You can earn a lucrative income in the real estate development industry, but most people who gravitate towards this career do so because they enjoy making deals or because they enjoy creating. That means they are prepared to take bold risks in all aspects of property development.
Some business risks are to be expected, but you should never gamble on your good standing as a conscientious, law-abiding businessperson. Instead, look for ways to lower legal risks across all your real estate development projects.
Build a team
Property development is a job best shared among industry professionals. While you remain in control of your development business, guidance and advice from others can minimize your legal risks and help your enterprise grow.
Consider bringing in professionals like these:
- Financial advisor
- Real estate consultant
- Civil engineer
- Land surveyor
- Environmental consultant
Adding a legal representative experienced in real estate law to your team can also help you lower your risks as a real estate developer.
Use tailored contracts
A real estate development project means entering into contracts with several different parties. Instead of relying on one document for all your agreements, have them drafted for individual situations.
Examples to consider are:
- Lender contracts
- Consultant agreements
- Construction contracts
Of course, all purchase or sales contracts benefit from customization to protect your interests and prevent legal issues.
Know the law
An ideal way to lower your risk and protect your company is to know what you can and cannot do under California law. For example, even a simple violation of California zoning regulations can cause problems for your operations.
You can perform the necessary research yourself or partner with a legal representative sensitive to the issues property developers face. The latter helps ensure that your business practices remain lawful across all of your projects.