Legal Question in Real Estate Law in California

You should absolutely hire an attorney to review the transaction, and to advise you on the assumption of the note. The language in the note concerning assumption may not be clear, in which case you want to be sure that you have exercised due diligence in attempting to notify the note holder of the assumption by this new buyer, and that you have complied with any and all requirements of the note and loan agreement. You may also wish for the buyer to indemnify you in the event the loan is called. If for no other reason, you want to be sure a proper disclosure is given to the buyer in which they acknowledge the risk associated with selling the property subject to a loan for which you have been unable to obtain consent for the buyer to assume.

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You should never enter into a transaction involving commercial real estate without at least a review by an attorney. Unlike residential real estate where everything is standardized and the forms have been vetted and sometimes litigated multiple times to the point that the legalities are clearly known, at least to the agents and brokers involved, commercial real estate is much less standardized and requires at least a review, if not direct involvement by an attorney to be sure nothing will come back to bite you. If I can be of assistance please feel free to contact me. It appears you are in Oakland, and I have conference facilities there, or can meet you in one of my primary offices in Walnut Creek or San Francisco.