A deal is a contract between two parties.
For example, a company wants to buy a property and a buyer wants to move in.
Sometimes it’s a simple one-to-one, such as a rental contract or a property swap.
But sometimes it’s more complicated, such a swap agreement between two separate entities.
That’s what happened on Thursday night when the U.S. Securities and Exchange Commission announced that it has finalized a settlement between two major night-moving companies that will make it easier for both parties to make the move.
The SEC said it would require night-move companies to include a clause that requires a minimum deposit and at least 90 days’ notice in a transaction between them.
The move-by-move industry is booming and there are more than 10,000 companies in the United States that provide night-trades to residential and commercial buyers and sellers, according to the National Association of Night Move Companies.
Read More: A deal in Manhattan would help make it easy for night-travellers to make their moves.
The settlement would also prevent companies from taking a “buyer” position in a night-transaction, meaning they would not be obligated to buy the property if it sells.
That is, they would be not be required to sell it if it goes on to sell for more than the price that the seller would pay.
The agreement will allow night-moves to offer to buy properties in their markets that are not offered to buyers at night.
For a night, a buyer will pay the night-trade company $3,500 for a transaction that ends at 6:30 p.m.
ET on the night of the transaction, according the SEC.
In addition, the deal will require a minimum minimum deposit of $1,000, plus $750 for every additional day the night is sold.
The deposit will be limited to $1.5 million per night and will be used for marketing, advertising, and other expenses.
Night-trading companies also will be prohibited from taking any other position in the transaction that could affect the price of the property.
The deal will be effective from Aug. 1, 2021, and apply to transactions for which a minimum purchase deposit of up to $5,000 is made.
The deadline for a final approval is Sept. 15.
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