CASE STUDY: LOAN ASSUMPTION

Parties

Client is a California limited liability company and buyer of a commercial building in San Diego County. 

Background Facts

Client entered a contract to purchase a mixed-used office building in San Diego County. The Client was financing part of its purchase of the property by way of assuming the Seller’s existing loan secured against the property. To assume the loan, the Bank required extensive and complicated documentation to be executed by the Client. Blake Law Firm was engaged to advise Client as to the assumption of the loan including the drafting and negotiating of related documents necessary for closing the transaction. 

Issue Presented

The Bank prepared a lengthy checklist requiring substantial information and certifications from the Client. Additionally, the Bank required the California limited liability company be converted to a Delaware limited liability company. The Client was assuming the Seller’s loan from years earlier, which required review of the original loan documentation, in addition, to the assumption documentation that included: Assumption Agreement; Assignment and Subordination of Management Agreement; Cash Management Agreement; Entity Certificates for New Borrower; and a legal opinion letter from California counsel.

Solution

Blake Law Firm assisted the Client in reviewing, negotiating, revising, and finalizing all documents related to the assumption of the loan. The Blake Law Firm worked in conjunction with the Client’s real estate broker and with the Bank’s counsel to close the transaction. 

Outcome & Impact

The Client successfully assumed the loan, closed the transaction, and saved a substantial amount of money by acquiring the Seller’s loan rather than obtaining a new loan at today’s higher interest rate.

The information provided above does not, and is not intended to, constitute legal advice. All information, content, and materials are for general informational purposes only and do not create an attorney-client relationship. The experienced and knowledgeable attorneys at Blake Law Firm are available to answer your questions and help you navigate your real property issues.

Andrew Hall

Attorney Andrew Hall has over 10 years of experience handling complex real estate, business, and litigation matters throughout California and Washington. Andrew has vast experience with a wide range of clients – from residential to commercial property owners, landlords to tenants, real estate agents to brokers, title to escrow companies, hard money lenders to banking institutions. Andrew has handled cases ranging from administrative disputes, to unlawful detainers, to bankruptcies, to litigation, leaving his clients with the confidence that he can handle all of their needs from soup to nuts.

Andrew is committed to exploring efficient and cost-effective resolutions for his clients, whether that be through informal conversations with parties or attorneys, mediations, or settlement conferences. However, when litigation is inevitable, Andrew has counseled his clients through all stages of a dispute, including arbitrations, court trials, jury trials, and appeals at both the State and Federal Court levels.

Andrew resides in Carlsbad with his wife Lauren, son Nolan (7), and daughter Madeline (5). Andrew is actively involved with the Magdalena Ecke Family YMCA, where he can often be found on the weekends cheering Madeline on in any variety of youth sports or with Nolan participating in the Y’s Adventure Guides Program. Andrew enjoys playing golf, tennis, softball and good barbeque.

Andrew is committed to identifying his client’s goals and employing his big firm experience with small firm attention to help his clients achieve those goals.

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CASE STUDY: SECURITY DEPOSIT REFUND