U.S. patent application number 11/556292 was filed with the patent office on 2007-03-15 for system, method and computer program product for facilitating real estate transactions.
Invention is credited to Jeffrey C. Smith.
Application Number | 20070061163 11/556292 |
Document ID | / |
Family ID | 35137602 |
Filed Date | 2007-03-15 |
United States Patent
Application |
20070061163 |
Kind Code |
A1 |
Smith; Jeffrey C. |
March 15, 2007 |
SYSTEM, METHOD AND COMPUTER PROGRAM PRODUCT FOR FACILITATING REAL
ESTATE TRANSACTIONS
Abstract
A method is provided that includes providing a service including
providing (a) seller information relating to properties of sellers,
and/or (b) buyer information relating to buyers. A buyer and seller
are engaged (for an engagement period) in communication regarding a
property of the seller. During the engagement period, communication
between the engaged buyer and/or seller, and other buyers and/or
sellers is restricted, including (a) restricting other buyers from
accessing or removing, from the service, at least some seller
information relating to the respective property of the respective
seller, and/or (b) restricting other sellers from accessing or
removing, from the service, at least some buyer information
relating to the respective buyer. Then, if a real estate
transaction is concluded regarding the respective property, the
buyer is insured against a loss of income due to default of one or
more tenants of the property.
Inventors: |
Smith; Jeffrey C.;
(Fairhope, AL) |
Correspondence
Address: |
ALSTON & BIRD LLP
BANK OF AMERICA PLAZA
101 SOUTH TRYON STREET, SUITE 4000
CHARLOTTE
NC
28280-4000
US
|
Family ID: |
35137602 |
Appl. No.: |
11/556292 |
Filed: |
November 3, 2006 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
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10890548 |
Jul 13, 2004 |
7152037 |
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11556292 |
Nov 3, 2006 |
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60565554 |
Apr 27, 2004 |
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Current U.S.
Class: |
705/80 ;
705/313 |
Current CPC
Class: |
G06Q 50/167 20130101;
G06Q 20/20 20130101; G06Q 40/08 20130101; G06Q 50/16 20130101; G06Q
50/188 20130101; G06Q 40/00 20130101 |
Class at
Publication: |
705/001 |
International
Class: |
G06Q 99/00 20060101
G06Q099/00 |
Claims
1. A method comprising: providing a service including one or both
of (a) providing, to one or more buyers, seller information
relating to one or more properties of one or more sellers, or (b)
providing, to one or more sellers, buyer information relating to
one or more buyers, engaging, for an engagement period, one of the
buyers and one of the sellers in communication regarding a property
of the seller, the property comprising an income-producing property
having one or more tenants; restricting communication between one
or both of the engaged buyer or seller and one or both of other
buyers or sellers during the engagement period, restricting
communication comprising one or both of (a) restricting other
buyers from accessing or removing, from the service, at least some
seller information relating to the respective property of the
respective seller, or (b) restricting other sellers from accessing
or removing, from the service, at least some buyer information
relating to the respective buyer; and insuring the buyer against a
loss of income due to a default of one or more of the tenants if
the engaged buyer and seller conclude a real estate transaction
regarding the respective property.
2. A method according to claim 1, wherein one of the engaged buyer
or seller comprise an initiating party, and the other of the
engaged buyer or seller comprise an initiated party, and wherein
the method further comprises: receiving a selection of the
initiated party from the initiating party before engaging the buyer
and seller, the initiating party having selected the initiated
party at least partially based upon information provided to the
initiating party, the information comprising seller information
when the initiating party comprises the engaged buyer, or buyer
information when the initiating party comprises the engaged seller,
and wherein engaging one of the buyers and one of the sellers
comprises engaging the initiating party and the selected initiated
party.
3. A method according to claim 1, wherein insuring the buyer
comprises: providing a policy to the buyer, the policy defining a
default of at least one tenant of the property based upon a
financial inability of at least one tenant to pay rent, the one or
more tenants of the property comprising one or more existing
tenants when the policy is provided to the buyer; determining if a
tenant defaults under the policy; and if an existing tenant
defaults, determining a policy benefit, and remitting the policy
benefit to the buyer arrangement.
4. A method according to claim 1, wherein insuring the buyer
comprises insuring the buyer in accordance with a level of
protection, the level of protection having been determined based
upon a percentage of an income received or expected to be received
from the property, the income being determined at the conclusion of
the real estate transaction regarding the property.
5. A method according to claim 1, wherein insuring the buyer
comprises insuring the buyer without interaction with the tenants
of the property.
6. A method according to claim 1 further comprising: collecting a
fee for providing the policy, the fee having been established based
upon a price or value of the respective property.
7. A method comprising: providing an insurance policy to an entity
in connection with a transaction affecting ownership of an
income-producing property including at least one tenant expected to
pay rent, the policy defining a default of at least one tenant of
the property based upon a financial inability of at least one
tenant to pay rent, wherein the at least one tenant comprises at
least one existing tenant of the property when the policy is
provided to the entity; and insuring the entity under the policy,
the entity being insured against loss of a income due to default of
at least one tenant of the property.
8. A method according to claim 7, wherein providing a policy
comprises providing a policy that also defines a level of
protection, the level of protection having been determined based
upon a percentage of an income received by the entity from the
property.
9. A method according to claim 8, wherein providing a policy that
also defines a level of protection comprises providing a policy
that defines a level of protection comprising a percentage of a net
operating income (NOI) received by the entity from the
property.
10. A method according to claim 7, wherein insuring the entity
under the policy comprises: determining and remitting a policy
benefit to the entity if a tenant defaults under the policy, the
policy benefit being determined based upon a rental income due from
the defaulting tenant.
11. A method according to claim 10, wherein determining a policy
benefit comprises determining a policy benefit based upon an income
due the entity from the property before the tenant defaults, and an
income due the entity from the property after the tenant defaults,
and wherein the income due the entity from the property before and
after the tenant defaults is at least partially based upon the
rental income due the entity from the defaulting tenant.
12. A method according to claim 7, wherein providing a policy
comprises providing a policy to the entity without interaction with
the at least one tenant of the property.
13. A method according to claim 7, wherein providing a policy
comprises providing a policy also defining a level of protection,
the level of protection having been determined based upon an
operating income of the property at a conclusion of the transaction
affecting ownership.
14. A method according to claim 13, wherein providing a policy
comprises providing a policy also defining a term, the term having
been determined based upon the conclusion of the transaction
affecting ownership.
15. A method according to claim 7 further comprising: collecting a
fee for providing the policy, the fee having been established based
upon a price or value of the property.
