Net Lease Purchase Contracts Tilt Toward SellersMarch 20, 2014 – Article
Competition for credit-tenanted net lease properties in strong locations is intense, according to Steven Lurie, partner at the law firm of Greenberg, Glusker. Consequently, sales contracts “are fairly favorable to sellers” in the current market. “There are lots of demand for good, well-located properties leased to high-quality tenants.”
Lurie observed that in the current market, sellers are better able to negotiate, for example, limitations on buyers’ remedies to cap the amount of damages that buyers are entitled to pursue in the event of seller default or breach of warranty.
For example, if the buyer discovers a breach of contract after closing, there would be a liability cap on the seller’s responsibility. Or if the seller terminates the agreement, the buyer’s recourse is limited to the deposit and out-of-pocket expenses.
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