Articles Posted in Buying and Selling Real Estate

by

First-Investment-Property-300x200
Author: Katie Conroy is the creator of Advice Mine. She enjoys writing about lifestyle topics and sharing advice she has learned through experience, education and research.

Investing in real estate is a great opportunity to begin your investment portfolio or add to your existing one. But if you don’t know what you’re doing, you can end up getting into a serious financial mess. For example, buying a property on a whim or without having the necessary information can result in much more money and work than you bargained for, at which point it’s more of a burden than an opportunity.

That’s why it’s important to learn as much as you can about real estate investment and to have a basic understanding of what it’s like to manage a property. If you’re considering purchasing your first rental property, consider these tips before you make any big decisions.

Continue reading

by

Healthy-Homeowner-300x200
Author: Natalie Jones

Natalie and her husband found the homebuying process to be incredibly overwhelming, but definitely a learning experience. Natalie hopes to help other first-time buyers by sharing her knowledge through homeownerbliss.info.

Your home should be somewhere you feel comfortable. It certainly shouldn’t exacerbate any of your health conditions or affect your overall wellness. Fortunately, even if you’re on a budget, there are a few changes you can make to your home that will keep your physical and mental health in peak condition.

Continue reading

by

Selling-Home-in-Fall-and-Winter-300x200
Author: Suzie Wilson

Suzie Wilson is an interior designer with more than 20 years experience. What started as a hobby (and often, a favor to friends) turned into a passion for creating soothing spaces in homes of every size and style. While her goal always includes making homes look beautiful, her true focus is on fashioning them into serene, stress-free environments that inspire tranquility in all who enter. Ms. Wilson’s mission with Happierhome.net is to offer you insight into how to turn your home into a sanctuary that you’ll not only be happy to come home to, but will actually make you feel better when you’re there.

It’s no secret that, statistically, more homes are sold in the spring and summer months than other times of the year, but that doesn’t mean you should shy away from putting your home on the market in the fall and winter. In fact, you might be able to sell your home even quicker in the colder months. When the weather is warm, the market is saturated with homes and it can take serious effort to make your home stand out. With less competition, you may be able to get more eyes on your property.

Continue reading

by

Real-Estate-Closing-300x200

Author: Staff

Buying and selling real estate in California is a complicated machine with many moving parts. Everything must be in working order before the deal can close. Most problems that arise in the days or weeks leading up to a closing might cause the machine to sputter, but the parties involved in the transaction can set everything back in order. Some issues, though, can cause big enough problems that they delay the closing date—or derail it altogether. This could be a major problem that changes the nature of the deal for the buyer or seller, or it could be a small problem that simply goes unnoticed for too long. For California real estate investors, knowing how to adapt to unforeseen problems is just as important a skill as knowing how to identify and avoid problems in the first place.

Title Problems

In almost any real estate transaction that includes mortgage financing, the lender will require title insurance. The title company will conduct a search of the property’s title history to look for anything that might affect the buyer’s—and therefore the lender’s—interest in the property.

Any defect in title raises the possibility of some third party asserting their own interest in the property. Liens, which give creditors a non-possessory interest in real property, are a common type of title defect. Before a closing may proceed, all title defects must be resolved to the satisfaction of the title insurance company.

Continue reading

by

Author: Staff

Most real estate purchases require some form of financing. Banks that issue loans for the purchase of real estate protect their investments in several important ways. The most well-known is the deed of trust, by which the borrower conveys a security interest in the property to the lender. If the borrower defaults on loan payments, the deed of trust gives the lender the right to foreclose on the property. Most deeds of trust contain a “due on sale” clause, which is another way banks protect their interests. This clause limits a property owner’s ability to transfer title to their property. It is worth noting that enforcement of due-on-sale clauses is fairly rare, but it is still an important issue for California real estate investors to understand.property management

Due-on-Sale Clauses

Continue reading

by

Trustee-Duties-Sell-Real-Estate-300x200

Author: Staff

Creating a “living trust,” as opposed to a will, allows an individual to take a more active role in the preparation of their estate. In a will, the testator designates someone to act as executor, but that person is not authorized to act until after the testator’s death. The executor must submit the will to a probate court, which can take time. A living will allows the process of distributing assets to begin while the testator—known as the “grantor” of the trust—is still alive. The trustee can bypass the probate process when the time comes. California real estate investors may benefit from living trusts. They should understand the various legal pitfalls that they can produce.

Fiduciary Duties of a Trustee

When the grantor of a living trust is still alive, they often serve as the trustee. The trust instrument should designate a successor trustee to take over upon the grantor’s death. The trustee owes fiduciary duties to the beneficiaries, and could be held liable for breaching those duties. Beneficiaries are only entitled to equitable remedies under California law, such as compelling certain actions or removing the trustee.

If the trust is a “revocable living trust,” the grantor may change the terms of the trust, or revoke it entirely. The successor trustee likely will not have that authority. The legal pitfalls for a trustee of a living trust derive from their fiduciary and statutory duties to the beneficiaries.
Continue reading

by

Trustee-that-needs-to-sell-house-300x225

Author: Staff

Creating an estate plan allows a person to direct the distribution of their assets after their death. A will is perhaps the fundamental estate planning document, but it is far from the only way to distribute one’s assets. Creating a “living trust” allows a person to begin the distribution process while they are still alive. The person designated to administer the trust is known as the “trustee.” Living trusts might not be right for everyone’s estate plan, but California real estate investors should carefully consider them. They should also consider who can meet the legal standards for a trustee with regard to selling real property assets.

What Is a Trust?

