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

You and your neighbor have always gotten along. You see each other at neighborhood block parties and wave when you roll out your trash containers to the curb. Despite the positive relationship, a conflict could arise over your shared property line. If your neighbor has a different idea than you do about where the boundary between your property falls, the two of you could find yourselves caught up in the boundary dispute. What are some of the common reasons that boundary disputes arise? There are issues with property improvements Perhaps the discrepancy in your ideas about the boundary line came to light when your neighbors started putting out markers for a new shed or an expansion to their existing house. You quickly realize that they intended to build over the property line onto your land and pointed that out to them. Unless you resolve the matter before construction starts, their actions could eventually compromise your ownership rights to the section of land in dispute. You may have to establish and enforce the boundary before the project moves forward. A property transfer is imminent People often take for granted that they understand where their property begins and ends until they need to list the property for sale. Buyers often have a vested interest in knowing the exact shape and size of a parcel, especially if they intend to put up fencing or expand the property in some way. If a neighbor has brought people onto your property while showing their home, you may need to clarify the boundaries so that there won’t be a conflict with your new neighbor. Taking swift action to resolve boundary disputes will help you protect the investment you have made in your home.

One of the hardest elements to find agreement on in landlord-tenant law is sometimes the ordinary wear and tear of rental property. If the property owner and those living in the unit disagree on normal wear and tear, it can lead to landlord-tenant disputes involving security deposits. Unfortunately, it can be difficult to determine whether there was more than normal wear and tear in rental properties, especially when the tenant has lived there for a long time. Landlords must often rely on their knowledge and documentation of the property before the tenancy when identifying possible damage. An example When your tenant moves out, you inspect the property and notice carpet damage. You believe the tenant’s dog chewed the two-year-old carpeting in front of the door and several other spots where it is threadbare or absent completely. A two-year-old carpet would likely remain in good condition without misuse. However, you took photos of the home, including the carpet, before the tenant moved in. Your photos confirm your belief that the carpet was not damaged when the tenant took occupancy. Under these conditions, you could probably withhold a portion of the deposit to cover the carpet damage. Types of ordinary wear and tear Some of the property issues that can develop due to normal wear and tear include: Scuff marks on flooring Warped window and door frames Loose floor tile grout Faded or worn carpet Always document the condition of your rental properties before a new tenant moves in. A record of your property conditions helps you avoid landlord-tenant disputes. It also provides you with a means to track damage and make repairs or replacements of affected areas as needed. Becoming more familiar with California landlord-tenant laws is also an effective way to prevent potential disputes with your tenants.

One of the hardest elements to find agreement on in landlord-tenant law is sometimes the ordinary wear and tear of rental property. If the property owner and those living in the unit disagree on normal wear and tear, it can lead to landlord-tenant disputes involving security deposits. Unfortunately, it can be difficult to determine whether there was more than normal wear and tear in rental properties, especially when the tenant has lived there for a long time. Landlords must often rely on their knowledge and documentation of the property before the tenancy when identifying possible damage. An example When your tenant moves out, you inspect the property and notice carpet damage. You believe the tenant’s dog chewed the two-year-old carpeting in front of the door and several other spots where it is threadbare or absent completely. A two-year-old carpet would likely remain in good condition without misuse. However, you took photos of the home, including the carpet, before the tenant moved in. Your photos confirm your belief that the carpet was not damaged when the tenant took occupancy. Under these conditions, you could probably withhold a portion of the deposit to cover the carpet damage. Types of ordinary wear and tear Some of the property issues that can develop due to normal wear and tear include: Scuff marks on flooring Warped window and door frames Loose floor tile grout Faded or worn carpet Always document the condition of your rental properties before a new tenant moves in. A record of your property conditions helps you avoid landlord-tenant disputes. It also provides you with a means to track damage and make repairs or replacements of affected areas as needed. Becoming more familiar with California landlord-tenant laws is also an effective way to prevent potential disputes with your tenants.

