4 Legal Issues to Consider When Buying a Property
Real estate is one of the best investments on the planet because you don’t need much expertise. Everyone has a friend that has flipped a property and made a fortune, and you want to do the same. The good news is you can as long as you have the right property, but the bad news is there are legal issues. Yes, dealing with the legal issues is an important part of making an investment, and it’s a component that is often overlooked. You overlook this at your peril, though, because it can be the difference between a profitable portfolio and a disastrous one.
1. The Title
The title is the easiest part if you are the sole investor. All you have to do is put it in your name and you are good to go. That is as long as you don’t have bad credit or owe money. The problems arise when there is more than one person involved. Novice investors often go in with a partner because it is easier to raise the money. If this is the situation you’re in, you need to consider titles, from survivorship to tenancy, by entirety depending on your relationship. One of the best titles is tenants in common, as you can both sell your part of the investment without permission from the partner.
2. Property Liability
Liability of the property can affect you in many different ways. The first way comes up when you buy the property. In most places, the seller has to warn you of any issues relating to the property that might affect your investment. So, if the roof is about to cave in, they can’t in good conscience withhold that information from you. You could sue. This also applies when you are selling the property. If you try to hide a problem, depending on where you live, you might have to hire a good lawyer.
3. Contract Disputes
Just because you have a contract doesn’t mean that you are out of the woods. Contracts are often disputed for a number of reasons, and you need to be ready. You might even want to dispute it yourself because the language is too vague or you didn’t pay enough attention in the first place. Obviously, you don’t want a bad deal, so you should do your best to cover all the bases from the beginning. Gateways like Triple Net will help you find the information you need so that the situation doesn’t escalate. Research is your friend, and you need friends if you want a solid contract.
4. Right Of Access
The right of access is one of the most common disputes because boundary lines are complex. And when they aren’t complex, they are ignored. Before you make an investment, you need to know what’s yours and what isn’t yours. What if you want to add to the property to make more money but you are restricted? It might not be the end of the world, but it is a problem and one that will cost you a lot of money.
When you’re buying your first property, there are tonnes of legal issues to consider. For example, vacant property security is very important when you have a family, just in case the worst should happen, you are prepared. Your investment is more likely to be successful when you do everything by the book. Keeping these tips in mind will help you do that!