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New ventures are exciting. The chance to build something literally from the ground up and watch it grow and thrive can be an enticing reason to start a real estate project. However, before you take that first step, you need a thorough understanding of the potential risks involved. You may need to conduct a great deal of research and due diligence to understand the risks associated with a project. Depending on what you discover, you may decide to abandon the project or mitigate the risks and move forward. Your project dictates some of the risk The projects themselves can be high risk or low risk or anything in between. The following are examples of the two extremes: A high-risk project often does not have occupants lined up for the completed project. You speculate that the demand will be there when the project is complete. A low-risk project often already has one or more occupants lined up. In fact, you may be building the structure specifically for those occupants. Obviously, your risk increases as you reach the speculative project level. Pre-project issues To some extent, all projects are high risk before all of the pieces are in place. To minimize, or at least understand, the risks associated with the project, you may need the following: Construction and other permits Market analyses Feasibility studies Infrastructure improvements Acquisition of land Right to purchase needed land Plans for the site, building and development Surveys Environmental assessments Issues regarding any of the foregoing could potentially delay, if not derail, your project. In order to increase the chances of success, further research may be required to ensure that you receive everything you need to move forward. Zoning issues One area that often hangs up many projects is in zoning. Obtaining a land use permit can often make or break a project. You will more than likely not receive your construction financing until you secure this permit. Delays could come from many sources. You could spend a significant amount of time, and money, resolving the issues causing the delays. Construction issues Anyone who has ever been involved in a construction project knows that delays are a distinct possibility. Even so, the risks during construction are now less than they were before. If you accounted for potential delays, supply issues and the weather, among other things, you are probably ready for those risks. Occupancy issues More than likely, if you did not already have tenants or buyers lined up for the project, they begin in earnest at some point during the construction. In order for the project to succeed, you need to fill the space. Marketing becomes crucial at this point. Business and legal issues After considering all of the above, you may decide to move forward with the project. Before you do, you may want to protect your interests by putting your agreements in writing and understanding all laws applicable to the project. Whether it’s the land purchase, obtaining permits or financing or negotiating leases, you may benefit from having a real estate attorney in your corner. One risk that you don’t want to take is that your contracts and other agreements fail to protect you as you enter into a new venture.

New ventures are exciting. The chance to build something literally from the ground up and watch it grow and thrive can be an enticing reason to start a real estate project. However, before you take that first step, you need a thorough understanding of the potential risks involved. You may need to conduct a great deal of research and due diligence to understand the risks associated with a project. Depending on what you discover, you may decide to abandon the project or mitigate the risks and move forward. Your project dictates some of the risk The projects themselves can be high risk or low risk or anything in between. The following are examples of the two extremes: A high-risk project often does not have occupants lined up for the completed project. You speculate that the demand will be there when the project is complete. A low-risk project often already has one or more occupants lined up. In fact, you may be building the structure specifically for those occupants. Obviously, your risk increases as you reach the speculative project level. Pre-project issues To some extent, all projects are high risk before all of the pieces are in place. To minimize, or at least understand, the risks associated with the project, you may need the following: Construction and other permits Market analyses Feasibility studies Infrastructure improvements Acquisition of land Right to purchase needed land Plans for the site, building and development Surveys Environmental assessments Issues regarding any of the foregoing could potentially delay, if not derail, your project. In order to increase the chances of success, further research may be required to ensure that you receive everything you need to move forward. Zoning issues One area that often hangs up many projects is in zoning. Obtaining a land use permit can often make or break a project. You will more than likely not receive your construction financing until you secure this permit. Delays could come from many sources. You could spend a significant amount of time, and money, resolving the issues causing the delays. Construction issues Anyone who has ever been involved in a construction project knows that delays are a distinct possibility. Even so, the risks during construction are now less than they were before. If you accounted for potential delays, supply issues and the weather, among other things, you are probably ready for those risks. Occupancy issues More than likely, if you did not already have tenants or buyers lined up for the project, they begin in earnest at some point during the construction. In order for the project to succeed, you need to fill the space. Marketing becomes crucial at this point. Business and legal issues After considering all of the above, you may decide to move forward with the project. Before you do, you may want to protect your interests by putting your agreements in writing and understanding all laws applicable to the project. Whether it’s the land purchase, obtaining permits or financing or negotiating leases, you may benefit from having a real estate attorney in your corner. One risk that you don’t want to take is that your contracts and other agreements fail to protect you as you enter into a new venture.

