in resolving complex business disputes for a diverse cross-section of clients, ranging from... | Read More
Mr. Goldstein specializes in resolving complex business disputes for a diverse cross-section of clients, ranging from national banks to insureds, private money lenders, credit unions, individuals, loan servicers, landowners, pharmaceutical companies, vaping companies, equipment finance companies, brokers and investors. He is Co-Chair of the firm’s Mortgage Banking Group, a fellow of the American College of Mortgage Attorneys (ACMA) and a member of the ACMA Title Insurance Committee. Mr. Goldstein has an extensive legal background in state and federal courts across the country, which includes business litigation, real property related litigation, “private money,” title insurance claims and litigation (as well as CGL, D&O, etc.), escrow claims and litigation and misappropriation of trade secrets litigation. He also handles litigation involving wrongful foreclosure, lender liability defense, leases (commercial, residential and equipment), general contractors, receiverships and judicial foreclosures.
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John L. Hosack
Shareholder
Buchalter
Mr. Hosack focuses his transactional practice on commercial real property loan documentation, loan workouts, REO sales... | Read More
Mr. Hosack focuses his transactional practice on commercial real property loan documentation, loan workouts, REO sales and foreclosures. He represents secured lenders and property owners at trial and on appeal in complex real property disputes, including lender liability, fraud, class actions, breaches of contract, wrongful foreclosures, mechanic’s liens, stop notices, judicial foreclosures, receiverships, escrow claims and title insurance claims.
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Enrique (Rick) Rodriguez, Jr.
Founder and Principal
Rodriguez & Associates
Mr. Rodriguez is a qualified expert in banking and real estate matters and for the past 17 years has provided a wide... | Read More
Mr. Rodriguez is a qualified expert in banking and real estate matters and for the past 17 years has provided a wide variety of real estate brokerage, financial advisory, consulting, litigation support and expert witness services to his clients. He advises law firms, development companies, financial institutions and investors on standard lending practices, market rates of interest, and other business transactions which often involve tens of millions of dollars. He is knowledgeable of capital markets and financing transactions and, as a licensed real estate broker, procures debt and equity capital for his clients from financing sources which include banks, life insurance companies, pension funds, REIT’s and conduit lenders.
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David A. Weissmann
Partner
Weissmann Zucker Euster Morochnik & Garber
Mr. Weissmann has represented real estate developers, managers and lenders in a variety of transactions and... | Read More
Mr. Weissmann has represented real estate developers, managers and lenders in a variety of transactions and operational matters for over 25 years. These transactions include construction and permanent financing, revolving credit facilities, loan workouts, foreclosures, condemnation matters and claims, zoning matters and real estate sales, acquisitions, development, construction and leasing.
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