Business-RealEstate-Law » Business Real Estate http://www.business-realestate-law.com/blog Just another WordPress weblog Fri, 20 Aug 2010 18:45:02 +0000 en hourly 1 http://wordpress.org/?v=3.0 Getting a Real Estate Lawyer: Your Guide to a Successful San Diego Real Estate Sale or Purchase http://www.business-realestate-law.com/blog/getting-a-real-estate-lawyer-your-guide-to-a-successful-san-diego-real-estate-sale-or-purchase/ http://www.business-realestate-law.com/blog/getting-a-real-estate-lawyer-your-guide-to-a-successful-san-diego-real-estate-sale-or-purchase/#comments Fri, 14 May 2010 16:32:42 +0000 sandiegolawfirm http://www.business-realestate-law.com/blog/?p=127 Any buyer or seller of San Diego real estate should look into what a real estate attorney can do to protect you when you decide to buy or sell your home or other property. 

Unlike your real estate agent—whose goal is to complete the sale and earn a commission—your real estate lawyer doesn’t work on a commission.  What’s more, sometimes a real estate agent represents both the seller and buyer.  In these situations, there’s bound to be conflict in representing both sides.  After all, sellers want to get the highest price possible, the buyer the lowest, and the real estate agent’s commission is usually greater if the sale price is higher. 

As your real estate attorneys, it’s not our job to push for a sale.  We focus on protecting your interests because we know there’s a lot at stake in any real estate purchase and sale. 

Take a close look at the property and potential legal problems

Whether you’re a buyer or seller, your lawyer can examine any legal issues related to the property.  Buyers need to make sure their investment will be worthwhile, and sellers need to be careful not to violate real estate laws and/or violate the purchase and sale contract. 

Real estate agents do a lot in a real estate sale and purchase, but their role is not to give legal advice.  Whether you’re buying a home or investment property, there are many legal issues to examine.  For example, we’ll:

      ●    Examine the title (including the history of ownership for the property), and check whether there are any clouds on the title that need to be cleared

      ●    Look for any liens, easements, property line disputes, and zoning violations

      ●    Advise you about inspections and disclosures

      ●    Prepare your purchase agreement (see below for more on this)

Understand the deal, and know what to ask for

There’s a lot of paperwork involved in buying and selling a home and other real estate, which means there are a lot of terms to negotiate if you know what to ask for. 

Your sale or purchase officially begins with the Purchase Agreement.  If the buyer’s offer is accepted by the seller, you’re both in a binding contract.  In most situations there can be serious consequences for backing out in violation of the contract, but your lawyer can build in protections in case things go wrong later. 

The key terms of the deal are in the purchase contract, but often the real estate agent will use a standard fill-in-the-blanks contract that won’t necessarily keep your personal interests safe.  Here are a few examples of what your real estate lawyer can help you with when preparing the purchase agreement and overseeing related issues: 

      ●    Will the seller make any promises and guarantees to the buyer when transferring ownership?

      ●    If you’re a buyer, will you be let out of the contract if you can’t get a loan, or aren’t able to sell your current home?  Also, are the terms offered by the lender good for you in the long run?

      ●    If inspections reveal problems, will the seller be responsible for any and all repairs?  Will the buyer be given credits instead?  And at what point can a buyer cancel the deal?

      ●    As a buyer, do you know how you should take title to the property?  For example, will it help or hurt you to take title as “joint tenants with right of survivorship.”  If you’re a real estate investor, should you create an LLC or corporation to hold title?

Getting help at the closing

The closing finalizes the transaction and transfers ownership from seller to buyer.  We’ll make sure contingencies have been removed, settle any remaining issues, and ensure you provide and receive all the required documents.  The bottom line is that you need to fully understand the real estate documents you’re given.  We’ll explain the terms, and identify things that should be included in your purchase agreement. 

