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

Before you invest in California commercial real estate, you should carefully check out its zoning restrictions. Why? Because local zoning laws and regulations with regard to the property in which you wish to invest may well determine your ultimate return on investment. Per FindLaw, zoning generally falls into one of the following five categories: Commercial where you can build and sell, lease or rent offices and/or retail space Industrial where you can build and sell, lease or rent manufacturing space Residential where you can build and sell, lease or rent only single- or multi-family structures Recreational where you can sell, lease or rent the land itself or the structures you build on it only for recreational activities Agricultural where you can sell, lease or rent the land itself or the structures you build on it only for farming activities If you desire, you can also operate a qualifying business yourself in any of these zoned areas. Zoning coverage Zoning laws not only determine what kinds of structures you can build in a particularly zoned area, but also may regulate such things as the following: How tall a building can be How much square footage it can contain How close one building can be to another How much parking space each building can or must provide How much noise a business or resident can make How the business owner or resident must handle waste In addition, these laws may well regulate the types, if any, of signs allowed, as well as their size, appearance, placement, etc. While you should not interpret this educational information as legal advice, it can help you understand the importance of thoroughly understanding the zoning laws in place on any commercial property in which you want to invest.

As a developer, you know that investing in a California investment partnership can prove quite lucrative. But before you invest, you need to make certain that you understand how California law defines and treats these investments. For instance, as FindLaw explains, Section 17955 of the California Revenue and Taxation Code defines an investment partnership as one in which at least 90% of its investment securities represent a combination of bank or other financial institution deposits and the office space and equipment necessary to conduct business. In addition, at least 90% of its gross income must derive from the dividends, interests and gains it receives from selling or exchanging its qualifying investment securities. Qualifying investment securities As for “qualifying investment securities,” they can include such things as the following: Common stock Foreign or domestic deposits of cash or currency equivalents Securities backed by mortgages or other assets Repurchase agreements Futures contracts for stocks or bonds Regulated futures contracts Under no circumstances, however, does your interest in any partnership other than another investment partnership qualify as an investment security. Taxable income If you do not live in California on a full-time basis, you will not have to pay California income tax on the dividends, interest or gains you receive from your qualifying securities under several specified circumstances including any of the following: Your only contact with the investment partnership is through a California broker, dealer or other financial advisor The partnership qualifies as a California investment partnership, regardless of whether or not it locates its principal place of business in California The partnership qualifies as a regulated investment company, regardless of whether or not it locates its principal place of business in California This is general educational information and not intended to provide legal advice.

As a developer, you know that investing in a California investment partnership can prove quite lucrative. But before you invest, you need to make certain that you understand how California law defines and treats these investments. For instance, as FindLaw explains, Section 17955 of the California Revenue and Taxation Code defines an investment partnership as one in which at least 90% of its investment securities represent a combination of bank or other financial institution deposits and the office space and equipment necessary to conduct business. In addition, at least 90% of its gross income must derive from the dividends, interests and gains it receives from selling or exchanging its qualifying investment securities. Qualifying investment securities As for “qualifying investment securities,” they can include such things as the following: Common stock Foreign or domestic deposits of cash or currency equivalents Securities backed by mortgages or other assets Repurchase agreements Futures contracts for stocks or bonds Regulated futures contracts Under no circumstances, however, does your interest in any partnership other than another investment partnership qualify as an investment security. Taxable income If you do not live in California on a full-time basis, you will not have to pay California income tax on the dividends, interest or gains you receive from your qualifying securities under several specified circumstances including any of the following: Your only contact with the investment partnership is through a California broker, dealer or other financial advisor The partnership qualifies as a California investment partnership, regardless of whether or not it locates its principal place of business in California The partnership qualifies as a regulated investment company, regardless of whether or not it locates its principal place of business in California This is general educational information and not intended to provide legal advice.

Buyers must know everything they can about a property before making a decision to buy. When certain items are not disclosed, or the seller deliberately misrepresents defects in the home, a buyer does have the right to seek assistance in civil court for failure to disclose. Here are some steps you can take to make sure the issue is handled efficiently and fairly. When it comes to failure to disclose, most states have laws in place stipulating seller responsibility. This usually includes an obligation to provide information on anything that could impact the value of the home. Additionally, sellers cannot use the excuse that the information was never provided because the buyer never explicitly asked. Regardless if an inquiry has taken place, sellers must provide information on things like roofing defects, problems with the foundation, and insect infestations. If you find out about the issues before you actually close the sale, you may be able to cancel it without penalty. You can also try to negotiate with the seller about bringing down the price of the home or covering the repairs himself. Many sellers would rather make these concessions than lose out on the total sale of the home, which is to the buyer’s advantage. You may still be able to negotiate even after you have closed on the home, particularly if the seller is averse to legal proceedings. Some real estate contracts also have mediation or arbitration written into the terms. This establishes the steps both parties must take to deal with any disagreements about the property before a lawsuit can be filed, or if one can be filed at all. Make sure you fully comprehend your litigation options before closing on the home and also have a home inspection and title search performed to be privy to any problems.

