Beware of Loan Provisions: Jerome Grossman Authors Article in Commercial Investment Real Estate Magazine

July 20, 2016

When buyers purchase a property with financing or are refinancing an existing loan, they often encounter preprinted loan documents or documents generated by an assembly program. In either case, making changes and understanding preset terms can be a challenge. In his Commercial Investment Real Estate magazine article “Beware of Loan Provisions,” Senior Counsel Jerome A. Grossman discusses why a preprinted document’s language should be modified.

Mechanically produced prepayment provisions can be worded in a way that is surprising to commercial real estate professionals, and if a borrower misinterprets what these notes say, it can find itself obligated to pay a much higher than expected premium. In addition, preprinted provisions often suffer from ambiguity of both language and context that complicate a borrower’s ability to comply with its obligations under the loan documents.

The language in preprinted lending documents can cause buyers plenty of trouble, and these are just a few of the many issues to be aware of when dealing with form documents.

Read full article.