We were nearly a year in to a heated battle with a retail tenant. In court, I was representing the landlord. Each side had hundreds of thousands of dollars on the line. And, the whole case was now turning on the judge’s interpretation of a few words in the lease. This was a Yellowstone Injunction case. Any commercial landlord whose been in the business for some length of time has either heard of or experienced one of these. They’re not pretty.
The Problem With Unclear Commercial Leases
This dispute between the landlord and the tenant centered on the placement of cell phone tower equipment in the proximity of the tenant’s leased premises. The landlord was trying to get additional revenue so he agreed to lease a portion of the property to a wireless carrier for their placement of a cell phone tower. Furthermore, the wireless carrier needed to house some of its equipment in the basement of the building at the property. The landlord agreed to this, but now this retail tenant was claiming this space as a part of its leased premises which made it off-limits to the landlord.
The landlord had previously allowed the tenant to use this basement space as an accommodation. However, he never considered the basement to be a part of the tenant’s space under the terms of the commercial lease. The tenant, on the other hand, believed his rights to that basement space were a part of the lease. And, as long as he paid rent on time, he’d have exclusive use of that space.
The lease was well written except when it came to defining the bounds of the leased space. Now, a year later the whole case was turning on what the definition of the “leased premises” was. Defining the leased premises in a commercial lease is one of the simplest components of the lease, and yet this one term is tremendously important for defining the landlord-tenant relationship.
The Yellowstone Injunction
When the tenant refused to make way for the wireless carrier’s equipment, the landlord issued a notice of default with an opportunity for the tenant to cure. If the tenant did not cure the default, then the tenant would be evicted. But before the cure period in the landlord’s eviction notice expired, the tenant petitioned the NY State Supreme Court for a Yellowstone Injunction to stop the landlord’s eviction effort. That’s when we got involved with the case.
A petition for a Yellowstone Injunction is a NY procedural remedy by which a tenant (usually a commercial tenant), whose otherwise in full compliance under their lease, can have the cure period in a landlord default notice tolled pending a court determination of whether they’re actually in default. If the tenant is successful, the court will grant a permanent injunction preventing the landlord from evicting the tenant on certain grounds.
Typically, the petition starts with the issuance of a temporary restraining order against the landlord. With the landlord restrained, the court then allows the parties to litigate over the interpretation of the lease and whether there’s been a default. The Yellowstone Injunction is a powerful remedy that commercial tenants have used for years to subvert a landlord’s eviction efforts. Furthermore, if used correctly, it can delay a commercial eviction for months or years.
The Case Specifics
In this case, the lease didn’t specifically define the leased premises. Therefore, the tenant obtained a Yellowstone Injunction to afford some time. This time allows for the interpretation of the lease. This interpretation now turned on the meaning of a few words; it was up to the judge.
Suddenly, the landlord’s prospect of securing a lucrative cell tower lease was in doubt. Without access to that basement space, the wireless carrier would not lease at this site. The whole case was now a matter of lease interpretation.
The Importance of Language in Commercial Lease Agreements
At the heart of the matter was the landlord’s failure to use the proper wording in his lease. What he previously thought of was insignificant “boiler plate” language at the time of signing now had tremendous financial consequences.
Had this landlord used an experienced commercial real estate litigator to draft his lease, he never would have had this problem, and instead he’d have a consistent cash flow from the wireless carrier at that point. Instead, he was sitting by the phone, already tens of thousands of dollars in the hole in attorney fees waiting for the call as to how a judge was going to interpret his lease.
The Results
We’ve resolved many of these Yellowstone Injunction cases over the years. Fortunately, we were able to get this landlord the result he needed, but the case could have easily gone the other way, and the litigation cost to this landlord was exponentially greater than it would have been had he hired an experienced commercial real estate attorney to draft his lease to begin with. These were costly lessons.
As is often the case in real estate, you can’t really measure the likelihood of something like this happening. But, you can certainly see the magnitude of the problem when it does happen. The magnitude of such problems makes it well worth it to take the nominally expensive, preventative measures ahead of time. By the time these problems arise, it’s usually too late.
Getting tenants back in line is not easy, but we do it all the time. We’ve successfully fought for our clients through commercial landlord-tenant litigation for years. We’ve given our clients their best chance at success when these real estate disputes arise, and we still do, but fighting is not cheap. On the other hand, preventative measures are a bargain.
