3 availability of other income what evidence prepared

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3.Availability of other income – what evidence prepared to produce?4.Prepared to accept VTB? (why would the seller do this) Long closing? Longconditional period?
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Chapter 11 / Exercise 11.3
Business: Its Legal, Ethical, and Global Environment
Jennings
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5.Lease income: what possible interruptions?6.Prepare financial pro formas for sales effortsManaging Tax and Accounting Issues on Sale1.Assignability/assumablity of mortgageIs it technically assumable?If not, will banker consider assumption/requalification of buyerIf not, sufficient cash to discharge?2.Accounting treatment of sale3.Tax treatment of saleRecaptureTerminal lossCapital gainCapital lossPhysical Issues on Sale1.roof and other maintenance items2.good working order3.paint and curb appeal issues4.landscaping5.parking, line painting6.no active concealmentRegulatory Issues on Sale1.complaint with zoning or legal non-conforming?2.Fire code and building code: any work oders3.Environmental – Phase I and II in hand?4.Status of development site plan agreements?5.Ability to replace securities or deposits6.Tenant uses comply?7.Occupancy and maintained standards complaintSelling: Title and Legal1.Survey up to date?2.Encumbrances outstanding dischargeability (ex, closed mortgages?)3.Good standing of any municipal agreements?4.Drafting form of sale agreement in advance?5.Put LTQ in LTA?6.Determine internal approvals required and who manages sale7.Ensure no latent defects, no concealment8.Anticipating title requisitions do sub search pre-sale
Statue of Frauds– can’t have an interest in land without physical transfer of title.All agreements should be in writing.Long term APS– long condition period (Mattamy homes won’t close the deal underthe sub division is built out, then they’ll close the deal.What is important when buying for Development Purposes?Market risk – will the tenants be there when you finally get there 4 years from now?Financing risk – can you borrow against a non-income producing property? Howmuch money you will you be lent?Pure option: a pay you money for the right to search for a certain period of time.Types of LawPublic LawApplies to everyoneCriminal, tax, administrative, constitutionalLargely statue basedPrivate LawApplies between specific individualsContracts, tort, property (chattels, IP, real estate)Court-made law, common law, often codified into statueSources of LawThe constitution Act 1982 (including the Charter of Rights and Freedoms)oNO protection of property rightsLegislationoActs of ParliamentoProvincial Statues (notably, allocated Property and civil rights in BNAact)oMunicipal By Laws (notably, Municipal Acts and Planning Acts)CourtsoOn a specific fact situation between partiesCommon Law (All provinces except Quebec)oStare decisisoKeeping up to date!

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Term
Spring
Professor
Craig Carter
Tags
Law, seller
We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Business: Its Legal, Ethical, and Global Environment
The document you are viewing contains questions related to this textbook.
Chapter 11 / Exercise 11.3
Business: Its Legal, Ethical, and Global Environment
Jennings
Expert Verified

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