Buyers must know everything they can about a property before making a decision to buy. When certain items are not disclosed, or the seller deliberately misrepresents defects in the home, a buyer does have the right to seek assistance in civil court for failure to disclose. Here are some steps you can take to make sure the issue is handled efficiently and fairly. When it comes to failure to disclose, most states have laws in place stipulating seller responsibility. This usually includes an obligation to provide information on anything that could impact the value of the home. Additionally, sellers cannot use the excuse that the information was never provided because the buyer never explicitly asked. Regardless if an inquiry has taken place, sellers must provide information on things like roofing defects, problems with the foundation, and insect infestations. If you find out about the issues before you actually close the sale, you may be able to cancel it without penalty. You can also try to negotiate with the seller about bringing down the price of the home or covering the repairs himself. Many sellers would rather make these concessions than lose out on the total sale of the home, which is to the buyer’s advantage. You may still be able to negotiate even after you have closed on the home, particularly if the seller is averse to legal proceedings. Some real estate contracts also have mediation or arbitration written into the terms. This establishes the steps both parties must take to deal with any disagreements about the property before a lawsuit can be filed, or if one can be filed at all. Make sure you fully comprehend your litigation options before closing on the home and also have a home inspection and title search performed to be privy to any problems.

With the complete legalization of marijuana in California comes an increase in the need for commercial real estate properties. This is not about a need for retail space, though. It is much bigger than this. According to Green Entrepreneur, the need is for warehouse space where businesses can grow and store their product. It takes a lot of space to properly grow marijuana, and after harvest, it requires even more space to store the product before the company can sell it. This need for space is greatly increasing the demand for warehouse properties throughout the state. Because demand is up, it makes every property more valuable. Rent prices are increasing as a result, and there is a lot of competition to secure warehouse locations. This is the perfect environment if you are a commercial real estate owner who has such properties. Of course, there are limitations, which also plays in to the demand. There are laws that say where such operations may locate their facilities. If you have a property located in an area that restricts growth operations, then you will not feel the impact of the industry. However, if you are in an area that welcomes the marijuana industry, you should prepare for plenty of interest in your property. One area that is prime real estate for the marijuana industry is Lynwood. This area is very marijuana friendly. So, if you own a warehouse in this area, expect to see a lot of interest. Expect to see similar trends in areas where the local community supports this industry. This information is for education and is not legal advice.

With the complete legalization of marijuana in California comes an increase in the need for commercial real estate properties. This is not about a need for retail space, though. It is much bigger than this. According to Green Entrepreneur, the need is for warehouse space where businesses can grow and store their product. It takes a lot of space to properly grow marijuana, and after harvest, it requires even more space to store the product before the company can sell it. This need for space is greatly increasing the demand for warehouse properties throughout the state. Because demand is up, it makes every property more valuable. Rent prices are increasing as a result, and there is a lot of competition to secure warehouse locations. This is the perfect environment if you are a commercial real estate owner who has such properties. Of course, there are limitations, which also plays in to the demand. There are laws that say where such operations may locate their facilities. If you have a property located in an area that restricts growth operations, then you will not feel the impact of the industry. However, if you are in an area that welcomes the marijuana industry, you should prepare for plenty of interest in your property. One area that is prime real estate for the marijuana industry is Lynwood. This area is very marijuana friendly. So, if you own a warehouse in this area, expect to see a lot of interest. Expect to see similar trends in areas where the local community supports this industry. This information is for education and is not legal advice.

California ranks among the highest in the nation for property taxes. The burden of these taxes is felt largely by commercial property owners in the state. To make their investments worthwhile and bring in the maximum revenue, the owners of commercial properties may pass some or all of this burden onto their tenants. According to a California Globe report, commercial property owners in the state may see their property taxes increased if a recently qualified ballot initiative is passed. The proposed initiative seeks to split Proposition 13, applying different tax rates for commercial properties and residential properties. Currently, the tax rate for commercial and industrial properties is capped at 2%. However, under Proposition 13 split roll initiative, commercial properties would no longer have the proposition’s protections and could be taxed at a much higher rate. Those opposed to the Proposition 13 initiative suggest it is a targeted tax increase on businesses. Further, they point to the significant increase in local property tax assessments since the implementation of Proposition 13, which amount to $19 billion between 2008-2009 and 2018-2019, as evidence that the proposition is not starving the local government of revenue to which it is due. Advocates for the proposed initiative, however, suggest that the proposition as it is currently written allows businesses to pay less than their fair share of property taxes. The initiative’s supporters tout it as a means to bring much-needed and previously missed-out-on funding to public education in the state. The information contained in the preceding post is meant for general purposes only and should not be considered as legal advice.

