Understanding real estate law of contracts is important when it comes to buying and selling real estate. What do I see as some of the most important contract legal issues when buying and selling real estate today?
Answer: The Seller disclosure. Making sure they are accurate, and not misleading to the buyer. Don’t want to be accused of fraud, or misrepresentation which could terminate the transaction completely in certain circumstances. From the buyer’s perspective, following up on the disclosure and doing a little bit of homework to make sure there are no misleading statements in the disclosure. Things like checking on permits, and certificates of occupancy to make sure the deck in the back yard is up to code, and the man cave built in the basement was properly inspected and certified for occupancy.
Question 2: As a business attorney, what legal issues do you see with people purchasing homes for investment purposes?
Answer: Covenants, and HOA limitations on usage. Many people want to buy second homes for investment purposes. But they don’t realize, is that some covenant controlled or HOA governed communities might limit what secondary properties can be used for. A year long lease might be ok, but putting the property out on a rental share company like Air BnB might violate the covenants, and be prohibited. Under those circumstances, it might be best to rethink your business plan.