Real estate investments are pieces of real property that are intended to generate money for the owner. Common real estate investment property includes residential or commercial property that can be rented to leaseholders or temporary guests, such as apartment buildings, vacation homes, and commercial store space. This property is not the property owner’s personal home, and it is purchased for the sole reason of either obtaining profit through rentals or from selling the property at a later time when the market is favorable.
There are a variety of different ways to make real estate a part of your investment portfolio, including:
- Purchasing a joint ownership position in a large building
- Purchasing a co-op
- Purchasing commercial space and leasing the space to a business
- Purchasing residential property in an up-and-coming neighborhood for a low price, and then sitting on the property until it becomes profitable to resell the property
- Flipping residential property by purchasing a worn-down home at a low price, rehabbing and renovating the home, and then reselling the home at a higher price
- Purchasing an inexpensive home and renting it to tenants
When you purchase property for investment purposes, you may encounter a variety of issues that can lead to legal disputes. Common real estate investment property disputes include:
- Breaches of contracts
- Deed disputes
- Defective titles
- Zoning issues
- Boundary disputes
- Warranty of habitability issues
- Tenant issues
- Mortgage issues
In addition to these real estate legal problems, you may face other kinds of lawsuits directly related to your role as an investor, especially if the property is owned as part of a trust or owned by an investment group that you are a part of.
If you encounter an issue with your investment property, you should first gather all necessary paperwork, including:
- Mortgage paperwork
- Sales advertisements
- Inspection reports
- Copies of written communications such as e-mails
- Lease documents
- Land use certificates
- Tax information
- Receipts or proof of payment
- Names and contact information of potential parties and witnesses
Once you have assembled all of this paperwork, you should bring it to a real estate lawyer, who can advise you on your best course of action, whether that is simply sending a demand letter, negotiating with the other party, or proceeding to trial.
Real estate law is an extremely complicated area of law because it combines multiple different areas of law, such as tax law, contract law, and civil law. As such, real estate investment property disputes are usually complex and incredibly confusing for individuals without proper training and legal expertise. An accomplished real estate lawyer can review your case and provide crucial guidance on how to best approach your issue.