16. A system comprising: a facilitator arrangement configured for
providing a service including one or both of (a) providing, to one
or more buyers, seller information relating to one or more
properties of one or more sellers, or (b) providing, to one or more
sellers, buyer information relating to one or more buyers, wherein
the facilitator arrangement is configured for engaging, for an
engagement period, one of the buyers and one of the sellers in
communication regarding a property of the seller, the property
comprising an income-producing property having one or more tenants,
wherein the facilitator arrangement is configured for restricting
communication between one or both of the engaged buyer or seller
and one or both of other buyers or sellers during the engagement
period, restricting communication comprising one or both of (a)
restricting other buyers from accessing or removing, from the
service, at least some seller information relating to the
respective property of the respective seller, or (b) restricting
other sellers from accessing or removing, from the service, at
least some buyer information relating to the respective buyer, and
wherein the facilitator arrangement is configured for insuring the
buyer against a loss of income due to a default of one or more of
the tenants if the engaged buyer and seller conclude a real estate
transaction regarding the respective property.
17. A system according to claim 16, wherein one of the engaged
buyer or seller comprise an initiating party, and the other of the
engaged buyer or seller comprise an initiated party, wherein the
facilitator arrangement is further configured for receiving a
selection of the initiated party from the initiating party before
engaging the buyer and seller, the initiating party having selected
the initiated party at least partially based upon information
provided to the initiating party, the information comprising seller
information when the initiating party comprises the engaged buyer,
or buyer information when the initiating party comprises the
engaged seller, and wherein the facilitator arrangement is
configured for engaging the initiating party and the selected
initiated party.
18. A system according to claim 16, wherein the facilitator
arrangement is configured for insuring the buyer by: providing a
policy to the buyer, the policy defining a default of at least one
tenant of the property based upon a financial inability of at least
one tenant to pay rent, the one or more tenants of the property
comprising one or more existing tenants when the policy is provided
to the buyer; determining if a tenant defaults under the policy;
and if an existing tenant defaults, determining a policy benefit,
and remitting the policy benefit to the buyer arrangement.
19. A system according to claim 16, wherein the facilitator
arrangement is configured for insuring the buyer in accordance with
a level of protection, the level of protection having been
determined based upon a percentage of an income received or
expected to be received from the property, the income being
determined at the conclusion of the real estate transaction
regarding the property.
20. A system according to claim 16, wherein the facilitator
arrangement is configured for insuring the buyer without
interaction with the tenants of the property.
21. A system according to claim 16, wherein the facilitator
arrangement is further configured for collecting a fee for
providing the policy, the fee having been established based upon a
price or value of the respective property.
22. A system comprising: a facilitator arrangement configured for
providing an insurance policy to an entity in connection with a
transaction affecting ownership of an income-producing property
including at least one tenant expected to pay rent, the policy
defining a default of at least one tenant of the property based
upon a financial inability of at least one tenant to pay rent,
wherein the at least one tenant comprises at least one existing
tenant of the property when the policy is provided to the entity,
wherein the facilitator arrangement is configured for insuring the
entity under the policy, the entity being insured against loss of a
income due to default of at least one tenant of the property.
23. A system according to claim 22, wherein the facilitator
arrangement is configured for providing a policy that also defines
a level of protection, the level of protection having been
determined based upon a percentage of an income received by the
entity from the property.
24. A system according to claim 23, wherein the facilitator
arrangement is configured for providing a policy that defines a
level of protection comprising a percentage of a net operating
income (NOI) received by the entity from the property.
25. A system according to claim 22, wherein the facilitator
arrangement is configured for insuring the entity under the policy
by determining and remitting a policy benefit to the entity if a
tenant defaults under the policy, the policy benefit being
determined based upon a rental income due from the defaulting
tenant.
26. A system according to claim 25, wherein the facilitator
arrangement is configured for determining a policy benefit based
upon an income due the entity from the property before the tenant
defaults, and an income due the entity from the property after the
tenant defaults, and wherein the income due the entity from the
property before and after the tenant defaults is at least partially
based upon the rental income due the entity from the defaulting
tenant.
27. A system according to claim 22, wherein the facilitator
arrangement is configured for providing a policy to the entity
without interaction with the at least one tenant of the
property.
28. A system according to claim 22, wherein the facilitator
arrangement is configured for providing a policy also defining a
level of protection, the level of protection having been determined
based upon an operating income of the property at a conclusion of
the transaction affecting ownership.
29. A system according to claim 28, wherein the facilitator
arrangement is configured for providing a policy also defining a
term, the term having been determined based upon the conclusion of
the transaction affecting ownership.
30. A system according to claim 22, wherein the facilitator
arrangement is further configured for collecting a fee for
providing the policy, the fee having been established based upon a
price or value of the property.
Description
CROSS-REFERENCE TO RELATED APPLICATIONS
[0001] The present application is a continuation of U.S. patent
application Ser. No. 10/890,548, entitled: SYSTEM, METHOD AND
COMPUTER PROGRAM PRODUCT FOR FACILITATING REAL ESTATE TRANSACTIONS,
filed on Jul. 13, 2004, which claims priority from U.S. Provisional
Patent Application Ser. No. 60/565,554, entitled: SYSTEM, METHOD
AND COMPUTER PROGRAM PRODUCT FOR FACILITATING REAL ESTATE
TRANSACTIONS, filed on Apr. 27, 2004, the contents of both which
are incorporated herein by reference in their entireties.
FIELD OF THE INVENTION
[0002] The present invention generally relates to systems and
methods for facilitating real estate transactions and, more
particularly, to systems, methods and computer program products for
facilitating transactions regarding commercial real estate
properties.
BACKGROUND OF THE INVENTION
[0003] In the commercial real estate industry, potential sellers of
commercial real estate often avoid publicly advertising or listing
their real estate, and potential buyers are often very cautious
about purchasing commercial real estate that has existing tenants.
Potential sellers often fear that existing tenants of affected
properties will look to lease space elsewhere, and/or that
potential tenants will avoid leasing space within the affected
properties. Potential buyers, on the other hand, are typically
reluctant to purchase property due to the risk of default of
tenants leasing space within the property.
[0004] In addition, potential sellers typically prefer to not be
"shopped" by competitors, or felt out by numerous developers and/or
potential buyers. Further, potential sellers typically prefer to
not be limited by listing agreements or agency relationships that
bind the potential sellers to a single brokerage firm or an
unnecessary agency liability for a specific duration. And as a
result of potential sellers avoiding public advertising or listing
of their properties, in various segments of commercial real estate,
the demand of available potential buyers may significantly
outnumber the supply of known, publicly available properties.
However, this generally does not reflect the fact that the demand
of available potential buyers significantly outnumbers the supply
of properties available for purchase, only that a significant
number of available properties may not be publicly available, and
thus known to potential buyers.
