Real property can be the biggest investment someone ever makes. Partially as a result of this reality, people tend to feel very strongly about protecting their property rights. Sometimes, disagreements related to real property ownership will end up in civil court. People cannot always resolve a dispute via negotiation that could have an impact on their finances or ownership rights, so they ask a civil court judge to rule on the matter. Every real estate dispute is inherently unique, as the conditions of the property and the circumstances of the owners are unique. However, certain types of real estate litigation are far more common than others. The following are some of the most common reasons that people go to court over a real estate matter. THERE ARE ISSUES WITH BOUNDARIES OR PROPERTY USE Sometimes, neighbors may disagree about where the boundary line between two parcels actually falls. The actual placement of the boundary can impact the use and value of the land. Someone overstepping a boundary might eventually lead to claims of adverse possession if the owner does not challenge their behavior in court. Other times, people may go to court because a neighbor’s use of their property has affected their enjoyment of their property or the value of their land. THERE ARE UNDISCLOSED PROPERTY DEFECTS Issues that people discover with a new home after taking possession can influence not only their enjoyment of the property but often also its actual value on the open market. Buyers who discover significant defects after taking possession of a property may end up taking the seller to court to seek reimbursement for the cost of repairing those defects or the diminished value of the property because those defects exist THERE ARE PROBLEMS WITH A CONSTRUCTION PROJECT Construction defect claims are lawsuits brought by property owners against businesses that they hired to construct, remodel or repair a property that they own. Such lawsuits can lead to a court order to correct the issue with the property or compensation for the owner. On the other hand, sometimes construction firms or the businesses that supply them with materials take a property owner to court over nonpayment. Lawsuits seeking liens against real property to compel someone into payment are also relatively common in Massachusetts. Ultimately, recognizing when a conflict related to real property might justify going to civil court could help homeowners and businesses better protect their interests.
What are the best long-term commercial real estate investments?
The commercial real estate market in California, particularly in Los Angeles and Orange counties, can be very lucrative. Landlords and owners alike can potentially profit off of properties by leasing or selling them to others. Those seeking to invest in commercial properties often need to think carefully about their short-term needs and their long-term goals. Not every commercial real estate investment is equally successful, and people might potentially set themselves up for financial losses if they don’t look carefully at the market before completing a transaction. CERTAIN TYPES OF PROPERTY BENEFIT FROM CONSISTENT DEMAND When looking at vacancy rates and default rates for loans, certain commercial property investments tend to work out better for investors than others. Multi-family homes and apartment buildings are among the most in-demand types of commercial real estate. They can also be a source of immediate and long-term revenue. However, they may come with a host of financial obligations, including the requirement to continually maintain the units and repair them if tenants damage them. Manufacturing or industrial properties often tend to see consistent demand too, although economic downturns can have a rapid impact on the value and vacancy rates for industrial properties in certain areas. SOME PROPERTIES ARE BETTER FOR LONG-TERM INVESTMENTS Despite slower leasing for retail properties, they still maintain a relatively low vacancy rate nationwide, although it varies drastically from one municipality to another. Retail facilities in high-end neighborhoods often command the highest rents but also have the highest sale prices and tax rates. Retail facilities in some neighborhoods may be cheaper but may also be vacant for longer in between tenants. Office properties, on the other hand, remain in a slump. Despite widespread efforts to return workers to office settings, some industries and businesses will inevitably remain remote or will embrace a hybridized model going forward. Retail and office spaces are, therefore, often better options for those looking for lower current prices and more long-term investment opportunities. From converting office buildings to high-end condos to investing in up-and-coming neighborhoods by buying retail facilities while the area is still in development, there are many ways for investors to make money off of a commercial property that others may not see as a viable investment. Ultimately, learning more about the current commercial real estate market in California may help people make more judicious purchasing decisions.
What are the best long-term commercial real estate investments?
