Posts Tagged ‘Commercial Real Estate’

Gerald Celente predicts “Commercial Real Estate Collapse” in ’09. Today I drove around town and filmed all the vacancies. All film was shot in one city! It looks like this in neighboring areas as well. I didn’t even go to the mall or the industrial areas. That will be later. Check out Gerald at wwww.trendsresearch.com

As it emerges from years of semi-isolation behind the infamous Iron Curtain, Bulgaria is becoming a more and more attractive place for foreign nationals to make investments of different types in the real estate market. (With that said, and as will be discussed thoroughly later, a foreign national cannot presently directly own real estate in Bulgaria. The prohibition against direct ownership should be changed within the coming decade. And, in the interim, there are ways in which a foreign national can take title to real estate in a more indirect manner — which will also be discussed in detail shortly.)

Presently, the biggest demand made by foreigners when it comes to real estate in Bulgaria involves residential property. Many Europeans and individuals from some other countries around the world are buying Bulgarian residential property to establish holiday or vacation retreats.

Additionally, more and more savvy investors from different countries around the world are becoming more involved in the ownership of business or commercial real estate in some of the major cities in Bulgaria, most particularly in Sofia, the Bulgarian capital and Varna on the coastal regions of the Black Sea

Population: 7.97m

Currency: Bulgarian Lev Capital:Sofia Flag of BulgariaFlag of the European Union

Investment Property in Bulgaria

As mentioned, more and more international investors are putting money into real estate in Bulgaria for investment purposes. For example, these investors are buying real estate that is being developed for business and commercial purposes — especially in and around Sofia. (Once again, an investor needs to keep in mind that a foreign national cannot own real estate directly in Bulgaria at this time. Again, there are mechanisms available to deal with this prohibition that will be presented and discussed later.)

Another area in which foreign investors are becoming more active is in the purchasing of apartments or apartment complexes which are then being rented and leased to the influx of people that have taken to coming to Bulgaria to participate in the burgeoning economy of that country since it has become more fully integrated into the overall European community of nations.

Residential Bulgarian Property

As referenced, there are a significant number of overseas buyers who have taken to buying residential property in Bulgaria for holiday or vacation purposes. This includes people who have purchased elegant and substantial villas in different parts of the country as well as the more affordable and less costly apartments. In any case, Bulgaria is proving to be experiencing a sharp increase in the number of residences that are being sold to people who are looking for second homes for retreats, vacations or holiday homes in Bulgaria.

Finally, with many people moving to Bulgaria from other countries around the world, a great demand has been placed for the development of single family homes and houses as well as apartments in many parts of the country.

Residential Real Estate – Apartments in Bulgaria

Due to the prohibitions against foreign ownership of land in Bulgaria that likely will remain in place for approximately ten more years, many people are opting to purchase apartments. Because apartments normally are sold as units and without the conveyance of any actual land, a foreigner directly can purchase and own an apartment.

Throughout Bulgaria, apartment sales have been brisk with many people buying holiday apartments in the Black Sea resorts of Sunny Beach, Golden Sands, Nessebar as well as the Ski Resorts of Bansko, Borovets and Pamporovo. In addition, each year a significant number of new apartment complexes are being developed in all of the major cities in Bulgaria and in many more rural communities as well.

Again, due to the prohibition against the direct ownership of land by a foreign national, many people are opting for apartment ownership at this juncture.

Holiday Property in Bulgaria Resorts

As mentioned earlier, many foreign buyers have taken to seeking and purchasing real estate in Bulgaria for vacation or holiday purposes. One of the most interesting trends in the Bulgarian real estate market at this time involves the renovation of substantial residents — including breathtaking and historic villas and chalets — in different parts of the country. These magnificent properties are being restored to immaculate condition and are then, in many instances, being purchased (indirectly) by foreign nationals to be used as retreats, vacation or holiday destinations.