Your real estate agent or broker does a lot for you, but your agent can’t provide the same kind of legal help and advice that a real estate lawyer can.  We’ll work to protect your interests at every stage in the process and look into potential problems.  Contact San Diego Law Firm’s skilled real estate attorneys at (619) 794-0243.

]]> http://www.business-realestate-law.com/blog/getting-a-real-estate-lawyer-your-guide-to-a-successful-san-diego-real-estate-sale-or-purchase/feed/ 0 Tips for San Diego Real Estate Investors http://www.business-realestate-law.com/blog/tips-for-san-diego-real-estate-investors/ http://www.business-realestate-law.com/blog/tips-for-san-diego-real-estate-investors/#comments Fri, 23 Apr 2010 23:15:27 +0000 sandiegolawfirm http://www.business-realestate-law.com/blog/?p=121 If you’re a real estate investor here in San Diego, how much do you know about Limited Liability Companies and corporations?  For those who own or will be buying investment properties (e.g. residential or commercial rental properties), you may want to create a California Liability Company (LLC) or corporation.  These business structures can be used to hold ownership of your real estate, instead of having title to the property in your own name. 

What happens if you keep property titled under your personal name? 

If you’re sued and lose the case, then your personal bank accounts and other assets can be used to pay off a judgment.  But if you create an LLC or corporation, then typically only the property in the name of the company will be subject to these debts. 

To further limit potential liability, you should consider placing each investment property you own in a different company.  That way, a lawsuit against one company doesn’t affect other companies holding additional real estate. 

We’ll advise you on the best practices you should employ to you maintain the protections and benefits of California LLCs and corporations, and explain the tax implications and other important considerations. 

Real estate owners should keep in mind that lawsuits can come about for many different reasons, such as:

      ●    Accidents and injuries on the property

      ●    Legal disputes with tenants

      ●    Creditor disputes

Some of these claims could be partially covered by any insurance coverage you may have, but all too often the liability exceeds the coverage.  That’s why many people buy investment or rental properties through an LLC or corporation (or transfer title to one of these companies if the real estate is already owned under the investor’s personal name).

How else can you maximize the success of your real estate investments?

On the business end, investor and blogger John Fedro shares his advice in “5 Ways To Streamline Your Real Estate Investing Business Machine,” including:

      ●    At the top of Fedro’s list is a recommendation that you specialize in one real estate niche, because if you take on too much there’s more of a chance that you’ll fail. 

      ●    You’re also forewarned that even though not everything about your real estate ventures is exciting, you can’t ignore your responsibilities.  To that end, he suggests you make sure you complete at least one real estate task every day. 

      ●    Also do your “due diligence.”  In other words, before buying, thoroughly inspect every property so that you don’t end up in a financial and legal disaster later.  (This means inspecting the physical condition of the property, and looking for potential legal problems with the property.)

Before you buy real estate, contact your real estate attorney at San Diego Law Firm to evaluate the many legal issues involved in your real estate transaction. 

Don’t wait too long, because an LLC or corporation won’t protect you from claims created while the real estate was owned under your personal name.  Find out whether an LLC or corporation is a good option for ownership of your investment properties by contacting San Diego Law Firm’s skilled real estate attorneys at (619) 794-0243.

]]> http://www.business-realestate-law.com/blog/tips-for-san-diego-real-estate-investors/feed/ 0 Eminent Domain: Your Rights When the Government Wants Your San Diego Property http://www.business-realestate-law.com/blog/eminent-domain-your-rights-when-the-government-wants-your-san-diego-property/ http://www.business-realestate-law.com/blog/eminent-domain-your-rights-when-the-government-wants-your-san-diego-property/#comments Fri, 08 Jan 2010 00:46:57 +0000 sandiegolawfirm http://www.business-realestate-law.com/blog/?p=103 The government doesn’t always need a for-sale sign to be posted in front of your San Diego property.  Not only that, you may have to give up your property despite the fact that you’ve outright rejected the government’s unsolicited offers to buy your home or other property.  Why?  Because our property rights are limited by the federal, state, and local government’s sovereign right to take property through “eminent domain” (also known as condemnation).  The power of eminent domain comes from the government’s right under the 5th Amendment to the U.S. Constitution and under our California Constitution to take private property for a “public use” in exchange for “just compensation,” e.g. the fair market value of the property.  Both willing and unwilling sellers who find themselves in this situation have to act quickly to challenge the government’s actions or unfair offers of compensation.  This often starts by recognizing that there are limits to the government’s right to condemn property through eminent domain, and you have your own property rights that you must be ready to immediately act upon.

