Category: Real Estate

Tips To Save Money When Purchasing A Home

Posted by David Chang on with 2 Comments

Purchasing a home is a very exciting experience, but will be your biggest investment during your lifetime. There are many responsibilities that come with owning a home, from mortgage to utility bills, it can get expensive overtime. However, Chang Legal wants you to save your money by following these shortcut tips:

Don’t ignore essential maintenance issues: It is essential to not dismiss any maintenance problems that may occur. Whether your roof is leaking or your pipes burst, there is no landlord for you to call. It is crucial to get these maintenance problems solved immediately to prevent further damage to your home.

Don’t overspend furniture/remodeling: You have just spent a major section of your life savings on your home, you do not want to overdo the spending on furniture. In addition, you do not want to make any rash decisions with remodeling the home you just purchased.

Repair Vs. Improvement: The difference between repair and improvement in regards to the IRS is that a repair will not grant you more money if you decide to repair a broken utility. In contrast, if you make an addition, better known as an improvement to the property, you will receive more money if you put the home on the real estate market. For instance, if you purchase a home with a broken washer and a leaky roof, you will not receive anymore money for repairing these infractions. However, if you add air conditioning to the home, the value will increase by the IRS.

Insurance: As a new homeowner, you want to guarantee that you are properly insured. This means you want to ensure you have enough coverage to cover your whole property if a tragedy occurs such as a fire or natural disaster. In addition, if you have others relying on you to provide for them, such as a child, then you want to have life insurance and make sure they are listed as a beneficiary. This will prevent the possibility of the IRS taking the property away from them if you pass unexpectedly.

It is essential to get in contact with a real estate attorney, such as us at Chang Legal, to learn more about the laws surrounding being a homeowner. With over 15 years of practicing real estate, we are here to guide you through being a new homeowner.

For further information on how to save money as a new homeowner or to learn more about how we can support you, contact Chang Legal today.

The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter.  The transmission of the Website, in part or in whole, and/or any communication with us via Internet e-mail through this site does not constitute or create an attorney-client relationship between us and any recipients.

Tips For Investing In A Commercial Real Estate Property

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When you ask a real estate attorney about the benefits of a commercial real estate property in comparison to a residential real estate property, you will more than likely hear a long speech with lots of positives. It turns out that investing in a commercial real estate property is more beneficial than investing in a residential real estate property. With your particular situation, if you are trying to rent out a commercial real estate space for profit, here are the benefits you will receive when you compare it to residential:

– Increase in cash flow
– Beneficial economies of scale
– Open playing field
– Abundant market for affordable property managers
– Bigger payoff

When you are considering to invest in a commercial real estate property, here are some essential tips to keep in mind:

Prepare Ahead of Time

When you are shopping around for a commercial real estate deal, you want to prepare yourself for the amount of money you are going to have to spend. Setting specific parameters connected to your particular situation is a great start, as well as, utilizing tools like mortgage calculators to determine how much you are going to have to spend throughout the life of the mortgage.

Take Preference Into Account

It is important that you do not pick a property solely based on the affordable pricing. If you are looking to rent out the commercial space, you should take the size and location of the building into account. Renters are looking for a commercial space that has enough space and a conventional area.

The Bottom Line

Ultimately, you want to ensure the commercial real estate property fits your specific needs at an affordable price. If you are having trouble on deciding what is a good commercial real estate deal, then talk to our professionals who have been practicing real estate law for over 15 years.

For more information or any questions regarding the tips for investing in a commercial real estate property, contact Chang Legal today.

The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter.  The transmission of the Website, in part or in whole, and/or any communication with us via Internet e-mail through this site does not constitute or create an attorney-client relationship between us and any recipients.

What to Expect at a Real Estate Closing

Posted by David Chang on with 1 Comment

If you’ve never bought or sold property before, the process of closing on your real estate deal may seem a little mysterious. Who is there? What do you need to be prepared for? What will happen? There’s no doubt: closings can be complicated events. In fact, it’s even a bit difficult to tell you “what to expect” in a general sense – every closing is unique. So here are some broad strokes on what a closing entails.

What is a real estate closing?

The real estate closing is the last step in a real estate transaction. This is where you get (or give) thekeys. It’s the point of no return (but it’s not that scary). Transfer of ownership generally happens when one party turns over the deed of the property to the other party – but it’s typically a lot more complicated than simply signing on the dotted line…

 

 

Who is present at the closing?

The list of who is present at a closing can vary slightly from situation to situation, but here is a general list of the major players at a closing:

  • The seller or the builder’s representative (if it’s a new home)
  • The buyer
  • Attorneys for the seller and the buyer
  • Real estate agents for the seller and the buyer
  • The mortgage lender / representative
  • The title company representative (sometimes one in the same as the mortgage lender’s representative)
  • The closing agent – this is the person who is in charge of guiding the proceedings. Sometimes the closing agent is also the title company representative or another person on this list.
  • A notary public

What do I need to do before the closing to assure it goes smoothly?

