Tag: real estate law

Things You Should Know About Buying a Vacant Land

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Sometimes it’s better to build your home than buy one, not necessarily because one is cheaper than the other, but largely because instead of remodeling a house to your taste, you get to build from scratch, be a part of the process and build to your taste. But for any of that to be possible, you have to, first of all, get land on which to build your home. And in every sense, purchasing vacant land can be very tricky, but the aim of this article is to highlight some simple tips that can get you started on buying vacant land.

  1. Have your money ready

Having your cash ready for payment is important because your chances of getting a bank loan to purchase a vacant property are quite slim. This is because there is not enough guarantee for the bank, just in case they have to foreclose or sell it. However, getting a construction loan from the bank is relatively easier. But to purchase the land, you are most likely going to pay with your own money, before starting the process of buying a vacant property, ensure that you have your money ready.

  • Do all necessary checks

Before shelling out the cash for empty land, it is important that you hire a surveyor to survey the land. You should also carry out environmental testing on the land to see if problems like fuel pipelines, toxic waste, poor quality of soil, etc. may affect your proposed building project. Also, if you don’t understand zoning, invite the local zoning authorities to help explain zoning better. With all these in place, it guarantees your safety in your new home and neighborhood, and in case you have to sell the property in the future, you have great features as negotiating tools.

  • Is the land accessible?

Accessibility is just as important as the land itself. And by accessibility, it means two things – easy access to utilities and road. A piece of land may seem the perfect place to build a home, but problems with access to utility lines and good roads can be the things that will make it a challenge to live in the property. Accessibility does not only help you as the homeowner or occupant, it also increases the value of the property in case you have to sell the property.

  • Consider the neighborhood 

Just in case you ever have to sell in the future, ensure that your home is built in a good neighborhood. Nearness to markets, good school area, residential area with low crime and violence rates are some of the essentials that you need first as an occupant and later, in case you have to sell.Buying a vacant property is extremely difficult when compared to buying an existing home, and if at all you have to tow that path, make sure you get all the possible assistance at your disposal. Chang Legal LLC Attorneys at Law is your go-to property lawyer. Get in touch today.

Do this before signing a commercial lease

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Signing a commercial lease involves having a clear picture of what you are about to sign. It may like too much work, but in your best interest, do your due diligence before putting pen to paper. Make sure you ask questions, read the lease agreement word by word and line by line. Do not assume the content of the lease because, most times, it does not contain the things that you expect.

Check below for tips on how you can protect yourself when signing a commercial lease. Doing these things will help you understand what you are getting into better and also avoid misunderstanding or trouble with your landlord. Let’s get to it;

  1. Read the lease over and over

The first thing to do when you receive the lease papers is to create time to read them. Maybe you have discussed some things with the landlord before, such as reducing the cost of the lease or providing certain utilities as part of the lease. Whatever it is that you may have discussed with him or her, read the lease to make sure he or she has included it in the written lease agreement. Also, check the leasing date and every other term that you negotiated to see if they are in writing. Do not take the word of your landlord for it. Anything you want your lease payment to cover, make sure the landlord puts it into writing. This way, you will be preventing future arguments.

  • Understand the lease terminology

It is one thing to read a lease agreement while it is another to get a full grasp of what you have read. There are numerous terminologies that lease agreements contain, which may be outside of the regular dictionary. Do not assume the meaning of a word. Make sure you understand the full meaning of every word you read in the agreement. If you need further help with interpreting a lease agreement paper, get in touch with your property attorney at Chang Legal LLC Attorneys at Law.

  • Is the lease flexible?

You should factor in some uncertainties or eventualities beyond your control. If, at some point, you decide to move your business elsewhere or sell your business, can you sublease the facility? You should put these into consideration and discuss them with your landlord so he or she can include them in the lease terms.

  • Work with your attorney

Your attorney is the only person that you should trust when signing a lease or contract. Your attorney is well-grounded in the law and will spot any unfair or unreasonable term in your lease agreement. Involving your attorney will help you stay ahead and avoid any issues in the future.To ensure that you have a good tenant-landlord relationship, take time to understand your lease and do not be blindsided into signing something you do not understand. Chang Legal LLC Attorneys at Law is the best you can work with when signing a commercial lease. Call 847 907 4971 to talk to a lawyer.