In addition to the trend towards the rehabilitation of older properties in Bulgaria, a significant number of new and off plan residential developments are under construction in many resort communities in Bulgaria. Bulgaria has worked diligently, through its government and through the private sector, to attract tourists and tourism money into that country over the course of the part five to ten years. Indeed, an ever growing number of people are finding themselves attracted to Bulgarian resorts and have begun to purchase (again, indirectly unless the residence is an apartment) real estate and residences being developed in this various resort communities in Bulgaria. Most Bulgarian real estate market analysts expect the trend towards the development of vacation-style residences to continue well into the next decade as an ever increasing number of people begin to discover Bulgaria and its resort destinations.

Specific Steps to Buying a Property in Bulgaria

Overview

Since it has emerged from behind the Iron Curtain, Bulgaria through its government has worked to bring that nation into the mainstream of international commerce. However, and with that said, Bulgaria remains in a period of transition when it comes to some commercial matters. This particularly is the case when it comes to the ownership of real estate by a foreign national within the borders of Bulgaria.

At the present time, the Bulgarian national constitution actually prohibits foreign nationals from directly owning land in Bulgaria. With that said, the governmental leaders in Bulgaria are in the process of changing the country’s constitution to allow for the direct ownership of land in Bulgaria by foreign individuals. The proposed constitutional changes likely will not be in effect until 2014 or 2015.

Understanding that a foreign national cannot directly own land in that country at the present time, this does not mean that a foreigner cannot own property in Bulgaria “indirectly.” In other words, if a person is interested in owning land in Bulgaria, there is an additional step that he or she will need to take in advance of making such a purchase and of assuming such ownership of real property.

Keep in mind that if a foreign national is interested only in purchasing an apartment — to which no land will be involved, to which any land outside of the apartment unit will be conveyed to the foreign national — direct ownership is, in fact, permissible.

If a person is interested in buying or investing in land in Bulgaria, and if that person is not a Bulgarian citizen, he or she will need to establish what is known as a Bulgarian Limited Company through which land in Bulgaria can be purchased and legally owned. In order to set up or establish a Bulgarian Limited Company, a person will need to plan on spending just under one thousand Euros. In most instances, a qualified real estate agent in Bulgaria should be able to offer this service to a foreign national.

Once this Bulgarian Limited Company has been established, the hunt for land/property to purchase can begin in earnest. At the time that a piece of property has been identified that a person is interested in buying, an oral offer to purchase is made to the seller. If the seller orally accepts a buyer’s offer, the next step in the purchasing process is the preparation and signing of what is known as a preliminary contract.

Customarily, in Bulgaria, at the time the preliminary contract is executed, a 10% deposit is placed or made by the buyer. Generally speaking, the deposit is non-refundable unless the seller withdraws from the contract or cannot, in the end, provide a clear conveyance of the property in question to the buyer. In other words, if the buyer pulls out of the deal, he or she will lose his or her deposit money. In Bulgaria, perhaps more so than in many other countries in Europe and elsewhere in the world, it is imperative that a very thorough title search be undertaken. In addition, an independent survey of the property subject to the sale should be taken to ensure that the legal description of the property is, in fact, correctly stated. Unfortunately, Bulgaria has somewhat of a reputation of being a country in which titles to real property and survey descriptions are rather muddled in more than a few instances.

Once the title to the real estate is deemed clear, and once all other inspections and evaluations have been completed, the time will arrive for the signing of the final contract. This must take place in the office of a notary public. When the final contract is signed, all state and municipal taxes will need to be paid as well as the remaining balance due and owing on the real estate. After the final payment is made, the deed will be transferred into the buyer’s name, which in the case of a foreign national will be the Bulgarian Limited Company.

How to buy property in Bulgaria:

Bulgaria is one of the new boom countries for property investors – property is relatively inexpensive compared to neighbouring countries and certainly much better value than the developed economies of Western Europe.

