What to Know About Private Assessments & Charges img

What to Know About Private Assessments & Charges

calender icon 6/21/2022    poster icon  Mark Goodman

Private assessments / charges come up often in commercial real estate transactions. Such assessments / charges can greatly impact your commercial real estate transaction, so it’s key to have at least a basic understanding of them. In this article, we are going to talk about what you need to know about private assessments / charges in a commercial real estate transaction.

What are Private Assessments / Charges

A private assessment / charge occurs when a party places a lien against a piece of property in order to recover expenses. Private assessments / charges can stem from a variety of different factors, including (but not limited to):

  • Utility payments made on behalf of the owner
  • Maintenance charges
  • Association assessments

Where Do Private Assessments / Charges Arise?

Private assessments / charges can arise in many different places throughout a commercial real estate transaction. Sometimes they can be established in recorded instruments such as:

  • Deeds
  • Mortgages
  • Leases
  • Development Agreements
  • Declarations

Perhaps the most common example of a private assessment in a commercial real estate transaction is the right of prior approval of a future purchase or occupant – which can be used to keep direct competitors away.

Commercial Title Insurance Company

Looking for help with your next commercial real estate transaction? You’ve come to the right place! The team at Commercial Partners Title Company has decades of experience working on commercial real estate transactions of all shapes and sizes for clients throughout the United States. With each transaction, we bring our commitment to customer service and expertise to the table. Our team can help guide you through the entire commercial title process. Contact our commercial title experts today to learn more about the services we offer and how we can help you with your next commercial real estate transaction. Our office is located in downtown Minneapolis but we work with clients throughout the country!