The credit crunch has meant borrowers looking to purchase commercial real estate have to be creative to obtain financing to complete transactions when traditional methods are unavailable due to loan-to-value ratios.

A current trend being commonly used is for the purchaser/borrower to approach the vendor to provide a portion or all of the balance of the sale proceeds by way of a loan from the vendor to the purchaser/borrower. In return, a mortgage is given by the purchaser or borrower in favour of the vendor or lender and registered on title to the subject property.

Read more by clicking here for Andrea L. Centa’s article featured on the Canadian Lawyer Magazine's website.