5 First-Time Homebuyer Mistakes To Avoid

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Buying a home can be daunting, and even more, if it’s your first time. However, a little knowledge and preparation would ensure you avoid these mistakes first-timers make. Instead of making the same mistake, your siblings, parents, or friends made when they bought their first house. A little homework would save you the hurdles. Here are five mistakes first time home buyers often make and how to avoid them.

  1. Spending More Than Your Capability

One of the mistakes first-time homebuyers often make is hunting for a house, without determining how much they can afford. Along the process, they fell in love with a home that is above their means but found it hard letting go. To avoid this trap, use the Bank of America affordability calculator to know if a house is a perfect fit for your finance. You need to know your financial strength and how much you can afford before the hunting process begin.

  • Neglecting The Extra Cost Of Homeownership

Buying a home is not where the battle ends, but most first-time homebuyers are ignorant of this. Once the key to the house is yours, you will discover that more expenses are waiting at the corner. You will need to take care of property taxes, homeowners’ insurance and also, regular maintenance. In some places, there could be additional fees like a homeowner’s association or something similar. Before finally closing the deal, calculate the extra expenses, and ensure you’re financially buoyant to handle it.

  • Making A Small Down Payment

One of the regrets most homeowners have is making a down payment that is too small. You see them making comments such as, “I should have waited until I have a more significant down payment.” The benefits of making a large down payment are enormous, which is why you mustn’t make this first-time homebuyer’s mistake. A substantial down payment entails smaller mortgage, thereby giving you more affordability monthly house payments. The aim is to make sure your monthly payment is comfortable to pay.

  • Miscalculating Repairs And Renovation Cost

Another mistake first-time homebuyers make is in terms of miscalculation, especially regarding home renovation. They get an estimate from one contractor and boom; they build their whole life around it. When they finally get the house and ready to renovate, they discover that the cost is almost double the estimate. To avoid this kind of situation, you must get ratings from more than one contractor. You can also seek recommendations from friends and family.

  • Skipping Home Inspection

A home inspection is yet another expense, which is why most first-time homebuyers might feel safe forgoing. Perhaps they have walked around the home, and everything seems to be in perfect order. Well, skipping the home inspection is a dangerous mistake and one you shouldn’t make. You might feel like you’re saving by forgoing inspection; in most cases, you aren’t. Through professional home inspection, you can discover more about the house, especially the faults and repairs. This information would no doubt be an edge during negotiation.

For more information or any questions regarding first-time home buying mistakes, contact Chang Legal today.

Problems that Prospective Commercial Tenant Could Face

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Renting a commercial property is a huge step, so it comes with several ups and downs.  It involves a big financial commitment, and you also have different clauses and regulations to contend with. You must understand the problems associated with renting a commercial property, so you know how to avoid the pitfall. Here are some of the issues that could affect a commercial tenant.  

  • Length of Lease 

Typically, a lease takes up to five years. You should make sure that the space can be assigned to other businesses within this period. It is worth noting that some tenants are not always willing to bear the expenses of building dilapidation liability, especially for short leases. This indicates that the primary tenant could still be liable.  The parts of the structure in poor condition are known as dilapidation. 

  • Room for growth 

You should check if the landlord is also willing to rent out the floor when renting a space for your business. It is essential to give room for the expansion of your business.  Before renting a property, you should take ensure that there are up-to-date infrastructures that will meet your needs.   For instance, does it has the space you need in case of expansion? Are the internet facilities adequate, or would you need to have new ones installed?

  • Break Clause 

To get out of a lease, you might consider a break clause if the situation warrants that. It entails the payment of more rent at the beginning. A rolling break clause will be of great advantage if anything happens to your business because it allows the tenant to leave the property at any period.  However, a tenant must give three months’ notice before exiting the property. 

  • User Clause 

The user clause specifies what a tenant is allowed to do on the property or within the premises. For instance, a restaurant that sells food to customers now makes online sales, causing people to collect food from the shop. This could break the user clause agreement unless allowances had already been made for future alterations.