Contact a Commercial Real Estate Attorney
We’ve drafted and negotiated commercial leases over the years that have given our clients the upper hand in situations like this. Furthermore, we have helped them avoid these problems altogether. Our commercial leases are built term-by-term on actual litigated cases. Our provisions are battle tested. When it all could turn on the meaning of a few words, what kind of lease would you want to have?
Please give us a call if you need help with a commercial lease issue.
Amidst this 2020 COVID-19 pandemic, Clark’s Laws offices remain open and fully operational.
We are available to answer any questions or concerns regarding the commencement of an eviction action or other civil law suit. We will be able to address and discuss what can be done despite court closures.
Furthermore, we are open and fully operational for real estate transaction needs.
Administrative Order of the Administrative Judge of Suffolk County
The following is an excerpt of the full administrative order. Please click the button below to view the full version.
[…] effective 5:00 PM on March 16,2020 the following rules be put into effect in the 10th Judicial District, Suffolk County (“District”) until rescinded.
No eviction orders shall be signed.
No default judgments shall be granted.
No foreclosure auctions shall be held.
All Court proceedings in Suffolk will occur at the Cohalan Court Complex, 400 Carleton Avenue, Central Islip, New York.
Town & Village Courts
All non-essential matters are administratively adjourned due to the exceptional circumstances of the coronavirus medical crisis until a date on or after April 30, 2020 (for defendants not in custody and for civil matters) or on or after April 15,2020 (for defendants in custody). The adjourned date shall be determined by the Assigned or Designated Judge – Town and Village staff shall be responsible for notiffing attomeys or pro-se litigants/defendants of the adjourned dates.
At some point, every landlord will experience a renter that stops paying rent. And, how you handle this situation will directly affect your ability to recover the rent you are owed.
There are many reasons the rent is not paid. It could simply be late without notice, or they are refusing to pay. Whether it’s a one-time thing or the tenant has a long history of not paying, rectifying the situation costs time and money.
1. Check that They are Actually Late
As strange as this may sound, double checking your records should be your first stop. Does your lease agreement contain a grace period? Does it contain a late fee?
Regardless of the feelings you may have when a tenant doesn’t pay, your lease will tell you what is considered late and what your next step should be.
2. Have a Conversation
This may seem obvious, but it’s worth listing. Having an honest, in-person conversation should be your first step in getting the rent paid.
When a tenant is slacking on paying rent on time and is consistently late, there may be circumstances that you are unaware of. However, this does not mean it should be allowed to continue. Having a conversation allows for you to understand what the tenant is experiencing; as well as giving you the opportunity to be understood by the tenant.
Let’s face it, you need to pay your bills on time and you cannot afford to not receive rent. So, it is important to stress how paying on time is a requirement to live there. They cannot stay if they are not able to pay rent.
Another possible outcome is that you allow your tenant out of their lease. Should the cost of the rental become a hardship to your tenant, releasing them from the agreement may save you energy, time, and money. Additionally, it allows your tenant to consider the cost of finding a new home, paying to rent a new place, and the overall cost to move. All of this, compared to simply paying the rent they owe you.
Having a conversation with a renter that is late for the first time, or late every month, can help get them back on track.
3. Send a Notice
The next thing to do if a tenant refuses to pay rent is to make a demand for the rent. Basically, this is a letter or email that simply states the situation: they are late paying rent, they have X days to pay in full, or the lease will be terminated and they are required to move out.
This is the first step towards actively removing a tenant, and having a record of this should be provided to your landlord-tenant lawyer. In many cases, however, this is a sufficient jolt of reality to get the tenants paying again.
4. Eviction
When all else fails, eviction is an option. This is a process that takes months, so you should be aware of that and remember to keep your cool.
While some get impatient during this process, it is important to remember that it is never OK to lock someone out, move their belongings, or shut off utilities in the meantime. Similarly, threats in any emotional or physical nature is also illegal. Your tenant/ex-tenant can turn around and sue you for harassment.
Conclusion
The first time the rent is late, it should be taken seriously. You will want to communicate and get your tenant back on track before it escalates.
Landlord-tenant relationships can be difficult at times. It is important that you know how to deal with difficult tenants, the right way.
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Landlord Advocacy: Legalities of the Residential Buy & Hold Business Model on Long Island.