There are countless benefits offered by forming a real estate partnership. However, there are also potential downsides if you aren’t careful. Protecting yourself in the partnership should be a top priority, and some tips that will help you do this can be found here. Choose the right partner You need a partner who complements your abilities. To determine who will suit this role, you need to know what your strengths and weaknesses are. Take time to conduct a self-evaluation, so you know what you are looking for in a partner. Outline the role and expectations of each partner A partnership will only be successful if you take the time to outline the role of each person and what is expected. This is the information you should include in a partnership agreement. Some of the specific things that your partnership agreement should include are: Who is responsible for the finances? Who is responsible for marketing? Who will negotiate the deals? It’s important to outline the role of each partner in any possible scenario that arises. This is going to ensure that both parties know what their roles are and reduce the possibility of disputes. Keep things simple While it’s important to be detailed and specific, you don’t need to go overboard. The goal is to have a successful real estate partnership, which means knowing your role, handling your responsibilities and trusting your partner to do the same. Don’t be overly strict with what should happen on a day-to-day basis, as this can lead to bad blood in the partnership. Establishing a real estate partnership When you partner with someone to invest or purchase real estate, it can be a beneficial situation. However, you have to take steps to protect yourself and your interests along the way.

There are countless benefits offered by forming a real estate partnership. However, there are also potential downsides if you aren’t careful. Protecting yourself in the partnership should be a top priority, and some tips that will help you do this can be found here. Choose the right partner You need a partner who complements your abilities. To determine who will suit this role, you need to know what your strengths and weaknesses are. Take time to conduct a self-evaluation, so you know what you are looking for in a partner. Outline the role and expectations of each partner A partnership will only be successful if you take the time to outline the role of each person and what is expected. This is the information you should include in a partnership agreement. Some of the specific things that your partnership agreement should include are: Who is responsible for the finances? Who is responsible for marketing? Who will negotiate the deals? It’s important to outline the role of each partner in any possible scenario that arises. This is going to ensure that both parties know what their roles are and reduce the possibility of disputes. Keep things simple While it’s important to be detailed and specific, you don’t need to go overboard. The goal is to have a successful real estate partnership, which means knowing your role, handling your responsibilities and trusting your partner to do the same. Don’t be overly strict with what should happen on a day-to-day basis, as this can lead to bad blood in the partnership. Establishing a real estate partnership When you partner with someone to invest or purchase real estate, it can be a beneficial situation. However, you have to take steps to protect yourself and your interests along the way.

Whether you primarily execute contracts with new employees as you hire them or with clients as they hire you, including the right terms is key. A well-drafted contract will increase the benefits your business derives from the agreement while also protecting you from future issues and losses. Often, the main focus in contracts will be the obligations that each party will have to one another, including financial obligations and timing expectations. However, it is also important to think about what will happen if a conflict arises in the future. You can address contract disputes before they occur For decades, big businesses have added mandatory, binding arbitration clauses to their contracts to prevent any issues from going to court. In recent years, businesses have started to shy away from dispute resolution clauses, possibly because of the negativity around mandatory binding arbitration requirements. Customers and employees alike may avoid signing contracts that limit their right to take legal action or force them into binding arbitration. Your organization can limit contractual conflicts without making itself look bad by forcing every employee or client into mandatory arbitration when problems develop. You have options for conflict resolution The problem with mandatory, binding arbitration is that it takes all choices away from the other party. They don’t have any choice about how to resolve the issue or any way to fight back if they don’t agree with the outcome. A good workaround may be a clause requiring that they attempt mediation or arbitration with your company at their discretion prior to initiating legal proceedings. That way, both parties have an opportunity to sit down and discuss matters outside of court. Additionally, you don’t have to worry about start worrying your relationship with prospective employees and clients including terms that they find frightening. Including dispute resolution suggestions or requirements in your contracts helps you to facilitate settlement when there is a disagreement between you and another party. Although many business contract disputes settle before their day in court, even having a pending court case can do damage to your reputation. Integrating the right protections into your business contracts now will help your business minimize what disputes arise and how expensive they will be for you to resolve.

