Archive for the ‘Real Estate Law’ Category

Smoking Ban in Condos

May 8th, 2009

With all of the smoking bans popping up across the United States, Florida just recently had an interesting situation that could lead to banning smoking in privately owned condominiums.

Florida’s Clean Air Act initially contained a provision that banned smoking on common elements of a condominium. But this provision didn’t stay in effect for long and the anti-smoking restriction was removed. It’s unclear exactly why this was removed from the law but the initial step in that direction may be a harbinger of things to come.

In addition, there have been some situations in Florida where secondhand smoke which seeps into another condo unit has been considered a nuisance. The courts have stood by the neighbors and declared the secondhand smoke a nuisance and banned the smoking condo owners from smoking in their own homes.

It’s easy to see where this is headed and how quickly smoking could be banned across the United States. So if you’re a smoker and wish to continue to be a smoker you may want to dig deeper into local laws and regulations before you move into a housing unit that shares common walls and heating and air conditioning vents with other units. Public sentiment is definitely not on your side.

Avoid Tenant Lawsuits

May 1st, 2009

One of the most common lawsuits that landlords find placed against them by tenants is fair housing disputes. There are some steps you can take as a landlord to try to avoid a fair housing lawsuit from your tenants and the first ones start before you even have a tenant.

Screening

Every person who responds to your vacancy needs to be treated in exactly the same manner. This means that you need to have the same application and screening process for everyone, no matter what their age, race, gender, etc. If you discover a good business reason not to rent to someone during the screening process it’s a good idea to note these on the application.

Know the Law

You should become familiar with all laws relating to fair housing whether they’re federal or local laws. If you happen to have a staff or property management company its important that they also understand all of the rules related to fair housing for your region.

Stay the Course

It seems obvious that all tenants should be treated equally but you may be tempted to give someone a break based on their situation but by doing this you’re simply setting yourself up for future discrimination suits from other tenants. So stay the course and treat all tenants the same.

Even if you do everything right it’s not a guarantee that you won’t be sued so keep accurate records to prove your case in court.

Do You Need a Lawyer?

April 10th, 2009

There are a lot of legal matters involved with being a landlord but quite often you can handle them yourself if you keep good records, follow the law and are willing to stay abreast of what’s happening locally in the landlord/tenant realm. But there are some times when you may want to hedge your bets and hire an attorney.

Contested Eviction

Most evictions you can handle yourself as long as you follow the rules and the detailed procedure but if you have a tenant who is contesting the eviction and has retained their own attorney then it might be time for you to pull out the big guns and get your own attorney involved.

HUD Investigates

If a tenant has filed a complaint against you and Housing and Urban Development (HUD) thinks there is enough merit to investigate then you may want to have a lawyer on your side as the fines issued by the HUD are very large.

Personal Injury Case

If a tenant claims that they became injured or sick because of something related to your property then you will probably want to have an attorney help you through the case as personal injury cases can be extremely expensive.

Buying/Selling Property

A real estate attorney can be an invaluable asset if you’re thinking about buying or purchasing property. They know all the ins and outs and the really good ones have a great handle on the value of property in the area and the current local market.

First Time in Court

You don’t need an attorney for your first court appearance, but it may help you understand the process and get your paperwork and information in order. You probably can do it alone but for some, having an experienced teacher at your side is well worth the expense.

What does the Office of Housing Do?

November 24th, 2008

Many people have heard of the Federal Housing Administration (FHA) but when pressed its hard to come up with a description of what this group does or how they help American people purchase homes.

The FHA provides mortgage insurance for loans made by approved lenders. It is actually the largest mortgage insurer in the world. FHA insurance protects lenders from people who default on their loans as long as they meet certain requirements. If someone does default the lender receives a monetary claim that helps defray the lender’s expenses. Remarkably the FHA is the only government agency that is completely self funded and costs taxpayers nothing.

By helping lower income Americans purchase homes with lower down payments and more generous household income calculations, the FHA stimulates the economy by encouraging more home ownership, more jobs for builders and contractors and other related industries, improves tax bases in certain targeted areas which in turn help local schools and other government funded groups.

Unlike regular loans, if you have an FHA-insured loan you don’t have to come up with a 20% down payment. The cost of the FHA insurance is passed through your lender to you and is tacked onto your monthly mortgage. As you continue to pay down your mortgage balance the FHA insurance will drop.

The FHA has a storied history of over 70 years of helping American people who own homes or who are affected by the industries that are supported by an increase in good economic housing, so basically everyone.

