Deal or No Deal? – Letters of Intent: Lessons from the Enterprise Case

BY REID WILSON

A $469,375,000 Million Dollar trial court verdict based on a “letter of intent,” later reverse  on appeal resonates in the real estate industry, where letters of intent are commonplace.

How it started: Enterprise Products, a Houston based pipeline developer/operator approached Energy Transfer, a Dallas based competitor, to investigate a shared development transaction to transport oil from the important industry storage center in Cushing, Oklahoma to Houston, thereby eliminating a major logistics bottleneck. They signed the following documents for the proposed “Double E Pipeline”:

  • Initially, a Confidentiality Agreement to permit sharing of information, with the intention to work toward a letter of intent for the proposed transaction.

Click to read the rest of this Article.

 

No Fly Zone! So you got a drone, now what? Who makes the rules?

BY DEREK C. PERSHING
WILSON CRIBBS + GOREN

 

 

 

 

 

 

Derek Pershing is a commercial real estate attorney with Wilson Cribbs + Goren and he holds a Private Pilot License and Remote Pilot Certificate. 

The Federal Aviation Administration (“FAA”) is the governing authority over all aspects of civil aviation in the United States. In 2016, the FAA estimated that there were roughly 1.1 million Unmanned Aerial Systems (“UAS”) (a/k/a “drones”) in the United States. The FAA also expects drone usage to triple to about 3.55 million by 2021. Since December 2015, the FAA has required
mandatory registration for all UAS which weigh more than 0.55 pounds and less than 55 pounds. However, a federal appeals court ruled in May that the FAA does not have the authority to regulate “model aircraft” and require mandatory registration. Still, more than 770,000 drones have been registered in the U.S.—more than double the number of manned aircrafts.

Click to read the rest of this Article.

 

 

 

 

 

 

Deed Restrictions and Airbnb

BY TRAVIS L. HUEHLEFELD, ATTORNEY
WILSON CRIBBS + GOREN

 

 

 

 

 

The “sharing economy”, led by companies such as Uber and Airbnb, is in full force and continues to gain popularity.

I. INTRODUCTION
Of particular interest in the real estate industry is short-term rental with companies such as Airbnb, Home Away and VBRO. These companies offer an online marketplace for people to lease or rent short-term lodging in houses, apartments, vacation homes and thelike. Short-term rentals offer travelers an alternative to traditional sources of lodging, such as hotels. Short term
rentals also offer property owners a way to generate extra income from their residence. The rise in popularity of Airbnb and its competitors has led many neighborhoods to confront the question of what to do about short-term rentals. This article discusses the various ways neighborhoods can address short-term rentals.

Click to read the rest of this Article.

Mineral Rights vs Surface Rights

By Micah Leigh

The economy across Texas is largely based on oil and gas. As the oil and gas market goes, so goes real estate development. But what happens when these two industries collide? If one entity owns the mineral rights, but another owns the surface rights, who wins a dispute if the oil industry decides to drill on a certain property? For answers, REDNews turned to Rusty Adams, Research Attorney at Texas A & M Real Estate Center.

Click to read the rest of this Article.

Permitting Paralysis: Land Use Approvals In The Houston Area

BY OMAR IZFAR
ATTORNEY

Although Texas, and in particular, Houston, celebrates a reputation as an entrepreneur’s dreamland, we have a consistently increasing body of land use and development regulation.  Densification brings growing pains in the form of land use conflicts and, in many cases results in more regulation, both public and private. Development in metro Houston is regulated by more sophisticated land use controls than many realize. The persistent rumor that the City of Houston’s lack of formal zoning codes results in a lax regulatory environment inside the City and around the metro Houston area creates false expectations for developers.  Developers neglecting to do their homework experience problems in the form of delay, cost and unexpected limitations on their projects.

Click to read the rest of this Article.