Common Legal Issues That Real Estate Investors Face

As a real estate investor, there are numerous laws and regulations you must follow. An unhappy tenant, neighbor, or any other number of legal issues can cause a major problem for you. Common legal issues that real estate investors face today include lawsuits, threats to property rights, and environmental issues.

Common Legal Issues That Real Estate Investors Face: Lawsuits

Misrepresentation is the most common type of lawsuit investors face. Misrepresentation refers to misstating facts about features of a property. Failure to disclose information about the property or falsely advertise can also lead to a lawsuit. You cannot mislead a potential buyer. If an individual feels misled by you, you will likely encounter a lawsuit. Real estate lawyers can help examine your actions and investment laws to either prevent you from making a mistake or help mitigate the consequences from making one.

Threats to Property Rights

Today, the top two greatest threats to property rights are the abuse of eminent domain and civil forfeiture laws. Eminent domain is the power of the government to take private property and turn it into public use. This typically means taking land and using it to build transportation methods. However, the government can also condemn a home or business then hand it over to private developers. You can sometimes stop the eminent domain process by fighting back with a lawsuit.

Civil forfeiture allows law enforcement to seize and keep private property. With no respect for property rights, investors can lose property without having committed a crime. An attorney can help you fight against threats to your property rights.

Common Legal Issues That Real Estate Investors Face: Environmental Issues

As a real estate investor, it is your responsibility to ensure your investments are up to code. Any building or property that contains environmental issues can lead to legal consequences. Environmental issues include asbestos, lead-based paint, mold, carbon monoxide, groundwater contamination, and many more. Laws require that an investor discloses any known lead-based or environmental hazards to purchasers or tenants. You can limit your environmental liability by hiring an inspector to inspect and approve your property. Any issues that come up during their inspection should be addressed immediately.

Every real estate transaction presents potential for legal pitfalls to emerge. With the increasing activity of the housing market, legal issues are more and more common. Get the proper training and conduct due diligence to avoid legal battles. When something does happen, make sure you hire a competent attorney to help you navigate terse waters.

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 Steelbridge Realty LLC  is a Licensed Real Estate Brokerage that utilizes cutting-edge marketing techniques and data-driven Real Estate solutions in today’s ever-changing environment. Our group of professionals have decades of experience and have navigated through many business cycles. Our diverse background gives us the tools to guide people towards successful decisions.


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