SUMMARY OF THE INVENTION
[0005] In light of the foregoing background, embodiments of the
present invention provide an improved system, method and computer
program product for facilitating real estate transactions. The
system, method and computer program product of embodiments of the
present invention are capable of permitting buyers and sellers to
initiate communication with one another regarding properties of the
sellers. Advantageously, the system, method and computer program
product permit the buyers and sellers to communicate with one
another without outside interference to facilitate the buyers and
sellers concluding a real estate sales or exchange transaction. And
since buyers are typically reluctant to purchase property due to
the risk of default of tenants leasing space within the property,
the system, method and computer program product of embodiments of
the present invention may also provide, for a period of time,
insurance to the buyer against loss of income due to default of the
existing tenants of the property, should a buyer and seller
conclude the purchase/sale of a property.
[0006] According to one aspect of the present invention, a method
is provided for facilitating a real estate transaction. In
accordance with the method of this aspect, an initiating party is
engaged in communication with an initiated party regarding a
property, where the parties are engaged for an engagement period.
In this regard, the initiating party can be a buyer arrangement or
a seller arrangement, with the initiated party being the other of
the buyer arrangement and the seller arrangement. Before engaging
the parties in communication, however, at least one buyer
arrangement and at least one seller arrangement can be registered,
where registering the buyer arrangement(s) and seller
arrangement(s) includes registering the initiating party and the
initiated party. More particularly, for example, the buyer
arrangement(s) can be registered by receiving at least one piece of
buyer information relating to the buyer arrangement(s), and
thereafter evaluating the buyer information to determine if the
piece(s) of buyer information are accurate, and to determine if the
buyer arrangement(s) are qualified to purchase at least one
property of at least one registered seller arrangement. Then, if
the piece(s) of buyer information are accurate, and the buyer
arrangement(s) are qualified, the buyer arrangement(s) can be
registered.
[0007] After engaging the parties, communication between the
engaged parties other parties may be restricted during the
engagement period, the other parties being at least one other buyer
arrangement and/or at least one other seller arrangement. As
explained below, the engaged parties can be restricted from
communicating with other parties in a number of different manners.
Irrespective of how the parties are restricted from communicating
with other parties, however, restricting the parties advantageously
facilitates the parties concluding a real estate transaction
regarding the property. In this regard, the method can further
include concluding a real estate transaction between the parties
regarding the property after restricting the engaged parties from
communicating with other parties.
[0008] More particularly, a buyer listing and/or a property listing
can be provided, where the buyer listing includes at least one
buyer arrangement, and the property listing includes at least one
property of at least one seller arrangement. In such instances, one
of the listings includes the initiating party and the other listing
includes the initiated party. The engaged parties can then be
restricted by from communicating with other parties by restricting
access to the initiating party in the respective listing including
the initiating party, and restricting access to the initiated party
in the respective listing including the initiated party. Before
engaging the parties in communication and thus restricting the
parties, however, selection of an initiated party from one of the
listings can be received, where the initiated party is selected by
the initiating party. The initiating party can then be provided
with an agreement, which the initiating party can execute and
thereafter return. The executed agreement can be received, and
thereafter access-restricted information can be provided to the
initiated party. In such instances, the access-restricted
information is related to the initiated party.
[0009] In various instances, the parties are engaged in
communication regarding an income-producing property having at
least one tenant. In such instances, the method can further include
insuring the buyer arrangement for a period of time against a loss
of income due to a default of at least one tenant if the parties
conclude a real estate transaction regarding the property. In this
regard, the buyer arrangement can be provided with a policy.
Thereafter, it can be determined if a tenant defaults under the
policy. And if a tenant does default, a policy benefit can be
determined, and remitted to the buyer arrangement.
[0010] According to other aspects of the present invention, a
system and computer program product are provided for facilitating a
real estate transaction. Therefore, embodiments of the present
invention provide an improved system, method and computer program
product for facilitating a real estate transaction. Embodiments of
the present invention can facilitate real estate transactions by
engaging buyer and seller arrangements in a secure manner such that
the parties other parties can communicate to conclude a real estate
transaction without outside interference. Further, embodiments of
the present invention may also provide insurance against default of
a tenant leasing space within an income-producing property to
further facilitate the real estate transaction, particularly since
buyers are typically reluctant to purchase property due to the risk
of such defaulting tenants. Therefore, the system, method and
computer program product of embodiments of the present invention
solve the problems identified by prior techniques and provide
additional advantages.
BRIEF DESCRIPTION OF THE DRAWINGS
[0011] Having thus described the invention in general terms,
reference will now be made to the accompanying drawings, which are
not necessarily drawn to scale, and wherein:
[0012] FIG. 1 is a schematic block diagram of a system for
facilitating real estate transactions in accordance with
embodiments of the present invention;
[0013] FIG. 2 is a schematic block diagram of an entity capable of
operating as a buyer, seller and/or facilitator, in accordance with
embodiments of the present invention;
[0014] FIGS. 3A and 3B are flowcharts illustrating various steps in
a method of facilitating a real estate transaction in accordance
with an embodiment of the present invention;
[0015] FIG. 4 is a flowchart illustrating various steps in a method
of insuring the owner or leaseholder of income-producing property
against the default of one or more tenants of such property, in
accordance with an embodiment of the present invention; and
[0016] FIGS. 5-18 illustrate exemplar displays capable of being
provided by a facilitator arrangement to buyer arrangements and
seller arrangements, in accordance with embodiments of the present
invention.
DETAILED DESCRIPTION OF THE INVENTION
[0017] The present invention now will be described more fully
hereinafter with reference to the accompanying drawings, in which
preferred embodiments of the invention are shown. This invention
may, however, be embodied in many different forms and should not be
construed as limited to the embodiments set forth herein; rather,
these embodiments are provided so that this disclosure will be
thorough and complete, and will fully convey the scope of the
invention to those skilled in the art. Like numbers refer to like
elements throughout.
[0018] Referring to FIG. 1, a system 10 for facilitating real
estate transactions includes one or more buyer arrangements 12,
seller arrangements 14 and facilitator arrangements 16 (one of each
being shown). Each buyer arrangement is capable of directly and/or
indirectly communicating with one or more seller arrangements and
facilitator arrangements. Similarly, each seller arrangement is
capable of directly and/or indirectly communicating with one or
more buyer arrangements and facilitator arrangements; and each
facilitator arrangement is capable of directly and/or indirectly
communicating with one or more buyer arrangements and seller
arrangements. In this regard, the buyer, seller and facilitator
arrangements can be capable of directly and/or indirectly
communicating with one another across one or more networks 18. The
network(s) can comprise any of a number of different combinations
of one or more different types of networks. For example, the
network(s) can include one or more data networks, such as a local
area network (LAN), a metropolitan area network (MAN), and/or a
wide area network (WAN) (e.g., Internet), and include one or more
wireline and/or wireless voice networks, including a wireline
network such as a public-switched telephone network (PSTN), and/or
wireless networks such as IS-136 (TDMA), GSM, and/or IS-95 (CDMA).
For purposes of illustration, however, as described below, the
network comprises the Internet (i.e., WAN) unless otherwise
noted.