California readers know that trespassing is illegal, but there are circumstances in which a person could actually obtain certain rights to use property that belongs to another party. This confusing concept goes by the name of adverse possession, and you may find it beneficial to understand how this process works. In certain circumstances, a person who has been trespassing for an extended period of time may actually obtain the right to stay on the property. In order to qualify for adverse possession, a person must be using the land exclusively and openly, without attempting to hide it. The rights granted to a person through adverse possession differ on a case-by-case basis and depend on the unique circumstances of the individual case. Who should pursue an adverse property claim? One of the most common examples of the need to file an adverse property claim is when a person inherits or comes into possession of a piece of land that comes with very little documentation. This often happens when a person receives property from a family member in a will or through a traditional chain of possession. An adverse possession claim could also be appropriate when a person who is not the property owner uses a piece of land for an extended amount of time, typically for several years. A valid adverse possession claim There are certain requirements a person must meet in order to qualify for an adverse possession claim. These include the following: The claimant must be occupying, regardless of whether or not he or she knows it is actually trespassing. The actual act of trespassing must be fairly obvious. The claimant must be treating the land as if he or she owned it. The trespassing must occur for an unbroken, extended period of time, unshared with any other person. Whether you are the one who wishes to have legal claim to a piece of land you are using or you have concerns about a person trespassing on your property, you could benefit from a complete explanation of your legal rights and the options available to you. The terminology associated with adverse possession and trespassing is confusing and difficult. Whether you are considering initiating an adverse claim or simply want a better explanation of your property rights, you would be wise not to delay in seeking an evaluation of your case. When it comes to your entitlements, rightful access and use of property, there is no time to lose.

California readers know that trespassing is illegal, but there are circumstances in which a person could actually obtain certain rights to use property that belongs to another party. This confusing concept goes by the name of adverse possession, and you may find it beneficial to understand how this process works. In certain circumstances, a person who has been trespassing for an extended period of time may actually obtain the right to stay on the property. In order to qualify for adverse possession, a person must be using the land exclusively and openly, without attempting to hide it. The rights granted to a person through adverse possession differ on a case-by-case basis and depend on the unique circumstances of the individual case. Who should pursue an adverse property claim? One of the most common examples of the need to file an adverse property claim is when a person inherits or comes into possession of a piece of land that comes with very little documentation. This often happens when a person receives property from a family member in a will or through a traditional chain of possession. An adverse possession claim could also be appropriate when a person who is not the property owner uses a piece of land for an extended amount of time, typically for several years. A valid adverse possession claim There are certain requirements a person must meet in order to qualify for an adverse possession claim. These include the following: The claimant must be occupying, regardless of whether or not he or she knows it is actually trespassing. The actual act of trespassing must be fairly obvious. The claimant must be treating the land as if he or she owned it. The trespassing must occur for an unbroken, extended period of time, unshared with any other person. Whether you are the one who wishes to have legal claim to a piece of land you are using or you have concerns about a person trespassing on your property, you could benefit from a complete explanation of your legal rights and the options available to you. The terminology associated with adverse possession and trespassing is confusing and difficult. Whether you are considering initiating an adverse claim or simply want a better explanation of your property rights, you would be wise not to delay in seeking an evaluation of your case. When it comes to your entitlements, rightful access and use of property, there is no time to lose.

When purchasing, leasing or renting California property, it is essential to understand how any potential easement could impact your ability to use the property as you wish. Easements are a complex area of real estate law, and disputes can quickly end up in litigation when out-of-court settlements are not possible. Easements can affect both residential and commercial properties. If you have an easement, it simply means that you have a legal interest in another party’s property without possessing the property. An easement grants only limited rights, such as the right to walk or drive through privately owned property to get to a public place. Whether you have easement rights or you wish to understand if an easement could affect a property you wish to buy, you would be wise to understand the two main types: express and implied. The two main types of easements When it comes to fully understanding your right to use a piece of property or determining if you can get rid of an easement, it must be clear if the easement in question is express or implied. The differences between the two are as follows: Implied easement: An implied easement is one understood or implied by the specific circumstances of the situation. These types of easements must be reasonably necessary, and there must be a division of the original parcel of land. Additionally, the use of the easement must have existed prior to the division or selling of subdivided pieces of the original property. Express easement: An express easement is one created by a will or a deed that passes ownership to another party. These are in writing, and the easement continues even after ownership changes hands. An easement does not, however, give a person the right to use another person’s property in a disruptive or inappropriate way. Property owners with concerns about the well-being of their assets and the preservation of their land would be wise to address these concerns and any disputes as quickly as possible. Navigating real estate disputes Real estate disputes can be costly and difficult to navigate. If an easement is causing you concern, affecting your right to use property in a certain way or impacting the sale of a piece of property, you could benefit from experienced guidance and legal support. These matters can impact both your personal rights and your financial well-being. You have the right to fully understand any implied or express easement that affects you, as well as how to effectively resolve any dispute impacting your property rights.

