Legal Advice Blog: Legal Advice, Case Insights, & Local Law Information

Purchasing a home can understandably be an exciting process for all parties involved, but fraudulent activity can quickly cast a dark cloud over this process. Specifically, mortgage fraud may occur, leading to real estate litigation. Those who are negatively impacted by mortgage fraud in Los Angeles, such as mortgage lenders and brokers, have the right to pursue justice through the civil court system. Mortgage fraud refers to a variety of illegal schemes that involve misstatement or misrepresentation on mortgage documents. For instance, a home buyer or a mortgage broker might submit false W-2 forms. In addition, a real estate professional might obtain a property appraisal that is inflated. Two chief types of mortgage fraud exist. One is called fraud for profit, where a real estate appraiser or a mortgage broker, for example, engage in fraudulent activity to extract funds from a transaction or property. The other type is called fraud for housing, which is where a home borrower provides inaccurate, false or incomplete information to qualify for a home loan or to enjoy more personally favorable terms when purchasing a house. Those involved in mortgage fraud may be charged and end up being convicted in the criminal justice system. However, they might also be held financially responsible for the monetary damages that lenders incur as a result of the fraud. A civil claim filed with the help of an attorney in Los Angeles who focuses on real estate litigation might be based on deceit and/or misrepresentation, contractual theories, a breach of trust or conspiring to defraud a lender. Appraisers and mortgage brokers are third parties who may also be liable for monetary damages in a civil mortgage fraud lawsuit. Source: findlaw.com, “ Mortgage Fraud “, Accessed on May 15, 2017

Throughout the United States, including in Los Angeles, lease rates for commercial properties are astonishing. When the market took a plunge during the Great Recession of 2008, the country lost between 40 and 50 percent of its values during in just six months to one year. Now, commercial leases are gaining steam. Back in the recession days, many real estate experts wondered if the market for commercial property would recover at some point. Finally, an increase in sales prices was witnessed following changes to the country’s tax law in 2012. During the following three years of 2013 to 2015, selling prices immensely appreciated. During this period, real estate experts expected commercial lease rates to go up, too. However, the increase in the rates is far greater than many imagined. The rates for Class A industrial leases started to approach a dollar per square foot by 2017. In addition, sales prices have surpassed even the highs of 2007 and are currently eclipsing 2016’s numbers. Obsolete buildings are surprisingly drawing more attention than ever before. In the past, contemporary buildings were in demand, but in light of the shortage of buildings available, even the oldest buildings are becoming prime property — in other words, these ugly ducklings have transformed into beautiful swans. Thus, historic prices have been witnessed. For business owners who are interested in taking advantage of commercial leases while opportunities can still be found, an attorney in Los Angeles can help with looking over and even negotiating lease agreements to ensure business owners and investors avoid costly pitfalls in their effort to secure today’s in-demand spaces for lease. Source: ocregister.com, “ 6 random commercial real estate thoughts “, Allen Buchanan, May 6, 2017

Throughout the United States, including in Los Angeles, lease rates for commercial properties are astonishing. When the market took a plunge during the Great Recession of 2008, the country lost between 40 and 50 percent of its values during in just six months to one year. Now, commercial leases are gaining steam. Back in the recession days, many real estate experts wondered if the market for commercial property would recover at some point. Finally, an increase in sales prices was witnessed following changes to the country’s tax law in 2012. During the following three years of 2013 to 2015, selling prices immensely appreciated. During this period, real estate experts expected commercial lease rates to go up, too. However, the increase in the rates is far greater than many imagined. The rates for Class A industrial leases started to approach a dollar per square foot by 2017. In addition, sales prices have surpassed even the highs of 2007 and are currently eclipsing 2016’s numbers. Obsolete buildings are surprisingly drawing more attention than ever before. In the past, contemporary buildings were in demand, but in light of the shortage of buildings available, even the oldest buildings are becoming prime property — in other words, these ugly ducklings have transformed into beautiful swans. Thus, historic prices have been witnessed. For business owners who are interested in taking advantage of commercial leases while opportunities can still be found, an attorney in Los Angeles can help with looking over and even negotiating lease agreements to ensure business owners and investors avoid costly pitfalls in their effort to secure today’s in-demand spaces for lease. Source: ocregister.com, “ 6 random commercial real estate thoughts “, Allen Buchanan, May 6, 2017