[0019] The buyer arrangement 12, seller arrangement 14 and
facilitator arrangement 16 can comprise any one or more of a number
of different entities, devices or the like capable of operating in
accordance with embodiments of the present invention. In this
regard, one or more of the buyer arrangement, seller arrangement
and facilitator arrangement can comprise, include or be embodied in
one or more processing elements, such as one or more of a laptop
computer, desktop computer, server computer or the like.
Additionally or alternatively, one or more of the buyer
arrangement, seller arrangement and facilitator arrangement can
comprise, include or be embodied in one or more portable electronic
devices, such as one or more of a mobile telephone, portable
digital assistant (PDA), pager or the like. For example, the buyer
arrangement, seller arrangement and facilitator arrangement can
each comprise a processing element capable of communicating with
one another across the Internet (e.g., network 18).
[0020] It should be understood, however, that one or more of the
buyer arrangement 12, seller arrangement 14 and facilitator
arrangement 16 can comprise or otherwise be associated with a user
carrying out the functions of the respective entity. For example,
the buyer arrangement can comprise a buyer or buyer agent
(representing a buyer) communicating across a PSTN (e.g., network
18), by mail or in person with a seller operating a seller
processing element, where the seller and processing element
collectively comprise the seller arrangement. In such instances,
the facilitator arrangement can comprise a facilitator processing
element communicating across the Internet with the seller
processing element. Alternatively, in such instances, the
facilitator can comprise a facilitator operating a facilitator
processing element, where the facilitator is capable of
communicating with the seller across a PSTN. As explained below,
then, the term "buyer arrangement" can refer to a buyer and/or
buyer processor. Similarly, the term "seller arrangement" can refer
to a seller and/or seller processor; and the term "facilitator
arrangement" can refer to a facilitator and/or facilitator
processor.
[0021] Referring now to FIG. 2, a block diagram of an entity
capable of operating as a buyer arrangement 10, seller arrangement
14 and/or facilitator arrangement 16 is shown in accordance with
one embodiment of the present invention. Although shown as separate
entities, in some embodiments, one or more entities may support one
or more of a buyer arrangement, seller arrangement and/or
facilitator arrangement, logically separated but co-located within
the entit(ies). For example, a single entity may support a
logically separate, but co-located, buyer arrangement and
facilitator arrangement. Also, for example, a single entity may
support a logically separate, but co-located seller arrangement and
facilitator arrangement.
[0022] As shown, the entity capable of operating as a buyer
arrangement 12, seller arrangement 14 and/or facilitator
arrangement 16 can generally include a processor 20 connected to a
memory 22. The processor can also be connected to at least one
communication interface 24 or other means for transmitting and/or
receiving data, content or the like. The processor can additionally
be connected to a user interface 26 that can include a display and
a user input interface. The user input interface, in turn, can
comprise any of a number of devices allowing the entity to receive
data from a user, such as a keypad, a touch display (not shown) or
other input device.
[0023] The memory 30 can comprise volatile and/or non-volatile
memory, and typically stores content, data or the like. In this
regard, the memory typically stores software applications 28,
instructions or the like for the processor to perform steps
associated with operation of the entity in accordance with
embodiments of the present invention. For example, the memory can
store software applications such as one or more connectivity
applications (e.g., Web browser, etc.). Also, when the entity
comprises a facilitator arrangement 16, the memory can store one or
more databases 38, such as a buyer database and a property
database. The buyer database can store information relating to
buyers registered with the service offered by the facilitator
arrangement, and the property database can store information
relating to sellers and associated properties that are registered
with the service.
[0024] In accordance with embodiments of the present invention, the
facilitator arrangement 16 is capable of offering a real estate
information exchange service to one or more buyer arrangements 12
and seller arrangements 14. Generally, the service provides a
medium for buyers and sellers to communicate with one another
without outside interference to facilitate the respective
arrangements concluding a real estate sales or exchange
transaction. And since buyers are typically reluctant to purchase
property due to the risk of default of tenants leasing space within
the property, if so desired, the service can also provide, for a
period of time, insurance to the buyer against loss of income due
to default of the existing tenants of the property, should a buyer
and seller conclude the purchase/sale of a property. As described
herein, such insurance may be referred to as "tenant default
insurance."
[0025] Reference is now made to FIGS. 3A and 3B, which illustrates
various steps in a method of facilitating a real estate
transaction, in accordance with one embodiment of the present
invention. As shown in block 32, the method can include the one or
more buyers and sellers of the buyer arrangements 12 and seller
arrangements 14, respectively, registering with the facilitator
arrangement 16, or more particularly with the service offered by
the facilitator arrangement. Advantageously for the sellers, during
the registration process of the buyers, information regarding the
buyers can be generated, gathered or otherwise received by the
facilitator arrangement. For example, the facilitator arrangement
can gather information regarding property purchases made by the
buyer arrangements over a previous period of time (e.g., previous
12-24 months). The facilitator arrangement can then evaluate such
buyer information to determine if the buyer information is accurate
to thereby determine if the buyers are legitimate. For example, the
facilitator arrangement can evaluate information regarding property
purchases made by the buyer to determine the nature of the
financing used to purchase the properties (e.g., all cash,
mortgage, owner financing, equity trade, etc.). In addition, the
facilitator arrangement can evaluate the buyer information to
determine if the buyers are qualified to purchase an indicated
level of real estate. In this regard, if the facilitator
arrangement fails to determine that the buyers are legitimate and
qualified, the facilitator arrangement can refuse to register the
respective buyers. Otherwise, the facilitator arrangement can
register the buyers with the service offered by the facilitator
arrangement.
[0026] For the buyers, information regarding the properties of the
sellers and/or the sellers themselves can be generated, gathered or
otherwise received by the facilitator arrangement 16. The
facilitator arrangement can then evaluate such seller information
to allow the facilitator arrangement to provide data related to the
properties. For example, the facilitator can receive and thereafter
evaluate or otherwise confirm seller information including
blueprints, aerial photos, zoning, certificates of occupancy,
various regulatory approval letters, rent rolls, parking ratios,
setbacks, surveys, inspections, NOI's (net operating incomes), cap
(capitalization) rates, financing packages, cash on cash
projections, cash flow projections, comparables by radius,
competition reports with tenant mix and local trend reports, as
well as property specific mapping of income, population, consumer
expenditure, retail sales and crime statistics.
[0027] Before, after or as the facilitator arrangement 16 evaluates
the buyer information or seller information, the facilitator
arrangement can create an entry for the buyer or the seller in the
buyer database or property database. Also, in accordance with the
service provided by the facilitator arrangement, the facilitator
arrangement can send the buyer arrangements 12 listings of the
properties of sellers stored in the property database, and send the
seller arrangements 14 listings of buyers stored in the buyer
database, as shown in block 34. The listings of properties and
buyers can include any of a number of different pieces of seller
information and buyer information, respectively. In one typical
embodiment, for example, the listings of properties and buyers
include a portion of the seller and buyer information sufficient to
allow the buyers and sellers to gauge an interest in one or more
properties of the sellers or one or more buyers, respectively. To
facilitate the buyers and sellers engaging the service of the
facilitator arrangement, however, the listings may not include
information sufficient to permit the buyers or sellers to contact
one another independent of the service.
