Real estate has been one of the most significant driving factors for economies for many years now. A lot of things change over time, but the one thing that doesn’t is people’s desire to purchase properties.
Whether you want to work as a real estate agent or an attorney or simply purchase your family’s dream home, it helps if you understand real estate legislation. This is particularly relevant and important in a world suffering from a pandemic, where real estate legislation might be subject to change. Here’s what you need to know.
1. Laws Change by State
Moving to an entirely different state? It might be a good idea to check the state’s real estate laws, especially if you are planning on purchasing a property. Depending on the state, the laws might vary significantly and you might find clauses that are much different than what you were used to. Things like taxation, right to privacy, disclosures, and many others will vary, which is why you need to be prepared. Landlord and tenant laws also change. So, even if you plan on staying at a rental, or leasing your own property, you should do your homework. This will help you understand your rights as well as your obligations in the new state you’re moving to.
2. Importance of Estate Planning
When it comes to real estate legislation, you have to consider estate planning, and the sooner you do it, the better it will be. This is particularly crucial if your assets include several properties. As explained by professionals behind The Atlanta Estate Law Center, people often need experienced attorneys to help with asset protection and trusts. This will help ensure that your family does not have to suffer through long and cumbersome legal proceedings if you suddenly and unexpectedly passed away. This is why it is important to consider state as well as federal real estate legislation when it comes to your estate planning.
3. You Can Make an Offer to Purchase
While it may seem too obvious, this is still a piece of information that some people are not aware of. The price listed on the property ––whether online or at the property itself–– isn’t necessarily the one that you have to pay. Legally speaking, you can make an offer that is less than the listing, and the seller can accept or refuse your offer. So, when you find the house that you are looking for, make an offer that seems fair, which may be less than the seller’s listing. After that, you submit your offer in writing along with a refundable deposit to show that you are serious.
4. Zoning Laws Can Cost You Money
A significant mistake that a lot of people make before purchasing a property is ignoring zoning and land use laws. In simple terms, these sets of laws regulate how this particular land can be used. So, if the zoning laws strictly specify that a particular property is to be used for housing, you can’t use it for business, and vice versa. This is why you must consult with a lawyer if you are unsure about the zoning regulations concerning a certain property. If you violate these laws, your construction might be shut down and you can lose a lot of money.
5. Real Estate Legislation Can Change
If there is one thing that is certain about real estate legislation, it is the fact that it can change. If and when there are major crises on a global scale, such as the financial crisis of 2008, you should expect to find some changes to your local real estate laws. In 2020, that global crisis was a pandemic, and it led to changing several real estate laws.
For instance, mortgage interest rates dropped for some time due to the pandemic. There were also some changes to credit score requirements. So, in times like these, always check real estate laws before you make a purchase or lease a property.
6. Insurance Laws Are Crucial
One thing you will always need when it comes to real estate is insurance. It is always a good idea to consult with specialized attorneys who can help you with insurance laws because this can save you a lot of money in the long run. This is particularly the case with commercial property, which comes with a whole different set of laws and regulations when it comes to insurance.
For non-experts, you want to always get help when it comes to real estate legislation. From estate planning to insurance requirements, you need to often consult with experts. Knowledge and understanding of real estate laws are important and can help you avoid disasters down the line. That, however, does not mean that you should go at it alone without professional help.