Buying property in Bulgaria is a relatively straightforward procedure. We’ve broken the process down into a few simple steps – follow these and you’ll soon be the proud owner of a new property in Bulgaria!

1. Find your property

OK this is the fun bit – at www.property-abroad.com you can find an amazing range of Bulgarian property on offer from budget apartments to grand residences. Browse our site to find the property that suits your needs best but bear in mind the following:

If the property seems cheap by UK standards, it may indicate that it:

o Requires significant refurbishment.

o Is built in an older style

o It’s located in a remote area

o Only has an outside toilet

Many new developments, especially on the coast, are sold “off plan” which means that they are currently under construction. You need to ensure that the relevant terms and conditions are included in the preliminary contract – ask your legal advisor for assistance.

2. Set up a limited company:

Foreigners are permitted to buy buildings in Bulgaria but not land. If you are not a Bulgarian national, we recommended setting up a limited company that will then own both the real estate and the buildings on the land. If you are buying an apartment, it may not be necessary to form a limited company – check with the property agent whether a direct purchase is permitted.

While this law is expected to change when Bulgaria enters the EU in 2007, it is also the reason why Bulgarian property is currently so inexpensive compared with other European countries.

What is a limited company?

As shareholder in a limited company you are liable for the company’s financial commitments up to the value of your share in the company’s registered capital ie: if the company incurs any expenses or debts your liable is limited to the full amount of your investment in the company.

Who can set up a limited company?

Essentially anyone can form a limited liability company in Bulgaria – you do not have to be Bulgarian to do so. This enables foreign nationals to purchase Bulgarian property indirectly.

How do I set up a limited company?

Before signing any agreement you should agree with all the other shareholders what commercial activities the company will be involved with and agree the structure of the company.

Once you have all agreed on the nature of the business, the relevant documents for incorporation will be prepared by your legal advisor and signed by all the shareholders.

Next you will need to open a dedicated company bank account to collect all share capital.

The minimum share capital necessary to form a limited company is 5000 leva, of which a minimum of 70% (3500 leva) is required at the time of registration. As well as your share capital you will be required to pay administration costs for the registration. Don’t forget you will still have the money in the company.

Your limited company will officially exist as soon as it is added to the Commercial Register of the district court, in the region where the company will be based.

This entry is made as soon as the district court make a decision to permit the incorporation of your company.

When you submit your registration application you will need to provide the following documentation:

o Proof that each shareholder has paid into the company at least one third of the total amount of his or her financial interest, amounting to no less than 10 leva.

o Proof that at least 70 per cent of the registered capital has been paid.

o Articles of incorporation

o A memorandum relating to the appointment of directors

In order for any law to take effect, all Bulgarian legislation has to be published in the official Bulgarian state newspaper, the Bulgarian State Gazette. Publication of your company’s entry in the commercial register is a public declaration of your formation.

Finally, you will need to register your company with the National Tax Register Authority to complete the process of formation.

Following registration, once you have paid your entire share capital you can withdraw funds from the company to make your property purchase.

Now you’ve formed your company you can get on with buying your property.

3. Make sure you know about the taxes

In Bulgaria, as with pretty much everywhere else, property transactions are subject to tax. It’s important that you factor these charges into your financial planning.

Transfer taxes

Corporate tax (15% in 2005) is the only direct tax on the transfer of property. Because you are buying the property with your company you are liable for corporate tax.

Notary fees are payable on the transfer – rates vary but the maximum is around BGN3500.

Municipal fees of 2% of market value are also payable on completion.

Capital Gains Tax

There is no Capital Gains Tax on the profit when your company sells the property.

Local taxes and rates

Property tax is payable by anyone who owns a building or building plot. This is charged at 0.15% of the list value of the property.

If the building is on a municipal or State-owned plot, the value of the plot will also be included when tax is calculated

Local taxes are not payable on arable land

All building owners must also pay fees for waste collection

Value Added Tax

VAT of 20% is payable on all real estate transactions except with land and lease of property is for residential use.