[0028] After receiving the respective listings at the buyer
arrangements 12 and seller arrangements 14, the buyers can identify
properties of interest, and the sellers can identify buyer
arrangements of interest, as shown in block 36. If either a buyer
or seller (i.e., the initiating party) desires to contact a seller
or buyer (i.e., the initiated party), directly or as a result of
actions of the facilitator arrangement, the facilitator arrangement
can forward the initiating party arrangement a non-disclosure,
non-circumvent facilitation agreement in which the initiating party
agrees to pay the facilitator arrangement a predefined fee for the
service provided by the facilitator arrangement should the
initiating party and initiated party conclude a real estate
transaction with one another, as shown in block 38.
[0029] After the initiating party (i.e., buyer or seller) executes
the non-disclosure, non-circumvent facilitation agreement, and the
initiating party arrangement (i.e., buyer arrangement 12 or seller
arrangement 14) returns the executed agreement to the facilitator
arrangement 16, the facilitator arrangement can forward the
agreement to the initiated party arrangement (i.e., seller
arrangement or buyer arrangement) for acceptance by the initiated
party (i.e., buyer or seller), as shown in block 40. Provided the
initiated party accepts the agreement (see block 42), the
facilitator arrangement can provide, to the initiating party
arrangement, confidential, access-restricted information related to
the initiated party, as shown in block 44. The confidential
information can be provided in any of a number of different
manners, such as by forwarding the initiating party arrangement a
password permitting the initiating party arrangement to access the
confidential information. For example, the facilitator arrangement
can permit a buyer arrangement to access confidential information
comprising one or more pieces of seller information regarding the
seller and/or the seller's property of interest to the buyer
arrangement. The access-restricted seller information and buyer
information can include any of a number of different pieces of
information, including contact information for the seller and
buyer, and one or more of the pieces of seller information and
buyer information indicated above. However, at least a portion of
the confidential information typically comprises information not
having been included in the listings previously sent to the buyer
arrangement and seller arrangement (see block 34).
[0030] Irrespective of the confidential information provided to the
initiating party arrangement, once the initiating and initiated
parties are engaged in communication, the parties can be restricted
from contacting other parties (i.e., other sellers and buyers) for
a predefined engagement period (e.g., five days). In this regard,
the parties can be considered engaged in communication in any of a
number of different manners. For example, the parties can be
considered engaged in communication once the initiated party
accepts the non-disclosure, non-circumvent agreement, or once the
initiated party receives the password or uses the password to
access information related to the initiated party, as shown in
block 46. Irrespective of when the parties are considered engaged
in communication, during the engagement period, the buyer can be
restricted from communicating with other sellers regarding other
properties. Likewise, the seller can be restricted from
communicating with other buyers regarding the same property during
the engagement period. The parties can be restricted from
communicating with other parties in any of a number of different
manners. For example, the facilitator can contractually restrict
the parties from communicating with other parties. Additionally or
alternatively, for example, the facilitator arrangement can remove,
or otherwise restrict access to, the parties from the listings of
properties and buyers sent to other buyer arrangements 12 and
seller arrangements 14 (see block 34). Advantageously, restricting
each party from communicating with other parties during the
engagement period can facilitate the parties concluding a real
estate transaction with one another without outside
interference.
[0031] After the initiating and initiated parties are engaged in
communication, the parties may desire to conclude a real estate
transaction regarding a property of the seller. In such an
instance, the parties can conclude the real estate transaction in
any of a number of different manners, such as by entering into a
sales contract regarding a respective property and closing on the
respective property, shown in block 48. In such instances, the
facilitator can operate outside the transaction, or alternatively
function as a broker for the transaction. In another alternative,
the facilitator can engage a broker, closing agent or other
facilitator for the transaction, with the facilitator and the
engaged party entering into a separate agreement related to the
brokering of the transaction. In either event, at the conclusion of
the transaction, such as during closing of the property, the
facilitator can collect the predefined fee from the initiating
party for the service provided by the facilitator, as shown in
blocks 50 and 52. Also at the conclusion of the transaction, if so
desired and previously offered by the facilitator, the facilitator
can provide the buyer with a limited duration tenant default
insurance policy, as shown in block 54 and explained below.
[0032] As explained above, the service offered by the facilitator
arrangement 16 can provide, for a period of time, tenant default
insurance to the buyer against loss of income due to default of the
existing tenants of the property, should a buyer and seller
conclude the purchase/sale of a property of the seller. In this
regard, the facilitator arrangement can provide the buyer and
seller of leasehold interest property the ability to insure income
from that property against default of one or more tenants of that
property under the terms of one or more leases held for that
property at time of concluding the purchase/sale of the property.
As will be appreciated, the facilitator can provide the insurance
as a self-insurer. Additionally or alternatively, however, the
facilitator can engage a fourth party, such as an insurance
carrier, to provide all or a portion of the insurance through the
fourth party or in conjunction with underwriting of the fourth
party.
[0033] Reference is now made to FIG. 4, which illustrates various
steps in a method of insuring the owner or leaseholder of
income-producing property against the default of one or more
tenants of such property, the property being referred to herein as
the "insured property." As shown in block 56, the method includes
the facilitator arrangement 16 establishing the terms and
conditions of an insurance policy under which the facilitator
arrangement intends to insure the buyer or new owner of the insured
property, who is also typically the leaseholder of one or more
leases for the insured property or portions thereof (the buyer,
owner, leaseholder also referred to herein as the "insured party").
The terms and conditions can include any of a number of different
terms and conditions specific to the protection provided by the
insurance policy, and if so desired, can include one or more terms
and/or conditions typically offered under conventional insurance
policies.
[0034] For example, the terms and conditions of the insurance
policy can include a time period over which the policy is active,
as well as define default of a tenant for which the policy covers
loss of income. Default of a tenant can be defined in a number of
different manners, such as in accordance with one of more
provisions of the lease entered into by the tenant with respect to
the insured property. More particularly, for example, the default
of a tenant can be defined in accordance with provision(s) of the
lease that relate to the financial inability of the tenant to pay
rent under the terms of the lease. If so desired, default can also
be defined based upon tenant holdover or occupancy during a period
in which the tenant is not paying all or a portion of the rents due
under the terms of the lease, against the will of the leaseholder.
However, default is typically not based upon acts of God,
construction delays and/or interruption of occupancy reason.
