Years of Experience in Commercial Property Law

Who pays for an owner’s or lender’s title insurance policy depends on the Purchase & Sales Agreement, transaction terms, and the policy being issued. Title insurance protects against covered losses from certain past title problems, such as undisclosed liens or defects in the public record; the policy controls its coverage and exclusions.

A title search is the examination of public records to identify ownership, liens, and other matters affecting title before closing. Title insurance is a policy that may protect against covered title defects that exist despite the search or are otherwise covered by the policy.

A title commitment describes the proposed insurance coverage and lists matters that must be addressed or accepted before the policy is issued. It can reveal liens, easements, restrictions, covenants, and other recorded matters that may affect ownership, use, or value.

The Purchase & Sales Agreement sets important obligations, contingencies, timing, and risk-allocation terms for the transaction. Reviewing it before signing gives a buyer a chance to understand the language and raise questions while changes may still be possible.

In Rhode Island, a buyer has the right to select their own title attorney, and the lender cannot dictate who they use. A buyer should confirm that the selected attorney satisfies any lender requirements while remaining independent counsel for the buyer’s interests.

Private or hard-money lending uses capital from an individual, fund, or other private source and is often secured by real estate. It may be more flexible or faster than a bank loan, but it can involve different underwriting, documentation, pricing, compliance, and enforcement considerations. The loan documents and applicable law control.

A borrower may consider private financing when speed matters, a property needs work, the deal does not fit a bank’s program, or a bank’s underwriting requirements are not workable. Flexibility does not remove the need to understand the total cost, collateral, default terms, personal obligations, and exit plan.

Private pricing can reflect speed, flexibility, property condition, borrower or project risk, limited operating history, servicing work, and the lender’s cost of capital. Interest, points, fees, reserves, default provisions, and other terms should be evaluated together; no rate or cost is appropriate for every loan.

Loan-to-value compares the loan amount with the value of the collateral. A conservative ratio gives the lender more equity protection if the property must be sold after a default, but value can change and a foreclosure can add time and expense. Lenders also consider the property’s condition, marketability, senior liens, and the proposed exit.

A lender may review the borrower’s experience, credit and financial information, liquidity, guaranties, project plan, repayment source, title, insurance, condition, valuation, zoning, liens, and marketability. The exact review depends on the transaction and does not guarantee approval or performance.

Private or hard-money lending uses capital from an individual, fund, or other private source and is often secured by real estate. It may be more flexible or faster than a bank loan, but it can involve different underwriting, documentation, pricing, compliance, and enforcement considerations. The loan documents and applicable law control.

A borrower may consider private financing when speed matters, a property needs work, the deal does not fit a bank’s program, or a bank’s underwriting requirements are not workable. Flexibility does not remove the need to understand the total cost, collateral, default terms, personal obligations, and exit plan.

Private pricing can reflect speed, flexibility, property condition, borrower or project risk, limited operating history, servicing work, and the lender’s cost of capital. Interest, points, fees, reserves, default provisions, and other terms should be evaluated together; no rate or cost is appropriate for every loan.

Loan-to-value compares the loan amount with the value of the collateral. A conservative ratio gives the lender more equity protection if the property must be sold after a default, but value can change and a foreclosure can add time and expense. Lenders also consider the property’s condition, marketability, senior liens, and the proposed exit.

A lender may review the borrower’s experience, credit and financial information, liquidity, guaranties, project plan, repayment source, title, insurance, condition, valuation, zoning, liens, and marketability. The exact review depends on the transaction and does not guarantee approval or performance.