When purchasing, leasing or renting California property, it is essential to understand how any potential easement could impact your ability to use the property as you wish. Easements are a complex area of real estate law, and disputes can quickly end up in litigation when out-of-court settlements are not possible. Easements can affect both residential and commercial properties. If you have an easement, it simply means that you have a legal interest in another party’s property without possessing the property. An easement grants only limited rights, such as the right to walk or drive through privately owned property to get to a public place. Whether you have easement rights or you wish to understand if an easement could affect a property you wish to buy, you would be wise to understand the two main types: express and implied. The two main types of easements When it comes to fully understanding your right to use a piece of property or determining if you can get rid of an easement, it must be clear if the easement in question is express or implied. The differences between the two are as follows: Implied easement: An implied easement is one understood or implied by the specific circumstances of the situation. These types of easements must be reasonably necessary, and there must be a division of the original parcel of land. Additionally, the use of the easement must have existed prior to the division or selling of subdivided pieces of the original property. Express easement: An express easement is one created by a will or a deed that passes ownership to another party. These are in writing, and the easement continues even after ownership changes hands. An easement does not, however, give a person the right to use another person’s property in a disruptive or inappropriate way. Property owners with concerns about the well-being of their assets and the preservation of their land would be wise to address these concerns and any disputes as quickly as possible. Navigating real estate disputes Real estate disputes can be costly and difficult to navigate. If an easement is causing you concern, affecting your right to use property in a certain way or impacting the sale of a piece of property, you could benefit from experienced guidance and legal support. These matters can impact both your personal rights and your financial well-being. You have the right to fully understand any implied or express easement that affects you, as well as how to effectively resolve any dispute impacting your property rights.

The process of preparing for a complicated building project may be more intense than the construction itself. With countless unknowns, it is difficult to assess your risk and prepare for every contingency. Your contractors have the responsibility of ensuring they meet their obligations with as little negative impact as possible. Unfortunately, many contractors you deal with may be facing a shortage of skilled and trained workers. This alone may increase the likelihood of defective workmanship. However, it is not the only factor for which you have to prepare. Common construction defects As California draws closer to the deadline for net-zero energy conservation, contractors should be applying more rigid standards to installing insulation. The newer high-efficiency exterior insulation requires more time and skill to install in conjunction with interior batt insulation. If done incorrectly, the results include higher energy use and more expense for you. One of the most common and damaging results of construction defects is water intrusion. Whether it is poorly constructed roofs, windows, doors, exteriors or foundation, any source that allows water to enter your structure can result in mold, warping and rot. Water intrusion can come from any of the following: Insufficient flashing Poorly installed building wrap Improperly completed architectural plan Inappropriate choice of materials Inadequately trained laborers These are only a few of the issues that may lead you to consider construction defect litigation. It is important to note that water intrusion is only one result of defective construction. You certainly would not want to take the risk of a poorly executed construction plan resulting in tragedy when an unsound structure collapses or fails to hold up under common California conditions, such as heavy rains or earthquakes. How do I protect myself from risk? You can make sure all the entities involved in your project carry the appropriate insurance to protect against construction issues that may arise. But how do you know if the certificates your contractors hold truly provide coverage? And how do you know if the coverage is adequate for the risk involved? Seeking the advice of an attorney with years of experience reviewing and evaluating the insurance requirements for your project may help you avoid many of the negative consequences possible in a major construction project. Many builders and property owners find it is better to take these steps as early as possible rather than discover in the midst of a challenge that the risk is not covered.

