A local businessman set out to create a real estate portfolio. Our first transaction involved a major neighborhood corner in Seattle. On our second try, we reached an agreement for purchase, using Seller financing. The client had no relationship with any legal counsel and we assisted him by referring him to a real estate lawyer who solved issues raised by counsel for the Seller. At the closing table, the Seller came up with an “… oh, by the way…”. The Seller had been paying for an oil tank permit for a tenant in an alley behind the property. We suggested to the client that he was buying the building, not the oil tank and proceeded to close. The City of Seattle is still stuck with the oil tank in the alley and has been unable to find someone to remove the tank.
In subsequent transactions we encountered and solved multiple problems. One closing involved a Seller who had falsified loan documents to a federally insured loan institution. Counsel drew agreements to protect the Buyer. At closing, the Seller changed and her counsel attempted to change the documentation. As agent for the Buyer, we initiated a call to the counsel and suggested that if the Buyer failed to close, that it was entirely possible that his client would be serving time in a federal facility. The sale closed.
Subsequently, in multiple transactions we have had the pleasure of serving the needs of the client in assembling major properties and doing their real estate valuations. The family company and its second generation are valued clients and we continue to serve their needs for future acquisitions and advise.
