The Importance Of Understanding Real Estate Law
For example, a person could buy a house or an apartment building and allow tenants to move in in exchange for monthly rent. Often, the gross revenue from monthly rent is more than the mortgage costs (if there’s any). So the property owner profits from its monthly rent and future value from selling lands.
This was one of many examples of potential uses for real estate.
However, the tax law related to real estate can be relatively complicated. There are laws specifically designed for:
- Buying/owning a home
- Selling a house
- Construction defects
- Land uses
- Mortgages and equity
- Landlord tenant law
It is important to be familiar with real estate laws because any mishap could lead to a lawsuit. Tenants might sue landlords due to various reasons, such as not maintaining the property, unlawful treatment or harassment. On the other hand, landlords might have to take tenants to the law court if tenants do not pay their rent on time.
For your own home, real estate law will come in handy when it comes to the tax season. The United States government wants homeowners to win, so they give plenty of tax advantages. Owning a home can lead to many deductions in tax forms. It’s important to take advantage of every tax incentive there’s available.
Also, owning a home comes with several important liabilities that are important, such as insurances. Armed with good insurances, real estate laws will protect you from any accidents. If your house was flooded? No problem, your insurance will cover it. If you own a swimming pool, the laws become a little bit complicated because you are liable for whatever happens around the pool. Even if kids from the neighborhood came into your lawn and got injured while playing in the pool. By being aware with laws, you will be more aware to ensure your property is liable-free and safe for the public.
Another important element to owning a home is the law of property boundaries. What a real estate agent tells you and what the official document of how much property you own might not match. There are some cases where a homeowner thought they had more than half acre land when they actually didn’t. What’s on the official paper will always hold up in the law, so a homeowner will need to make sure the paperworks are right. That’s another real estate law to consider about.
Sometimes there are problems of trees where a tree from a neighbor’s house is causing problems for your house, such as falling branches. Since the tree lies in the neighbor’s property, you can’t cut down the tree. The only way to solve this (if the neighbor does not cooperate) is through the law. Same thing with neighbor disputes. Everything can be resolved through the real estate law.
If you are looking to invest in properties, it is crucial to be throughout with the real estate law. Sometimes with a new building, there are construction errors and you need to know your rights to make sure it is built properly before buying. Also when buying a home or an investment property, you will deal with banks for mortgages and equity loans. Every mortgage has their own terms and a decision could affect next 30 years because interest rates do add up. By being savvy with real estate laws, the amount of money you can save for next few years can add up to a small fortune.
By getting a lawyer for real estate, you will benefit a lot from the resources a lawyer would be able to provide. If you are a landlord, you need to make sure the contract with tenants are iron clad that will hold up in the court. If the tenant stops paying your rent and the contract was weak, you might not be able to recover damages. Or if you own a home insurance, you need to make sure it covers what’s necessary for your home.
Also, a lawyer can advise you into making smart monetary decisions that build your wealth. After all, a wealth isn’t built overnight but after small decision victories over the time.
Contact Silverman Law Office today for any real estate law questions you may have!