The commercial real estate market in California, particularly in Los Angeles and Orange counties, can be very lucrative. Landlords and owners alike can potentially profit off of properties by leasing or selling them to others. Those seeking to invest in commercial properties often need to think carefully about their short-term needs and their long-term goals. Not every commercial real estate investment is equally successful, and people might potentially set themselves up for financial losses if they don’t look carefully at the market before completing a transaction. CERTAIN TYPES OF PROPERTY BENEFIT FROM CONSISTENT DEMAND When looking at vacancy rates and default rates for loans, certain commercial property investments tend to work out better for investors than others. Multi-family homes and apartment buildings are among the most in-demand types of commercial real estate. They can also be a source of immediate and long-term revenue. However, they may come with a host of financial obligations, including the requirement to continually maintain the units and repair them if tenants damage them. Manufacturing or industrial properties often tend to see consistent demand too, although economic downturns can have a rapid impact on the value and vacancy rates for industrial properties in certain areas. SOME PROPERTIES ARE BETTER FOR LONG-TERM INVESTMENTS Despite slower leasing for retail properties, they still maintain a relatively low vacancy rate nationwide, although it varies drastically from one municipality to another. Retail facilities in high-end neighborhoods often command the highest rents but also have the highest sale prices and tax rates. Retail facilities in some neighborhoods may be cheaper but may also be vacant for longer in between tenants. Office properties, on the other hand, remain in a slump. Despite widespread efforts to return workers to office settings, some industries and businesses will inevitably remain remote or will embrace a hybridized model going forward. Retail and office spaces are, therefore, often better options for those looking for lower current prices and more long-term investment opportunities. From converting office buildings to high-end condos to investing in up-and-coming neighborhoods by buying retail facilities while the area is still in development, there are many ways for investors to make money off of a commercial property that others may not see as a viable investment. Ultimately, learning more about the current commercial real estate market in California may help people make more judicious purchasing decisions.
What happens if an easement “runs with the land”?
When you purchase a piece of property, it’s important to know if it comes with an easement attached. There are two main types of easements, which are known as an easement appurtenant – where the easement “runs with the land” – and an easement in gross, which is often known as a personal easement. A personal easement can be eliminated when the property changes hands. It generally means that two property owners had a standing agreement with each other. That agreement is not officially part of the land in any sense, so the new property owner gets to decide if they want to honor it or not. But things can be very different if an easement is classified as one that runs with the land. CHANGES TO THE LAND ITSELF With an easement appurtenant, the actual legal description of the land is changed. The easement becomes part of the land, and an inherent part of that property. What this means is that the easement is transferred along with that property it is purchased by a new owner. A seller of the affected property is required to disclose that it exists before the property is purchased by someone new, as the easement can impact the value of the property in question. In many scenarios, an easement appurtenant may be critical to someone else’s ability to use their own property. A common example of a situation in which this kind of easement may come into play involves when one property separates the other from a main road. The owner of the property that has been separated may have an easement allowing them to drive across the first property. Without that permission, they would not be able to use their own land. Easements can get complicated, and they are just one factor to consider when buying or selling real estate. If you are going through the process of navigating a real estate transaction, it’s very important to know exactly what legal options you have and what your rights are. That way, you can make truly informed decisions about your situation.
What happens if an easement “runs with the land”?
When you purchase a piece of property, it’s important to know if it comes with an easement attached. There are two main types of easements, which are known as an easement appurtenant – where the easement “runs with the land” – and an easement in gross, which is often known as a personal easement. A personal easement can be eliminated when the property changes hands. It generally means that two property owners had a standing agreement with each other. That agreement is not officially part of the land in any sense, so the new property owner gets to decide if they want to honor it or not. But things can be very different if an easement is classified as one that runs with the land. CHANGES TO THE LAND ITSELF With an easement appurtenant, the actual legal description of the land is changed. The easement becomes part of the land, and an inherent part of that property. What this means is that the easement is transferred along with that property it is purchased by a new owner. A seller of the affected property is required to disclose that it exists before the property is purchased by someone new, as the easement can impact the value of the property in question. In many scenarios, an easement appurtenant may be critical to someone else’s ability to use their own property. A common example of a situation in which this kind of easement may come into play involves when one property separates the other from a main road. The owner of the property that has been separated may have an easement allowing them to drive across the first property. Without that permission, they would not be able to use their own land. Easements can get complicated, and they are just one factor to consider when buying or selling real estate. If you are going through the process of navigating a real estate transaction, it’s very important to know exactly what legal options you have and what your rights are. That way, you can make truly informed decisions about your situation.
