In the course of daily work on current tasks, the real estate lawyers of "Madroc" company accompanied 2 transactions for the acquisition of commercial real estate. As always, these transactions were not just ordinary real estate purchase agreements, but specific properties encumbered with various complexities. The lawyers' task was to assess the risks of these transactions and find optimal solutions for their execution.

Work on the first property began with the stage of comprehensive legal due diligence. The specialists conducted a thorough analysis of not only the seller-assignor's title documents but also the initial equity participation agreement, project documentation, construction permits, and the financial condition of the developer. The key task was to verify the cleanliness of the initial DDU (Shared Equity Participation Agreement), confirm the absence of claims against the developer from the assignor, and verify that all obligations to them had been fulfilled in full, which is the basis for a lawful assignment.

Based on the data obtained, the lawyers developed a negotiation strategy. Particular attention was paid to the terms of the assignment agreement: checking for previous assignments, obtaining official consent from the developer for the transaction, and carefully formulating the rights and obligations being transferred. An additional complication was the encumbrance in the form of a pledge of rights under the DDU from the assignor's creditor bank.

Regarding the second property, it was encumbered with a pledge and required developing a roadmap and calculating the risks of letter of credit payment, taking into account the requirements of the creditor bank (pledgee).

For this purpose, a mechanism using a covered letter of credit with special conditions was developed. The lawyers prepared a package of documents, including a petition to the bank to remove the encumbrance after receipt of funds, and coordinated with the issuing bank the procedure for blocking funds in a special account.

The use of a letter of credit allowed the transaction to be successfully completed with minimal risks for all parties, despite its complexity and significant amount.

22.08.2025