April 2018

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Attorneys that specialize in real estate law will document and go over property transactions such as purchases, leases, appraisals and inspections. They may also assist in resolving any insurance and environmental issues. When something happens with a transaction, these lawyers go to court to defend property owners that are involved in lawsuits.

One of the main things a lawyer will do is to draft documents that in adherence with real estate law. They put together purchase contracts, conveyance transactions, financing agreements and leases and rental agreements. It is important to understand that property agents may help their client to fill out these types of paperwork but only a licensed attorney who is experienced with real estate law can draft and revise the documents.

Attorneys that are experienced with various types of property transactions know that it is not uncommon for clients to request that their help to negotiate terms and conditions of various deals. This normally involves working alongside other attorneys, brokers, developers and investors.

There are some lawyers that only deal with reviewing and giving advice on real estate transactions. In this case, the clients will negotiate their own transactions as well as sign the contract and at that point they will request the lawyer look over the deal and give them advice about it. What this entails is that the attorney will look at the legal title issues as well as any environmental issues and any reports, contracts or other documents that are involved in the deal. The reason that clients will turn to a lawyer for this type of advice is that these types of lawyers have the training to notice an issue that their client may not recognize.

Many times real estate deals do not go as planned and when this happens the courts are usually involved in a lawsuit. This is where attorneys and their experience comes into play. The attorney will put together the legal pleadings to file with the judge, file appeals as needed, bargain with the legal counsel on the opposite side to try and work out a settlement deal as well as participate in the necessary hearings and court proceedings.

Most attorneys in this field are trained in mortgage and trust foreclosures. These attorneys are often needed during tough economic times. There are some attorneys that will represent the lender and others that represent the borrower. The ones that represent the lender will help the lender understand the foreclosure process. The ones that represent the borrower will look for mistakes that have been made in the foreclosure process and will also negotiate with the lender to come up with a settlement so that they can stop the foreclosure from going forward.

Real estate attorneys play an important role in handling real estate law. They have many duties and responsibilities when it comes to brokering various deals. It is important to understand that different property attorneys will charge various rates. Some lawyers will have a set price that will cover everything that is needed for your case or they will have a per hour rate that they will charge to work on your case.

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The idea of investing in real estate has appeal in that it offers a potential supplemental income for the buyer. You may have heard terms like “flipping homes,” where you buy a home at a low price, fix up, and sell for profit; or, you may be interested in buying up property for the purpose of seasonally renting it to part-time residents. However you came to be interested in real estate investments, know that there are a number of laws and regulations, as well as common courtesies, that you should be aware of before you start bidding on contracts.

Let’s take a look at five situations that will require you to understand how real estate law works, and how to proceed during conflicts.

1) Any decision you make regarding a real estate investment must be approved by legal counsel before everything is signed and sealed. If you want to buy a condo, a duplex, or even an entire building, it is wise to have legal representation if you plan to do more with the property than live in it. You will need to be aware of laws regarding tenants and zoning, where applicable.

2) If you are involved in a legal dispute over property, it is important to have all the correct paperwork to support your case. While it would be ideal to have all transactions involving your property run smoothly, inevitably you may run into conflicts with renters. When claims are made with regards to your property, make sure you have written evidence to back up your statements in the event you wind up in court or in a lawyer’s office.

3) To achieve a sound return on investment, consider long term commitments as opposed to shorter turnarounds on property. If you can find an excellent tenant willing to rent your property in the long-term, you may wish to consider offering multi-year leases. Offer prospective tenants a good deal, and it may save you the headache and expense of advertising your property every six months.

4) Make sure you know exactly what comprises the property in which you invest. When possible, have the property inspected and checking for zoning restrictions. You don’t want to be stuck with a building or lot that you can’t use.

5) Understand the mortgage and payment schedules to avoid defaulting. Make sure you know when to make payments and what your rights are with regards to paying for your property.

The more you know about the property you want, and the laws enforced in your area, the better for your real estate investment endeavors.

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Before we go into the details of occasions when one really should know the important and basics of real estate laws, let us introduce you to what these laws entail.

Real estate laws are the legal statements which specify certain terms, conditions, scenarios and obligations which individuals and organizations should follow while making any dealings regarding land and buildings of any kind including apartments, homes, cultivating land or farms. They should be followed in sale and purchase and activities involving rent and lease of any property. These laws are made to protect both parties involved in any such agreement.

The five occasions when one needs to know the basics of real estate laws are: buying or selling some property, entering into a property lease agreement, entering into a mortgage agreement, home closures and foreclosures and entering into a tenant-landlord agreement. All these occasions are important as they involve a great deal of mental and financial investment. You should, therefore, pay enough attention to even the minutest of all details before entering into any such deal and making any decision. We will discuss three of the above mentioned cases when knowing these laws will help you in a number of ways.