Mistakes inexperienced landlords make
Investing in rental properties can be a rewarding venture, but it’s not without its fair share of challenges – especially if you’re a first-time landlord. By learning more about common mistakes shared by first-time landlords, you can set yourself up for a much smoother experience. Here are the biggest missteps to avoid: FAILING TO SCREEN TENANTS You may trust your “gut instincts” a lot when it comes to business but don’t make that mistake when it comes to your tenants. Failing to thoroughly vet your potential tenants can lead to problematic occupants who pay rent late, cause damage to the property or behave in ways that cause conflicts with other tenants. Always do thorough background checks, verify a prospective tenant’s employment and income, and contact previous landlords for references. USING GENERIC OR “BOILERPLATE” LEASES Another common mistake is using a generic or poorly drafted lease agreement. A comprehensive lease agreement is essential for protecting your rights as a landlord and clearly outlining the responsibilities of both parties. Tailor your lease agreement so that it covers essential terms such as rent, security deposit, pet policies, maintenance responsibilities and eviction procedures. (Remember: If it isn’t written down in your agreement, you can’t hold your tenant to it.) FAILING TO KEEP LINES OF COMMUNICATION OPEN Inexperienced landlords often overlook the importance of clear and timely communication with their tenants, and that breeds resentment and leads to trouble. Establish an open line of communication with your tenants and respond to their inquiries or concerns promptly. Consider using technology such as email, texts or property management software to both streamline and document your communications. NOT UNDERSTANDING LANDLORD-TENANT LAWS Not understanding the intricacies of the Fair Housing Act or other landlord-tenant laws, including those on the local level regarding things like security deposits and eviction procedures, can result in major legal issues and financial losses. With these guidelines in mind and a little legal guidance, you can navigate the landlord role with confidence and better ensure that your investment stays profitable.
Mistakes inexperienced landlords make
Investing in rental properties can be a rewarding venture, but it’s not without its fair share of challenges – especially if you’re a first-time landlord. By learning more about common mistakes shared by first-time landlords, you can set yourself up for a much smoother experience. Here are the biggest missteps to avoid: FAILING TO SCREEN TENANTS You may trust your “gut instincts” a lot when it comes to business but don’t make that mistake when it comes to your tenants. Failing to thoroughly vet your potential tenants can lead to problematic occupants who pay rent late, cause damage to the property or behave in ways that cause conflicts with other tenants. Always do thorough background checks, verify a prospective tenant’s employment and income, and contact previous landlords for references. USING GENERIC OR “BOILERPLATE” LEASES Another common mistake is using a generic or poorly drafted lease agreement. A comprehensive lease agreement is essential for protecting your rights as a landlord and clearly outlining the responsibilities of both parties. Tailor your lease agreement so that it covers essential terms such as rent, security deposit, pet policies, maintenance responsibilities and eviction procedures. (Remember: If it isn’t written down in your agreement, you can’t hold your tenant to it.) FAILING TO KEEP LINES OF COMMUNICATION OPEN Inexperienced landlords often overlook the importance of clear and timely communication with their tenants, and that breeds resentment and leads to trouble. Establish an open line of communication with your tenants and respond to their inquiries or concerns promptly. Consider using technology such as email, texts or property management software to both streamline and document your communications. NOT UNDERSTANDING LANDLORD-TENANT LAWS Not understanding the intricacies of the Fair Housing Act or other landlord-tenant laws, including those on the local level regarding things like security deposits and eviction procedures, can result in major legal issues and financial losses. With these guidelines in mind and a little legal guidance, you can navigate the landlord role with confidence and better ensure that your investment stays profitable.