Your attorney will review all of the closing documents prior to closing to ensure everything goes smoothly. Your attorney will make sure you have taken all the appropriate financial steps before the closing and will let you know exactly what will happen at your particular closing.

There is one other very important step you should take before closing on a property that you are purchasing: 24 hours before the closing, you should do a final walk-through of the property. At this point, you can determine if any changes have been made to the property or if there is any damage to the property that wasn’t there when you signed the contract. If there are problems with the property, they should be dealt with then – not at the closing. Whether or not you are working with a real estate attorney, please do not skip this step – you don’t want to complete the closing, only to find out that you’re going to have to pay for repairs that you did not expect.

Where does the closing happen?

A closing can happen anywhere, but usually takes place at the offices of one of the professionals involved.

What am I expected to bring to the closing?

The answer to this question depends, of course, on whether you are the buyer or the seller and in either case, your attorney will prepare you and make sure you have everything you need. In general, if you are the seller, you need to bring the keys to the property (if applicable). If you are the buyer, you will generally be paying money at the closing, but that doesn’t necessarily mean you’ll be bringing a check with you. The most important thing to remember as a buyer is to communicate with your attorney, who will be sure you are ready for the closing.

What are the actual steps of a closing?

You’ll be doing a lot of signing at the closing so warm up your John Hancock skills. As a buyer, some of the most important documents are those that detail the terms of your mortgage loan. These are complex legal documents that use industry-specific terms that may be unclear to someone who is not a legal real estate professional. Your attorney will thoroughly review these documents – usually before the closing itself – and will make sure its safe for you to sign the documents.

If you are working without an attorney, it is crucial that you pay close attention to these documents. If you see anything you don’t understand or see something that isn’t what you expected, do not sign the loan documents until the issue has been resolved. Once you sign these documents, they are binding legal contracts.

At a closing, you will likely sign the following documents:

  • Closing disclosure / settlement statement – this is a list of all your credits and charges. It is itemized and at the bottom will list the amount you owe. You and your attorney should receive this document a few days before the closing so you can review it thoroughly.
  • Mortgage / promissory note: this is your “IOU” with the mortgage lender.
  • Mortgage / deed of trust: this document secures the mortgage / promissory note.
What can go wrong at a closing?
Optimally, your closing will be smooth sailing; having a real estate attorney as your partner in this process can help make sure that happens. But sometimes even when we do all the right things and follow all the steps, events that are out of our control occur. In fact, there are enough crazy stories out there about ruined closings that we’ll save those details for another time.

That being said, should your closing hit a few bumps in the road, it’s more important than ever to have an experienced real estate attorney at your side, whether you are the buyer or the seller. At Chang Legal, we have the experience necessary to guide you confidently through the process and to help you manage any problems that may arise along the way.

If you are thinking about buying or selling property, we’d love to chat with you about how Chang Legal can help make the process as easy and as successful as possible for you. Please email us at ContactUs@changlegal.com or call 847-907-4971 today.

The Five Most Common Real Estate Terms

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Legal real estate deals can be hard to follow, especially if you do not have any background in the law. Knowing the process of legal real estate transactions may not make any sense to the average person, this is why Change Legal is here to help you better understand the most common real estate terms and how they are relevant with your specific real estate deal.

Comparables

Comparables can be generalized to be a property that is similar in size, condition, and other relevant features to the real estate property you may be purchasing. This gives your real estate attorney and you a better idea of the general price of a property similar to yours.

Closing

Closing is the end of a real estate transaction, particularly where the former property owners give the keys to the buyers.

Closing Cost

The closing cost is the expense the buyer is required to pay in relation to their loan for the real estate deal.

Foreclosure

Foreclosure is the process where a lender or the bank can take over the title of a property if the owner can no longer afford the expenses of the homes. This does not occur after one missed period, but is nearly impossible to stop once initiated.

Mortgage

The mortgage is a formal agreement between the lender and new home owner on the set amount of money the owner will pay over a certain period of time. For example, a homeowner may pay 2,000 dollars every month for 10 years.

To learn more about the five most common real estate terms or to get support with your real estate issue, contact Change Legal today.

Understanding Real Estate Contract Clauses

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When it is time to buy a house, you can be put into a sticky situation if you are not careful with reading over the home purchase contract. It is essential to consult with your real estate lawyer before signing any agreement to ensure you know all that comes with it. Furthermore, a home purchase contract can be very long and a lot of information to process, this is why hiring a real estate lawyer is an important use for you.

