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 |
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, have used the same written lease for...
May 8, 2015 | Real Estate Law |
Whether buying a house or refinancing your existing mortgage, you as the purchaser/borrower may ask, ‘what is the role of the closing attorney’? There are five primary functions handled by the closing attorney during a real estate transaction: Title examination: The buyer and lender will both want a clear title for the property. Without clear title, the sale may become much more complicated. Upon receipt of a real estate purchase agreement or a request from a bank or mortgage broker, the closing attorney will begin to check the title to the property being sold. The title examination is for the purchaser and the lender to evaluate title to the real estate. The purchaser will need to know whether there are certain restrictions of use, easements, encroachments or whether the title is marketable and clear for the seller to transfer the property to the purchaser. The closing attorney will identify any existing mortgages against the real estate that will need to be satisfied at closing in order to transfer good title. The lender will want to have an overview of what liens, judgments and mortgages, if any, exist that must be addressed prior to or at closing so it can secure a 1st lien position on the real estate. Also, the title examination provides the lender’s underwriters with opportunity to raise concern with the status of the title. Title insurance: Title insurance protects the buyer and the lender in the event a future problem is found with the title. Once the title examination is completed, the closing attorney prepares an opinion on the title that is offered to a title...
Apr 8, 2015 | HOA Law, Real Estate Law |
By Ryan McNeill, Attorney at Law If you serve on the Board of your Homeowner’s Association, you may quickly find out how much you need to learn! In addition to the Covenant’s and Bylaws that govern your HOA, there are other local, state and federal laws and regulations that can come into play. As long as all homeowners abide by the rules and pay their dues on time, being on the Board can be relatively simple. Unfortunately, many homeowners don’t read (or perhaps understand) these thick documents and others ignore them. Evenly and fairly enforcing the Covenants and Bylaws for the benefit of the Association members (the homeowners) as a whole becomes the responsibility of the Board. Many issues that come up have very specific guidelines the Board must follow. For example, the Smith’s lawn is overgrown and tangled with weeds. The Covenants state that lawns must be kept in neatly trimmed and free of weeds. The Board’s response (generally handled by a property management company) is to send a letter to the homeowner giving them a set period of time to rectify the situation. If the homeowner fails to fix the problem, the Board is able to take the next step of holding a hearing. If the situation remains unresolved, the Board may then permitted to hire a third-party to mow and treat the lawn and charge the homeowner. [The actual steps to resolve the issue will depend on the governing documents and applicable laws in your area.] But what happens when the situation is not as clear cut? Here are some common examples where you might want...
Oct 29, 2014 | Real Estate Law |
By E. Drew Nelson, Attorney Whether buying a home for the first time or buying a second home or investment property, there are several steps each and every home buyer should consider when looking to purchase a piece of real estate. Have a written offer to purchase signed by all owners and spouses. Also have an attorney look over this document before submitting to the seller. Have a home inspection and survey done. Home inspections are most often where you hear horror stories from real estate closings. I recently had a client who debated getting a home inspection on a property that looked very good on the surface. Upon having an inspection they discovered extensive termite damage and rot that would require approximately $30,000 to repair the floor and support joists. If he had not caught this prior to the end of the due diligence period, he would have been stuck repairing this out of pocket. Additionally, I have had clients who declined to get a survey done. They realized years later a building on their property encroached upon the property of another and had extensive expenses battling over this encroachment in court. Get financing approved well in advance of closing. Preapproval for a loan will make the process smoother from the start, and some sellers may even require you to be preapproved before they accept an offer. Make sure the property appraises for enough to match the value of your offer. Do not move in or do any work on the property before closing. Make it clear if there are any contingencies to close or closing costs the...