  • Forfeiture

Forfeiture enables the landlord to end the lease if that the tenant goes against any of their agreements.  When a tenant defaults on the terms of a lease agreement, the landlord can terminate the lease by forfeiture. It is usually employed by landlords to end a commercial lease.  However, it should be noted that forfeiture is not always the best option for the landlord as well as the tenant. A tenant might go ahead to claim a financial loss if the lease was terminated wrongly.  Note that tenants can successfully bring a claim for illegal forfeiture of lease. 

If you need clarification on some of the problems that a prospective commercial tenant might encounter, or you have any questions relating to your commercial lease, contact Chang Legal today. 

Decorating Your Front Porch – Improving Curb Appeal

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Do you need to improve your home’s curb appeal? Making your home look more inviting by decorating your front porch is easier than you may think. Some of these decor ideas may work better for you than others depending on the given space of your porch.

Plants

Plants are one of the easiest ways to add decor to your front porch while giving it an extra pop of color. You can use a variety of pots or containers for a more whimsical or use the same color/style to create a symmetrical look on both sides of the door. A great benefit to having potted plants is that you don’t need to worry about digging up your yard.

Create a Seating Area

If you have a larger porch to work with, creating a seating area is a great option. You can add a bench or a set of chairs along with a side table. This is perfect to have on warmer days so you can relax or lounge outside while reading a book or having a conversation with friends or family. Alternatively, you can hang a swinging bench if you have an appropriate place to secure it. Add patterned or solid colored pillows to your preferred seating option for extra color and comfort.

Front Door

Even your front door could use some decorating! Painting the front door of your home is a great way to add a bold pop of color without needing to add much extra decor on your porch. Not wanting to turn this into a painting project? No worries- alternatively you can get a hook for over the door to hang other decor from like a flower wreath or seasonal pieces.

Welcome Mat

Doormats are good to have because they help prevent bringing in moisture and debris into your home. Without one, you may find yourself cleaning the foyer or front area of your home more often than you’d like. For outdoor mats, it’s best to choose one that is rough on the top to help scrape dirt off shoes.

For more information or any questions regarding sales tips for real estate agents, contact Chang Legal today.

New Construction Buyers Say They Need Agents Too

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With mortgage rates at extremely low rate and median prices moving closer to what middle-income buyers can afford, newly constructed homes are enjoying their best sales year in more than a decade.

The process of buying new construction has some tough spots for shoppers, especially first-timers. In addition to searching for and financing a home, they’re trying to visualize what that home and the surrounding community will look like, evaluate a builder and select a floor plan and finishes.

Since there are so many moving parts, most new construction buyers (76%) work with agents to find their home, and that 84% of new construction buyers who work with an agent and visit a building/sales center want their agent to help communicate with the builder. 

Half of those buyers (50%) want their agent to handle some communication with the building/sales center, and 34% want their agent or broker to handle all communications with the builder. Only 16% don’t want their agents involved.

Some of the things they might need help with include:

  • Negotiate price
  • Book a tour
  • Explore upgrade options
  • Compare new construction values with existing home values

For more information or any questions regarding sales tips for real estate agents, contact Chang Legal today.

Younger Buyers Shifting Stance on Home Sharing and Renting as an Income Source

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Young home buyers have been quite keen at home sharing and renting as a source of income, which is quite a change from the older generations.

A somewhat shocking share of buyers under age 40 are fine with the idea of renting out their homes, or at least space in them, for future rental income or to help pay the mortgage.

Nearly half (48%) of Gen Z buyers and 40% of millennial buyers who purchased a home in the past year say the opportunity to rent out the entire home for future rental income is very or extremely important to them

A significant share of Gen Z, ages 18-24, and millennials, ages 25-39, also say they want the opportunity to rent part of their home while they live in it: 42% of Gen Z and 35% of millennials say the ability to do that is very or extremely important to them.

For more information or any questions regarding sales tips for real estate agents, contact Chang Legal today.

What to Expect at a Real Estate Closing

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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.

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.