A group of nuns recently lost their legal effort to prevent pop singer Katy Perry from buying their former convent. After this last ruling, the singer is now one step closer to being able to move into the beautiful property, something she has been trying to do since 2015.

The property includes fountains, several buildings and a church. Through her limited liability company (LLC), Perry first offered to pay $14.5 million for the eight-acre estate to turn it into her private residence in Los Angeles.

Details of a sale gone wrong

But before she could go into escrow, the following things occurred that delayed the timely transfer of the property into her possession:

• Two nuns from the Sisters of the Most Holy and Immaculate Heart of the Blessed Virgin Mary made a quick deal with another private buyer.
• The sale to the second buyer closed quickly to prevent the sale by the archdiocese to Perry.
• The closed sale of the property did not have the necessary written approval from either the L.A. archdiocese or the pope, ultimately rendering it an invalid transaction.

A Los Angeles Superior Court ruled against the nuns, yet the local archdiocese says that this is ultimately the best outcome for them. While this interesting case did technically pit the nuns against the archdiocese, the voided transaction came with only a small initial payment.

The second buyer initially paid the nuns $44,000 and signed a promissory note for the rest, about $9 million. According to details known about the case and the terms of the contract, the invalid sale did not necessarily guarantee that the sisters would have ever received the rest of the amount owed.

How you can avoid similar complications

It is not every day that a dispute over a real estate transaction involves a group of nuns and a well-known pop star, but this case underlines the importance of working closely with an attorney to avoid similar complications. You or your business would be wise to approach the purchase and sale of valuable and complex properties only with qualified legal guidance and protective contractual provisions.

A careful drafting and review of any contract is a positive effort toward avoiding disputes and legal complications that may prevent you from reaching your legal objectives.

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Before negotiating with a commercial landlord, it is critical to understand the types of clauses that are common in commercial lease contracts. Although some contracts are helpful, others may place the tenant at a disadvantage. With an attorney’s help in Los Angeles, it is possible to negotiate better contracts for commercial leases and steer clear of legal problems in the future.

The monthly rent total is an important issue to consider before signing a commercial lease. Rent might seem relatively straightforward, but there is some room for negotiation. This is true even if the rent has already been established. For instance, it may be beneficial to negotiate automatic increases in rent — specifically, how much the increases should be and what these increases are based on.

Another important item to review is the clause describing the premises to be leased. This description needs to accurately describe exactly what will be rented. For instance, in some cases, an entire property may be rented, whereas in other cases, a smaller portion of a space may be covered in a rental agreement. The description needs to be as detailed as possible.

Another essential area of a contract to examine is the clause identifying the parties to the agreement. The correct business names need to be listed on the contract, and it is beneficial to list corporate entities rather than individual names so as to protect individuals from liability. An attorney in Los Angeles can help review contracts for commercial leases to ensure that one’s rights are protected before signing on the dotted line with a commercial landlord.

Source: Findlaw, “Important Commercial Lease Terms“, Accessed on March 8, 2017

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A community near Los Angeles — Pasadena — has experienced steady growth in property values. However, the increasing demand for commercial leases in particular has made it difficult to secure available space. Commercial demand is much higher today than the demand for retail spaces, which has decreased, as well as the demand for office space, which has flattened across the state.

At the present moment, not many new spaces for businesses to rent are being created. However, more inventory is necessary so that demand may be satisfied long term. This is especially true with more foreign investors pouring their money into this area of California. Foreign investments are actually pushing prices up in light of the increasing demand for these spaces.

According to officials, the decreased availability of space in buildings that can be rented stems from the over-subscription of space used for retail businesses. This is a cause for concern, in that commercial rentals and real estate purchases actually help the area to maintain its budget via property taxes. Officials said that they are continuing to promote this type of real estate as a smart investment.

With the rising demand for commercial leases, now appears to be an ideal time to pursue competitive leasing opportunities. However, rushing into signing a lease can have financial repercussions long term if the terms of the lease are not personally favorable. An attorney can help business owners in Los Angeles and other parts of the state of California to effectively review and negotiate these leases before signing them.

Source: pasadenanow.com, “Commercial Real Estate Inventory Nearly Depleted in Pasadena“, Andy Vitalicio and David Cross, March 20, 2017

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In some areas of California, industrial real estate reportedly had a strong 2016 year. Vacant spaces are filling up, and new construction, which is creating more opportunities for commercial leases, is on an uptick. In addition, rents have risen for three years straight now. This may spell promise for business owners and investors in Los Angeles and other parts of the state.

Industrial property is actually expected to be the best performer in the commercial real estate market, given the increasing shift toward shopping online. Many online companies are looking for central locations in the state of California. After all, goods in the Golden State can easily be shipped within just one or two days.

In some cases, local developers who are creating manufacturing and warehouse space are having trouble keeping pace with the demand they are experiencing. This is particularly true for spaces ranging from 5,000 to 25,000 square feet in size. Properties that are of high quality typically do not remain on the market for very long.