The buyer or lessee can claim a VAT refund provide they are registered for VAT.

4. Put down a deposit on your property

Once you’ve found the property you want, you will need to place a deposit to reserve it. The deposit is usually 10% of the selling price and is refunded on completion of your purchase.

At this you will usually pay a commission to the property agent who will then take the property off the market while you begin the purchase. Check with the property agent regarding their fees and the terms and conditions they apply.

5. Sign an initial contract of sale

When the property agent receives all their cleared funds their solicitors will draft an initial contract, which contains details of all the relevant terms and conditions, monies paid and any other information relating to the property transaction.

Once this contract is signed, searches are carried out to make sure that the titles deeds are valid, that any relevant licenses and permissions are taken into consideration, that any debts on the title are brought to light, and that the terms of the final contract are agreeable to both buyer and vendor.

6. Sign the Notary Act

The last step in the buying process is to sign the Notary Act – essentially an official declaration that you have agreed to buy the property. At this point any state and municipal taxes must be paid and any outstanding balance of monies must be paid to the vendor.

The title deed of the property is then transferred into your company name.

Congratulations – you’re now the owner of a Bulgarian property! Property Abroad always recommends using a Solicitor or Lawyer

inflation.us What will happen to vacant commercial buildings as the economy begins to unwind? The Answer is right in front of my eyes. They will be destroyed.

jim rogers on CNBC 04 juin 2009 Jim Rogers expects currency chaos and the fall of the dollar : jimrogers1.blogspot.com http for more

Anchorage protesters bring their guns and slogans www.adn.com Washington protest over health proposals www.rte.ie 3 more down: Bank failure tally hits 92 money.cnn.com www.fdic.gov After Corus, who’s next to fail thanks to commercial real estate woes? www.dailyfinance.com Venezuela to Develop Nuclear Energy With Russian Help www.bloomberg.com Obama challenges Wall Street to change www.msnbc.msn.com

From the October 6, 2009 PBS “News Hour.” One sees this every day. Storefronts on Park Avenue South where overpriced restaurants sat two years ago are empty with “For Rent” signs, something one never saw in such neighborhoods. Traditionally in NYC, property changes hands in private deals, never through the posting of rent signs. With 1% down payments, commercial real estate makes the subprime meltdown look outright responsible.

Being one of the first countries in the Soviet bloc to toss off the Communist yolk, Poland was well on the road to a more liberal economy with more participation by foreign nationals than other Eastern European nations were when the Iron Curtain fully collapsed. Foreign nationals have been investing in many segments of the Polish economy, including purchasing real estate of different types in the country.

Many foreign nationals have realized significant profits through the years by investing in real estate in Poland. Indeed, the buying and selling of real estate in Poland over the course of the past two decades has been brisk. Most industry experts who are watching the real estate market in the Polish Republic now believe that the buying and selling of real estate in Poland by foreign nationals will increase even more over the course of the coming decade. This will include activity by foreign nationals in the commercial, industrial and residential real estate markets in Poland

Investment Property in Poland

As just mentioned, foreign nationals have been very active in the Polish real estate market for the past two decades. One area in which foreign nationals have been fairly heavily involved is in investment real estate.

Since the Communist government in Poland was ousted, the government of Poland has been active in its efforts to bring foreign investment into that country. As a consequence, the government has encouraged foreign nationals to put their money into everything from commercial real estate enterprises such as office buildings, apartment complexes and other residential developments and even in the construction of industrial properties in some of the major urban centers in the country. The trend towards the involvement of foreign nationals in the Polish investment real estate market is expected to continue onward unabated according to analysts considering the economy and real estate market in Poland.

Residential Real Estate in Poland – Single Family Properties

Trade by foreign nationals in single family residential dwellings has been somewhat limited in the past couple of decades. While foreign nationals have been found buying single family dwellings in Poland, the demand by foreign nationals for single family dwellings has not been the most active part of the real estate market as far as foreigners are concerned.

