Private charges (or private assessments) occur when a party places a lien against a piece of land in order to recoup expenses. These charges can have an enormous impact on the commercial real estate transaction, so it is important to have a passing understanding of them. In this article, we will discuss a few things you need to know about private charges / assessments when dealing with commercial real estate.
Private Charges Relate to a lot of Items
Private charges can relate to a variety of different factors, including:
- Utility payments made on behalf of the owner
- Maintenance charges
- Association assessments
- And more
Private Charges Can Arise in Many Places
Private charges can arise inside a number of different places during a commercial real estate transaction. They can be established in recorded instruments for example: deeds, mortgages, leases, development agreements, or declarations. The most common example when dealing with commercial property may be the right of prior approval of a future purchase or occupant – which may be used to keep direct competitors away.
Commercial Title Services
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