As California continues to draw attention in the commercial real estate world, this may naturally be encouraging for Los Angeles investors who want to develop potentially profitable properties. Likewise, it may motivate business owners to pursue commercial leases in high-traffic business spots that will benefit their bottom line. Whether putting together a commercial lease, reviewing one or negotiating one, an attorney can help to make sure that the final version of the lease best protects one’s interests in today’s competitive real estate and business worlds.

Source: fresnobee.com, “Fresno and Visalia industrial real estate ends 2016 on a high note”, Bonhia Lee, March 30, 2017

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Southern California, including Los Angeles and the surrounding areas, remains a hot spot in the commercial real estate world. One area that is particularly drawing interest when it comes to commercial building purchases and commercial leases is Orange County. This information comes from Ten-X, an online real estate marketplace.

According to Tex-X’s most recent United States Office Market Outlook, investors may benefit from purchasing office real estate in Orange County. The southern part of the state is a popular area for real estate transactions at the moment due to the growing economies in the area. Consistent job growth and strong demographics are contributing to the vigorous demand for office spaces.

Outside of Southern California, other areas of the country that are drawing investors include Miami and Palm Beach in Florida, and Portland in Oregon. On the contrary, investors may want to sell properties in Milwaukee, Memphis, the suburban areas of Maryland, Houston and Cleveland. Labor markets in these areas have weakened, thus decreasing the demand for office spaces and subsequently undermining the commercial real estate markets in these parts of the country.

Investing in office spaces in Los Angeles and other parts of California can be a challenging process due to the inherent complexities involved in these types of commercial real estate transactions. Likewise, negotiating and drafting commercial leases as well as reviewing them can be challenging, with the potential for errors a significant risk. A real estate attorney can offer guidance in efficiently completing even the most complicated commercial real estate transactions in the Golden State.

Source: San Juan Capistrano, CA, Patch, “Business Real Estate Market Booming In Orange County“, Feb. 8, 2017

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Some property owners are in a disagreement with the California State Lands Commission regarding the ownership of land on which a lake’s private docs have been built. These property owners, who are part of a nonprofit association, have recently filed a lawsuit against the commission in the hopes of resolving this real estate dispute. When two parties cannot solve a real estate issue on their own in Los Angeles or other parts of California, it is within their rights to take the matter to court.

This real estate case is complicated, involving the navigability of the lake. When the state of California was born in 1850, it was able to acquire ownership of a lake called Donner Lake — specifically, the land underneath the water. Thus, California owns this land going up to the lake’s high water mark. This includes the land on which private docks have been built.

In this situation, California is able to lease land to dock owners, and these dock owners must go through a town to make repairs. However, the nonprofit association featuring the property owners argues that the state has claimed that the lake’s high water mark is higher than it is in reality. In other words, the state is being blamed for claiming ownership to a larger amount of land than that to which it is legally entitled. The property owners have also argued that the lake cannot be navigated, and thus, the state cannot claim the land underneath the lake or the land holding the private docks. Different legal tests exist for determining whether a lake is navigable, so addressing the matter is complicated.

When a real estate dispute erupts between property owners or between property owners and the state of California, it is natural to feel both frustration and anger. However, an attorney who understands the ins and outs of the state’s real estate law can provide an estimation of the outcome of the case, considering the circumstances surrounding it. The attorney will fight for the plaintiff’s real estate-related rights and best interests in Los Angeles and other parts of the Golden State.

Source: sierrasun.com, “Donner Lake homeowners sue California State Lands Commission“, Amanda Rhoades, Feb. 7, 2017

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An easement is a property right providing the holder of the right an interest in the land of another individual. These types of rights have an influence on various kinds of real estate transactions. In some cases, a real estate dispute may erupt in Los Angeles or in another California city over an easement.

An example of a living situation involving an easement is if the only way to get to one’s home is through a driveway that crosses a neighbor’s property. An easement is typically created through conveyance in a property deed or in another type of document — for example, a contract or will. Creating an easement usually requires an instrument that is written, a signature and then the appropriate delivery of such a document.

Following the creation of an easement, questions usually crop up about the scope of the easement, its location or its dimensions. The questions have to be addressed case by case, being affected by how the easement was created. If the written documents that created easements are incomplete or vague, thus leading to imprecise inferences based on the prior use of the properties, courts must be relied on to construe the intent of those produced the written documents.

Many people in Los Angeles and elsewhere in California do not understand easements. For this reason, legal problems involving the drafting as well as the interpretation and implementation of documents related to easements may arise. It is within people’s rights to seek their best interests when a real estate dispute involving an easement leads to a lawsuit in the Golden State.

Source: findlaw.com, “Easement Basics“, Accessed on Feb. 1, 2017

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Managing property is no easy task. The list of things for which you are responsible is long and complex. Not only do you deal with building maintenance, but you may also be required to vet tenants and keep the books. You need a good understanding of landlord-tenant laws and the ability to handle people in tense situations. Needless to say, hardly a day goes by without some kind of problem.

It probably doesn’t surprise you to know that other property managers deal with similar problems. While some issues may arise without warning, you can probably avoid or mitigate many others with careful planning.

