Category: Real Estate Law
Bankruptcy Overview and the Unexpired Lease
December 20, 2009 | Joan M. QuadeMany clients over the years have had questions regarding bankruptcy law and the consequences of a tenant in possession of commercial space, filing Bankruptcy. The bankruptcy law is complex and comprehensive. The following is meant as a simplified overview and, of course, you should consult with an attorney on specific cases. Bankruptcy is covered by Federal Law. The purpose of the Bankruptcy Act is to convert the estate of the debtor into cash and distribute it fairly among creditors. Once a debtor files Bankruptcy, there is an automatic “Stay”. In regards to collection activity, this means it is a violation of the Stay for any creditor to do anything to attempt to collect a debt. It stops all collection activity including collection letters being sent by the creditors. Chapter 7 covers liquidation. See 11 U.S.C.S. 701 et seq. This is where a debtor is unwilling or unable to repay their obligations, and involves the debtor surrendering to a trustee all assets that are not specifically exempted by the bankruptcy laws for liquidation into cash. See Re Ross, 95 B.R. 509 (Ohio 1988). The estate is dismantled, converted to cash, and distributed equitably among the creditors. A trustee in a Chapter 7 case may be either appointed by a United States Trustee or elected…
Read MoreCondemnation
December 20, 2009 | Joan M. QuadeCondemnation By Joan M. Quade Our constitution provides a right to receive just compensation if a public entity is taking land and provides that a condemning authority has an obligation to pay just compensation for land taken for a public purpose. This principal is deeply rooted in our constitutional history and traditions of real estate law. Simply put: if you are a condemning authority you must pay fair value for land being taken. If you are a landowner you must receive fair value for land taken. The evaluation of the value of land is sometimes difficult, therefore, how does one determine what is fair value? We must rely on the right experts. Finding the right expert for valuation of property is not just a matter of finding the person who can do the comparables to suggest value. It is a matter of knowing who can find the most similar comps and who can persuasively communicate that information effectively in writing and at a commissioner’s hearing. Different cases and different types of property command different specialization. Value is initially decided by the condemning authority’s appraiser, however, the landowner has a right to an appraisal as well. The Minnesota Statutes provide that the landowner will be awarded $1500 to obtain their own appraisal on…
Read More