The best ways to collect rent, I hear a lot about this. Usually, I just tell people whatever’s easiest. Whatever’s going to be the easiest way for the tenant to get the money to you, you do it, but then I get the question, “Well, what about if I have them directly deposited into my bank account?” I usually don’t recommend that because there are situations when you’re terminating a lease that you can’t accept rent, and if they put it into your bank account, they have an argument now that they paid you. If you want to have an arrangement like that, a better way is to do an ACH debit where, basically, you hit their bank account every month. That doesn’t always work because, a lot of times, they don’t have bank accounts, but whatever you could do to make it a passive investment. That’s the point of this whole thing.
I have a guy who’s got an apartment building just right outside my office, just down the block. He’s got a bunch of units out there, and he loves standing on the corner on the first of the month, and he waits for his tenants to come down and give him the rent money. He’s out there all day sometimes because he’ll wait for them to get home from work. He’s an old timer. This is the way he does it.
Above is the full video transcript of following video:
About the Presentation by Mr. James Clark
The above is a clip from a presentation that attorney, Jim Clark made to the East Coast Real Estate Investors Association (“ECREIA”) in March, 2019 entitled: “Landlord Advocacy: The Legalities of the Residential Buy & Hold Model on Long Island.”
Mr. Clark will be leading a follow-up discussion on these topics, and specifically how they’ve changed under the New York Housing Stability & Tenant Protection Act of 2019 at the monthly meeting of ECREIA at 6:30pm on September 25, 2017 at Domenico’s Restaurant at 3270-A Hempstead, Tpke, Levittown, NY 11756. To learn more about ECREIA, click here.
In this clip, Mr. Clark discussed the most common legal issues that arise in collecting rent from tenants.
During this presentation, Mr. Clark discusses solutions to some of the most common legal issues landlords face including:
How to hold title to a rental property
How do I know if it’s a good rental property?
Marketing Strategies For Your Rental Property
Applications and Tenant Background Checks
Anti-Discrimination Laws Effecting Long Island Residential Rentals
What About Lease Agreements
How About Security Deposits
Collecting Rent
What To Do When a Tenant Doesn’t Pay
The Landlord Mindset
East Coast Real Estate Investors Association is a member group of National REIA and conducts monthly educational and networking meetings for real estate investors. To learn more about ECREIA go to http://www.eastcoastreia.net.
For more information, or if you need help with a landlord-tenant or eviction matter, please contact us.
Filed under: Residential Real Estate Law
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Landlord Advocacy: Legalities of the Residential Buy & Hold Business Model on Long Island.
What about security deposits? Well, security is there for the landlord to recoup their money when there’s damages to the property, but it’s one of the most misused things out there. In New York, if you have security, you’re supposed to keep it in a segregated account, no questions asked from the minute you get it until the minute you give it back to the tenant. If you don’t, then the tenant wants to go after you for it, the damages are the amount of the security.
This is a problem because I know a lot of landlords, they basically use their security as operating income and this can arise at any time. It all, usually arises when there’s an eviction happening and they want to fight it and they’ll counter claim for an accounting on the security and then you’ve got a problem. It’s particularly a problem if you’re buying a property and there’s tenants already in it and prior landlord held security because now you’re subject to whatever the prior landlord did. So if they at any point commingled the security, you got a problem.
Now when we say “segregated account,” we mean segregated, or separate from your rents. So you’re holding it as security and you are considered the trustee of the security and if you’re a trustee of anything, you keep it separate from your own stuff.
I am often asked, “Can I put the security in a savings account?” Sure. You can put in a savings account, you can put it in any kind of account you want, as long as the money is there, when the tenant ever asked for it, not that they’re entitled to it but they could just say, “Hey, is my money there, give me notice and I want to know where it’s been since I gave it to you”. You got to give it to them.
The rule is the security cannot be the same account that where the rent goes.
Above is the full video transcript of following video:
About the Presentation by Mr. James Clark
The above is a clip from a presentation that attorney, Jim Clark made to the East Coast Real Estate Investors Association (“ECREIA”) in March, 2019 entitled: “Landlord Advocacy: The Legalities of the Residential Buy & Hold Model on Long Island.”
Mr. Clark will be leading a follow-up discussion on these topics, and specifically how they’ve changed under the New York Housing Stability & Tenant Protection Act of 2019 at the monthly meeting of ECREIA at 6:30pm on September 25, 2017 at Domenico’s Restaurant at 3270-A Hempstead, Tpke, Levittown, NY 11756. To learn more about ECREIA, click here.
