20 Days To Do What Exactly?
Posted by Mark on 21st Mar 2011
There is a distinct danger that I may never do another deal again at this rate, but at the risk of further alienating the honourable and esteemed investment agency constituency, here goes....
"Exchange to take place 20 days from receipt of full documentation."
If we disregard cash deals, hands up everyone who actually believes that complex multi-let assets, requiring some modest level of bank funding, can be closed in little more time than the England rugby team went from being potential world cup winners to a creatine fuelled version of the football team?
Let's be fair, even back in the days when Peter Cummings was personally tipping wheel barrows of cash into the boots of any fat bloke with a Bentley, there were certain hoops that needed to be jumped through.
However we are now in an age where everyone in a process wants to cover their less well remunerated derrieres and only the clinically insane close for cash assuming they can refi later, so something akin to 30 days followed by simultaneous exchange and completion would seem to be a little realistic, we have tried to suggest.
Alas pragmatism seems to be in short supply with vendors and their advisors, who clearly have NEVER EVER spent more than the regulation four weeks to close a deal, so the HoT say 20 days, but the covering email says it won't be enforced.........