ChangLegal is here to provide you the a few of the essential things that a home purchase contract includes:

– Address of the property
– Price you are offering for purchase
– Down payment amount
– The time elapsed that is allowed for the seller
– Date the sale will be closed
– Date of you taking possession of the home
– Items/furniture included in the purchase of the property
– Items/furniture not included in the purchase of the property

These are only a few of the general factors involved in a home purchase contract. It is important to contact your real estate lawyer if the seller initiates any counter offers, such as the following:

– Higher purchase price
– Eliminating certain contingencies they do not feel is necessary
– Removing items from the same such as furniture and appliances
– Time for seller to empty the house of items not included in the purchase
– Seller is allowed to a liquidated damage clause which entitles you to pay them if you back out of the deal besides any contingencies listed in the contract

Contact Your Real Estate Lawyer

If you and the seller are going back and forth with negotiations and you feel that you are making no progress with the purchasing of the home, then it may be time to contact your real estate lawyer. Hiring a real estate lawyer from the start of purchasing a property will speed the process up. ChangLegal has been practicing in real estate law for over 15 years, contact us about your real estate issues and to learn more about how we can support you today.

Benefits Of Hiring A Real Estate Attorney

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Whether you are purchasing or selling a residential property, you are most concerned with the costs that comes with that. Many homeowners avoid hiring an attorney for their real estate situation because it will save them money, however, there are many risks that come with not hiring an attorney. Here are a few benefits that come with hiring a real estate attorney:

Resolve complex issues: When it comes to purchasing or selling a property, there are many issues that may arise such as mergers and partnerships. You may not be familiar with these types of complex issues, but a given real estate attorney is. They are trained to handle HOA and are there to review all legal documents, close the deal, and handle the legal terms.

Less work for you: There will be less work for you if you decide to hire a real estate attorney, this will lift stress off of your shoulders. They will handle all of the legal terms while you are still focusing on your own life, this means you will not have to worry about purchasing/selling a property if you hire a real estate attorney, especially from Chang Legal.

Negotiations: Real estate attorneys are trained to be proficient at negotiating. Purchasing a home can be one of the biggest purchases you may do throughout your life, this is why Chang Legal is here to get you the best price for the property with our effective negotiation techniques.

Reduces risks: If you do not hire a real estate attorney, your chances of potential issues and risk to occur increase immensely. You may not know all of the knowledge required in purchasing/selling a property, which could lead to complications. You may be sued for not disclosing enough information about a property, title issues, and home inspections. It is difficult to follow along the long process of purchasing/selling a residential home, the smart way is to hire a skilled real estate attorney, like Chang Legal, to handle this for you.

For more information about the benefits of hiring a real estate attorney or to learn more about how we can support you, contact Chang Legal today.

Commercial Lease Rates

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It can be difficult to understand how commercial lease rates work when you are looking to lease a commercial property. Since every situation is unique to every other, it may be confusing when you are comparing multiple properties to lease. It is essential to understand the factors that are associated with this, such as the current market, the size of the property, and what the preferences of the landlord are. Chang Legal is here to help you recieve a better understanding of commercial lease rates and what to look for when you may be considering leasing a commercial property.

Rates Per Month Or Year

When you lease a commercial property, there are many similarities as you would lease a residential property, such as fixed monthly or yearly rates. Monthly rates may work as simple as $2.00 for every 6,000 SF, which would be around 6,000 dollars per month. However, many landlord use a fixed yearly rate when leasing a property, such as $25 for every 6,000 SF, which would be around 100,000 dollars annually.

Gross Lease

In a gross lease, most of everything is all included within the fixed rate of the lease. This means the renter will not need to pay any of the maintenance, insurance, taxes, or any other type of fee associated with the property.

Triple Net Lease

In a triple net lease (NNN), the renter will usually have to pay a lower based rate for the property, as well as pay for all the fees that may come with the property. This includes maintenance, insurance, taxes, and any other type of fee that may come with the property.

When you are looking for a commercial space to rent, it is essential to know all of these things and knowing what you are responsible for once you sign the contract. It is crucial to contact a real estate attorney, such as us at Chang Legal, to ensure you know all the details associated with the lease. To learn more and how we can support you through your real estate questions or concerns, contact Chang Legal today.

Tenants’ Rights With Eviction Lawsuits

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Although renting a property may seem easier than owning a home to most, there are certain guidelines a tenant must follow to ensure they do not receive early termination from their rental. Most tenants do not need to worry about maintenance problems and paying the property taxes of the land, however, they must pay rent on time as well as follow the rules the landlord requires.

Dealing With An Eviction

If you just suffered an eviction, there are many things you may be able to do if you feel that you have been evicted unfairly. The first thing to do is contact an attorney to look at the situation and inform you what can be done for you. The effects of an eviction can be very expensive for both sides of the case, the landlord and the tenant. The lawsuit may appear on the tenant’s credit report which can affect their future in purchasing a home or leasing another property. It is crucial for the tenant to never hide that they have been evicted before if they are asked when trying to rent another property or on a job application, as they may be accused of fraud by denying it took place.