In this clip, Mr. Clark discussed the practical and legal considerations relating to security deposits landlords should be aware of for their Long Island residential rental.
During this presentation, Mr. Clark discusses solutions to some of the most common legal issues landlords face including:
How to hold title to a rental property
How do I know if it’s a good rental property?
Marketing Strategies For Your Rental Property
Applications and Tenant Background Checks
Anti-Discrimination Laws Effecting Long Island Residential Rentals
What About Lease Agreements
How About Security Deposits
Collecting Rent
What To Do When a Tenant Doesn’t Pay
The Landlord Mindset
East Coast Real Estate Investors Association is a member group of National REIA and conducts monthly educational and networking meetings for real estate investors. To learn more about ECREIA go to http://www.eastcoastreia.net.
For more information, or if you need help with a landlord-tenant or eviction matter, please contact us.
Landlord Advocacy: Legalities of the Residential Buy & Hold Business Model on Long Island.
What about lease agreements? Should you even have a lease? I have debates with colleagues of mine over whether you should even have a lease. If you don’t have a CO, you’ve got a void lease, so it’s really immaterial.
But there are benefits to not having a lease. If you don’t have a lease, then you’re just subject to the statute. There’s no term. It’s basically a month-to-month, and you can cut it off at any time. There’s lots of case law backing how these things get decided when there’s a problem.
The downside, is that you’re missing an opportunity to define the relationship. There’s all kinds of things you can put in leases, and they are mostly enforceable if they’re worded correctly, and there are a lot of terms to consider.
What are the types of things that you’d miss out if you don’t have a lease agreement? Well, number one, the identity of the parties. We just talked about what happens when you don’t know who your parties are. In a lease, they have to identify themselves. The identity of the premises.
I had a client once who rented a store, first floor of a store, he had apartments up top. In his lease, he just said, “You get the first floor.” What the lease didn’t say was that the only entrance to the basement was through that first floor, and he had all his utilities in the basement. That tenant took over the basement, and they fought him on it. And in the process of fighting him on it, the judge said, “You really didn’t say what the first floor was limited to. How the hell else are you going to get in there is through the first floor?” And so, the tenant was getting even with him, and since the utilities were down there, they would cut off the power for all his apartments upstairs, one-by-one. So, defining the premises is important.
Also, the term of the lease. Do you want to have a one year lease, two year lease, month-to-month? The term of the lease matters. If a tenant leaves early, they are liable for the rent that they should have paid for the rest of the term.
Rent amounts. You don’t necessarily need a lease for that, but you do need it for rent increases. You also need it for what’s called additional rent, which is all the extras that landlords would like to tack on. You know, if they have to do maintenance and repair, that’s a tenants responsibility, or if they have to take them to court and it costs them money. These are all things that you can add to a lease agreement.
Other things you can put in the lease agreement, is when the rent is due. Sometimes people put rent due on the 15th, sometimes people put it on the first. Usually, I recommend you leave it to the first because then it coincides with the statute, as far as the 30 day cancellation.
Also, what’s included in the rent? Is utilities included or are they not? If you have a multi-unit building, and you have utilities coming from one feeder, then you can’t make the tenant responsible for the utilities. Otherwise, you have a shared meter situation. When that happens, and you’re charging tenants for their utilities, and it’s one meter, they can come after you for treble damages, which means three times what they paid for the utilities. So, it’s bad stuff.
Other things, you could tell who does what different kinds of maintenance. Also, defaults and terminating. How do you terminate a lease? You would want to define in your lease how it gets terminated. But this is a good time to have mentioned that just because you have a lease doesn’t mean it’s going to help you because it can also hurt, and can hurt real bad.
I had a client once that came to me with Elise, and they had a five day termination clause in the lease. Sounds good. But it actually wasn’t a five day termination clause. It was a five day notice to cure clause. So basically, anytime a tenant paid late, they had to give them a five day notice, and with the opportunity to cure. If the tenant paid on the fifth day, oh well. They didn’t do it. And not only that, but it didn’t define how notices had to be given. When you don’t define how notices have to be given, they have to be served by a process server.
