As noted in an earlier column, most real estate deals begin with a letter of intent (or "term sheet") spelling out the principal terms of the deal. Often, because these are viewed as informal, the parties to the transaction don't bother having them reviewed by lawyers until after they are signed, according to Tom Muller, co-chair of land use and real estate practice at Manatt, Phelps & Phillips LLP. Muller notes in the column below that "This can be a big mistake."
The views expressed below are the author's own.
It's not all that unusual to see such a term sheet calling for, say, a 20-day due diligence period. This is apparently supposed to be impressive to the seller, showing that the buyer is a can-do player. Unfortunately, unless the title work and survey have already been completed, it is very unlikely they can be done, let alone reviewed, within that twenty-day period. Nor can the necessary Phase I environmental review be done and reviewed within twenty days. A sophisticated seller will understand that this apparently motivated buyer actually doesn't know what he's doing.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