After developing a strong business plan, an aspiring business owner may be ready to finally sign a lease. Commercial leases make it possible to have a storefront that can draw customers without having to buy a property outright. However, choosing the right property to lease in Los Angeles and surrounding communities is critical for long-term business success. Location is a particularly important factor when it comes to leasing commercial property. If business owners would benefit from having many walk-ins, they may want to choose areas that have high levels of foot traffic and are easy for the public to access. For instance, a coffee shop would likely do much better in a pricier downtown area versus a remote industrial park outside of the city. Parking is another essential consideration when thinking about leasing. An appropriate number of parking spaces is especially important for businesses like workout facilities or restaurants. After all, worrying about being ticketed or constantly having to feed the meter will only tarnish an otherwise good experience with lifting weights or eating a delicious meal. Other critical factors to consider include whether the facility’s lighting is adequate, the layout meets the needs of the business, if the business’s suppliers can easily access the facility and if the facility is in a safe part of the city. An important question to ask is whether the landlord will agree to make necessary repairs as well. An attorney in Los Angeles can help with negotiating and reviewing commercial leases to make sure that they ultimately meet a business owner’s unique needs. Source: findlaw.com, “ Choosing a Facility Checklist “, Accessed on May 22, 2017

After developing a strong business plan, an aspiring business owner may be ready to finally sign a lease. Commercial leases make it possible to have a storefront that can draw customers without having to buy a property outright. However, choosing the right property to lease in Los Angeles and surrounding communities is critical for long-term business success. Location is a particularly important factor when it comes to leasing commercial property. If business owners would benefit from having many walk-ins, they may want to choose areas that have high levels of foot traffic and are easy for the public to access. For instance, a coffee shop would likely do much better in a pricier downtown area versus a remote industrial park outside of the city. Parking is another essential consideration when thinking about leasing. An appropriate number of parking spaces is especially important for businesses like workout facilities or restaurants. After all, worrying about being ticketed or constantly having to feed the meter will only tarnish an otherwise good experience with lifting weights or eating a delicious meal. Other critical factors to consider include whether the facility’s lighting is adequate, the layout meets the needs of the business, if the business’s suppliers can easily access the facility and if the facility is in a safe part of the city. An important question to ask is whether the landlord will agree to make necessary repairs as well. An attorney in Los Angeles can help with negotiating and reviewing commercial leases to make sure that they ultimately meet a business owner’s unique needs. Source: findlaw.com, “ Choosing a Facility Checklist “, Accessed on May 22, 2017

A lengthy boom in real estate in California is expected to continue to benefit Los Angeles. In fact, a recent survey by CBRE Group, a commercial real estate services firm, indicated that Los Angeles was in first place among cities drawing investors interested in purchasing North American property. As a result, the number of commercial real estate purchases and commercial leases is expected to remain strong in 2017. Los Angeles is very attractive among real estate investors these days due in part to the strong job growth in part of the state. In fact, there is more job growth in Los Angeles than in San Jose and San Francisco combined. This is likely because the city has much of what the millennial generation likes: Hollywood, Venice, beaches and mountains. In addition, Silicon Valley is lacking in office space. However, Los Angeles has a fairly large amount of available space, so technology companies are increasingly eyeing the City of Angels for property. Furthermore, Los Angeles is generally cleaner than many other cities around the world, with its emissions-control program making the city attractive internationally. As commercial leases continue to become available in Los Angeles, more businesses can take advantage of them in an effort to grow their presence and profits in this in-demand city. However, negotiating a commercial lease can be tricky. An attorney can help with the negotiation process so that a business owner’s long-term goals are considered in the terms of the agreement before he or she signs the contract. Source: latimes.com, “ Is the real estate market about to crash? No way, says this CEO — and here’s why “, Roger Vincent, May 27, 2017