Whether you primarily execute contracts with new employees as you hire them or with clients as they hire you, including the right terms is key. A well-drafted contract will increase the benefits your business derives from the agreement while also protecting you from future issues and losses. Often, the main focus in contracts will be the obligations that each party will have to one another, including financial obligations and timing expectations. However, it is also important to think about what will happen if a conflict arises in the future. You can address contract disputes before they occur For decades, big businesses have added mandatory, binding arbitration clauses to their contracts to prevent any issues from going to court. In recent years, businesses have started to shy away from dispute resolution clauses, possibly because of the negativity around mandatory binding arbitration requirements. Customers and employees alike may avoid signing contracts that limit their right to take legal action or force them into binding arbitration. Your organization can limit contractual conflicts without making itself look bad by forcing every employee or client into mandatory arbitration when problems develop. You have options for conflict resolution The problem with mandatory, binding arbitration is that it takes all choices away from the other party. They don’t have any choice about how to resolve the issue or any way to fight back if they don’t agree with the outcome. A good workaround may be a clause requiring that they attempt mediation or arbitration with your company at their discretion prior to initiating legal proceedings. That way, both parties have an opportunity to sit down and discuss matters outside of court. Additionally, you don’t have to worry about start worrying your relationship with prospective employees and clients including terms that they find frightening. Including dispute resolution suggestions or requirements in your contracts helps you to facilitate settlement when there is a disagreement between you and another party. Although many business contract disputes settle before their day in court, even having a pending court case can do damage to your reputation. Integrating the right protections into your business contracts now will help your business minimize what disputes arise and how expensive they will be for you to resolve.

Some who earn a living by investing in real estate prefer to work alone, often to minimize liability. Other times, investors discover they need additional resources to maximize their success. They meet this need by forming real estate investment partnerships. A partnership offers many advantages. It spreads the financial risks among its members (instead of just you) and gives you potential access to capital. However, finding the right partner is just the first step. You must also ensure the partnership succeeds while protecting your interests. 1. Build long-lasting relationships You may discover that you need different partners for different property investments. Each time you enter a partnership, work on building good working relations. If you want to partner with a past investor once more, having a good relationship foundation can facilitate future partnerships. 2. Have clear-cut agreements Ensure your investment partnership agreements and contracts clearly identify each partner’s roles and responsibilities. It is also a good idea to include an exit strategy in each of your investment agreements. Having clear-cut terms benefits all involved parties. 3. Plan for adversity together Even if you have a solid partnership agreement, initiate discussions about possible adversity with your investment associates. These conversations ensure you are on the same page if a deal fails or other misfortunes arise. 4. Get professional guidance You will benefit from legal counsel even if your partnerships are amicable and function well. Such guidance helps all involved parties by ensuring compliance with the legal requirements of your investments. Familiarizing yourself with the laws surrounding California real estate investments and partnerships can also strengthen your property deals. Examples of topics to learn more about include tax complexities, risk management and adequate insurance coverage.

Some who earn a living by investing in real estate prefer to work alone, often to minimize liability. Other times, investors discover they need additional resources to maximize their success. They meet this need by forming real estate investment partnerships. A partnership offers many advantages. It spreads the financial risks among its members (instead of just you) and gives you potential access to capital. However, finding the right partner is just the first step. You must also ensure the partnership succeeds while protecting your interests. 1. Build long-lasting relationships You may discover that you need different partners for different property investments. Each time you enter a partnership, work on building good working relations. If you want to partner with a past investor once more, having a good relationship foundation can facilitate future partnerships. 2. Have clear-cut agreements Ensure your investment partnership agreements and contracts clearly identify each partner’s roles and responsibilities. It is also a good idea to include an exit strategy in each of your investment agreements. Having clear-cut terms benefits all involved parties. 3. Plan for adversity together Even if you have a solid partnership agreement, initiate discussions about possible adversity with your investment associates. These conversations ensure you are on the same page if a deal fails or other misfortunes arise. 4. Get professional guidance You will benefit from legal counsel even if your partnerships are amicable and function well. Such guidance helps all involved parties by ensuring compliance with the legal requirements of your investments. Familiarizing yourself with the laws surrounding California real estate investments and partnerships can also strengthen your property deals. Examples of topics to learn more about include tax complexities, risk management and adequate insurance coverage.

