When a Section 22 Affidavit, discussed in earlier installments of this series, materially misstates a building loan’s “net sum available” to pay contractors for cost of improvement work, that can have substantial adverse...more
The protections that New York affords a construction lender who properly documents and files a building loan contract and its accompanying Section 22 Affidavit, each of which is discussed in earlier installments of this...more
In addition to the mutual exchange of promises – the borrower’s promise to build in exchange for the lender’s promise to advance loan proceeds discussed in part 3 of this series – there’s another crucial aspect to a building...more
Nothing quite sets New York apart from other states’ attempts to balance the interests of construction contractor and construction lender as does New York’s iconic building loan agreement – or, to call it by its technical...more
States struggle to strike the right balance between assuring payments to a contractor who improves real property and a lender whose financing helps make those improvements possible in the first place....more
In an ideal world, the interests of contractor and lender involved in the same construction project are aligned: the project succeeds, and everyone is paid what they’re owed.
But when the interests of contractor and lender...more
When looking at real estate trends, and especially the demographic-based fundamentals that underpin real estate values, we have seen a lot of change in very little time. ...more