A lengthy boom in real estate in California is expected to continue to benefit Los Angeles. In fact, a recent survey by CBRE Group, a commercial real estate services firm, indicated that Los Angeles was in first place among cities drawing investors interested in purchasing North American property. As a result, the number of commercial real estate purchases and commercial leases is expected to remain strong in 2017. Los Angeles is very attractive among real estate investors these days due in part to the strong job growth in part of the state. In fact, there is more job growth in Los Angeles than in San Jose and San Francisco combined. This is likely because the city has much of what the millennial generation likes: Hollywood, Venice, beaches and mountains. In addition, Silicon Valley is lacking in office space. However, Los Angeles has a fairly large amount of available space, so technology companies are increasingly eyeing the City of Angels for property. Furthermore, Los Angeles is generally cleaner than many other cities around the world, with its emissions-control program making the city attractive internationally. As commercial leases continue to become available in Los Angeles, more businesses can take advantage of them in an effort to grow their presence and profits in this in-demand city. However, negotiating a commercial lease can be tricky. An attorney can help with the negotiation process so that a business owner’s long-term goals are considered in the terms of the agreement before he or she signs the contract. Source: latimes.com, “ Is the real estate market about to crash? No way, says this CEO — and here’s why “, Roger Vincent, May 27, 2017

The majority of investors throughout the United States, including in Los Angeles — 72 percent, to be exact — are continuing to seek out new investment opportunities in real estate this year. Institutional investors in 2017 are hoping to devote a total of $62 billion to investments in commercial real estate. This means opportunities for businesses interested in commercial leases are expected to increase. Many investors in the United States are interested mostly in industrial properties. This is due to the demand for these properties as a result of the growth of the e-commerce industry. Meanwhile, multifamily properties are in second place in terms of popularity among investors. The third most-popular type of property is self-storage, followed by student and senior housing. The properties receiving the least amount of attention include office, retail and medical office properties. In addition, investors are expected to put the most of their real estate investment capital in core properties followed by value-added properties, at 33 percent and 27 percent, respectively. In addition, investment capital will go to opportunistic investments and debt products, at 20 percent and 8 percent, respectively. Finally, capital is slated to go to foreign investments at 7 percent and real estate securities at 5 percent. With commercial real estate looking promising nationwide, now may be a beneficial time for businesses interested in expanding to start exploring new areas for commercial leases. Negotiating commercial lease agreements, however, can be tricky. An attorney in Los Angeles can help with reviewing and negotiating leases to avoid any costly pitfalls in the complex commercial leasing process. Source: ai-cio, “ Kingsley: Real Estate Remains Most Attractive Asset Class for 2017 “, April 27, 2017

The majority of investors throughout the United States, including in Los Angeles — 72 percent, to be exact — are continuing to seek out new investment opportunities in real estate this year. Institutional investors in 2017 are hoping to devote a total of $62 billion to investments in commercial real estate. This means opportunities for businesses interested in commercial leases are expected to increase. Many investors in the United States are interested mostly in industrial properties. This is due to the demand for these properties as a result of the growth of the e-commerce industry. Meanwhile, multifamily properties are in second place in terms of popularity among investors. The third most-popular type of property is self-storage, followed by student and senior housing. The properties receiving the least amount of attention include office, retail and medical office properties. In addition, investors are expected to put the most of their real estate investment capital in core properties followed by value-added properties, at 33 percent and 27 percent, respectively. In addition, investment capital will go to opportunistic investments and debt products, at 20 percent and 8 percent, respectively. Finally, capital is slated to go to foreign investments at 7 percent and real estate securities at 5 percent. With commercial real estate looking promising nationwide, now may be a beneficial time for businesses interested in expanding to start exploring new areas for commercial leases. Negotiating commercial lease agreements, however, can be tricky. An attorney in Los Angeles can help with reviewing and negotiating leases to avoid any costly pitfalls in the complex commercial leasing process. Source: ai-cio, “ Kingsley: Real Estate Remains Most Attractive Asset Class for 2017 “, April 27, 2017

