If you're closing on a New York property, whether it's your first property or your hundredth, chances are high you haven't closed on a property during a pandemic before. COVID-19 has changed the landscape of much in the nine months that we've been living with it, and real estate is no different. There are some extra diligence considerations that you should keep in mind if you're preparing to close.
Gather an Environmental Diligence Team
An environmental diligence team will be able to identify the applicable COVID-19 government requirements and industry standards. Additionally, they'll be able to adequately assess a property's COVID-19 exposure mitigation and response protocols.
Valuation and Closing
If you are purchasing as an investment, it's important to remember that many commercial properties may have a reduced cash flow due to the pandemic. Leases may have been defaulted or terminated. You must consider how the property value may have decreased. Reviewing up to date financials is key. In fact, it may be worth requesting an updated appraisal.
As part of the closing process, it's important to consider the impact of up to date quarantine regulations. There may be challenges to completing inspections or title reviews, depending on the current status. It's important to stay abreast of the latest COVID-19 developments and both Governor Cuomo's orders as well as Mayor de Blasio's. If you are the purchaser, consider negotiating for the ability to terminate the agreement if the due diligence can't be completed within a set time frame. Another option would be to request the right to extend the due diligence period.
Having An Experienced Real Estate Law Firm On Your Side
If you're looking to purchase a real estate property in New York, in the middle of the pandemic, there is a lot to take into consideration. The good news is that you don't have to do it alone. An expert real estate attorney will understand how to navigate the unique challenges that COVID-19 presents and how to do so while protecting your financial interests. Call today at 347-352-0275, or reach out online.