Legal Question in Real Estate Law in New York

Re: Commercial Real Estate - Alternate methods of Payments for

The other attorneys are all correct - however, I would just chime in to say that the risk is that the Purchaser does not know the true price at the time he obligates himself to the transaction, since the costs of procuring such instruments are dependent on variables (such as interest rates) that can swing substantially in a short period of time.

Re: Commercial Real Estate - Alternate methods of Payments for

You really should ask your own lawyer.

However, it seems to me that the purchaser wants to avoid capital gains by having the money delivered into an annuity so income is generated over a period of time.

As long as you receive good title together with the deed for valid consideration, it should make no difference to you how the money is delivered to the Seller.

Mike.

Re: Commercial Real Estate - Alternate methods of Payments for

It sounds like an alternative form of payment - maybe to save on capital gains or to create a future income source. As long as good title passes - it should not create a problem. However, the purchase of any property, escpecially commercial property, is complicated so I would recommend that you check with your attorney.

Re: Commercial Real Estate - Alternate methods of Payments for

If you are involved this deeply with a commercial contract, ask your own attorney for advice. If it is just a query, it is just an alternate way of creating financing. It depends on the contract as whole and the negotiations to date.

Good Luck

RRG