posted byBagasian LawNovember 18, 2020
When buying or selling property it is imperative to understand the nuances of real estate law to protect yourself and your business from future legal complications.
Buying and selling property often means dealing with large sums of money and can, therefore, be very complex and have significant legal ramifications if handled incorrectly.
To ensure that you understand some of the basic real estate law concepts, we have created a guide to get you started. In this article, you will learn about:
A breach of contract takes place when a party engaged in a legal agreement breaks any part of that agreement. This can be anything from not fulfilling a certain obligation to not fulfilling a payment.
A breach of contract can even take place if obligations are met, but if they are not met on time, as outlined by the contract.
There are two types of breach of contract: material and immaterial. A material breach takes place when damages are incurred due to the breach of contract, while an immaterial breach means obligations were not met, however, no damage resulted from this breach.
If a breach of contract occurs, the parties involved can choose to file a lawsuit for any damages or to ensure that the obligations of the contract are met.
A leasing agreement is a legally-binding contract signed by the landlord and tenant that says the tenant agrees to pay rent on time each month.
It includes how much rent will be paid each month, how long the lease is, and any other obligations such as who is responsible for water, power, internet, and upkeep of the property.
A leasing agreement is different from a rental agreement in that a rental agreement is for short-term renting, such as renting month-to-month.
On the other hand, a leasing agreement lasts a much longer period of time, the most common being a yearly lease.
Landlord-Tenant Disputes can occur for many reasons and can lead to litigation. Since a landlord and a tenant are in a contractual agreement with one another, there are certain obligations and responsibilities each party has.
For example, a landlord-tenant dispute can result from missing rent payments, payments for repairs, or other breaches of the leasing or rental agreement.
One of the most common outcomes of a landlord-tenant dispute is eviction.
Co-owner disputes take place over joint-ownership, which is when the title of a property is under the name of two or more parties.
Joint-ownership means the title of a property is automatically transferred once one of the co-owners passes away. However, it often results in legal disputes.
Some common causes of joint-ownership or co-owner disputes include: one co-owner not paying their fair share of property expenses, contention on the future of the property such as selling it, or disagreement after one of the co-owners passes away.
Environmental Liability is placed on owners and managers of real estate. The law states that any party responsible for damage or pollution to the environment is liable.
This liability constitutes preventing further damage to the environment or repairing the damage that has already occurred.
Violation of environmental liability law is extremely serious and can be categorized as a criminal offense punished by imprisonment. However, this depends on the damage incurred and the severity of the offense.
Commercial real estate purchases are much larger and more expensive than residential real estate purchases, and often have greater legal ramifications.
A Commercial Real Estate (CRE) agreement outlines the liability and obligations of each party involved in the agreement and outlines the necessary steps before closing the commercial real estate deal.
Commercial real estate involves the transfer of property such as hotels, apartment buildings, and office and retail spaces.
A contingency is an element in a contract that states that it is only valid if standards, or contingencies, are met.
Both commercial and residential real estate contracts can have contingencies, which, if not met, can mean the termination of the real estate contract.
For example, a purchase agreement may only be void if the buyer can prove he or she can fully finance the purchase.
An additional type of contingency is an inspection contingency. This is a common contingency and suggests that the contract will remain valid despite any structural problems or other physical problems with the property, such as rodent infestation or plumbing issues.
Buying or selling property has many legal requirements and involves legally binding contracts. Hiring legal representation ensures your purchase or sale is carried out legally, and that you, as a buyer or seller, understands the legal agreements you are engaging in.
An experienced real estate attorney will help with drafting contracts and ensure the deal goes through, whether you are buying a large commercial investment property, or are buying a new home.
Los Angeles-based lawyer, Alina Bagasian, will provide the best legal services for your business. Possessing an understanding of real estate law, Alina Bagasian is ready to represent your business and provide you with excellent legal advice.
The Law Offices of Alina Bagasian have achieved 100% client satisfaction, providing clients with unlimited advice, and offering eight different services to avoid any legal complications when buying or selling a business.
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