Anytime you begin a construction project, you know there are certain risks you may not be able to predict. Injuries on the job, bad weather and material prices are just a few factors that may impede your project goals. Setbacks can cost you money and endanger the completion of your work. One element every construction site encounters is the environmental risk the project presents to the surroundings. There may be commonly known areas of potential harm against which you can insure your company, but it is difficult to know the varying laws, regulations and hazards of each jurisdiction and every type of construction. Pollution is a dirty word Environmental laws are constantly expanding, and the potential to harm the environment is real with every new construction plan. It is often a delicate juggling act to complete a building while causing minimal damage to the existing biomes and habitats. Environmental risks may occur from many sources on a construction site, for example: Heating and air conditioning units Drywall dust Improperly stored building materials Lead dust or paint (mostly when renovating or demolishing older buildings) Erosion Concrete washout Leaking equipment fuel You are not only responsible for keeping the air, water and earth clean throughout your construction, you are also overseeing the well-being of your employees and those who are exposed to your structure. For example, even materials that claim to be environmentally friendly may pose a risk by promoting mold growth. Weighing your risks If you have begun or are considering beginning a construction project, you may feel overwhelmed by the permits, documentation and insurance coverage California law requires you to maintain throughout the project. This may be especially true in the ever-changing area of environmental protection and pollution control. To minimize your risk, you will certainly want to cover every base so that, should a problem arise, your business is protected. Consulting with a risk management attorney will provide the opportunity to review the particulars of your project and help you determine the best way to protect your business from environmental liability or other risks that may jeopardize your goals. Experienced legal counsel will help minimize your frustration and allow you to focus on the future of your business. Source:, “”,

Anytime you begin a construction project, you know there are certain risks you may not be able to predict. Injuries on the job, bad weather and material prices are just a few factors that may impede your project goals. Setbacks can cost you money and endanger the completion of your work. One element every construction site encounters is the environmental risk the project presents to the surroundings. There may be commonly known areas of potential harm against which you can insure your company, but it is difficult to know the varying laws, regulations and hazards of each jurisdiction and every type of construction. Pollution is a dirty word Environmental laws are constantly expanding, and the potential to harm the environment is real with every new construction plan. It is often a delicate juggling act to complete a building while causing minimal damage to the existing biomes and habitats. Environmental risks may occur from many sources on a construction site, for example: Heating and air conditioning units Drywall dust Improperly stored building materials Lead dust or paint (mostly when renovating or demolishing older buildings) Erosion Concrete washout Leaking equipment fuel You are not only responsible for keeping the air, water and earth clean throughout your construction, you are also overseeing the well-being of your employees and those who are exposed to your structure. For example, even materials that claim to be environmentally friendly may pose a risk by promoting mold growth. Weighing your risks If you have begun or are considering beginning a construction project, you may feel overwhelmed by the permits, documentation and insurance coverage California law requires you to maintain throughout the project. This may be especially true in the ever-changing area of environmental protection and pollution control. To minimize your risk, you will certainly want to cover every base so that, should a problem arise, your business is protected. Consulting with a risk management attorney will provide the opportunity to review the particulars of your project and help you determine the best way to protect your business from environmental liability or other risks that may jeopardize your goals. Experienced legal counsel will help minimize your frustration and allow you to focus on the future of your business. Source:, “”,

There has been a push for development in and around the city of Los Angeles during the past several years. One of the newest planned developments is the mixed-use Park Fifth, which is slated to break ground in April. With these kinds of developments come many more opportunities for businesses to take advantage of commercial leases in the Golden State. The first stage of Park Fifth will involve the building of a tower featuring more than 300 apartments. In addition, retail space spanning a whopping 7,000 square feet on the ground floor will also be created. In the second stage of the project, a tall building spanning 460,000 square feet will be erected. This building will provide nearly 350 luxury apartments, underground parking, restaurants, retail space, a pool and a rooftop terrace and kitchen. Yet another project is planned for construction soon in the Los Angeles area: the mixed-use Grand Avenue Project. This billion-dollar project will feature residential units that are both for rent and for sale. The project will also include restaurants and retail space. As the Los Angeles area continues to build up, now appears to be an ideal time for businesses to seek out commercial leases in prime retail locations. However, the leasing process can be complicated, and one’s bottom line may be negatively affected if caution is not taken when signing a lease. A California real estate attorney can help review a potential lease as well as negotiate one so that a business owner’s best interests and rights are protected long term. Source: constructiondive.com, “ Construction begins on massive North Hollywood, CA mixed-use development “, Kim Slowey, April 11, 2017