[0035] In addition to defining default of a tenant, the terms and
conditions established by the facilitator arrangement 16 can
include different levels of tenant default insurance, typically in
accordance with a review of the financial status of the property
tenancy. The levels of tenant default insurance can vary in any of
a number of different manners. In this regard, the facilitator
arrangement can provide tenant default insurance that covers all or
a portion of the tenants of the insured property, where the covered
tenant(s) may or may not be specified. Also, the facilitator
arrangement can provide tenant default insurance that varies based
upon the length and breadth of income protection coverage, and the
percentage of income protection. The percentage of income
protection, which can also correspond to the total liability or
exposure of the facilitator arrangement in providing the insurance,
can be determined in any of a number of different manners. In one
embodiment, for example, the percentage of income protection is
based upon the net operating income (NOI) of the insured property
at the conclusion of the transaction. As an example, then, the
facilitator arrangement can provide coverage ranging from 1% to
100% of the NOI, extending for the first twenty-four months of
ownership (two years from transaction conclusion), and guaranteeing
income for twelve months at any time during the first twenty-four
months.
[0036] In addition, for example, the terms and conditions
established by the facilitator arrangement 16 can require the
insured party to evict a defaulting tenant, typically for
non-payment of rent. Further, the terms and conditions can include
a number of rights reserved by the facilitator arrangement with
respect to the insured party, and/or the insured property. For
example, the terms and conditions can include rights reserved by
the facilitator arrangement such as the right to (a) re-lease and
or be paid to re-lease the vacated, insured property or portion
thereof immediately upon tenant default, (b) insure only the
leasehold interest in place at time of property acquisition by the
insured party, (c) determine the time, time period and extent of
coverage, (d) refuse to offer or discontinue service or coverage
under the policy for any reason, (e) to offer coverage for any
property for which there is a leasehold interest created, (f) offer
this service on all or a portion of the tenancy of a given
property, (g) sue for damages and expenses if the facilitator
arrangement determines that the default was unnecessarily
constructed for the financial gain of tenant and/or insured party,
(h) deny coverage if the tenant and insured party are related, in
business together, have any financial gain to or from each other as
a result of tenant default, or tenant and/or leaseholder conspire
or collude with any third party for the benefit of leaseholder or
tenant, (i) increase, extend or modify our service or coverage on
all or a part of any leasehold protection offered by the
facilitator arrangement, at the sole discretion of the facilitator
arrangement, (j) extend coverage through third party sources at the
sole discretion of the facilitator arrangement, (k) offer coverage
directly or subcontract such coverage for a fee to any legally
qualified second or third party at the sole discretion of the
facilitator arrangement, (l) legally offer coverage domestically or
internationally, (m) terminate coverage with any secondary provider
for any reason and reassign such right of coverage to another
legally capable party or offer coverage directly, (n) franchise or
contract with other companies to legally provide service under the
policy, (o) offer service or coverage under the policy under
different names in different forms, and/or (p) offer service under
the policy to any leasehold interest property through various
delivery mediums including the Internet (i.e., network 18).
[0037] Before, as or after the facilitator arrangement 16
establishes the terms and conditions of the insurance policy, the
facilitator arrangement can establish a premium fee for providing
the insurance policy, as shown in block 58. The premium fee can be
established in any of a number of different manners. For example,
the premium fee can be established based upon the sales price, or
open market value, of the insured property. However, to provide
benefit to the insured party, the premium fee is typically less
than the total coverage provided by the insurance policy. In this
regard, see Table 1 below for a sampling of ten exemplar properties
sold and insured in accordance with embodiments of the present
invention. TABLE-US-00001 TABLE 1 Premium Actuarial CAP Fee
Exposure Exposure NOI ($) Rate Sale Price ($) (0.5%) ($) ($) (3%)
($) 500,000 10 5,000,000 25,000 75,000 2,000,000 8 25,000,000
125,000 300,000 750,000 9 8,333,333 41,500 112,500 1,000,000 9
11,111,111 56,000 150,000 600,000 9 6,667,000 34,000 90,000 800,000
9 8,889,000 44,000 120,000 500,000 10 5,000,000 25,000 75,000
950,000 8 11,875,000 60,000 142,500 3,500,000 7 50,000,000 250,000
525,000 1,500,000 8 18,750,000 93,750 225,000 12,100,000
150,625,444 754,250 1,815,000 363,000
[0038] As shown in Table 1, presuming coverage of 15% of the NOI
and a premium of 0.5% the sales price, the premium can equal
approximately one-third of the total coverage provided by the
insurance policy, which also corresponds to the total liability or
exposure of the facilitator arrangement 16. Although the premium
fee is typically less than the total coverage (total exposure)
provided by the insurance policy, the actuarial exposure of the
facilitator arrangement, or the more likely exposure of the
facilitator arrangement, is typically less than the premium fee. To
offset the total exposure, or more particularly the total actual
exposure, then, the facilitator arrangement can reinsure the
actuarial exposure of the facilitator arrangement, such as with a
fourth party insurance carrier. However, if during the period of
the insurance policy the facilitator arrangement determines the
level of insurance with the fourth party insurance carrier does or
will not adequately cover the exposure of the facilitator
arrangement, the facilitator arrangement can adjust the level of
coverage with the fourth party insurance carrier accordingly.
[0039] The actuarial exposure of the facilitator arrangement 16 can
be estimated or otherwise determined in any one of a number of
different manners. For example, the actuarial exposure can be
estimated based upon the historical tenant default rate of the
insured property over the duration of ownership of the insured
property, and the NOI of the insured property. As will be
appreciated, different properties have different historical
[0040] tenant default rates over the duration of ownership of the
respective properties. For example, retail, office and industrial
properties historically have had a 7% default rate due to tenant
vacancy and credit loss (i.e., default). But since the tenant
default insurance is typically only based upon tenant default, the
historical default rate can be estimated to be approximately half
or less than half of the total historical default rate. Thus, for
example, for retail, office and industrial properties, the
actuarial tenant default rate can be estimated to equal
approximately 3% or less. Thus, for retail, office and industrial
properties, the actuarial exposure of the facilitator arrangement
can be estimated to equal 3% of the NOI of the respective
properties. As shown from Table 1, then, the actuarial exposure of
the facilitator arrangement can be estimated to equal approximately
$363,000 (i.e., 3% of 12,100,000), which is less than the premium
fee of $754,250, which is less than the total coverage or total
actual exposure of the facilitator arrangement, i.e.,
$1,815,000.
[0041] Irrespective of how the premium fee is established, the
facilitator arrangement can thereafter receive the established
premium fee from the insured party, such as the buyer arrangement
12 and/or the seller arrangement 14, and deposit that premium fee
in reserve, as shown in block 60. In one typical embodiment where
the insurance policy is offered in conjunction with the sale of
property, the premium fee can be received by reserving a percentage
(e.g., 0.5%) of the predefined fee received from the initiating
party at the conclusion of a real estate transaction between the
buyer arrangement and the seller arrangement. Alternatively, the
premium fee can be received from the insured party independent of a
real estate transaction. In such an instance, the insured party may
operate as an owner or leaseholder of the insured property. In
either event, the facilitator can deposit the percentage of the
predetermined fee or additional fee (i.e., the premium fee) with a
fourth party, such in a reserve account of a bank.