As pointed out earlier, any property taken by the government must be for a public purpose, such as to build schools and roads, to protect the public health and safety, or for other public projects.  In return, you’re owed just compensation.  So what is fair compensation?  This is one of the most important questions to ask in every condemnation case, because simple fair market value isn’t always the answer.  First, the government’s appraisal of fair market value will probably be different from another appraiser’s findings.  Second, you must identify all property interests and costs that should legally be reflected in the compensation offered for your relocation, especially when there is a business on the land to be taken.  In these cases, fixtures, equipment, and your business’s goodwill may be affected by a move, and these values need to be assessed and negotiated.  Often tenants also have the right to be compensated for their interests in a lease, such as the difference between the rent under the lease and a potentially higher fair market rent once the property is condemned.  What’s more, eminent domain can affect you even if your property isn’t being condemned.  You may instead be in the situation where the government’s actions on neighboring land affect your own property and diminish its value.  Or it may be that even though you still own your property, it is so heavily regulated that you lose almost all value in it, causing the government’s actions to amount to a “regulatory taking.”  In any of these situations, we’ll seek the compensation owed to you for your loss.

Here in San Diego, you may often come across local news of government takings through eminent domain.  Recently, the San Diego Union Tribune’s Matthew Hall reported that if the San Diego Chargers build a downtown stadium, the city might have to take over private land through its eminent domain power.  Similarly, Michele Clock of the San Diego UT notes that as part of Lemon Grove’s downtown redevelopment, the city may have to resort to taking land through eminent domain if negotiations to purchase a property (on which a storage business is located) fail.  If you’re facing similar circumstances, whether or not you should take the deal offered or go to court instead greatly depends on the legality of the government’s actions, and on how much the government is offering compared to how much you believe your property is worth.  In helping you answer these questions, we’ll also review whether the government agency involved is following the required legal process in condemnation proceedings, and strategize and prepare for the public hearing that’s held before an eminent domain lawsuit is filed.  If a favorable settlement isn’t reached, we’ll prepare for trial, file the required documents, and pursue your rights in court.  Avoid costly mistakes and make informed decisions by engaging San Diego Law Firm as soon as you learn your property has been targeted.  We’ll work to strengthen your bargaining power when negotiating with the government, coordinate with experienced appraisers, and pursue your rights in court when needed to further your interests.  Whether it’s your residence or commercial real estate that’s at stake, or if you’re a business owner leasing property that faces condemnation, our experienced San Diego real estate lawyers understand your needs and are here to help.  To contact San Diego Law Firm, call us at (619) 794-0243.

]]> http://www.business-realestate-law.com/blog/eminent-domain-your-rights-when-the-government-wants-your-san-diego-property/feed/ 0 Mere Homebuyer’s Remorse or Did the Seller Fail to Disclose Defects? California Homebuyer Protections & Problems After Closing http://www.business-realestate-law.com/blog/mere-homebuyers-remorse-or-did-the-seller-fail-to-disclose-defects-california-homebuyer-protections-problems-after-closing/ http://www.business-realestate-law.com/blog/mere-homebuyers-remorse-or-did-the-seller-fail-to-disclose-defects-california-homebuyer-protections-problems-after-closing/#comments Wed, 09 Dec 2009 23:56:49 +0000 sandiegolawfirm http://www.business-realestate-law.com/blog/?p=90 “Let the buyer beware” – before California and other states set up certain homebuyer protections, these words haunted many purchasers who discovered major defects with their home after moving in, and were left without recourse against the seller.  Under the harsh legal principle of buyer beware, a seller has no legal obligation to disclose defects to the buyer.  That’s not to say that sellers are protected when they actively cover up hidden defects or make false representations, but if, for example, the seller simply failed to mention that the home is prone to flooding or landslides, then the burden is on the buyer to discover defects.  While this is still the law in some jurisdictions, California and many others have abandoned this principle and now impose legal obligations on the seller in order to protect homebuyers. 