The process of preparing for a complicated building project may be more intense than the construction itself. With countless unknowns, it is difficult to assess your risk and prepare for every contingency. Your contractors have the responsibility of ensuring they meet their obligations with as little negative impact as possible. Unfortunately, many contractors you deal with may be facing a shortage of skilled and trained workers. This alone may increase the likelihood of defective workmanship. However, it is not the only factor for which you have to prepare. Common construction defects As California draws closer to the deadline for net-zero energy conservation, contractors should be applying more rigid standards to installing insulation. The newer high-efficiency exterior insulation requires more time and skill to install in conjunction with interior batt insulation. If done incorrectly, the results include higher energy use and more expense for you. One of the most common and damaging results of construction defects is water intrusion. Whether it is poorly constructed roofs, windows, doors, exteriors or foundation, any source that allows water to enter your structure can result in mold, warping and rot. Water intrusion can come from any of the following: Insufficient flashing Poorly installed building wrap Improperly completed architectural plan Inappropriate choice of materials Inadequately trained laborers These are only a few of the issues that may lead you to consider construction defect litigation. It is important to note that water intrusion is only one result of defective construction. You certainly would not want to take the risk of a poorly executed construction plan resulting in tragedy when an unsound structure collapses or fails to hold up under common California conditions, such as heavy rains or earthquakes. How do I protect myself from risk? You can make sure all the entities involved in your project carry the appropriate insurance to protect against construction issues that may arise. But how do you know if the certificates your contractors hold truly provide coverage? And how do you know if the coverage is adequate for the risk involved? Seeking the advice of an attorney with years of experience reviewing and evaluating the insurance requirements for your project may help you avoid many of the negative consequences possible in a major construction project. Many builders and property owners find it is better to take these steps as early as possible rather than discover in the midst of a challenge that the risk is not covered.

Investing in commercial real estate development often comes with enormous risk. The many variables, such as weather, the availability of materials and labor issues, may make any investor lose sleep over a project. If you have invested previously in a commercial real estate project, you may already have experience with the things that could go wrong, particularly when dealing with developers. The more you know about a developer and the way that developer works, the better you will be able to anticipate potential issues and plan for contingencies. The most common factors many investors look for in a developer are transparency, communication and effective cost control. These factors will likely influence the success of your deal. What to look for Your relationship with your developer is critical. However, developers work with many contractors and subcontractors, and you certainly don’t want to lose control of your project with all those hands in the pot. Before you invest in a commercial real estate project, knowing the answers to important questions about your developer and operators is one way to minimize your risk. Some factors you will certainly want to investigate include: Accountability: How will your developer keep you apprised of project schedules and spending? When and how will operators or developers notify you if your project experiences an emergency setback? Bidding: What process does your developer use for evaluating competitive bids from subcontractors and keeping you informed of the progression of those bids? Documentation: How does your developer maintain the many records, notes and forms necessary for a large project, and how does he or she keep those documents secure yet accessible to you? Foresight: What are the physical and financial plans for property maintenance and inspections for the future, for example, three to five years? Business experts recommend contacting clients who are currently working with your contractors, not a list of past customers. This will give you a better idea of how the contractor is working now and if there are any factors that may interfere with the company’s ability to perform well for your project. Seeking professional advice Minimizing risk is key to any investment, and the best way to ensure your risk is low is to investigate the parties who will be included in the project. Additionally, having appropriate and adequate insurance coverage will provide you with security and peace of mind. With the many factors and contingencies involved in large projects like commercial real estate development, having the advice of an experienced attorney will be invaluable. Your attorney can answer your risk management questions and advise you on any aspect of your investment project. Additionally, if you should face legal issues regarding your commercial real estate investment, you will have an advocate to represent your interests.