The physical property

Some of the most common and costly difficulties include repairs and maintenance. Buildings and property infrastructure need constant attention to avoid sudden disasters like bursting pipes or leaking roofs. However, other costly repairs may be the result of destructive or negligent tenants. Repairing holes in the walls or replacing stained carpeting can put a dent in your maintenance budget. You may be able to reduce the strain on your finances if you plan ahead. For example, you may consider these options:

• Build a reserve account to cover unexpected repairs
• Create and sustain a preventative-maintenance plan
• Establish a security deposit fee that is sufficient to cover damage left by tenants
• Carefully screen tenants to avoid costly repairs in the first place

You may not be able to prevent every surprise expense, but planning for predictable expenses may relieve some stress.

Problems with tenants

In addition to property, you likely deal with tenants. Residents who don’t pay on time may be the most frustrating problem a property manager encounters. Experienced property managers suggest using automatic debit withdrawals and even offering rent discounts to tenants who consistently pay on time.

While you may have quiet, respectful renters, you probably have several who make your work difficult with their many complaints. No matter the reason for the complaints, handling them immediately is usually the best practice. It may also help to establish a set procedure for tenants to use when filing complaints so that frivolous gripes can be kept to a minimum.

Advice you can depend on

Sometimes these conflicts start small and escalate to costly litigation. Taking advantage of legal counsel early in a situation may help you avoid getting into circumstances that are over your head. An attorney with years of experience assisting property managers and owners can also assist you with rent collection issues and rental documents. With a lawyer on your side, you can have confidence in the sound advice you receive for any issue related to your job managing property.

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According to a survey that UCLA helped to conduct regarding commercial real estate in Los Angeles and elsewhere in the state of California, the result of the Nov. 8 election last year should cause no major economic shift in the Golden State’s commercial real estate market this year. Thus, things are expected to be business as usual when it comes to the forming of real estate investment partnerships in 2017, for example. This is true despite the fact that Hilary Clinton was generally the favorite candidate among voters in the state.

The survey results indicated that it looks as though commercial real estate’s natural cycle is running its course independent of last year’s presidential election. This may be because of the increase in stock prices and consumer confidence, as well as because California’s regulatory environment is not expected to change a lot. Overall, the real estate outlook for 2017 looks positive.

However, driving factors in the real estate market include higher interest rates, a major shift toward online shopping and the continual redefinition of California’s office environment. According to the survey, the state is also coming to the end of its current office space boom. In addition, the survey results indicated that there is still strong optimism among people who develop multi-family dwellings, and the industrial market — especially warehouses — remains highly successful.

With the state of California projected to have a strong year in commercial real estate, now may be an ideal time to pursue real estate investment partnerships as well as other joint ventures in Los Angeles. These ventures may involve mixed-use projects, office buildings, hotels and industrial parks. A knowledgeable attorney can help one with integrating deal documents for an investment partnership and ensure that such documents comply with contractual requirements, including lender requirements, as appropriate.

Source: ucla.edu, “California commercial real estate market trends continue, despite 2016 election results“, Feb. 1, 2017

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The real estate industry is constantly changing. While this can be an exciting element of the real estate management business, it can also be a challenging one. People who have experience managing property understand that legal issues concerning both property and tenants can crop up at virtually any time. This is an unquestionably challenging aspect of the job.

A recent survey of multiple landlords and legal cases has helped to uncover some of the most common pressing issues facing people running their own real estate business. Please understand that if you are struggling with these issues that you are not alone. And also please consider the fact that you do not have to deal with these issues alone. An experienced real estate attorney can help you to navigate choppy legal waters regardless of the unique circumstances of any given situation.

Debt Collection is an Overwhelming Issue

Most of the problems that those running their own property management firm face has to do with the day to day management of the properties. The biggest problem that most landlords and managers faced was debt collection. The survey revealed that over two-thirds of landlords indicated that this was a major area of concern.

When people sign a contract and get locked in at a certain rent schedule, it’s not unusual for people to lose a source of income and fail to pay on time. People might rent their property out to retailers who go out of business or to tenants who lose their jobs. When this happens, the income dries up and realtors often have trouble collecting their debts. Owners need to understand the various channels that are available for rent collection issues. Any questions or concerns about these options can be directed to an attorney for clarification.

Injuries can Occur on Property

A landlord is responsible for maintaining the property and ensuring that real estate is a safe place to live and work. When tenants slip and fall on the property, some people might feel like suing the real estate property owner. In fact, more than two-thirds of people surveyed mentioned that they had ongoing problems with slip and fall accidents.

This is a tricky area to navigate because there is always a debate regarding whether or not the accident could have been prevented by the landlord. This kind of legal ground is tough to navigate, especially when the rate of frivolous lawsuits goes up in a certain area due to a host of different factors. Lawsuits can wind up costing a real estate business a significant amount of money.

Clearly, there are numerous problems that real estate managers can struggle with. It is important that anyone running their own real estate business contacts an experienced legal professional for guidance concerning these complex issues. Having the right legal aid can help identify problem areas and prevent these lawsuits from ever taking place or help real estate teams deal with a lawsuit that has already started. Without the proper assistance, these problems can turn into costly financial situations for everyone involved.

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