California ranks among the highest in the nation for property taxes. The burden of these taxes is felt largely by commercial property owners in the state. To make their investments worthwhile and bring in the maximum revenue, the owners of commercial properties may pass some or all of this burden onto their tenants. According to a California Globe report, commercial property owners in the state may see their property taxes increased if a recently qualified ballot initiative is passed. The proposed initiative seeks to split Proposition 13, applying different tax rates for commercial properties and residential properties. Currently, the tax rate for commercial and industrial properties is capped at 2%. However, under Proposition 13 split roll initiative, commercial properties would no longer have the proposition’s protections and could be taxed at a much higher rate. Those opposed to the Proposition 13 initiative suggest it is a targeted tax increase on businesses. Further, they point to the significant increase in local property tax assessments since the implementation of Proposition 13, which amount to $19 billion between 2008-2009 and 2018-2019, as evidence that the proposition is not starving the local government of revenue to which it is due. Advocates for the proposed initiative, however, suggest that the proposition as it is currently written allows businesses to pay less than their fair share of property taxes. The initiative’s supporters tout it as a means to bring much-needed and previously missed-out-on funding to public education in the state. The information contained in the preceding post is meant for general purposes only and should not be considered as legal advice.

In California, there are laws in place to handle landlord tenant disputes. Understanding these laws can help you if you ever end up facing a dispute of your own. Today we will look at some frequently asked questions about landlord tenant disputes. Many people ask how serious landlord tenant disputes are. They wonder if they can settle any dispute through conversation alone. While this is sometimes possible, it is not always the case. Litigation is sometimes unavoidable. However, litigation is often the last resort. It can be expensive and time consuming for everyone involved. If you can settle a dispute out of court, this is usually the most advisable route. Next, you may be wondering how to avoid litigation. You can do this by handling all potential issues as they crop up. Keep communication open. Be honest. Report any problems immediately. Study the lease carefully. Ensure that the lease writing is clear and concise. Double check that your lease is in compliance with local and state laws. Finally, make sure that you keep copies of all correspondence. When possible, get things in writing. This is more reliable than a spoken word in an argument. Even if you have to take your case to court, it is often handled in small claims court. This means fewer fees, and you can have some of them waived. Check with local filing requirements first. Are you interested in learning more about real estate law? Are you curious about landlord tenant disputes? You can take a look at our website to learn more. It could be a good point for you to start in looking up more information.

In California, there are laws in place to handle landlord tenant disputes. Understanding these laws can help you if you ever end up facing a dispute of your own. Today we will look at some frequently asked questions about landlord tenant disputes. Many people ask how serious landlord tenant disputes are. They wonder if they can settle any dispute through conversation alone. While this is sometimes possible, it is not always the case. Litigation is sometimes unavoidable. However, litigation is often the last resort. It can be expensive and time consuming for everyone involved. If you can settle a dispute out of court, this is usually the most advisable route. Next, you may be wondering how to avoid litigation. You can do this by handling all potential issues as they crop up. Keep communication open. Be honest. Report any problems immediately. Study the lease carefully. Ensure that the lease writing is clear and concise. Double check that your lease is in compliance with local and state laws. Finally, make sure that you keep copies of all correspondence. When possible, get things in writing. This is more reliable than a spoken word in an argument. Even if you have to take your case to court, it is often handled in small claims court. This means fewer fees, and you can have some of them waived. Check with local filing requirements first. Are you interested in learning more about real estate law? Are you curious about landlord tenant disputes? You can take a look at our website to learn more. It could be a good point for you to start in looking up more information.

While the rental units in a multi-unit residential complex can often look similar, the tenants that occupy them are often very different. Some may like to take long, hot showers, while others may prefer to run their air conditioning units on high nonstop during the summer months. As a landlord, you are in the unenviable position of having to divide up utility costs. Many others in your position have come to us here at Goodkin APC asking how the law requires in this regard. According to the California Department of Consumer Affairs, the first thing you need to do is disclose to tenants before entering into lease agreements that utility meters are shared across units. As such, utility costs will be shared to a certain extent. This will be with the gas and electrical utilities in most structures, as well as the water in older buildings that do not have separate water meters. Most buildings have common areas such as lobbies, hallways and laundry rooms that all tenants share, thus justifying the sharing of the costs to keep those areas both comfortable and functional. Disclosing the cost-sharing plan prior to leasing a unit also lets tenants that they will be splitting the costs of keeping their own units livable with their neighbors (giving those that do not want to the chance to walk away). To split the costs, you can either have the utilities for the building billed to you (and then simply include their costs in monthly rent payments), or you can allow individual tenants to pay for the services are measured through the meters linked to their units (with the understanding that they are sharing the costs of all services in units connected to those meters). More information on handling tenant expenses can be found throughout our site.