A company recently expressed renewed interest in building a luxury residential development in California. However, it has received resistance from the council of the city in which it wishes to build, as the development would be built on an area considered to be environmentally sensitive. The company, therefore, recently decided to file a legal claim against the municipality. If people in Los Angeles or other parts of the Golden State are unable to resolve a real estate dispute on their own, it is within their rights to take legal action. In this California case, the company that wants to build a development had planned on creating one with 79 homes. The homes would be built on more than 40 acres of land. The potential site is essentially undisturbed desert. In addition to suing the city for rejecting its building proposal, the company claimed that it had paid a whopping 150 percent of the fees required to get particular documents processed quickly in connection with the possible development. However, the company allegedly ended up receiving no preference. However, city officials as well as residents near the potential development site claimed that the design of the project did not meet the city’s quality standards. The company claimed that if its development cannot move forward, its property will be devalued by more than $4 million. As part of its lawsuit, the company is seeking for the court to permit it to continue with the development. It is also seeking the repayment of its legal costs. It is within the rights of a person in Los Angeles who is involved in a real estate dispute with city officials or with another company to fight for his or her best interests considering the circumstances surrounding his or her case. Source: desertsun.com, “ Wessman sues Palm Springs over real estate development “, Skip Descant, Jan. 9, 2017

A company recently expressed renewed interest in building a luxury residential development in California. However, it has received resistance from the council of the city in which it wishes to build, as the development would be built on an area considered to be environmentally sensitive. The company, therefore, recently decided to file a legal claim against the municipality. If people in Los Angeles or other parts of the Golden State are unable to resolve a real estate dispute on their own, it is within their rights to take legal action. In this California case, the company that wants to build a development had planned on creating one with 79 homes. The homes would be built on more than 40 acres of land. The potential site is essentially undisturbed desert. In addition to suing the city for rejecting its building proposal, the company claimed that it had paid a whopping 150 percent of the fees required to get particular documents processed quickly in connection with the possible development. However, the company allegedly ended up receiving no preference. However, city officials as well as residents near the potential development site claimed that the design of the project did not meet the city’s quality standards. The company claimed that if its development cannot move forward, its property will be devalued by more than $4 million. As part of its lawsuit, the company is seeking for the court to permit it to continue with the development. It is also seeking the repayment of its legal costs. It is within the rights of a person in Los Angeles who is involved in a real estate dispute with city officials or with another company to fight for his or her best interests considering the circumstances surrounding his or her case. Source: desertsun.com, “ Wessman sues Palm Springs over real estate development “, Skip Descant, Jan. 9, 2017

There is always a risk when it comes to real estate investing. Unknown issues can crop up which result in money down the drain. The goal is to minimize these risks as best you can to get the most profit. If you keep these three tips in mind while searching for your next real estate investment then you will be on the right track. 1. Bigger and better isn’t always a money maker Most investors dream about a perfect location with a newly renovated and massive rental. If you find that big and beautiful investment opportunity then it might not be as good as it looks. Sometimes the fancier properties will give you a negative cash flow in comparison to more downsized locations. You must make sure that your return rate will be at least as good as if your money was still in liquid asset form. For example let’s say that your investment money is currently sitting in stocks which give you a five percent earning rate. You must know that your new real estate investment can give you that same return, if not better. You can accomplish this by purchasing a positive cash-on-cash return property. 2. Time is money – so treat it the same way Some properties take a lot more of your attention and time than other ones. If the property will take a lot of your time then consider that as lost profit. Properties that can be rented out to long-term type tenants are the easiest on real estate investors. If you need to spend a lot of time fixing problems and finding new tenants then you will be wasting your time. Quick time-wasters include vacation properties, properties in bad areas, or rentals near college campuses. 3. Market research is key It is essential to know your market. Do some research and find out if the property in question is market value. A market value home will likely give a market value return, losing you some money. It is smarter to find a property that is underpriced. The only way to know if they are a good value is to keep a constant eye on the market. 4. Always risky but not too risky As you know, real estate will always be a risk. You will put your neck out for a good property and cross your fingers that it goes well. If you have little experience in real estate then just make sure not to invest in super high risk properties. What is super high risk? Land, fixer uppers and private real estate are just some examples. Between all the variables of risk it is really easy to lose your hard earned money. 5. Consider putting money into REITs REITs, or a real estate investment trusts, can be a smart option for investors who are interested in putting real estate into their portfolio. These are companies that own and develop real estate assets. They are publicly traded, offering a safer yet diverse investment opportunity. If you consider investing in REITs then an experienced real estate attorney can help you negotiate land use approvals, obtain loans, and plan joint ventures. The most successful real estate investors learn how to balance their risks. Keep your portfolio diverse and your eye on the market. Contact a real estate attorney for the best outcome with real estate transactions and partnerships.