Garavel Subaru Retains FLB Law to Handle Real Estate Transactions Riddled with Complexities
SITUATION
Garavel Subaru was acquiring two vacant lots owned by different entities in Norwalk, Connecticut, on which they planned to move their existing dealership. Initially, another local law firm had been hired to represent the dealership in the real estate transaction, and FLB Law was hired to handle the project’s land use and zoning portion.
When FLB Law began reviewing the file, we learned that one of the parcels was entangled in litigation. FLB Law started raising concerns about the contracts’ due diligence provisions related to the closings of both properties. When we brought these issues to the attention of Garavel Subaru, they decided to retain FLB Law to take over all aspects of the real estate transaction and the land use and zoning.
CHALLENGES
Garavel Subaru needed to acquire both parcels to expand its business, as the individual parcels were insufficient for their needs. Unfortunately, the prior law firm had allowed several due diligence periods in both contracts to lapse, including those that would have allowed Garavel Subaru to terminate if one of the two deals fell through. Termination clauses were critical since one of the lots was embroiled in litigation, which, if unresolved, could have affected the viability of the entire project. We also discovered that even if the due diligence periods had not lapsed, the negotiated terms of the due diligence periods were far too short for the dealership to obtain the proper municipal approvals to ensure the project’s feasibility.
SOLUTION
In light of these discoveries, FLB Law immediately contacted the sellers’ lawyers to negotiate extensions to the due diligence periods, giving Garavel Subaru ample time to get its permits and approvals in order. At the same time, we initiated the zoning approval process to keep our client on its project schedule and assisted them with obtaining financing to ensure they had the funds to complete the purchase.
FLB Law successfully negotiated reasonable changes to the due diligence period (and terms) with each seller and successfully represented Garavel Subaru before multiple municipal boards and commissions to obtain all proper permitting and zoning approvals. The firm also actively negotiated the pending litigation affecting one of the parcels, which resulted in a settlement before closing. The successful settlement meant the transaction could be finalized, and the title could be conveyed unencumbered by litigation.
FLB Law’s ability to negotiate amendments to the terms of the purchase agreements is a product of understanding our client’s and the sellers’ needs and concerns. As a result, we formulated creative solutions, satisfying all parties and helping to complete the transactions.