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. 

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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. 

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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. 

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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.

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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.

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Construction sites can be dangerous areas, but when everyone focuses on safety, accidents are easily avoidable. As the business owner, you need to put a prevention plan in place to help stop accidents. With a proper prevention plan, your California construction site has the potential to keep employees safer and put an end to downtime due to incidents. 

Creating a prevention plan is something eSUB suggests for all construction company owners. While you have many regulations and rules you already follow, this type of strategy enables you to provide an extra layer of protection while also ensuring your employees understand how to stop accidents from occurring and how to work safer on the construction site. 

Creating your plan 

You want to put someone in charge of the plan who understands the working conditions and demands of the job. This person may be able to create a realistic document that employees can actually follow. Make sure the document has multiple sections. Dedicate each section to specific aspects of safety, such as first aid, types of risks and personal protective equipment. 

Once you have the final version, give a copy to every employee and worker. Go over it in a meeting where they can ask questions and get clarification about any new policies or rules. Make sure they understand this is a mandatory plan they must follow. Repeat training on it often to keep it fresh in their minds. 

Benefits 

Creating this type of document for your company may help reduce costs associated with accidents, such as loss of equipment, reduced productivity and legal expenses. It may also allow you to be proactive and show your workers you value their safety. Plus, it protects your investments and assets. 

Making sure your company has an accident prevention plan is a smart move. It benefits you, your workers and your customers through making your worksites safer. 

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If you have the financial resources, patience and know-how for it, investing in real estate in California can be a great way to make some extra income. However, with every step you take in this industry, take care that you do not accidentally encounter an avoidable landmine.

Scam Detector explores a variety of different real estate scams. Arm yourself with knowledge so that scammers do not swindle you out of your money.

Unscrupulous real estate agents assigning themselves sales 

Some realtors take advantage of buyers in dire financial straits by assigning a client’s sales to themselves. Not only is this a conflict of interest, but these agents may scoop up a property for much less than its true market value.

Hackers swiping down payments

Rather than stealing passwords or financial details, some hackers impersonate real estate agents, approaching buyers and convincing them to send hackers a down payment. The way this works is hackers break into realtors’ email accounts, see which clients are about to close on a house and reach out to them (posing as the agent) to scam them into sending closing payments to a foreign account.

Arc fault breaker scams

When flipping a home, take care that the arc fault breakers in the electrical box are of the current variety that meets the necessary building codes. A construction or renovating company may swipe a new arc fault breaker and replace it with an inferior one, but still charge for the updated breaker.

Double listing

Some scammers take authentic real estate listings and duplicate them on sites like Craigslist, lowering the price to make the fraudulent listing more enticing. Buyers in desperate situations may immediately wire money to take advantage of a seemingly great house for an equally great price. They find out the hard way that they cannot see the house, nor can they get their money back.

Real estate investment has its own set of hazards. Involve a real estate legal professional to help protect your money and your legal rights.

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New rent control legislation in California may have an impact on your if you are a real estate investor. It is vital that you understand the implications of such legislation before you make any investment moves. Rent control is a response to the lack of affordable housing and rising rental costs in the state. It is mainly protection for renters, which can mean a negative impact for investors like you.

According to NuWire Investor, the main concern you have is the Tenant Protection Act of 2019. This law covers any property over 10 years old, with exceptions if you own less than 10 properties. This act limits your ability to raise rents over the 10-year period the act is in effect. It also places limits on your ability to evict tenants.

Eviction restrictions include not having the right to evict a tenant for a lease violation without giving the tenant a chance to remedy the situation, having to provide a written eviction notice for tenants of more than 12 months and a requirement to help with relocation costs or to pay one month’s rent and fulfill lease agreement for a no-fault termination of a lease. You also cannot evict based on immigration status.

As for rent increases, you will be unable to raise the rent by more than five percent. With inflation calculated in, the increase cannot be over 10%. You also cannot raise the rent more than twice in a 12-month time.

The act does include some provisions for a hardship increase that allow breaking of rules if you are struggling to make maintenance and other essential changes to the property. This information is for education and is not legal advice.

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Owning a rental property can be a lucrative business for California residents, but many do not fully realize the numerous responsibilities that come with being a landlord. These go beyond maintaining residential premises that are safe and comfortable for tenants. In fact, failing to fulfill your duties as a landlord can result in adverse legal repercussions.

According to FindLaw, there are many common mistakes that landlords can make. You may find it beneficial to learn how to avoid making the same errors, which may include the following:

• Not disclosing problems you know about on the property to tenants, such as mold, lead paint or the proximity of known registered sex offenders
• Failing to make repairs when necessary or to create a safe environment for tenants to live in
• Asking questions that can be seen as discriminatory, such as inquiries on prospective tenants’ race, religion, disabilities or sexual orientation, or including illegal provisions in the rental contract
• Not keeping adequate renters’ insurance for the property
• Failing to return security deposits if the property was sufficiently cleaned and undamaged after the renters moved out

It is in your best interests to fulfill your obligations as a landlord, not only to provide a safe and acceptable place for your tenants to live in, but to protect yourself from being sued by former residents or fined by authorities for breaching your duties. Landlord/tenant issues are often complex and difficult to represent in court. Therefore, the information in this blog is meant to educate you, but it should not replace the advice of a lawyer.

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When you purchase real estate in California, the seller and/or listing agent must disclose any material defects. A material defect is a problem or issue with the property that could negatively affect your decision to buy. The law requires sellers to disclose material defects to avoid misrepresentation or fraud.

If you knew someone had died on the property in the past, would that make you less likely to buy it? For some people, the answer is yes. However, California law regards death on the property as a material defect only under certain circumstances.

Three-year rule

Under state law, a death that occurs on the property within three years of your purchase/rental offer is a material defect. As such, the seller has a responsibility to disclose it to you and other potential buyers. However, once the three-year time frame has elapsed, the seller is no longer under any obligation to voluntarily disclose information about a death that occurred previously on the property.

Nevertheless, if it is important to you to know whether or not anyone has ever died on the premises, ask the seller about it specifically. Even though the law does not require the seller to volunteer the disclosure after three years, it does require the seller to tell the truth about any deaths that have occurred on the property if asked directly.

If you find out that the seller has lied in response to your inquiry about deaths on the property, or failed to disclose a death that happened within the three-year time limit, you have grounds to file a lawsuit.

One exception

California law allows one exception to the rules regarding death disclosures in real estate transactions. A seller does not have to disclose a death that occurred within three years if the cause was acquired immune deficiency syndrome, nor does the seller have to tell you about a more remote death that occurred due to AIDS when questioned. The reason is that federal law regards such disclosures as discriminatory due to the condition’s classification as a disability.

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