[0042] As or after receiving and depositing the premium fee, and
while the policy is active (block 62), the insured party (e.g.,
buyer arrangement 12) may at one or more times receive notice that
one or more tenants of the insured property have defaulted on
paying rent under the terms of their lease under the terms of the
policy. The insured party can receive notice in any of a number of
different manners, such as by receiving notice of default directly
from the tenant, and/or failure to receive a periodic (e.g.,
monthly) rental payment from the tenant. In such an instance, the
insured party can notify the facilitator arrangement 16 of the
tenant default, such as by filing an insurance claim with the
facilitator arrangement, as shown in block 64. As will be
appreciated, the insurance claim can include any of a number of
different pieces of information including, for example, the
identity of the defaulting tenant, rental income due to the insured
party from the defaulting tenant, the remaining term of the
defaulting tenant's lease or the like.
[0043] After receiving notification of the tenant default, the
facilitator arrangement 16 can determine if the tenant has
defaulted under the terms and conditions of the insurance policy,
as shown in block 66. If the tenant has not defaulted under the
terms and conditions of the insurance policy, the facilitator
arrangement can deny the insurance claim of the insured party or
otherwise refuse to remit a policy benefit to the insured party
(e.g., buyer arrangement 12), as shown in block 68. Otherwise, if
the tenant has defaulted under the terms and conditions of the
insurance policy, the facilitator arrangement can determine a
policy benefit payable to the insured party, also under the terms
and conditions of the insurance policy, as shown in block 70. The
policy benefit can be determined in any of a number of different
manners in accordance with the terms and conditions of the
insurance policy. In one typical embodiment, for example, the
policy benefit can be determined based upon the rental income due
the insured party from the defaulting tenant. For example, presume
the insurance policy provides coverage of up to 15% of the NOI of
the insured property. In such an instance, the policy benefit can
be determined as 15% of the rental income due the insured party
from the defaulting tenant under, less expenses incurred by the
insured party in renting the respective portion of the property to
the defaulting tenant. Alternatively, the policy benefit can be
determined as 15% of the difference of the NOI of the property due
the insured party with the defaulting tenant and the NOI without
the defaulting tenant, where the NOI can be determined based upon
the periodicity with which the defaulting tenant is due rent (e.g.,
monthly NOI of the insured property).
[0044] After determining the policy benefit, the facilitator
arrangement 16 can remit the policy benefit to the insured party
(e.g., buyer arrangement 12) under the terms and conditions of the
policy, such as via check, bank draft, electronic wire transfer or
the like, as shown in block 72. The method can then continue for
the respective tenant, such as until the active time period of the
policy expires or the portion of the insured property previously
occupied by the respective defaulting tenant is occupied by a new
tenant. In this regard, although the defaulting tenant may be
evicted from the insured property, the tenant may still be
considered in default and thus resulting in a loss of income. In
continuing the method, the facilitator arrangement can repeatedly
determine if the respective tenant remains in default under the
terms and conditions of the policy (see block 64), such as with the
same periodicity (e.g., monthly) with which the respective tenant
paid rent. Additionally, the facilitator arrangement can repeatedly
determine the policy benefit and/or remitting the policy benefit to
the insured party, such as with the respective periodicity. In any
event, however, the facilitator arrangement typically does not
determine if the respective tenant is in default, determine or
remit the policy benefit after the time period of the policy
expires, or after the portion of the insured property previously
occupied by the respective defaulting tenant is occupied by a new
tenant.
[0045] As will be appreciated, the policy can be applied to more
than one tenant of the insured property, if in accordance with the
terms and conditions of the policy. More particularly, the insured
property may include more than one tenant that at any given time
during the time period of the policy, may default. For each tenant
covered under the policy, then, the facilitator arrangement 16 can
receive notification of the tenant default (see block 64),
determine if the tenant has defaulted under the terms and
conditions of the insurance policy (see block 66), and if the
tenant has defaulted, determine and remit a policy benefit to the
insured party (see blocks 70 and 72).
[0046] To further illustrate the benefits of the present invention,
reference is now made to FIGS. 5-19, which illustrate exemplar
displays, such as Web pages, capable of being provided by the
facilitator arrangement 16 to the buyer arrangement 12 and/or
seller arrangement. In this regard, the displays may be provided
across the Internet (e.g., network 18), and thereafter presented by
the respective arrangement for display to the buyer and/or seller.
More particularly, as shown in FIG. 5, the facilitator arrangement
can provide a portal that can explain the service offered by the
facilitator arrangement, and include a number of links to other
displays that permit the buyer arrangement and/or seller
arrangement to engage the service. For example, the display of FIG.
5 can include a link to "Seller Explanation," a "Buyer Explanation"
and a "Program Qualifications" displays, which direct the
facilitator arrangement to provide the displays of FIGS. 6, 7 and
8, respectively.
[0047] FIG. 6, then, illustrates a display that explains the
service offered by the facilitator arrangement 16 to seller
arrangements 14, and FIG. 7 illustrates a display that explains the
service offered to buyer arrangements 12. FIG. 8, on the other
hand, illustrates a display that explains the qualifications of the
program or service, as well as that of seller arrangements and
buyer arrangements participating in the program or service. In
addition, the displays of FIGS. 6 and 7, as well as the portal
display of FIG. 5, can include a link to permit a seller
arrangement or a buyer arrangement to register with the facilitator
arrangement, or more particularly with the service offered by the
facilitator arrangement (see block 32 of FIG. 3A). Should a seller
arrangement or buyer arrangement desire to register with the
service, the seller arrangement or buyer arrangement can execute a
respective link, which can direct the facilitator arrangement to
provide the sign-up form displays of FIGS. 9 and 10, respectively.
As shown in FIGS. 9 and 10, the seller arrangements and buyer
arrangements can provide the facilitator arrangement with
information regarding the properties of the sellers and/or the
sellers themselves, or information regarding the buyers can be
generated, gathered or otherwise received by the facilitator
arrangement. As indicated above, after the facilitator arrangement
16 receives the buyer information or the seller information, the
facilitator arrangement can evaluate the information to at least
partially ensure that the buyers are legitimate and qualified to
purchase an indicated level of real estate, or to allow the
facilitator arrangement to provide data related to the properties
of the sellers.
