Real Estate Law - Five Laws Real Estate Investors Need to Know

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.


Kathryn Lively is a freelance writer specializing in articles on Chesapeake real estate and North Carolina lawyers.

Do You Need Renters Insurance?

So you have decided, either because you're not sure if you plan to stay where you are or you aren't ready to take on a mortgage, to rent an apartment or house. That's fine - given the present economy, more people have turned to renting affordable houses and condos based upon their current incomes and needs. If you travel often or have no children, renting offers a reasonable alternative to owning a house. Once you've made the decision on which place to rent, then comes the question of insurance.

Do You Need Renter's Insurance?

As you discuss lease terms with your potential landlord, the question of home care will certainly arise. As a tenant, it is your responsibility to make sure you manage your living quarters well. You may reach an agreement with your landlord where he/she will handle lawn maintenance or other projects - it typically depends on your landlord's involvement in the home's care. Of course, your landlord will have insurance policies on the building to cover certain damages, but those policies don't necessarily protect what you bring into the home. This is why you should consider a renter's policy.

This type of insurance policy covers the items you own within the home or apartment. Your furniture, television, computers - anything of value - is covered and protected in case of damage brought on by accident or bad weather, or theft. If somebody were to break into your garage and steal your bicycle, a renter's policy should cover that asset.

Do you need this type of insurance? If you do own a number of expensive devices or valuable antiques, it would behoove you to carry a policy in the event something does happen. If you choose to rent near a beach or an area susceptible to bad weather, there is a heightened risk of damage, even though it's possible anywhere you live.

Obtaining a Policy

If you already carry a policy for your automobile, you may wish to consult with your agent to see about your options for renters insurance. A premium could be more affordable than you think, and if you keep important equipment for work and play - musical instruments, game console, and MP3 players - you will find the cost to replace something is more prohibitive than if you had a policy to cover its loss.

Most insurance agents that deal with home and automobile insurance will be able to help you with a renter's policy. Take the time to consider the investment for your peace of mind.


Kathryn Lively is a freelance writer specializing in articles on Virginia Beach insurance agencies and Norfolk insurance agencies.

Buying Unfinished Homes

As you search for your new home, you probably have visited a number of planned communities where only models are available for viewing. As you drive around quays and closes to see rows of concrete pads stabbed through with PVC piping, you're only granted an imaginary view of what your new home could look like. Prepared models may give you an idea of space and placement, but at the end of the day you may believe buying an unfinished home is like getting a pig in a poke. Does it present an opportunity or a risk?

Let's take a look at some of the advantages and challenges in purchasing an unfinished home, regardless of the stage of construction.

Advantages:

1) Depending on how swift lot sales are going in the community, you may be able to negotiate a good price on your new home. One reason why you might see a planned community with empty spaces is because the land and the house has not yet sold and the money is needed to continue with construction. If the economy is slow, you may be able to get a good deal.

2) If the house is in an early stage of being built, you may have the opportunity to control design. In planned communities, homes often come with similar fixtures and colors because they can be purchased in bulk. Get in on a home early, and you may get your pick on some nice counter tops and wallpaper.

3) If you have an idea of your expected move-in date, you'll have plenty of time to prepare and sell your old home. You won't feel rushed into moving.

Disadvantages:

1) Time can work against you too with an unfinished home. Unexpected delays, problems with finances, and other issues may prevent your home from being finished on time. If you sell your house in the interim, you could be stuck looking for temporary digs until your home is built.

2) While waiting for your home, your personal and financial situation could change. Someone could lose a job, you could become divorced, or get transferred to another city. These situations can arise when buying a functional home, too, but with an unfinished place there could be more questions to answer.

3) If other lots around you don't sell for a while, you could be stuck having concrete pads as neighbors. While it may seem peaceful, it may not exactly help your home value.

Think carefully about whether or not you want to invest in a home that is not yet finished. If you trust the builder and realty company, you may have an advantage overall.

Kathryn Lively is a freelance writer specializing in articles on Norfolk real estate and Virginia Beach homes.