Problems in the Code: The Time Has Come to Suspend the SARE Provisions

By Kenneth A Rosen

The COVID-19 pandemic has unleashed an unprecedented economic crisis, leaving many real estate owners grappling with financial distress. The current bankruptcy framework, however, poses significant challenges for preserving real estate value, particularly for single-asset real estate (SARE) cases. This article advocates for suspending restrictions on SARE cases, offering a viable solution to safeguard real estate investments and foster economic recovery.

Key Points:

• The pandemic's economic repercussions have left numerous real estate owners facing financial strain.

• The current bankruptcy system presents obstacles to effectively preserving real estate value, especially in SARE cases.

• Lifting restrictions on SARE cases provides a practical approach to protect real estate investments and promote economic revitalization.

  
  

Recommendations:

• Policymakers should consider suspending restrictions on SARE cases to enhance real estate value preservation.

• Real estate owners facing financial difficulties should explore the benefits of SARE cases under the revised framework.

• Legal professionals should stay abreast of developments in bankruptcy law to effectively advise clients on real estate value preservation strategies.

  
  

Additional Insights:

• The pandemic's impact on real estate markets is expected to persist beyond the immediate crisis.

• Preserving real estate value is crucial for maintaining economic stability and preventing widespread financial hardship.

• Suspending SARE restrictions aligns with the broader goal of equitable economic recovery.

As the world navigates the aftermath of the COVID-19 pandemic, preserving real estate value is paramount to economic resilience and individual well-being. Suspending restrictions on SARE cases offers a promising path forward, enabling real estate owners to effectively restructure their finances and safeguard their investments. Embracing this approach will contribute to a more stable and equitable economic recovery.