Landlord’s dilemma: What to do when renter fails to pay rent.
This issue is not a novel one. Tenants fail to pay rent all the time. Unfortunately, since 2020, the issue has grown, and tenants found themselves benefiting from various legal protections. Although the idea behind the protections, to help keep people in their homes and business sites during the worst of the pandemic, was noble, the reality was not always as altruistic. Some tenants took advantage of these offerings to avoid paying their rent even when they had the financial capacity to meet their contractual obligation. WHAT ARE THE PROTECTIONS? One example was the LA County Eviction Moratorium, which began on March 4, 2020. Lawmakers designed the protections to help keep renters in their homes when it was difficult to pay rent during the worst of the COVID-19 pandemic. CAN LANDLORDS MOVE FORWARD WITH LEGAL REMEDIES? The LA County Eviction Moratorium protections ended on March 31, 2023. As of April 1, 2023, landlords could move forward with the expectation tenants make full rent payments for those due on or after April 1. Landlords can now consider eviction options for those who fail to make these payments. Landlords are also able to consider suing tenants for rent owed. This is allowed even if the tenant paid 25% of the rent due from September 2020 through September 2021. It is important to note that some local jurisdictions may have permanent tenant protections. Any landlord looking to move forward with eviction action may be wise to seek legal counsel to ensure their actions are within the bounds of the law.
Landlord’s dilemma: What to do when renter fails to pay rent.
This issue is not a novel one. Tenants fail to pay rent all the time. Unfortunately, since 2020, the issue has grown, and tenants found themselves benefiting from various legal protections. Although the idea behind the protections, to help keep people in their homes and business sites during the worst of the pandemic, was noble, the reality was not always as altruistic. Some tenants took advantage of these offerings to avoid paying their rent even when they had the financial capacity to meet their contractual obligation. WHAT ARE THE PROTECTIONS? One example was the LA County Eviction Moratorium, which began on March 4, 2020. Lawmakers designed the protections to help keep renters in their homes when it was difficult to pay rent during the worst of the COVID-19 pandemic. CAN LANDLORDS MOVE FORWARD WITH LEGAL REMEDIES? The LA County Eviction Moratorium protections ended on March 31, 2023. As of April 1, 2023, landlords could move forward with the expectation tenants make full rent payments for those due on or after April 1. Landlords can now consider eviction options for those who fail to make these payments. Landlords are also able to consider suing tenants for rent owed. This is allowed even if the tenant paid 25% of the rent due from September 2020 through September 2021. It is important to note that some local jurisdictions may have permanent tenant protections. Any landlord looking to move forward with eviction action may be wise to seek legal counsel to ensure their actions are within the bounds of the law.
Selling real estate in a post-COVID environment
While countless industries struggled during and following the worldwide COVID-19 pandemic, one, in particular, saw significant revenues from 2020 to 2021. The real estate industry significantly benefitted from unprecedented lower interest rights, not to mention considerable demand. Fast forward to today. The housing market remains strong, yet with a limited volume. Those who did not avail themselves of the potential savings decided that familiar and existing surroundings in uncertain times took precedence. NEW METHODS TAKE PRECEDENT What changed most in the home buying process beyond looking for new dwellings versus staying put is the significant changes in the most straightforward practices when it comes to showing and buying homes. Even though national orders to stay home, wear masks, and social distance has expired, countless people remain skittish about bringing people into their houses. Many states and localities maintain their restrictions, leaving open the chance of yet another variant spreading through the country. In the end, it is left to the seller’s discretion as to how showings will commence, mainly if they are still residing in their home. Sellers have notified many agents to schedule appointments for showings on clients that are pre-approved. As with any industry post-COVID, comfort with the process is still paramount, including access to hand sanitizer, gloves, and other types of protection. Many new home seekers still prefer to see the dwelling in person. When the pandemic began, real estate agents were initially slow to adapt. As sales and customers began to wane, they began to think “outside the box,” relying on social media and virtual tours. The housing market remains competitive, with little time to schedule online tours or walk through the home. The time span from listing to sale is measured in days, if not minutes and hours. For many prospective homeowners or those looking for a larger home, a successful bid may come down to the luck of the draw.