The first and foremost time when you should know what your rights and duties as a seller or buyer are according to law, is when you sell or purchase some property. These laws tell you what you should do before making the transaction in order to stay free of tension and any future litigation. Most of the real estate laws direct both buyer and seller to go for proper documentation of each and every step so that things may be presented as evidence in case any dispute arises in near or far future. Both the buyer and seller have to add every term and condition of the exchange to make the process go smooth. A precaution at this stage is to avoid using your own wit at such a spot and to take help of an expert. Involvement of a technical hand can save you from scams and provides much better legal protection.

When you are going to enter into a lease contract, the need to know real estate laws arises when you are to decide and document the conditions which will terminate the contract, transfer of property provisions and the use of property. Having known what you can do and what you need not to do to avoid lawsuits or unfair claims on your property will help you as long as you are involved in the agreement.

The third and last occasion is when you are entering a landlord-tenant agreement. You should well consider the landlord/tenant laws and should well bargain your rights. As a tenant, you can, and should, check fro the present condition of the residence, the number of tenants as written in the agreement and the terms and conditions of increasing the rent. As a landlord, you should make it clear to the tenant that what are the circumstances in which you have the right to terminate the contract, the number of residents and the time period for which the agreement is valid.

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If you’re a landlord or involved in the purchase of property, it’s easy to see how it would be in your best interests to know as much about real estate law as you can. But this area of the legal field isn’t just for those who make their livings off buying or renting property. It affects everyone who owns or rents a home or apartment. One of the oldest aspects of Western legal tenets, the legalities surrounding the purchase and sale of property can be very complex. You may not need a lawyer to rent an apartment, but it never hurts to know the basics.

Renting Property

Whether you’re renting a house or an apartment, real estate law will govern what you can and cannot do. Perhaps more importantly, it governs the limitations of your landlord. Because they fail to look into it themselves, many tenants don’t realize that their landlord or management company is out of bounds. They allow things to happen that are completely illegal. Each state has its own set of laws regarding this common relationship, and it pays to familiarize yourself with them. Without knowing where the boundaries are, you won’t know if you’re being taken advantage of.

Agents

If you’re interested in becoming a Realtor or property agent of any kind, real estate law will have a direct effect on your success. Unbeknownst to many, not just anyone can go out tomorrow and start showing houses. They must be regulated and licensed by the state. Experience, moral character requirements, and the passing of an exam all play a role in determining whether a person will qualify to be licensed. If you want to get into that line of work, check into your state’s prerequisites for licensing.

Zoning

Both the state and the city create zoning districts for their locale. These zones determine what can and cannot happen within them. For instance, if you want to build an office building on a plot of land you purchased in a gated neighborhood, the city is going to tell you that your plans are about to be shut down. Cities are zoned into residential and business districts. Sometimes, these zones are enforced more strictly than even the residents would prefer. Even yard sales have been shut down for doing business in residential zones, although this type of overzealous enforcement of real estate law is relatively rare. Still, it never hurts to check with the city before you attempt to build or do something on questionable property.

Successful business people shaking hands, making a necessary agreement

Even though the global economic crisis has ended, and the recession in the United States seems to have ended, and as we move towards a very slow recovery, still we are not out of the woods yet when it comes to real estate. And our authorities who are engaged in regulating the banks and the industry are not done getting to the bottom of which companies caused the problem either. In fact, they are still out investigating some of the largest corporations and banks in America.

Likewise, with huge number of foreclosure cases in the court system it is compounding the problem. Some banks are paying hundreds of million dollars in fines for filing foreclosure papers through contracted legal firms without the proper paperwork. But if you think real estate law in the United States is complicated after the last recessionary economic crisis, you’d be very interested to know that we are not alone here in our country. In fact, after the global economic crash the United States and China both spent huge amounts of money in stimulus to prop up their economies.

In China the central bank lent money to regional banks and municipal vehicles to prop up the construction industry, and a lot of that money went into real estate projects. People invested in these projects; apartments, business buildings, factories, and all sorts of other projects, and China created a real estate bubble due to all the money that was poured in. Unfortunately most of that money will never be recouped, and many of those loans have already gone bad, and those local banks are trying to hide the fact.

Meanwhile, everyone who invested is watching the property values drop like a rock, and they are losing most of the money they thought they had gained as the bubble got bigger and bigger. Will those people be able to sue the government for creating this property bubble, or the banks for propping up or even misrepresenting what was going on? No, in China you’re not allowed to sue the government, and they don’t have the same types of real estate laws that we have here.

Unfortunately, there were many investment banks from the United States which also got in on the action, and actually helped increase the building of that bubble, some of which have already gotten their money out, and others still have their money in and they are losing it. Those wealthy investors involved will also lose millions of dollars along with the hundreds of millions, in some cases billions of dollars being lost by US-based investment banks. Perhaps what the world needs is some international real estate laws that everyone can agree to globally. Indeed I hope you will please consider all this and think on.