Understanding Property Law And How It Relates To Business

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The role of property law in business is too often misunderstood — which can lead to a lot of issues down the road. When business owners and businesspeople in general work without a real understanding of the role of property law in business, they can violate laws without even knowing it. This can lead to the downfall of small businesses in particular. How do these kinds of misunderstandings happen in the first place? Usually, it can be linked back to a business owner neglecting to employ a real estate lawyer. A real estate law firm in general can be a great resource for businesspeople, especially when businesses are opening up new stores or working in areas with certain zoning restrictions. Some businesses are build on real estate, in which case understanding the role of property law in business is crucial. Other times, however, real estate law terms apply to businesses in a more tangential way. No matter how real estate law applies to a business, it needs to be properly understood — and this can only be managed with the help of an attorney. Below, we’ll look into some of the more specific ways in which a real estate lawyer can help businesses.

Foreclosures: Understanding How They Really Work

There are many ways in which foreclosures can be relevant to a small business. Some businesses work in ways that specifically surround foreclosures — in fact, some are built around buying foreclosed houses and renovating them with the intention to sell. Other businesses buy foreclosed homes with the intention of renovating the properties and converting them into business locations. Foreclosures are certainly great business opportunities, and fairly plentiful. In 2013 alone, one in every 96 homes was foreclosed upon. Sometimes, however, a foreclosed home for sale is too good to be true. A real estate lawyer, well-versed in the role of property law in business can really change the way that a potential buyer approaches foreclosures. For example, a major issue that can occur with foreclosures is whether or not there has been a death on the property. By law, real estate agents have to disclose information about any death in the family within the past three years. There is also the issue of abandoned properties to be worried about. Abandoned properties can be difficult to understand on a legal level. It’s important to refer to Title 10 — as a part of the California civil procedures code, it outlines that any property that is abandoned or for whom an owner cannot be found is unclaimed property. Should the property remain unclaimed for three years, it is transferred to the California government.

Tenants and Evictions: The Law

Some businesses deal with renting out facilities or even homes. But while often tenants can be great to work with, sometimes landlords end up with more work than they expected. It’s vital to understand your rights as a landlord — and for that matter, a tenant’s right. If the tenant’s rights are violated, the door can be opened for legal action on their part. Even if a tenant is difficult to work with, a landlord has to give a tenant 60 days’ notice prior to eviction — but only if that tenant has lived on the premises for more than one year. Of course, in some cases evictions are protested. If an eviction escalates to a court setting, a judge has 20 days in which they must hear and decide the case.

Real Estate Contracts: What You Need To Know

Before a businessperson signs any contracts relating to real estate, their lawyer must look over them. In California, there are three specific contracts that must be in writing: leases for over a year, commission agreements between principals and real estate licensees, and contracts for the sale of real estate. With the help of a lawyer, businesses are kept much more secure financially and legally.

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