It is essential to remember, as a tenant, you have rights in an eviction lawsuit. If you have been evicted unfairly and are able to prove the landlord’s violation of the terms of the rental agreement, that will affect the case greatly. It is important to ask your attorney the following questions to determine if the eviction is legal:

How will an eviction affect my credit score?
How long does the eviction information stay in public records of my credit report?

Determining the severity of your eviction case is vital to be able to pursue legal action against your landlord, this is why it is important for you to consult with a real estate attorney, such as ChangLegal. Contact us today to learn more about how we can support you with your eviction lawsuit case and other real estate issues today.

10 Real Estate Terms You Should Know

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At Chang Legal, we’re here to help you get through the often confusing process of legal real estate transactions, but we’re also here to help you learn more about how real estate law works. As is true of any industry, real estate law has its own set of terms that may not make sense to someone not well-versed in the field. Listening to a banker, real estate lawyer, and sometimes even a realtor can make some people feel like they are speaking another language. So with that in mind, here’s a list of the top 10 most important real estate law terms that you should know.

Continue reading “10 Real Estate Terms You Should Know” →

7 Reasons Why You Need A Real Estate Attorney

Posted by David Chang on with 4 Comments

Most people have a pretty good idea of why they need a realtor when buying or selling property. At the very least, realtors have access to databases, properties, and people you likely do not have access to; they know the market and can help you set an appropriate selling price of decide what purchasing price to offer; and they are experience at negotiating real estate transactions. A good realtor can be the difference between a successful and happy real estate transaction and one that fails.

However, many people are less clear about the role that a real estate attorney plays in real estate transactions and why they need one. While Illinois state law does not legally require buyers or sellers to retain a lawyer for property transactions, it is highly unusual for either party not to be represented by an attorney – and that’s for good reason. Here are a few of the reasons you want a real estate attorney, like those at Chang Legal, on your side when you are buying or selling property.

  1. The other side will almost definitely have legal representation. 
    1. Do you really want to be the one without a lawyer at your side when complex contracts are on the table? The other side will have someone protecting their legal rights. You should too.
  2. Your real estate attorney will help you negotiate specific terms of the contract.
    1. Negotiations during real estate transactions are not just about price and realtors cannot change any legal aspect of a contract. For instance, if you wanted to change the language surrounding the due diligence period relative to the earnest money or other terms of the contract, only a lawyer can do this for you. If you want anything evaluated or changed in your contract, you’ll need a lawyer.
  3. Your real estate attorney can review CC&Rs and other HOA documents.
    1. If you are purchasing property that is part of a Home Owners’ Association, you will want an attorney to thoroughly review the HOA’s documents and especially the Covenants, Conditions, and Restrictions to make sure there are no surprises after everything is said and done. Plan on using the property as a rental or have non-family members living with you? Some HOA’s restrict this kind of activity and you want to know that up front.
  4. Your real estate attorney will ensure that you will have a clear title to the property.
    1. Your real estate attorney will do research on the property. Are there liens that need to be paid before the seller is allowed to sell? Does anyone else have legal interest in the property? A lawyer can even discover if there are boundary disputes regarding the property. Believe it or not, these hiccups in the process are more frequent than you might think. Not only will your attorney research these aspects of the sale, but they will also help you work through these kinds of problems, should they arise. An attorney will help sellers who encounter these issues as well.
  5. Your real estate attorney can help you evaluate and select mortgage financing options.
    1. Mortgages are more complex than the rate and the length of the mortgage. Prepayment options, closing costs… your attorney can help you weigh the pros and cons of different lenders’ offerings and, in some cases, help you negotiate better terms.
  6. Your real estate attorney will be with you at the closing and will ensure that everything you are asked to sign is a legal and safe document.
    1. Should everything go smoothly at the closing? Sure. It should. But if any questions come up about the language or terms of certain documents, you don’t want to guess. You want someone at your side who knows what’s okay and what’s not.
  7. Your real estate attorney is on your side, no matter what.
    1. Your attorney works for a flat fee, has no personal interested in the selling price of your home, and owes undivided loyalty to you.

Remember: you’re making one of the largest purchases or sales in your life so you should protect yourself. Whether you are buying or selling, there are few people who will handle transactions in their every day life that are as financially valuable as buying or selling a house and a real estate attorney’s fee only represents a very small amount of the money you are spending. Considering what’s on the line (no less than your financial life, in many cases), it’s well worth the insurance of having yourself legally represented.

At Chang Legal, we specialize in real estate law. That means we’ve seen just about everything when it comes to real estate transactions and we know what to keep an eye out for and how to handle both the expected and the unexpected.

If you are thinking of buying or selling property, we would be happy to discuss our services with you further. Please email us at contactus@changlegal.com or call 847-907-4971 today.