In a typical real estate purchase, California law requires sellers to disclose certain defects that they knew or should have known about, and the seller must provide the buyer with an additional disclosure statement.  Not only that, but the seller’s real estate agent must visually inspect the home and disclose any information that can materially affect the property’s marketability.  These types of problems can hurt resale value and seriously affect a buyer’s ability to sell the real estate later on.  So what must a seller disclose? Examples include leaky roofs, defective plumbing, electrical problems, building code or zoning violations, construction defects, insect infestations, and other problems or conditions.  Legal problems that must be disclosed include encroachments or easements, liens on the property, or issues with title to the property.  At times, the seller’s actions may even amount to fraud.

In addition to the mandatory disclosures under California law, when negotiating the deal a seller may decide to go beyond the minimum disclosure requirements and include warranties in the real estate purchase agreement.  Unlike with the state law disclosures, if a warranty in the contract is breached, the seller can be held liable even if the seller had no reason to know that the representation was false.  If you’ve discovered defects in your home after moving in or have been defrauded by the seller, contact our skilled real estate lawyers as soon as possible, before any time limits on your claim expire.  We’ll discuss your options and help you obtain compensation to repair the undisclosed defect or, in some cases, rescind the purchase.  Similarly, if you’re a seller who has wrongfully been accused in a nondisclosure case, we’ll evaluate the circumstances and work toward resolution.  Contact San Diego Law Firm’s experienced advocates at (619) 794-0243 for help with any real estate dispute.

]]> http://www.business-realestate-law.com/blog/mere-homebuyers-remorse-or-did-the-seller-fail-to-disclose-defects-california-homebuyer-protections-problems-after-closing/feed/ 0 It’s Your Property, But What Can Be Done If San Diego’s Zoning Laws Stand In the Way of Your Plans? http://www.business-realestate-law.com/blog/its-your-property-but-what-can-be-done-if-san-diegos-zoning-law-stand-in-the-way-of-your-plans/ http://www.business-realestate-law.com/blog/its-your-property-but-what-can-be-done-if-san-diegos-zoning-law-stand-in-the-way-of-your-plans/#comments Wed, 18 Nov 2009 22:12:35 +0000 sandiegolawfirm http://www.business-realestate-law.com/blog/?p=79 After meeting in the same location for more than two decades, a local San Diego County church was told by the county that its members could no longer meet in its usual church building, reports Anne Krueger of the San Diego Union Tribune.  It’s also reported by a San Diego Union Tribune AP article that several hundred miles north of San Diego, nine Fresno area medical marijuana dispensaries have been ordered to shut down.  Elsewhere, in the affluent coastal city of Palos Verdes Estates in Los Angeles County, a homeowner currently faces misdemeanor charges for allegedly running her home as a “party palace,” as detailed by Jeff Gottlieb in the Los Angeles Times.  What do these stories have in common?  Accusations of zoning violations.  In the case of the local church, it had apparently been sitting on land zoned for a bar, and was told it would need a permit to continue on as a church.  The congregation was allowed back several months later, but the church must still seek the proper permit in order to continue its meetings.  Now the church teases on its website that it has its own version of “happy hour”: Sunday church service at 10:00 am, but it’s a safe bet that this won’t be enough to conform to the current zoning.