Investing in commercial real estate development often comes with enormous risk. The many variables, such as weather, the availability of materials and labor issues, may make any investor lose sleep over a project. If you have invested previously in a commercial real estate project, you may already have experience with the things that could go wrong, particularly when dealing with developers. The more you know about a developer and the way that developer works, the better you will be able to anticipate potential issues and plan for contingencies. The most common factors many investors look for in a developer are transparency, communication and effective cost control. These factors will likely influence the success of your deal. What to look for Your relationship with your developer is critical. However, developers work with many contractors and subcontractors, and you certainly don’t want to lose control of your project with all those hands in the pot. Before you invest in a commercial real estate project, knowing the answers to important questions about your developer and operators is one way to minimize your risk. Some factors you will certainly want to investigate include: Accountability: How will your developer keep you apprised of project schedules and spending? When and how will operators or developers notify you if your project experiences an emergency setback? Bidding: What process does your developer use for evaluating competitive bids from subcontractors and keeping you informed of the progression of those bids? Documentation: How does your developer maintain the many records, notes and forms necessary for a large project, and how does he or she keep those documents secure yet accessible to you? Foresight: What are the physical and financial plans for property maintenance and inspections for the future, for example, three to five years? Business experts recommend contacting clients who are currently working with your contractors, not a list of past customers. This will give you a better idea of how the contractor is working now and if there are any factors that may interfere with the company’s ability to perform well for your project. Seeking professional advice Minimizing risk is key to any investment, and the best way to ensure your risk is low is to investigate the parties who will be included in the project. Additionally, having appropriate and adequate insurance coverage will provide you with security and peace of mind. With the many factors and contingencies involved in large projects like commercial real estate development, having the advice of an experienced attorney will be invaluable. Your attorney can answer your risk management questions and advise you on any aspect of your investment project. Additionally, if you should face legal issues regarding your commercial real estate investment, you will have an advocate to represent your interests.

The world of construction is changing rapidly. Gone are the days of townspeople coming together to raise a building in a day. California building projects are increasingly demanding, and contractors face many challenges. Owners want their projects completed quickly and cost-effectively while contractors must be aware of local codes, environmental concerns and labor issues. As a contractor, you understand how devastating to a project any setback can be. Whether it is a natural disaster, a shortage of supplies or change in idea direction, delays affect your reputation and your bottom line. A jobsite accident that leaves a worker injured is the worst-case scenario. Preparing for and avoiding these risks is crucial. The changing face of risk management More often, contractors like you bear the brunt of risk management responsibilities. You probably don’t need experts to tell you that the most urgent item on your list is completing the project on time. However, studies show that contractors are finding it harder to meet their deadlines because of a number of factors, including: Projects are becoming more complex. Changing margins may require you to adjust your business model. You are facing a shortage of skilled workforce. Probably the most challenging roadblock to meeting deadlines is the shortage of labor, particularly in specialty trades such as masons, electricians and plumbers. Having a limited pool of workers may jeopardize your ability to complete projects on time, and, as you know, meeting deadlines is crucial. Assuming and managing risks While many project owners may want you to assume full risk management responsibilities, some experts believe that doing so may be good for your business. If you promote the fact that you are willing to take on complete risk management for projects, you may attract more business and more lucrative projects. However, in order to succeed at this, you will certainly need to have a thorough risk management program in place. Without a doubt, your budget is tight, so risk management is essential for your business to be successful. You may benefit from having a legal advocate to work with you as you review contracts and determine the level of coverage necessary for your circumstances. An attorney with experience helping business owners with a wide range of insurance and risk management issues will provide you with assistance every step of the way.

The world of construction is changing rapidly. Gone are the days of townspeople coming together to raise a building in a day. California building projects are increasingly demanding, and contractors face many challenges. Owners want their projects completed quickly and cost-effectively while contractors must be aware of local codes, environmental concerns and labor issues. As a contractor, you understand how devastating to a project any setback can be. Whether it is a natural disaster, a shortage of supplies or change in idea direction, delays affect your reputation and your bottom line. A jobsite accident that leaves a worker injured is the worst-case scenario. Preparing for and avoiding these risks is crucial. The changing face of risk management More often, contractors like you bear the brunt of risk management responsibilities. You probably don’t need experts to tell you that the most urgent item on your list is completing the project on time. However, studies show that contractors are finding it harder to meet their deadlines because of a number of factors, including: Projects are becoming more complex. Changing margins may require you to adjust your business model. You are facing a shortage of skilled workforce. Probably the most challenging roadblock to meeting deadlines is the shortage of labor, particularly in specialty trades such as masons, electricians and plumbers. Having a limited pool of workers may jeopardize your ability to complete projects on time, and, as you know, meeting deadlines is crucial. Assuming and managing risks While many project owners may want you to assume full risk management responsibilities, some experts believe that doing so may be good for your business. If you promote the fact that you are willing to take on complete risk management for projects, you may attract more business and more lucrative projects. However, in order to succeed at this, you will certainly need to have a thorough risk management program in place. Without a doubt, your budget is tight, so risk management is essential for your business to be successful. You may benefit from having a legal advocate to work with you as you review contracts and determine the level of coverage necessary for your circumstances. An attorney with experience helping business owners with a wide range of insurance and risk management issues will provide you with assistance every step of the way.