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The real estate business, like any other free market business, is subject to scams, fraud and unethical practices. As such, it is a highly regulated business. As a real estate investor, there are areas of law with which you should be very familiar. You should strive to educate yourself as well. At a minimum, you should be aware of the following.
Legal Documents
Even though you’ll probably use an attorney or agent to help you in your transactions, it is still critically important that you understand the basic documents involved in real estate investing. For example, consider:
- What form of contract, deed, note, lease, and so forth is commonly used in my area?
- Are special forms required for licensed real estate agents?
- Am I required to use these forms if I am an agent acting as a principal?
- Which forms should an attorney prepare, and which ones can I prepare myself?
Remember, if you wish to customize any legal forms, you should work with a knowledgeable attorney.
Landlord-Tenant Rules
Most states have laws governing Landlord-Tenant relationships. If you invest in real estate and lease to tenants, you MUST be familiar with these laws. Keep in mind that even if you hire an agent to manage your properties, YOU, the owner are ultimately responsible if something goes wrong. Some examples of things you should know include the following:
- What exactly does it take to evict someone? How much does it cost? How long does it take?
- Is there a limit to the amount of rent increases I can ask for?
- Is there a limit to security deposits I can collect?
- Do I have to give interest on a security deposit to my tenant?
- What are the rules for handling security deposits when a tenant leaves?
- What limits are placed on late fees?
- Do I have to set up special trust accounts to handle security deposits?
Review your state’s general statutes, and work with a knowledgeable real estate attorney for answers to these questions.
More : carolinanewswire.com
This entry was posted
on Wednesday, January 23rd, 2008 at 1:50 am and is filed under Estate Attorney, Estate Laws.
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