It’s clear that land use regulations such as zoning affect us all in our day to day lives.  Zoning restrictions are an effective tool for local governments to control the development of land and the uses to which property can be put.  Generally, the idea is to keep residential, commercial, agricultural, and industrial areas separate, with further restrictions applying to each category.  Zoning laws can protect you from many nuisances and benefit the public at large, but at times problems arise when these regulations conflict with your personal or business objectives.  From business owners making plans for the future use of commercial property on one end, to homeowners seeking to expand or make changes to their homes on the other.  We’ll research and review current zoning laws and ordinances, and seek relief from these regulations when needed.  For example, depending on the circumstances, you may need to obtain a variance, permit, or a zoning change.  After careful preparation, we’ll handle the application process, submit any required reports, and represent you at hearings. 

Also note that not all zoning regulations are legal, and we’ll assess how reasonable or unreasonable the regulations or any conditions placed on the approval of your proposal are under the law.  Zoning and other land use laws, like building codes, can have serious consequences for you.  With this in mind, we’ll negotiate contracts to include important contingencies when buying or leasing commercial property, advise you about the impact of zoning laws on your current or future business plans (such as when buying or starting a business), or assist with residential projects.  Contact our real estate attorneys early on with your zoning or development concerns, and we’ll strategically develop your case to maximize your chances of a success.  Reach San Diego Law Firm at (619) 794-0243.

]]> http://www.business-realestate-law.com/blog/its-your-property-but-what-can-be-done-if-san-diegos-zoning-law-stand-in-the-way-of-your-plans/feed/ 0 Watching Out For Your San Diego Business When You Negotiate a Commercial Lease http://www.business-realestate-law.com/blog/watching-out-for-your-san-diego-business-when-you-negotiate-a-commercial-lease/ http://www.business-realestate-law.com/blog/watching-out-for-your-san-diego-business-when-you-negotiate-a-commercial-lease/#comments Tue, 29 Sep 2009 18:06:57 +0000 sandiegolawfirm http://www.business-realestate-law.com/blog/?p=61 If you’re a San Diego business owner, then you know that when looking for commercial space, the last thing you want to do is blindly sign the lease being offered to you, because a commercial lease always needs to be negotiated.  Looking at the Chargers’ lease of Qualcomm Stadium with the City of San Diego, the San Diego Union Tribune reports that the agreement expires in 2020.  Before then, the lease provides that the Chargers have a month-long window every year to notify the city of its intent to leave, with penalties at $54.6 million if the team moves next year, but dropping to less than half that amount in 2011 (an amount which some say could be a penalty the team is willing to pay).  At least according to Chargers’ special counsel Mark Fabiani, quoted in a Voiceofsandiego.org article, the city got a “bad deal” considering the limited revenue generated by Qualcomm.  The article goes on to detail other setbacks, like payments San Diego must make to the Chargers whenever more than 90 percent of the seats in any section are sold, since the City had to remove seats that weren’t in compliance with the Americans with Disabilities Act (ADA).  As you enter into your own lease, we’ll advise you on whether federal and California disability laws apply to your business, and make sure the lease says who will be responsible for any modifications that may become needed to comply with the ADA and related laws.

Remember that just like with every other business decision you make, it’s important to anticipate possible changes by looking ahead, and to plan for this in the terms of your lease.  As experienced real estate attorneys, we understand that a successful lease negotiation depends on the ability to come up with solutions that will meet everyone’s interests.  While a lease needs to cover more than just the basics, one of the most important terms in any lease is length.  For commercial tenants like restaurants and retail businesses, a long term lease has many benefits but also carries risk.  In this situation, will an option to renew a shorter lease benefit you most?  Is it to your advantage to include a lease-purchase option in your agreement?  The answer will always depend on your individual circumstances and goals. 

We’ll skillfully negotiate and draft the best possible lease for you, research local zoning laws and ordinances, and advise you on potential problems and risks.  California law doesn’t provide commercial tenants with the same level of protection that residential tenants enjoy, but by taking the time now to carefully draft a lease, you can minimize uncertainty and prevent many future disputes.  If buying commercial real estate is a better move for you, our attorneys can help secure your investment.  Contact San Diego Law Firm’s business real estate lawyers at (619) 794-0243 to get the best terms possible before committing to a lease.