The term “trust” can refer to a legal document and the entity created by that document. A trust document bears some similarities to a will. When a person dies, their assets become part of a legal entity known as their “estate.” A trust instrument also creates a legal entity, known as a trust.

A trust designates beneficiaries who are entitled to receive something from the assets held by the trust. This could be ongoing income from interest or rent, or proceeds from the sale of trust assets. The person who creates a trust, known as the “trustor” or “settlor,” must designate a trustee in the trust document. In a living trust, the trustor may designate themselves as trustee, but they must also designate a “successor trustee” to take over after the trustor’s death.
Continue reading

by

California-Wildfires-and-Real-Estate-300x200

Author: Staff

Wildfires are a major concern throughout California. In 2018, multiple major fires burned nearly two million acres of land, taking more than one hundred lives and causing billions of dollars in damage. The risk to life and property from wildfires is something that no California real estate investor can ignore. Because wildfires are, by definition, large and out-of-control, real estate investors cannot mitigate this risk on an individual basis. Investors can, however, make use of resources from the state and federal government when researching and planning an investment.

What Is a “Wildfire”?

The term “wildfire” generally refers to any fire that quickly spreads from its point of origin to cover a much larger area. California’s drought conditions have made enormous areas of land highly flammable, and wind can spread fires faster than people can run—or drive—away from them.

The California Public Resource Code defines an “uncontrolled fire” as one that meets one or more of three criteria:
– It “is unattended by any person”;
– The people attending it are not able to prevent it from spreading; or
– It “is burning with such velocity or intensity” that “private persons at the fire scene” would not be able to control it without the assistance of trained firefighters.
Continue reading

by

Commercial-Property-300x200

Author: Staff

When it comes to choosing an investment property in California, real estate investors have a vast array of options. They can purchase a single-family dwelling and rent it to a tenant, or renovate it and flip it. They can purchase a multi-family dwelling or an apartment building for rental purposes. Commercial real estate offers even more possibilities, such as buying an existing office or retail building, renovating a commercial building, or purchasing raw land to develop from the ground up. Commercial investments often carry greater possibilities for revenue and profit, but they also often involve more risk, and more up-front work. The following is a general overview of the steps in a commercial real estate transaction. This hypothetical transaction involves the purchase of a property with the intention of renovating or developing it for commercial use.

Step 1: Find a Property and Build Your Team

Before you look at a single property, you should identify your goals and make a plan. Do you want to purchase a property that you can sell at a short-term profit, or do you intend to derive income from the property through rent payments? How much risk can you take on? How much time, effort, and capital are you willing and/or able to invest? Do you have investment partners? Are you putting together a real-estate syndicate? Do you need investment partners to contribute money or expertise? And so forth.

Next, you should visit many properties. Whether a property is “right” for you depends on your investment goals and your budget for both purchasing and maintaining a commercial property, among many other factors. Consider the current uses of these properties, and whether they fit your intended use or could be adapted to that use. Determine whether there are any uses that are prohibited for a property because of zoning or deed restrictions. Find out what permits you will need from multiple levels of government. Investigate each property’s potential for rent income, and the economic conditions of the surrounding areas. Above all else, find out why the owner is selling.
Continue reading

by

Real-Estate-Investors-Buying-Foreclosures-231x300

Author: Staff

The possibility of foreclosure has been a persistent reality for real estate owners for some time. Foreclosures often occur when property owners default on their mortgages. County or state authorities may also foreclose on a property after the owner fails to pay property taxes. In some situations, a homeowner’s association may foreclose for failure to pay fees or assessments, or for other breaches of the applicable covenants, conditions, and restrictions. For California real estate investors, foreclosure auctions could present an opportunity to acquire property below market price. Investors should be aware of the significant risks that often come with properties sold at a foreclosure auction, and they should carefully research any property before the auction date.

Judicial vs. Nonjudicial Foreclosure

California allows two types of foreclosure: judicial and nonjudicial. In a judicial foreclosure, the creditor or its agent must file a lawsuit and obtain a court order before they may conduct an auction. Nonjudicial foreclosure, which does not require a court order, is possible when the deed of trust signed by the mortgage borrower includes a “power of sale” clause. This clause authorizes a designated trustee to conduct a foreclosure, and essentially waives the borrower’s right to a court proceeding. Creditors must still meet numerous requirements regarding notice and opportunity for the borrower to cure a default.

Right of Redemption

From a real estate investor’s point of view, the most important distinction between judicial and nonjudicial foreclosure involves the borrower’s right of redemption:
– In a judicial foreclosure, the defaulting borrower can get the property back by paying the full amount owed to the lender, plus additional costs. The deadline to exercise this right is either three months or one year after the auction date.
– In a nonjudicial foreclosure, the borrower has no right of redemption. All sales are final, so to speak.
Continue reading

Contact Information
San Diego Office
4275 Executive Square #200
La Jolla, CA 92037
Phone: +1 858-964-4589
New York Office
287 Park Avenue South, Suite 422
New York, NY 10010
Phone: +1 212-634-6861
Minneapolis Office
331 2nd Avenue S. #420
Minneapolis, MN 55401
Phone: +1 612-284-5001
Detroit Office
28175 Haggerty Rd
Novi, MI 48377
Phone: +1 248-994-2221
Dallas Office
100 Crescent Ct #700 - 3425
Dallas, TX 75201
Phone: +1 469-296-7716

ATTORNEY ADVERTISING

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Please do not include any confidential or sensitive information in a contact form, text message, or voicemail. The contact form sends information by non-encrypted email, which is not secure. Submitting a contact form, sending a text message, making a phone call, or leaving a voicemail does not create an attorney-client relationship.

Copyright © 2023, Bona Law PC
JUSTIA Law Firm Blog Design