Type of Matter: Transactional Real Estate
Client's Challenge: Project mitigation required in a 1988 Massachusetts Highway Department section 61 finding required payments when certain occupancy levels were reached in the development. Changes in government policies impeded the agency from accepting the mitigation payments when the payments were due nearly twenty years later. Buyer and lender counsel questions on compliance with this mitigation requirement stopped closings.
The Goal: Resolve uncertainty created by the Massachusetts Highway Department's inability to accept funds required as project mitigation so it no longer created concerns for buyer and lender counsel during closings for lots within the development.
Our Strategy: Work with Massachusetts Highway Department to establish escrow account held by developer for benefit of agency to document compliance with the mitigation requirement, including documents in a form acceptable to buyer and lenders counsel.
Results: Closing proceeded without further delay and subsequent closing have not had to deal with this issue.
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