This tenant was wise to this somehow, and didn’t like the landlord all that much, so he paid late every month. The the landlord shelled out about $150 bucks every month to a process server to go serve a notice, and then he would get his payment on the fourth day. He dealt with this, and he also had a lease that had a term on it for a year, so he dealt with this for a year. These are the things that can happen if it’s not done right.
My recommendation, of course, is to have a lease, but have it professionally done. And not only have it professionally done, have it done by someone who you would be hiring to do the eviction. That way if it does go bad, you have somebody that’s accountable if it doesn’t go the way they said it would.
Above is the full video transcript of following video:
About the Presentation by Mr. James Clark
The above is a clip from a presentation that attorney, Jim Clark made to the East Coast Real Estate Investors Association (“ECREIA”) in March, 2019 entitled: “Landlord Advocacy: The Legalities of the Residential Buy & Hold Model on Long Island.”
Mr. Clark will be leading a follow-up discussion on these topics, and specifically how they’ve changed under the New York Housing Stability & Tenant Protection Act of 2019 at the monthly meeting of ECREIA at 6:30pm on September 25, 2017 at Domenico’s Restaurant at 3270-A Hempstead, Tpke, Levittown, NY 11756. To learn more about ECREIA, click here.
In this clip, Mr. Clark discussed the importance of having a good lease agreement and some things landlords should look out for in drafting a lease agreement for a Long Island residential rental.
During this presentation, Mr. Clark discusses solutions to some of the most common legal issues landlords face including:
How to hold title to a rental property
How do I know if it’s a good rental property?
Marketing Strategies For Your Rental Property
Applications and Tenant Background Checks
Anti-Discrimination Laws Effecting Long Island Residential Rentals
What About Lease Agreements
How About Security Deposits
Collecting Rent
What To Do When a Tenant Doesn’t Pay
The Landlord Mindset
East Coast Real Estate Investors Association is a member group of National REIA and conducts monthly educational and networking meetings for real estate investors. To learn more about ECREIA go to http://www.eastcoastreia.net.
For more information, or if you need help with a landlord-tenant or eviction matter, please contact us.
While many issues between a landlord and tenant can be resolved with common sense, more complex issues may arise. Landlords may be tempted to take to the internet for resources on landlord-tenant law and legal aid websites. However, jumping into an issue such as a fast eviction can get messy without proper legal guidance.
Landlords who own and manage a few rental properties may find it beneficial to keep a landlord-tenant attorney on retainer. While you may not need to frequently consult a lawyer, it’s beneficial to have a dedicated lawyer to help you protect your property and your income.
1. Creating a Lease Agreement
Lease agreements give the tenant and landlord a chance to define their relationship. When worded correctly, there are all kinds of enforceable items added to a lease.
Some common items contained in a lease agreement are the terms (length of the rental), the rental amount, rent due date, utilities agreements, and more.
Having a lease professionally drafted will protect you from unforeseen challenges down the road.
2. When Your Tenant Refuses to Pay
A qualified landlord-tenant attorney will help to prevent this from happening with a thorough lease agreement. And, they will put a system in place for dealing with defaults.
Clients of Mr. James Clark will have their leases kept on file. In the event of a default, he is able to get the notice out to the tenant immediately, and in proper statutory form.
Everyone has a pile of bills to pay, and you may be compelled to be courteous of that when it comes to maintaining a good relationship with your renters. However, it is important that your tenants know that you won’t be taken advantage of.
3. Security Deposit Dispute
When there is damage to a rental space, the security deposit is used to recoup the money. However, security deposits are often overlooked as an important part of the landlord and tenant agreement.
In New York, security deposits must be kept in a segregated account. The funds cannot be used as operating income, which is a common occurrence when landlords do not know any better.
So, what do you do when a tenant requests accounting on their security deposit? Your landlord-tenant lawyer can help you navigate the proper handling of security deposits and potential disputes.
4. Navigating Anti-Discrimination Laws for Rentals
Protected classes in New York include: race, creed, national origin, sex, age, disability, marital status, military status, sexual orientation, and gender identity. For landlords in Nassau County, you cannot discriminate based on their source of income, such as SSI.
Essentially, renting a property is a business. Therefore, it is vital to keep any personal prejudices you may have in check.
5. Evicting a Tenant
No one wants to evict a tenant. As a landlord, you want your rent to be paid and your tenant to comply with the terms of your lease. However, there may come a time when you have no choice.
