Jun 7, 2018 | Real Estate Law |
By Gary Bowers, Attorney at Law Whether you own or manage an existing business or are considering a new start-up, you will likely need to decide whether to buy or lease space for your business. Commercial property transactions can be complex, and there are a myriad of things to consider before you make this decision. The search process can be intimidating, overwhelming and sometimes oversimplified. One recommendation I often provide to clients at this stage is to consider hiring a licensed real estate broker (experienced in commercial sales and leases) to serve as your agent in the search to purchase or lease. Where to Start in the Buy or Lease Decision The size and type of business you operate will be your starting point. Many small businesses are home-based with no need for an office or store front. If you are starting small and all your employees can work virtually, you may be able to delay your buy/lease decision and save some money. Even if you need to rent space monthly or quarterly for face-to-face meetings, this may be less expensive than obtaining permanent space. If your business will have customers coming to you (retail, restaurants, etc.), or if you need specialized equipment (i.e., manufacturing space or an IT server farm), then you will need to decide the best options to meet the needs of your business today and in the near future. 5 Things to Consider Whether you buy or lease space, location is critical. This will differ by type of business; for example, if you are opening a restaurant, you will likely want a busy location, visible...
May 22, 2017 | Real Estate Law |
By Gary J. Bowers, Attorney There is no doubt that technology and modern conveniences touch almost every aspect of our lives. The modern day consumer can purchase almost anything online, and with regard to a real estate loan closing our television promotes how easy it is to apply for a loan online or to close on your loan “faster than a speeding bullet.” At what point must the consumer ask the question, “What quality is being compromised for the sake of instantaneous gratification?” We suggest that real estate closings, loan closings and particularly title examinations involved in assuring those acquiring real estate are not to be compromised for the sake of speed and desire to be finished. Speed is not always synonymous with quality and correctness. In my years practicing law in North Carolina, and my years prior to practice assisting attorneys with real estate closings and completing title searches, I have encountered both simple title examinations and extremely complex title examinations. The complexity of the title exam does not discriminate due to the amount of the purchase price, whether it is a cash closing or financed through a loan. Despite the fact that many counties have conveniently provided public records for searching on the internet, every title is different and the time is different. This can be taken for granted by the seller, the realtor, the lender, the buyer, attorneys that do not engage in many real estate transactions, and by your friend who had a transaction that went smoothly in the past. For a title searcher with the goal of performing their task correctly, his or her goal...
Apr 3, 2017 | Real Estate Law |
In mid-March, the Federal Reserve announced a .25% rate increase, the first of what is expected to be three small interest rate increases in 2017. According to NerdWallet, mortgage rates prior to the 2016 election were around 3.75%; after the election, rates began to inch upward in anticipation of rate increases by the Fed. For that reason, yesterday’s announcement did not cause an immediate jump in rates. Rates in North Carolina for a 30-year mortgage are currently around 4% (see current NC mortgage rates at Bankrate.com). Experts expect mortgage rates may be in the 4.6 to 4.8% range by the end of the year, though those estimates could be impacted by changes made by the current administration. Spring in North Carolina typically sees a jump in home sales. The rate increase is not expected to have a big impact on the market, but may cause potential buyers to re-evaluate the amount of house they can afford. Rates are not expected to decrease in 2017, so anyone looking to buy, sell or refinance may wish to do so early in the year. Seller’s Checklist Here are some things to remember if you are considering selling your home this spring: Look at your home with a “buyers eye.” The half-finished repair job that doesn’t bother you may detract buyers. If there are outstanding maintenance issues, take care of them before you put the house on the market. Clean and declutter to make your house look larger and better. Trim bushes, cut grass and spruce up your yard. A welcoming pot of flowers on the porch is always a good idea. Make...
Feb 21, 2017 | Real Estate Law |
By E. Drew Nelson, Attorney Home ownership rates in the United States reached an all-time high of 69.20% in 2004; while there have been a few upticks, there has been a gradual decline in home ownership over the past decade. During the fourth quarter of 2016, the average home ownership rate was 63.7%[1]. Some people rent because they cannot afford to purchase a home, while others do so for convenience – they may move frequently and like the flexibility of renting, or they may prefer having a landlord to handle all the maintenance and repairs on the property. Whether you are a tenant (also called the renter or lessee) or the landlord (the owner or lessor), having a signed lease agreement provides protection for both parties. If you will be renting a property from another party, here are some common things to look for: What is the term? Commonly leases may be for 12 months, but you may find leases that are written for shorter (or longer) terms, or operate on a month-to-month basis. What are the notice requirements? If you wish to terminate the lease or not to renew it, how much notice must you give to the other party? Can you terminate the lease verbally or via email, or do you have to sign a form at the rental office? Many leases have automatic renewal clauses, so you may end up obligated for another 12 months if you do not provide sufficient notice in the form the lease specifies. Are there extra costs involved? A friend leased an apartment that required all tenants to pay for valet...
Sep 23, 2015 | Real Estate Law |
Our real estate attorneys often get questions about the need for a title search (and the related expense). We have compiled a list of frequently asked questions about title searches / title examinations. Q: Why should I get a title search by an attorney when purchasing residential or commercial real estate? A: For most people, real estate transactions involve large dollar amounts. As a buyer, you want to do everything possible to protect yourself in these types of transactions. There are a number of reasons to have a title examination: Need to identify whether there are existing deeds of trust, judgment liens, tax liens, past due county taxes or other liens of record that interfere with a purchaser getting clear title for the property; Need to identify whether the seller is competent to transfer title or contract for the sale of the property; Need to identify whether there are any restrictive covenants that outline or restrict the use of the land; Need to identify whether there is a homeowners’ association, and whether there are dues or potential obligations that may arise with the ownership of the property; May identify a recorded survey or plat, which may assist a purchaser in visualizing the boundaries of the property or any established easements and right of ways for the property; May identify any easements and right of ways that the property is subject to, or easements and right of ways that benefit the use of the property; Determines who the parties are that need to join in the execution of a deed to convey all interest, right and title to the property...
Sep 8, 2015 | Real Estate Law |
By Gary J. Bowers, Attorney at Law In North Carolina, many people are connected to the residential rental world. Most individuals rent an apartment or house before purchasing a home, and even parents with a child in college who is renting a place to live off campus find themselves with residential landlord/tenant questions. On the other side of things, some people have investment properties that they lease, and some have inherited an older home they desire to fix up and rent to supplement their income. Do you need an attorney for these transactions? Below are some instances that may offer a direction for both tenants and landlords of when to seek legal counsel. Instances when a residential tenant should consider consulting with a legal professional: Written lease agreements can be complex and may contain clauses that strongly favor the landlord. I recommend the tenant consult a legal professional to review and explain the provisions of the written lease agreement before signing it; For assistance with notice to the landlord for repairs, with notice of the tenant’s intention to vacate the premises, and with notice of the tenant’s intention to terminate a lease; While leasing the premises, the tenant encounters an issue with the leased premises that makes the premises uninhabitable or not suitable for living; If the tenant receives a notice for past due rents or notice to vacate, and has questions about the proper procedure or his/her rights; and If the tenant has questions regarding the status of his/her security deposit. Instances when a residential landlord should consider consulting with a legal professional: If you, as the landlord,...