With that said, there have been some foreign nationals who have family roots in Poland who have taken to buying a second residence within the country. Many of these people are men and women who had parents or grandparents driven from the country during the Second World War or during the period of time that Poland was part and parcel of the Soviet bloc.

There are many interesting and historic residential properties in some of the smaller and more rural communities in Poland. Some foreign nationals have taken to purchasing these properties. These residences do provide solid retreats from the workaday world and have been sought after by more well heeled foreign nationals who enjoy the challenge of renovating and remodeling real estate.

Some people from foreign countries have taken to buying these larger residences in rural locales and have turned them into inns which are being visited by foreign nationals on holiday. These types of inns are sprouting up across the country and are attracting more tourists into the country each and every year. In addition, this type of real estate investment has proven to be very profitable for foreign nationals .

Residential Real Estate in Poland – Apartments

The residential real estate market in Poland, when it comes to apartments and foreign nationals, has done brisk business in the past twenty years. Foreign nationals have been found snatching up apartments — primarily in Polish urban centers and resort venues — for three primary reasons.

First of all, with the Communists out and a more open, democratic government in place, many foreign nationals have come to Poland to do business. Many of these foreign nationals have found themselves within Poland on business for an extended period of time — and have found themselves making repeated visits into the Republic of Poland. In this regard, these business people have found it economical to invest in an apartment for their personal residence for the time they are present in the country on business.

Second, a notable number of men and women from foreign countries have purchased apartments in Polish resort communities. While the drive to purchase vacation or holiday property has been a bit slow in Poland — which will be discussed a bit more shortly — there are a growing number of people from foreign nations who have taken to purchasing an apartment in Poland for holiday or second home purposes.

Finally, there are foreign nationals who have purchased apartments in Poland to be leased or rented to other people, primarily other foreign nationals. These people, these foreign nationals who have purchased apartments for investment purposes, have done so to serve both people coming to Poland on holiday and people coming to Poland on business. By leasing apartments to business and holiday visitors, these particular foreign nationals have been able to generate a good income through the years through this type of apartment investment.

Holiday Property in Poland

For the first decade in which Poland was independent of the Soviet bloc, tourism into the country was not a booming business. However, as time has gone forward, more and more foreign nationals are making Poland a holiday destination.

As a consequence, more foreign nationals each year have purchased holiday or vacation properties — primarily in the form of apartments, but a growing number of free standing residences as well. Most real estate industry analysts predict that the number of foreign nationals who choose to purchase second home or holiday property in Poland will increase over the course of the coming decade.

Most of these experts anticipate that the biggest thrust will be in the purchase of apartments in resort communities in Poland. The experts maintain that these foreign nationals generally will be from European Union nations. There has been an increase in foreign nationals from non-EU countries who also have found themselves attracted to resort real estate in Poland at this point in time .

Specific steps to buying real estate property in Poland

A foreign national is permitted to purchase and own real estate in Poland. With that said, a foreign national must obtain the permission of the Ministry of Home Affairs of the Republic of Poland in advance of purchasing real estate in that country.

The application process before the Ministry of Home Affairs is not a particularly complicated process. Indeed, there are lawyers in the country that specialize specifically in this application process due to the growing number of foreign nationals who are buying real estate in Poland.

A company in Poland that has over 50% foreign ownership must also obtain permission from the Ministry of Home Affairs before that company can purchase real estate in Poland. Again, the application process for a company is not particularly complicated.

There are some restrictions geographically as to where a foreign national actually can purchase real estate in Poland. The Polish government restricts the ownership of real estate on the so-called Polish frontier. It is important for a foreign national to make certain that the locale in which he or she intends to purchase real estate in Poland is not within one or another of these restricted zones.

Approval from the Ministry of Home Affairs to purchase real estate in Poland generally is good for a period of six months. A person can apply for an extension when the initial period expires.

