Tuesday was our first day back from the long weekend as well as the first day of a summer-long war: the Real Estate Mock Transaction. When I first heard about the mock transaction, I was excited because I am interested in Real Estate and the Real Estate Practice Group at Bilzin Sumberg is so prominent, but also a bit apprehensive because I had no idea what to expect.
Luckily, our session today started with a brief overview of the purpose of the mock transaction, and then a brief overview of a typical real estate transaction. Bilzin Sumberg started the mock transaction about 8 years ago for two reasons: first, because most law schools do not offer transactional skills programs and second, because most summer associates are not here long enough to see a deal all the way through. Today, we negotiated for a 105 day inspection period followed by a 60 day closing period. In 165 days I will be outlining for my first semester finals instead of working on a real estate transaction, so I’m excited for the chance to see what a real deal entails.
We each received a binder to use throughout the transaction – one for the buyers’ side and one for the sellers’. On the cover, our faces were photoshopped onto the movie poster for Captain America Civil War underneath the title “The Summer War.” My face is front and center, attached to Captain America’s body. Each Summer Associate’s face was on a different superhero. Inside was a fact pattern explaining how some of the superheroes need to liquidate their assets to prepare for battle, so they were planning to sell a vacant lot here in Brickell, across from Pieducks Pizza.
On the next page, we had information specific to the buyers’ team, including which issues (price, length of inspection period, etc.) were our priorities. The sellers’ team left the room, and we discussed our strategy with our coach, Manny Gonzalez. Having our coach there was extremely helpful because we had no idea where to start. Should our first offer be below the appraisal value of the property? Is a typical deposit rate 2% or 25%? Fortunately Manny was able to put us on the right track. After a few minutes, the sellers’ team came back in and our timed negotiation ensued. Sitting on opposite sides of the table, the two teams discussed price, the closing period, the inspection period, and deposits to try to come to an agreement.
The negotiations are ongoing, so I can’t disclose too much. Check back for more updates after we sign the contract!