Selling real estate in a post-COVID environment
While countless industries struggled during and following the worldwide COVID-19 pandemic, one, in particular, saw significant revenues from 2020 to 2021. The real estate industry significantly benefitted from unprecedented lower interest rights, not to mention considerable demand. Fast forward to today. The housing market remains strong, yet with a limited volume. Those who did not avail themselves of the potential savings decided that familiar and existing surroundings in uncertain times took precedence. NEW METHODS TAKE PRECEDENT What changed most in the home buying process beyond looking for new dwellings versus staying put is the significant changes in the most straightforward practices when it comes to showing and buying homes. Even though national orders to stay home, wear masks, and social distance has expired, countless people remain skittish about bringing people into their houses. Many states and localities maintain their restrictions, leaving open the chance of yet another variant spreading through the country. In the end, it is left to the seller’s discretion as to how showings will commence, mainly if they are still residing in their home. Sellers have notified many agents to schedule appointments for showings on clients that are pre-approved. As with any industry post-COVID, comfort with the process is still paramount, including access to hand sanitizer, gloves, and other types of protection. Many new home seekers still prefer to see the dwelling in person. When the pandemic began, real estate agents were initially slow to adapt. As sales and customers began to wane, they began to think “outside the box,” relying on social media and virtual tours. The housing market remains competitive, with little time to schedule online tours or walk through the home. The time span from listing to sale is measured in days, if not minutes and hours. For many prospective homeowners or those looking for a larger home, a successful bid may come down to the luck of the draw.
Weathering the sharp decline in commercial real estate in major cities
Across the United States in 2019, commercial real estate was considered a safe and reliable investment for developers and businesses seeking to grow their enterprises in business districts. However, the trend has sharply reversed in 2023, and now commercial real estate is considered a much riskier endeavor for builders and investors, as the return to office trend has tapered out and many companies are staying out of the Financial Core here in Los Angeles. Now, it is important for developers and commercial landlords to reconsider their holdings and prospective projects, taking into account the new reality and adapting to these new challenges. THE LANDSCAPE HAS CHANGED FOR COMMERCIAL REAL ESTATE There are few historic shifts in real estate that can compare with what has happened in commercial real estate over the last three years. Last month, Los Angeles’s Downtown hit a record of 30% vacancy rate for commercial real estate as many employers continue to use work-from-home models, and the value of the LA commercial real estate market has dropped nearly 40% in the past three years. How developers and landowners respond to these challenges is important, and there are several options that can be explored to help combat this trend. REINVEST The best option for property owners with high vacancy rates is to reinvest in the property, updating the facilities and amenities to create a more desirable property for commercial renters still in the market. New, and recently renovated properties are still performing well in most markets, and this can help turn the trend around for individual owners. RETROFIT Another option that commercial landowners can pursue is to retrofit their properties to attract a different type of client. Many office jobs are still remaining on the sidelines of the commercial market, so retrofitting the property into a flexible work environment may be a good opportunity to capture a growing market of commercial renters. REMODEL In some cases, a drastic change may be necessary to reinvigorate growth, and for that, a complete remodel of the building for a different purpose such as residential use may be appropriate. While not possible in all areas due to zoning and land use restrictions, it can open up an entirely new field of renters for the commercial landowner to target.