Evictions are a process, and that process must be carried out in a correct and succinct manner. A successful eviction is one that is carried out with speed, strategy, and tact. There are strict rules that a landlord-tenant attorney will guide you through to legally evict your tenant.
Conclusion
Unfortunately, owning a rental property is not as simple as just collecting rent. These 5 items listed here (among others) are reasons why you need a dedicated landlord-tenant attorney on your side.
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Landlord Advocacy: Legalities of the Residential Buy & Hold Business Model on Long Island.
Another question I often get is, do I need to be concerned about anti-discrimination laws? You absolutely do. There’s really not many exceptions to the anti-discrimination laws. Basically, the only exception is an owner occupied two family house. So the house that you live in, if you have a single rental apartment in the home that you reside in, you can discriminate against somebody and tell them, “I don’t want you in here,” for whatever reason. Other than that, you can’t.
The protected classes are race, creed, national origin, sex, age, disability, marital status, military status, sexual orientation, and gender identity. These are all protected classes in New York and you can’t use that as the basis of denying somebody housing.
Nassau County prohibits you from discriminating based on their source of income. So you can’t ask them, “Well, are you getting DSS or SSI?” Can’t do it. It’s off limits.
People that are disabled, you’re required to make reasonable accommodations. So I’m often asked, “What do I got to do to? I got to make my house ADA compliant?” No, you don’t have to do that. But if you’re renting to somebody and they’re disabled and they ask you at their expense to install a wheelchair ramp in the front of your house, you got to let them do it.
So my recommendation is to be aware of all of these anti-discrimination laws and stay clear of violations. If you happen to have some prejudices, just keep them in check. It’s a business and that’s all there is to it.
Above is the full video transcript of following video:
About the Presentation by Mr. James Clark
The above is a clip from a presentation that attorney, Jim Clark made to the East Coast Real Estate Investors Association (“ECREIA”) in March, 2019 entitled: “Landlord Advocacy: The Legalities of the Residential Buy & Hold Model on Long Island.”
Mr. Clark will be leading a follow-up discussion on these topics, and specifically how they’ve changed under the New York Housing Stability & Tenant Protection Act of 2019 at the monthly meeting of ECREIA at 6:30pm on September 25, 2017 at Domenico’s Restaurant at 3270-A Hempstead, Tpke, Levittown, NY 11756. To learn more about ECREIA, click here.
In this clip, Mr. Clark discussed the anti-discrimination laws that Long Island residential landlords need to be aware of.
During this presentation, Mr. Clark discusses solutions to some of the most common legal issues landlords face including:
How to hold title to a rental property
How do I know if it’s a good rental property?
Marketing Strategies For Your Rental Property
Applications and Tenant Background Checks
Anti-Discrimination Laws Effecting Long Island Residential Rentals
What About Lease Agreements
How About Security Deposits
Collecting Rent
What To Do When a Tenant Doesn’t Pay
The Landlord Mindset
East Coast Real Estate Investors Association is a member group of National REIA and conducts monthly educational and networking meetings for real estate investors. To learn more about ECREIA go to http://www.eastcoastreia.net.
For more information, or if you need help with a landlord-tenant or eviction matter, please contact us.
Filed under: Residential Real Estate Law
Comments: Comments Off on Anti-Discrimination Laws Effecting Long Island Residential Rentals
In certain situations, hiring an attorney is a no-brainer. However when it comes to buying or selling real estate, though, not everyone thinks to hire a lawyer. Residential real estate lawyers are specialized professionals who will guide you through this important transaction.
A successful real estate transaction relies on more than a lot of research and advice from friends. Hiring a real estate attorney who know the law and potential pitfalls, will protect you and your investment.
Buying and selling real estate can be tricky. Whether you are buying or selling a home, hiring an attorney has many benefits.
Top 5 Reasons to Hire a Real Estate Lawyer
Professional Review of Complex Contracts
Real estate contracts can be complex, especially when buying from trusts or partnerships. These documents are rich with legal jargon, and a real estate attorney will ensure that the contract is valid and will advise you if it is unfavorable.
Addresses Legal Issues
Legal issues may arise that your real estate agent cannot address. For instance; what do you do if the property has an illegal unit with existing tenants that you wish to evict? Real estate lawyers will be able to guide you through potential legal issues.
Complete Title Search
Real estate lawyers will provide thorough title searches to ensure the seller has a legal right to sell the property to you.