]]> http://www.business-realestate-law.com/blog/watching-out-for-your-san-diego-business-when-you-negotiate-a-commercial-lease/feed/ 0 Buying San Diego Real Estate: How Much Do You Really Know About Title Insurance? http://www.business-realestate-law.com/blog/buying-san-diego-real-estate-how-much-do-you-really-know-about-title-insurance/ http://www.business-realestate-law.com/blog/buying-san-diego-real-estate-how-much-do-you-really-know-about-title-insurance/#comments Fri, 07 Aug 2009 21:56:12 +0000 sandiegolawfirm http://www.business-realestate-law.com/blog/?p=44 True or false? Title insurance will protect you if you buy a home and later find out there are title problems.  Answer…it depends.  Of the many details involved when buying a home here in San Diego, one that’s often overlooked is the role of title insurance. 

The concept of title begins simple enough. It’s about ownership, but things can quickly get complicated if problems arise with liens, encroachments, missing heirs, easements, boundary line disputes, unpaid taxes, mistakes in the deed, forgeries, and so on.  Title insurance can provide protection against these risks, yet even though lenders require title insurance, the policy purchased may have nothing to do with protecting your own interests.  That’s because there are two types of title insurance policies: a lender’s policy and an owner’s policy.  A lender’s policy doesn’t cover your down payment, monthly payments, or any increase in property value, and the coverage disappears once your loan is paid off.  For protection against your own financial loss in this major investment, you’ll need to buy homeowner’s title insurance. 

During the recession, owner’s title insurance may be even more worthwhile for those who are buying property as a result of a non-judicial foreclosure, since there’s the added risk that required procedures weren’t properly followed.  If you decide to buy your own title insurance, a recent Wall Street Journal article by James Hagerty recommends that you shop around and start early, instead of simply going along with the insurer picked out by your real estate agent or mortgage company.  Whether you’re buying or selling real estate, we’ll carefully examine the transaction and potential title issues, and take any necessary legal actions to resolve title and deed problems.  Be sure to contact San Diego Law Firm’s real estate attorneys early on by calling (619) 794-0243.

]]> http://www.business-realestate-law.com/blog/buying-san-diego-real-estate-how-much-do-you-really-know-about-title-insurance/feed/ 0 Are You Making the Most of Your Assets? Dealing with Disagreements over Co-Owned Real Estate in California http://www.business-realestate-law.com/blog/are-you-making-the-most-of-your-assets-dealing-with-disagreements-over-co-owned-real-estate-in-california/ http://www.business-realestate-law.com/blog/are-you-making-the-most-of-your-assets-dealing-with-disagreements-over-co-owned-real-estate-in-california/#comments Fri, 12 Jun 2009 18:58:57 +0000 sandiegolawfirm http://www.business-realestate-law.com/blog/?p=11 Co-ownership of California real estate is common, whether you purchased property with a friend or business partner, or you just happened to inherit property with someone else. While co-ownership can have its advantages, it’s not always the best investment for you. What do you do if you can’t agree with co-owners on the best use for the property, on whether to sell, or when someone isn’t living up to his or her obligations? If things can’t be settled, California law generally allows a co-owner to force a sale of the real estate through what’s known as a partition action, allowing you to receive proceeds from the sale based on your share. You and the other co-owners may even agree to a buy-out.

San Diego Law Firm handles all types of co-ownership and partition actions. We can provide you with expert representation while protecting your ownership share, advising you on your options, and handling the legal steps and court appearances needed to get your property sold. We’ll help you free yourself from property entanglements so you can move forward with your life and financial goals. To speak to an attorney highly experienced in dividing jointly-owned property, please set up an appointment by calling our office at (619) 794-0243.

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