Once permission to purchase real estate is obtained from the Ministry, a buyer of real estate makes an offer to a seller, which will then be memorialized in a preliminary contract or agreement for sale.

Following the signing of this initial contract, the buyer is given a specified period of time to obtain financing. Additionally, the seller is obliged to make certain that the title to the real estate is clear and capable to being conveyed to the buyer during this time period.

In most instances, the buyer is required to post a deposit at the time this initial agreement is executed between the parties. More often than not, the deposit is in the amount of 10 to 15%.

The real estate purchasing process comes to an end when the parties execute the final agreement for sale and conveyance of the real estate. A new title is prepared, placing the real estate in the name of the buyer. The title is then filed with the government.

Once again, a foreign national does need to keep in mind that prior permission of the Ministry of Home Affairs is required before a foreign national can purchase real estate in that country. It is vital to keep in mind that if permission is not obtained by the Ministry in advance of the purchase of real estate, the transaction will be voided and the purchaser will lose his or her interest in real estate — and his or her money as well Property Abroad always recommends using a Solicitor or Lawyer

The real estate market in and across the United States of America is as varied and expansive as the country itself. Although the age old adage comes off a bit trite and certainly overused, when it comes to real estate investment and other real property purchasing opportunities in the United States, there actually is something for everyone. There are many different opportunities available to the savvy shopper.

Investment Property in America

In the 21st century, an ever growing number of men and women are electing to make the purchase of investment real estate in the United States. This includes both residents of the U.S. as well as people living abroad who wish to become a part of the generally burgeoning U.S. real estate marketplace. As a general rule, people who are snatching up investment property in the United States are doing so in three different arenas:

First, investors are electing to buy into commercial real estate holdings.

Second, men and women buying investment property in the United States are also spending a goodly share of their funds on residential rental property.

Finally, people who are purchasing investment real estate in the United States are putting at least some of their money into vacation types of properties.

Residential Real Estate in America – Single Family Properties

No where is the commentary that the real estate market in the U.S. is as varied as the country itself when it comes to the matter of residential real estate. Depending on where a person is interested in residing, in making the purchase of residential property, will dictate how much money will need to be spent on such a purchase.

In some cities in the United States — many of the major cities on both the east and west coasts of the country, for example — the prices of residential properties continues to increase rather dramatically over time. On the one hand, the ever rising cost associated with the purchase of residential property in some cities in the country is keeping some people out of the housing market all together. There are some cities in the America that are experiencing a flat housing market. In other words, the appraised value of real estate is remaining level and not increasing much over time.

Residential Real Estate in America – Apartments

In addition to stand alone, single family residences, the market involving apartments, condominiums and townhouses in many communities has become more active in the past five years. This has particularly been the case as the so-called “Baby Boom” generation begins to move towards the empty nest phase of their lives (their children have left home) and even towards retirement. As a consequence, people are moving towards purchasing apartments, condominiums and townhouses because they are more convenient and generally less difficult and time consuming to maintain. In many instances, these properties are also smaller in size than the typical single family residence.

The overseas buyers are also seen buying these types of property with greater frequency over recent years. In some instances, citizens of other nations are taking to the purchase of these types of properties in order to allow them the opportunity to have a second home in the United States.

Holiday Property in America

One of the most significant trends that has developed in regard to real estate in the United States in the past twenty years revolves around vacation property. In the 21st century, a growing number of people within the United States — as well as an increasing share of property owners from abroad — are investing in vacation and holiday property.

Investment in holiday property generally has been seen to occur in two different areas. First, people both in and out of the United States are making purchases of second homes or vacation homes for their own usage. (In some instances, these people do turn around and rent or lease out their vacation or second homes to other people during those segments of the year when they are not using the property personally.)

Second, men and women residing inside and outside of the United States can also be found investing in time shares in record numbers. A time share situation is one in which a person buys “time” in a piece of real estate. In other words, they are buying an interest in a particular piece of property that interests the purchaser during a specified period of time each and every year.