Peace of Mind
Buyers and sellers alike can enjoy peace of mind when hiring a real estate attorney. Both buyer and seller will have their rights and interests protected.
Seamless Closing
There are vital steps to a real estate closing. Without a real estate attorney, you may have last-minute issues that could compromise the deal.
Real Estate Lawyers for Home Buyers
Home buyers can benefit from having a real estate lawyers assist in the buying process. They will help prepare legal documents, review the contract, negotiate contract terms, ensure you receive the title document, and more.
Real Estate Lawyers for Sellers
Without a real estate attorney, sellers may be taken advantage of in real estate transactions. Before you sign, a real estate attorney will be able to review the legal documents to ensure this does not happen.
Conclusion
Whether you are buying or selling a property, we suggest having an experienced real estate lawyer to help you through the process. Without one, your investment could be compromised.
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Buying a new home can be exciting; you’ve found the perfect location and listing, and the seller has accepted your offer. However, there is a vital process that needs to be navigated: the real estate closing process.
Now that you’re ready to go into closing, it’s time to get familiar with the folks involved. While this may vary depending on you transaction, these are the people are generally present when you are closing on a new home.
1. The Purchaser
At the time of closing, be prepared to sign an overwhelming amount of documents. You will be signing for the real estate closing, as well as your mortgage. This is an important time to lean on your real estate closing attorney.
Responsibilities of the Purchaser:
Obtain funds to buy the property
Deliver the funds for the property
Signing the deed, bill of sale, affidavit of title, and other documents
As the home buyer, it is important that you trust in the people who have a duty of loyalty to you. While everyone in a closing is motivated to get it done, they all have their own reasons. Therefore, it is imperative to utilize and rely on your closing attorney during this process.
2. Buyer’s Real Estate Attorney
The role of your closing attorney is a vital one. During closing, the information in the closing document will be clearly explained to all parties.
Responsibilities of the Buyer’s Real Estate Attorney:
Ensure the terms are acceptable
Provide for contingencies
Make sure the seller delivers the property
Ensure the title is insured
Oversee the funds, so they are not delivered to the seller until the buyer receives the deed
Your real estate attorney has a professional obligation to you. Confidentiality is their primary duty.
3. The Seller
Unlike the buyer, the seller does not always attend closing. Sellers are able to pre-sign the deed and other transfer documents.
Responsibilities of the Seller:
Deliver the property on the terms provided in the contract
4. Seller’s Attorney
Closing attorneys for sellers are focused on document preparation. They will ensure deeds, insurance documents, and payoff letters are accurate and finalized.
Responsibilities of the Seller’s Attorney:
Put the sellers terms in writing
Deliver the title to the property
Ensure the buyer’s funds are delivered before releasing the deed
5. Real Estate Agents
Both the buyer and seller may have a real estate agent present. However, this is not always the case. Bringing the buyer and seller is the primary role of realtors, as well as making sure the deal closes.
6. Loan Officer
A loan officer is likely to attend, although it is not required at closing. Essentially, the role of the loan officer at closing will be providing explanations of rates and fees. This will help smooth the buying process.
Responsibilities of Loan Officer:
Get sufficient funds for the buyer to close the deal
Gather information to get a mortgage and coordinate with the lender
7. Loan Underwriter
Loan underwriters play a vital role in whether or not you get your new home. Underwriters assess your risk in borrowing, as well as review if the property you are buying carries risks.
Responsibilities of Loan Underwriter:
Approve or deny your loan
Before closing, can impose additional requirements
8. Title Company
The title company ensures that the title to a piece of real estate is legitimate. Additionally, the title company may act as the escrow agent between parties. They will collect fees for homeowners insurance, title insurance, and property taxes. Then, they will distribute it to the right organizations.
Responsibilities of the Title Company:
Issue the title insurance policy
Identify possible defects in the title
9. Homeowner’s Insurance Broker
Your insurance broker will issue an insurance policy. This will insure against fire, flood, and other catastrophes or liabilities.
Conclusion
Generally speaking, the people involved in your real estate closing process will be experienced. It is important to allow them to do their jobs, as they are likely to have thousands of deals under their belt.
In terms of real estate lawyers, they will protect your interests and minimize your risks. Real estate attorneys specialize in these transactions. And, they ensure that you are protected at closing and into the future.
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