[0048] For buyer arrangements 12 and seller arrangements 14
registered with the service provided by the facilitator arrangement
16, as well as buyer and seller arrangements not registered with
the service (if so desired), the facilitator arrangement provide
listings of buyers and properties (see block 34 of FIG. 3A). More
particularly, as shown in FIG. 11, the facilitator arrangement can
provide a display of acquisition entities (i.e., buyers), including
a portion of the buyer information stored in the buyer database,
the buyer information being sufficient to allow sellers to gauge an
interest in the buyers. As shown in FIG. 12, the facilitator
arrangement can provide a portal to listings of confidential
retail, apartment, office and sale-leaseback properties, as well as
publicly listed or available properties subject to IRS 1031 tax
deferred exchange. From the portal of listings (as well as the
portal of FIG. 5), the facilitator arrangement can provide displays
of retail properties (FIG. 13), apartment properties (FIG. 14),
office properties (FIG. 15), sale-leaseback properties (FIG. 16)
and/or 1031 properties (FIG. 17). Within each display, then, the
facilitator arrangement can include a listing of respective
properties, as well as a portion of the seller information stored
in the property database, the portion of the information being
sufficient to allow buyers to gauge an interest in the
properties.
[0049] From the respective listings, the buyer arrangements 12 can
identify properties of interest, and the sellers can identify buyer
arrangements of interest (see block 36 of FIG. 3A). Then, as
explained above, an initiating party (i.e., buyer or seller)
desires to contact an initiated party (i.e., seller or buyer), the
initiating party can receive from the facilitator arrangement 16,
and thereafter execute, a the non-disclosure, non-circumvent
facilitation agreement. Then, after the initiated party has
accepted the agreement, the facilitator arrangement can provide, to
the initiating party arrangement, confidential, access-restricted
information related to the initiated party (see blocks 38-44 of
FIG. 3A).
[0050] Once the initiating and initiated parties are engaged in
communication, the parties can be restricted from contacting other
parties (i.e., other sellers and buyers) for a predefined
engagement period (e.g., five days). For example, the facilitator
arrangement 16 can restrict access to the buyer arrangement 14 and
the respective property of the seller arrangement 14 from the
listings of buyers and properties. In this regard, the facilitator
arrangement can restrict access to the buyer arrangement by
blanking out the entry for the buyer in the display of buyers and
identifying the buyer as being "Engaged," shown in FIG. 11.
Similarly, the facilitator arrangement can restrict access to the
respective property by blanking out the entry for the property in
the display of properties and identifying the property as being
"Engaged," shown in FIG. 12. As indicated above, by restricting
each party from communicating with other parties during the
engagement period, the facilitator arrangement can facilitate the
parties concluding a real estate transaction with one another
without outside interference.
[0051] After the initiating and initiated parties are engaged in
communication, if the parties can conclude the real estate
transaction for the respective property (see block 48), the
facilitator can collect a predefined fee from the initiating party
for the service provided by the facilitator (see blocks 50 and 52).
Also at the conclusion of the transaction, if so desired and
previously offered by the facilitator, the facilitator can provide
the buyer with a limited duration tenant default insurance policy
(see block 54). In this regard, as the buyer arrangements 12 and
seller arrangements 14 engage the service offered by the
facilitator arrangement 16, the facilitator arrangement can provide
the buyer arrangements and seller arrangements with information
regarding such a policy, as shown in the display of FIG. 18. And by
providing such information, the facilitator arrangement can
facilitate the buyer arrangements and seller arrangements
registering with the service offered by the facilitator
arrangement, and concluding a transaction while engaging the
service.
[0052] As will be appreciated, the service of the facilitator
arrangement 16 described herein can be provided in a number of
different contexts relating to real estate, from commercial to
residential real estate. It should be understood, however, that the
service can generally be provided in any of a number of different
contexts involving a buyer and a seller of a good. For example, the
service can be provided by the facilitator arrangement in the
context of an auction offering of a good by a seller to a number of
buyers, such as in the context of an online auction (e.g.,
eBay).
[0053] Also, the tenant default insurance described herein can be
provided in conjunction with a real estate transaction between a
buyer arrangement 12 and a seller arrangement 14. It should be
understood, however, that the tenant default insurance can be
provided independent of such a transaction, without departing from
the spirit and scope of the present invention. For example, the
tenant default insurance can be provided to a buyer arrangement
independent of the transaction between the buyer and a seller of a
respective property. Alternatively, for example, the tenant default
insurance can be provided to an owner of a property at any point
during the ownership tenure of the owner. Also, it should be
understood that the tenant default insurance can also be provided
in conjunction with other investment tools such as tenant-in-common
ownership, REIT (real estate investment trust) ownership and/or IRS
1031 tax deferred exchange programs to create a new investment
vehicle that offers a guarantee of a certain level of income to the
new buyer during initial ownership, or during a period extending
beyond initial ownership, if so provided by the facilitator
arrangement.
[0054] According to one aspect of the present invention, all or a
portion of the system of the present invention, such as all or
portions of the buyer arrangement 12, seller arrangement 14 and/or
facilitator arrangement 16, generally operates under control of a
computer program product. The computer program product for
performing the methods of embodiments of the present invention
includes a computer-readable storage medium, such as the
non-volatile storage medium, and computer-readable program code
portions, such as a series of computer instructions, embodied in
the computer-readable storage medium.
[0055] In this regard, FIGS. 3A, 3B and 4 are flowcharts of
methods, systems and program products according to the invention.
It will be understood that each block or step of the flowcharts,
and combinations of blocks in the flowcharts, can be implemented by
computer program instructions. These computer program instructions
may be loaded onto a computer or other programmable apparatus to
produce a machine, such that the instructions which execute on the
computer or other programmable apparatus create means for
implementing the functions specified in the block(s) or step(s) of
the flowcharts. These computer program instructions may also be
stored in a computer-readable memory that can direct a computer or
other programmable apparatus to function in a particular manner,
such that the instructions stored in the computer-readable memory
produce an article of manufacture including instruction means which
implement the function specified in the block(s) or step(s) of the
flowcharts. The computer program instructions may also be loaded
onto a computer or other programmable apparatus to cause a series
of operational steps to be performed on the computer or other
programmable apparatus to produce a computer implemented process
such that the instructions which execute on the computer or other
programmable apparatus provide steps for implementing the functions
specified in the block(s) or step(s) of the flowcharts.
[0056] Accordingly, blocks or steps of the control flow diagrams
support combinations of means for performing the specified
functions, combinations of steps for performing the specified
functions and program instruction means for performing the
specified functions. It will also be understood that each block or
step of the flowcharts, and combinations of blocks or steps in the
flowcharts, can be implemented by special purpose hardware-based
computer systems which perform the specified functions or steps, or
combinations of special purpose hardware and computer
instructions.
[0057] Many modifications and other embodiments of the invention
will come to mind to one skilled in the art to which this invention
pertains having the benefit of the teachings presented in the
foregoing descriptions and the associated drawings. Therefore, it
is to be understood that the invention is not to be limited to the
specific embodiments disclosed and that modifications and other
embodiments are intended to be included within the scope of the
appended claims. Although specific terms are employed herein, they
are used in a generic and descriptive sense only and not for
purposes of limitation.
* * * * *