Suggested List of Permitted Exceptions To Title For A Commercial Real Estate Contract

The Property are sold and shall be conveyed subject to the following (the “Permitted Exceptions”):

1. All presently existing and future liens for unpaid real estate taxes and water and sewer charges not due and payable as of the date of the Closing (as hereinafter defined), subject to adjustment as herein provided.
2. All present and future zoning, building, environmental and other laws, ordinances, codes, restrictions and regulations of all governmental authorities having jurisdiction with respect to the Property, including, without limitation, landmark designations and all zoning variances and special exceptions, if any (collectively, “Laws and Regulations”) provided that any violations of same do not materially interfere with the current use and occupancy of the improvements on the Premises.
3. All covenants, restrictions and rights and all easements and agreements (recorded or otherwise) for the erection and/or maintenance of water, gas, steam; electric, telephone, sewer or other utility pipelines, poles, wires, conduits or other; like facilities, and appurtenances thereto, over, across and under the Property (collectively, “Rights”) and all other covenants, reservations, restrictions, rights, easements, declarations and agreements of record; provided, the same do not prohibit the use of the Improvements for their current use.
4. All service, maintenance, union, supply, utility (including, without limitation, heat, steam, electric power, gas and light and telephone) and other Contracts in connection with the Property.
5. Any existing leases or tenancies, if any.
6. All notes or notices of violations of law, regulations, or governmental ordinances, orders or requirements noted in or issued by any Federal, State, County or Municipal department, agency or bureau having jurisdiction, against or affecting the Property, or any part thereof; provided, that (1) same may be cured by the payment of a sum certain subject to Seller’s Maximum Violation Expense; and (2) Seller shall pay or credit Purchaser, at Closing, an amount equal to Seller’s Maximum Violation Expense.  Notwithstanding the foregoing, Seller shall have no obligation to close out any open building permits not filed by Seller during its ownership of the Property or to cure any violation or otherwise remedy any condition underlying or giving rise to any violation.
7. Consents by Seller or any former owner of the Property for the erection of any structure or structures on, under or above any street or streets on which the Property may abut.
8. Minor encroachments of 12 inches or less of stoops, areas, cellar steps, trims, cornices, lintels, window sills, awnings, canopies, ledges, fences, hedges, copings and retaining walls projecting from the Property over any street or highway or over any adjoining property and projecting from adjoining property over the Property.
9. Minor variations between record line and fences, hedges and retaining walls; and encroachments of adjoining premises upon the Property and variations between the description of Property herein and tax map description and/or between tax lot lines and lines of record title.
10. Any state of facts an accurate survey or physical inspection of the Property may show, provided same does not render title uninsurable at regular rates.
11. Financing statements, chattel mortgages and liens on personalty: (a) owned by any tenant or former tenant; (b) filed more than five (5) years prior to the Closing Date and not renewed; or (c) filed against property or equipment no longer located within the Property.
12. Revocability or lack of right to maintain vaults, coal chutes, excavations or sub-surface equipment beyond the line of the Property.
13. Any encumbrances, defects or objections to title and any and all other matters whatsoever in each case arising out of the acts or omissions of Purchaser provided that Purchaser’s title insurance company is willing to insure over same at no additional cost or premium.
14. Standard exclusions and exceptions contained in the jacket of a standard New York form of title insurance policy issued at the time of Closing by the Title Company.

Disclaimer

The information contained in this example list of Permitted Exceptions for a Commercial Real Estate Contract (“checklist”) is provided for general informational purposes only, and may not reflect the current law in your jurisdiction. This checklist in no way should be considered a comprehensive list of permitted exceptions, items or documents required for any real estate contract. In accessing this checklist you understand that there is no attorney client relationship between you and Tomlin Law, PLLC. No information contained in this checklist should be construed as legal advice from Tomlin Law, PLLC or the individual author, nor is it intended to be a substitute for legal counsel on any subject matter.  No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through, this Checklist without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from a lawyer licensed in the recipient’s state, country or other appropriate licensing jurisdiction. Although the information on this checklist is intended to be current and accurate, it is not guaranteed or promised to be current, accurate, or complete.