It may seem counterintuitive, but if you are a real estate investor, one of the best ways to protect your investment income is to invest some of it in the services of a real estate attorney. This is especially critical if you rent any of your investment properties to others since being a landlord opens you up to all types of legal liability.
There are three common situations when a real estate investor really needs to hire an experienced attorney:
Most investors do not personally oversee their residential or commercial rental properties but are held responsible for any legal problem that can arise. Arizona tenant laws are very strict when it comes to tenant rights, and tenants are more educated than ever before thanks to the abundance of information on the Internet. You will need a real estate attorney to carefully review all your lease terms and documents, and ensure you have the proper procedures in place for the onsite management of your properties.
If you are making any improvements to your investment properties, you will likely engage the services of a professional contractor. An experienced real estate attorney can help you protect your investment by ensuring the proper agreements are in place with contractors and that the work is finished as specified. Your attorney can also ensure that if there is any problem with the finished work in the future, you will have legal remedies for recovery.
To protect your personal assets from any legal judgments or liability issues, you should consider choosing an advantageous business structure like a limited liability company (LLC) for your real estate investing activities. If you are a foreign investor in U.S. real property, the services of an experienced real estate will be invaluable to you for business and investor immigration visas, FIRPTA (Foreign Investment in Real Property Tax Act) counseling and representation, tax counsel, contract review, and representation at closing.
Our attorneys represent buyers, sellers, landlords, tenants, lenders, borrowers, trustees, guarantors, shareholders, partners, and others. We structure, negotiate and document a variety of real estate and financing transactions, such as leases, purchase and sale agreements, loans, and development agreements for a variety of commercial and residential projects. Contact us for more details.