Mortgage Options

When considering the options for a mortgage on your overseas property there are a couple of choices to consider;

1. Do you consider raising finance on your existing property in the UK to cover the whole cost of your purchase abroad? A good idea if the interest rate in the country in question is a lot higher than it is here in the UK as you will pay a lot less in monthly repayments.

2. Do you secure a mortgage against the property from a local bank in the country of purchase? This can be a wise option especially if the interest rate is lower than our current UK interest rate. Most overseas mortgage / bank lenders will require upto 30% deposit on mortgages. However, you will need to give some thought to how you will service your mortgage payments each month especially if you are not living or earning in that country as you may well lose out on exchanging money each time to cover monthly expenses. Check out our Foreign Currency page to see how you can save money in this example

3. Some Builders and developers may well offer their own mortgage facilities on their properties for sale. This can be beneficial to both parties depending on the logistics of the mortgage or loan facility. Always check and compare with the two options above before making your final descision.

For more details on Mortgages in America visit our Mortgage page in the American section on our website.

Specific steps to buying real estate property in America

A person interested in making the purchase of any kind of real estate in the United States needs to give serious consideration to engaging the assistance of a qualified and licensed broker or of an equally qualified real estate service that has been established to service the needs of those people seeking to purchase investment, residential or vacation property within the U.S. When shopping for real estate in the United States, a buyer needs to keep in mind that the agent or Realtor works for the seller. The real estate agent or Realtor is legally obliged to protect and further the interests of the seller.

In addition to engaging the assistance of a qualified broker or real estate service, it is also important to note that the real estate markets found across the United States vary significantly from location to location. As a consequence, a person looking to buy real estate in the United States will want to make very certain that he or she has resources that are specifically knowledgeable about the real estate market in a particular region of the U.S.

One step that a person interested in buying real estate in the United States will want to consider taking up front is obtaining a financing commitment from a bona fide lender before beginning the search for specific pieces of real estate. In recent years, in the United States, lenders will extend mortgage facilities to people interested in purchasing real estate (provided that they are credit-worthy) in advance of identifying a particular piece of property for purchase. By having such a lending commitment in hand, a person looking to buy real estate will be in a better position to more efficiently and effectively procure real property in the least amount of time.

When making the purchase of real estate in the United States, the general practice and law in most states is that a purchaser accepts the property in the actual condition it is in at the time of the contract for sale is executed. In other words, a buyer generally buys the property in the condition it is in and cannot complain about significant defects after the deal is closed between the buyer and seller. (The one caveat is if the seller willfully and intentionally withholds material information about defects or problems of a significant nature associated with the real estate.) As a result, it is imperative that a buyer makes certain that the property is closely examined for flaws and defects before a contract for sale is finalized and certainly before the closing date on the transaction.

Once a particular piece of property has been identified for purchase, a contract is then drafted. In the United States, real estate cannot be sold in the absence of a written contract. Often, when residential real estate is sold, a standard form of contract is utilized to memorialize and effect the sale. However, if a person is making the purchase of investment or commercial real estate, more often than not a specific and individualized contract is created for the transaction.

When the contract is signed by the parties, a closing date is established. In the U.S., the closing date is the date on which all of the duties and obligations under the contract need to be satisfied — including the obligation of the seller to make certain that the title to the real estate is “clean” and including the obligation of the buyer to make certain that his or her financing is in order.

Generally, a closing date is set approximately 30 days from the signing of the contract for sale. However, there is no hard and fast rule pertaining to when the closing is to be held. The closing date is established between the parties to the real estate sales contract.