The Five Lease Must Haves

August 20th, 2008

Day 271/365
Creative Commons License photo credit: thp365

If you’re creating a lease for new tenants there are several things to be considered but no matter what, make sure the following five are included to prevent future problems.

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Do you Need a Lawyer

July 28th, 2008

P4010288
Creative Commons License photo credit: peggydavis66

Do all property owners need a lawyer? The answer is probably yes, but in varying degrees. It’s usually very beneficial to have a real estate attorney to make sure your initial purchase goes as planned. But after that, most property owners don’t need to have an attorney. If you only own one or two properties you can probably handle most issues on your own and can contact your real estate attorney when and if you have a concern. (more…)

Preparing for Court: Landlord/Tenant Disputes

April 23rd, 2008


Creative Commons License credit: akeg

Taking a tenant to court or being taken to court by a tenant can be a very stressful situation. You can alleviate that stress a little bit by taking the proper steps from the very beginning, in fact, if you’re meticulous enough, you might even be able to avoid court all together. (more…)

Real Estate Tax Tips

March 10th, 2008


Creative Commons License credit: Jeff Belmonte
Taxes are tricky. Are you taking advantage of all the breaks you’re entitled to as a real estate owner? Everyone knows you can deduct your mortgage interest from your federal taxes, but property owners can also take advantage of a number of other breaks.

  • Points: The IRS consider those hefty fees paid to lenders as a form of prepaid mortgage interest. So if you bought a home in 2007–or refinanced your adjustable rate mortgage you get a break.
  • You may also qualify for a mortgage interest deduction on a second vacation home as well as any second mortgages or home equity loans you hold.
  • Owners of investment property can deduct expenses related to the property, so keep receipts for repairs, upgrades, or real estate management fees.
  • If you rent out your vacation home when you aren’t using it, you might be able to deduct the cost of travel there and routine upkeep.
  • Home improvements made for health reasons are deductible from your taxes, if they’re made for the chronically ill or disabled and don’t add value to your home.
  • Tax credits can also be deducted for “green” improvements, such as energy efficient windows and doors and solar energy systems.

If you sold your home and moved because of a job, you may be able to deduct some of your moving expenses. You must move at least 50 miles and you must have moved in order to take a full-time job. You can deduct the cost of packing and transporting your household goods. You can also deduct travel expenses for yourself and your family, which includes lodging, but not food.

You cannot deduct:

  • Any part of the purchase price of your new home
  • Expenses of buying or selling a home
  • Expenses of entering into or breaking a lease
  • Home improvements to help sell your home
  • Loss on the sale of your home
  • Losses from disposing of memberships in clubs
  • Mortgage penalties
  • Pre-move househunting expenses
  • Real estate taxes
  • Refitting of carpet and draperies
  • Return trips to your former residence
  • Security deposits
  • Storage charges except those incurred in transit and for foreign moves

If you invest in real estate good record-keeping is essential. Keep the purchasing contract and closing statement, which establish the basis on which you’ll calculate depreciation as well as capital gains. Also keep track of capital improvements you’ve made, which you can depreciate; rental income records, including vacancy periods and security deposits received; and operating expenses.

If you work from home, you can deduct expenses that are related to business, including real estate taxes, rent, insurance and maintenance and repairs. Those expenses are based on the amount of square footage you use exclusively for business.

If you have a lot of complex real estate investments, or even if you just own your own home, it’s a good idea to read up on what the IRS allows you to deduct and when.

For example, timing is everything. If you sell your home but immediately reinvest the windfall in a better property, you may be entitled to defer the taxes on those capital gains. On the other hand, homeowners who have lived in a house that served as their primary residence for two years can exclude up to $250,000 of the profit from their reported income–twice that for married couples. Investment property, on the other hand, has a whole different set of rules.

There are a number of places on the Web with information on real estate taxes, starting with the IRS:

Evicting for a Violation

February 29th, 2008

If your tenant is diligent about paying the rent but still violates your rental agreement you have a legal right to evict this person.

If your tenant is doing something that is illegal, an annoyance to other tenants, or dangerous but not specifically prohibited in the lease, check with your city ordinances as they keep a list of violations that are just cause for termination. Make sure you document all of the violations so you have a record for the courts.

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Investment Property Owners and Tenancy Laws

December 26th, 2007

You have just bought your first investment property and you are ready to dive in to being a landlord. The to-do list is surprisingly long: advertise rental property, create rental forms, figure out how to do credit checks, set up bank accounts for deposits, make repairs, and on and on. Make sure you add to the list gaining an understanding of the many federal, state, and local laws, governing your actions with your tenants. (more…)