Showing posts with label legal issues in real estate. Show all posts
Showing posts with label legal issues in real estate. Show all posts
Wednesday, March 18, 2015
Legal Protection for Real Estate
Do Buyers or Sellers need an attorney review on their real estate purchase agreements? or Are the MLS forms sufficient to protect them in real estate transactions?
Many parties to a real estate transaction like to rely on "standard" MLS forms to protect their interests. In fact, the NWMLS has on-staff legal counsel to review and draft all of its paperwork to ensure consistency with state and federal laws. Staff attempts to develop forms that are "neutral" with respect to the interests of either Buyer or Seller.
But what kind of legal protection do these forms really provide?
Check out this online video to get one perspective on this issue:
http://www.youtube.com/watch?v=AfXIhAgbZsQ
Every real estate investor ought to have a sharp real estate attorney as part of their team. As a real estate professional, I rely on services like Legal Shield (formerly Pre-Paid Legal) to advise me on numerous legal issues that come up regularly in the course of my work.
It is the prudent thing to do.
Happy Investing!
Tuesday, February 3, 2015
Easements, Encroachments and Adverse Possession - Oh My!
Good morning, Seattle!
There is an encroachment on my commercial property at the Rainier Beach light rail station, and I have explored various options with the adjacent property owner to resolve this issue. One option would be to remove the encroachment, another option would be to sell an easement.
But first, a primer on the legal issues surrounding encroachments, easements.
1. What is an encroachment?
A situation in real estate where a property owner violates
the property rights of his neighbor by building something on the neighbor's
land or by allowing something to hang over onto the neighbor's property.
Encroachment can be a problem along property lines when a property owner is not
aware of his property boundaries or intentionally chooses to violate his
neighbor's boundaries. This is also known as structural encroachment.
In some cases, when the encroachment exists before you
purchase your property, the owner that has the encroachment is not required to
remove it, particularly in the case of a house eave or addition that extends
the original property into an encroachment situation. When you have an encroachment
situation where an agreement cannot be reached, it will be necessary to take
the matter to court and let a judge make an official ruling.
2. What is an Easement?
An easement allows the usage of a pathway between adjacent
properties. An easement may involve a pathway to reach a common play area, yard
or even a fish pond. The legal terminology of easement allows someone the legal
right to use something not belonging to them. Easement refers to real property
and allows a legal right of usage. An affirmative easement is the official
permission and right to use another's property for a specific reason. A
negative easement disallows the right for someone to use another's property.
a. Easement and Common Law
Easements are ruled and followed by real estate law, yet
common law procedures enforce certain types of easements. There are four types
of easements that are typically, over time, enforced by the common law courts.
The most common easement is called the Right of Way in which people can pass through an area. Easement of support refers to
excavations of property. Less common are Easements
of light and air and rights regarding artificial waterways. The four types
of easements are usually for very specialized scenarios. The most used easement
is the Right of Way easement. The
letter carrier, water meter reader and UPS delivery person all have the right
to step on your property by easement of right of way.
b. Creation
of Easement
Easements are mostly created by a binding written document.
Most courts in the United States favor a written explicit easement. Verbal and
implied easements are complex. Courts base the allowance to have an easement on
intention of the original parties in each situation. Courts take into account
customs, habits and practices for the property in question for usage of
easements. Courts prefer having written intentions, although courts will allow
implied easement after researching intent of the parties.
3. What is Adverse Possession?
A method of gaining legal title to real property by the
actual, open, hostile, and continuous possession of it to the exclusion of its
true owner for the period prescribed by state law. Personal
Property may also be acquired by adverse possession.
Adverse possession is similar to prescription, another way
to acquire title to real property by occupying it for a period of time.
Prescription is not the same, however, because title acquired under it is
presumed to have resulted from a lost grant, as opposed to the expiration of
the statutory time limit in adverse possession.
Title to land is acquired by adverse possession as a result
of the lapse of the Statute
of Limitations for Ejectment,
which bars the commencement of a lawsuit by the true owner to recover
possession of the land. Adverse possession depends upon the intent of the
occupant to claim and hold real property in opposition to the entire world and
the demonstration of this intention by visible and hostile possession of the
land so that the owner is or should be aware that adverse claims are being
made.
The legal theory underlying the vesting of title by adverse
possession is that title to land must be certain. Since the owner has, by his
or her own fault and neglect, failed to protect the land against the hostile
actions of the adverse possessor, an adverse possessor who has treated the land
as his or her own for a significant period of time is recognized as its owner.
Title by adverse possession may be acquired against any
person or corporation not excepted by statute. Property held by the federal
government, a state, or a Municipal
Corporation cannot be taken by adverse possession. As long as the
property has a public use, as with a highway or school property, its ownership
cannot be lost through adverse possession.
Anyone, including corporations, the federal government,
states, and municipal corporations, can be an adverse possessor.
Thank you to Bernita McKinnion for her help in researching this topic.
Happy Investing!
Tuesday, September 2, 2014
Bankruptcy and Medical Bills

I often get calls from potential clients asking whether they can file for bankruptcy just on their medical bills, and not include their credit cards or other debts. The short answer is that they can file, but not just on their medical bills. The slight longer answer explains why.
Bankruptcy is all about treating all your creditors in various classes fairly. For example, the Court doesn’t want to see you pay Aunt Marge the $1,000 she lent you last year and not pay MBNA for the $1,000 you owe them. While you think Aunt Marge deserves the money more than MBNA (actually, I do too), it isn’t fair to let you pick and choose who receives payment, or give them what the Code calls a “preference.”
Since medical bills, credit cards, most personal loans, and some taxes are all considered “general unsecured debts,” they all have to be treated the same way. This means that all of your debt, not just medical bills, has to be included. It also means that you can’t just file on one or two credit cards, or on one judgment.
Clients frequently tell me, “I don’t want to include x, x, and x in my bankruptcy.” It might be a house or a car or a family debt (see Aunt Marge above). I explain that is not the way it works. Everybody who is owed money is listed, and all dischargeable debts are no longer their personal obligation. The most common non-dischargeable debts include some taxes, child support and student loans. But the discharge is a door that only opens in one direction. The creditor is prohibited from collecting, but you can pay anyone you want AFTER the bankruptcy is filed, not before. For secured debts the rule is simple: if you want to keep the collateral (house or car, for example) you must pay for it. Payment can be by reaffirmation (continuing monthly payments) or redemption (payment in cash of the value of the collateral).
While we’re on the subject of the relationship between medical bills and bankruptcy, consider these facts:
• 42% of all personal bankruptcies are the result of medical expenses. 78% of those who filed had insurance.
• 56 million Americans under age 65 will have trouble paying medical bills;
• Over 35M American adults (ages 19-64) will be contacted by collections agencies for unpaid medical bills;
• Nearly 17M American adults (ages 19-64) will receive a lower credit rating on account of their high medical bills;
• Over 15M American adults (ages 19-64) will use up all their savings to pay medical bills;
• Over 11M American adults (ages 19-64) will take on credit card debt to pay off their hospital bills;
• Approximately 10M American adults (ages 19-64) will be unable to pay for basic necessities like rent, food, and heat due to their medical bills;
• Over 16M children live in households struggling with medical bills;
If you or someone you know is struggling with medical or other debt call us to schedule a free bankruptcy consultation. At McFerran & Burns, we are experienced in all types of debt and the various ways to approach medical or other debt.
Today's blog courtesy of Richard J. Welt, McFerran & Burns.
Happy Investing!
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