One of the items that a buyer will want to make certain he or she obtains after the contract is signed and before the closing date is title insurance. Title insurance will protect the buyer of real estate should a situation arise in which the title to the underlying real estate ends up being clouded. A clouded title is one in which another person or entity ends up having an interest in real estate that may not have been found or properly disclosed during the time period between the signing of the contact and the closing of the sale itself. For example, a prior lender may have a lien on the property that for some reason was not discovered. While such an encumbrance on the property’s title should have been discovered, there are countless examples in which mistakes occur and liens and other interests in a particular piece of real estate are not discovered. Again, title insurance protects a buyer of real estate from any expenses or loss that he or she might experience as a result of a defect in or cloud on the title to real property.

In most jurisdictions in the United States (but not all) local units of government assess property taxes on real estate. If a person is making the purchase of real estate, he or she needs to understand that they are likely to be responsible for paying a pro rata share of taxes that will be due and owing for the portion of the year of the purchase during which the buyer actually assumes ownership of the real estate. Often, the taxes will be due to be paid at the time of closing to avoid any problems between the buyer and seller in the future.

Additionally, insurance on the real estate needs to be in place to benefit the buyer on the closing date. A purchaser of developed real estate will not want to assume possession of the property without making absolutely certain that proper insurance is in place.

Property Abroad always recommends using a Solicitor or Lawyer

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Many investors are frightened of investing in commercial real estate. But with residential real estate struggling, the time is right to make the switch to commercial properties. Trump University Commercial Real Estate Investing 101 takes the fear out of commercial investing with easy-to-understand, step-by-step principles that will make you successful and lower your risk. You?ll learn the differences between residential and commercial properties, how to invest profi… More >>

Trump University Commercial Real Estate 101: How Small Investors Can Get Started and Make It Big

Housing Crisis – Analysis and Discussion with Harrison LeFrak of LeFrak Organization: Commercial Real Estate is in a Slow-Motion Car Crash; No Green Shoots Ahead (Bloomberg News)

• ISBN13: 9780470174913
• Condition: NEW
• Notes: Brand New from Publisher. No Remainder Mark.

Product Description
Thinking about becoming a commercial real estate investor? Commercial Real Estate Investing For Dummies covers the entire process, offering practical advice on negotiation and closing win-win deals and maximizing profit. From office buildings to shopping centers to apartment buildings, it helps you pick the right properties at the right time for the right price. Yes, there is a fun and easy way to break into commercial real estate, and this is it. This compre… More >>

Commercial Real Estate Investing For Dummies

Watch My LIVE Broadcasts (On-Demand): www.livestream.com Add me as a friend on Facebook! www.facebook.com Get DAILY GrowBy10 Updates on Twitter! twitter.com Aug. 10 (Bloomberg) — The collapse in commercial real estate is preventing Federal Reserve Chairman Ben S. Bernanke from declaring the economy and financial markets are healed. Property values have fallen 35 percent since October 2007, according to Moodys Investors Service. Thats making it tough for owners to refinance almost $165 billion of mortgages for skyscrapers, shopping malls and hotels this year, pressuring companies such as Maguire Properties Inc., the largest office landlord in downtown Los Angeles, to put buildings up for sale. Negative Fundamental Demand for commercial space comes from employment and the income generated by that employment, said University of Pennsylvania Professor Joseph Gyourko, director of the Wharton Schools Samuel Zell and Robert Lurie Real Estate Center in Philadelphia. Mounting job losses are a really significant negative fundamental, signaling that conditions are going to be tough for the industry for a while, he said. That may spill over into mounting losses at some banks. Forty-seven percent of loans at the 7000-plus smaller US lenders are in commercial real estate, compared with 17 percent for the biggest banks, according to New York-based Goldman Sachs Group Inc.

Product Description
The Fourteenth Edition of Real Estate Finance and Investments prepares students to understand the risks and rewards associated with investing in and financing both residential and commercial real estate. Concepts and techniques included in the chapters and problem sets are used in many careers related to real estate. The material in this edition is also relevant to individuals who want to better understand real estate for their own personal investment and financing… More >>

Real Estate Finance & Investments