Nowadays, starting a real estate business can be a very lucrative undertaking since it involves the buying, selling, and leasing of non-depreciable real estate properties for profit.
However, getting started with this venture requires a lot of considerations, which include the legal aspects of running a real estate business. As such, you definitely need to work with a real estate attorney to help you navigate the legal processes efficiently.
Here are a few reasons why you should hire an attorney if you want to start a real estate business:
Ensure Compliance With Your State’s Licensing Requirements
As mentioned, real estate properties are non-depreciable assets, which means that their price value increases over time. Since a large amount of money is involved in most real estate transactions, it has become a regulated industry today.
Because of this, it’s essential to check with your state about the licenses and other permits required before you can legally put up your real estate business. To do that, you need the help of an attorney who can guide you throughout the compliance process. With them on your side, understanding the licensing regulations in your state will be much easier on your end.
Determine The Legal Structure Of Your Business
Before you begin with the operations proper, you should decide which legal structure you want for your business. That’s why you should work with an attorney to help you determine the best structure for your startup company. After all, each legal structure comes with features and requirements that can impact your financial and legal risks.
Below are the business structures you can choose from:
- Sole Proprietorship – This type of enterprise is owned and managed by one person. As such, it has no separate and distinct existence from the owner.
- Partnership – This type of enterprise involves two or more people by which they agree to oversee the operations and share its profits and liabilities.
- Corporation – This is an organization of a group of people authorized by the state and recognized by law to have a separate and distinct personality from the stockholders.
- Limited Liability Company – This is a corporate structure by which the owners have no personal liability for the debts or obligations of the company.
Guide You In Every Real Estate Transaction
Again, starting and running a real estate business is never easy. Given the considerable amount of money involved, careful thought and due diligence are required when dealing with all real estate transactions. Fortunately, hiring an attorney can make every process easier, faster, and safer.
Below are the real estate dealings that require the assistance of an attorney:
- Buying Real Estate Properties
When operating a real estate business, one of the things you should do is buying a real estate investment. In doing so, an attorney on your side can help review titles, deeds, and even the terms and conditions of the contracts.
For instance, if you have someone who can check the legal provisions of the sale contracts, you’re less likely to make poor decisions about buying real estate properties. Given their expertise and experience, they can quickly spot potential issues with the assets you’re dealing with and if it’s worthy of pursuing the transaction or not.
Moreover, they can provide you with some legal advice on processes involving a property transfer. This is especially true if you’re planning to buy properties belonging to a deceased estate, which in such a case, your attorney needs to check with the executor if they have a Grant of Probate or Letter of Administration. As a buyer of a deceased estate, your attorney can help explain what is probate and how it can affect your business and the entire buying process.
- Selling Real Estate Properties
In addition to buying real estate properties, selling assets is another instance when you need the services of a legal professional. As an owner of a real estate business selling properties, you might face significant legal issues if the contract isn’t drafted correctly. That’s why hiring an attorney can go a long way in starting a real estate company.
Typically, lawyers who are experts in the real estate industry know the ins and outs of the business. They can make sure that the provisions in the contract are worded in a manner that protects you financially and legally in case the buyer discovers a problem with the property after the sale.
Also, if you have an attorney who can assist you, you can ensure protection against some buyers who tend to back out of deals at the last minute, causing financial damage to you as a seller.
- Protection Of Assets
Having a real estate business requires asset protection as a significant consideration. Given the value and complexity of every real estate transaction, it’s crucial to have a good asset protection strategy in place.
To do this, you should work with an experienced attorney who can help protect the assets of your business against deterring lawsuits. By doing so, you can maximize profit out of your real estate business in the long run.
When You Don’t Know What To Do
Sometimes, starting a real estate business comes with a lot of challenges and confusion. This is especially true if you’re unfamiliar with the fundamentals of real estate transactions.
For example, you might be good at selling properties, but you might have no idea what to do to safeguard yourself from potential legal troubles.
Therefore, if you need someone who can help you make educated decisions and prevent lawsuits, having a real estate attorney on your side can make the process smoother and faster. Besides, it’s alright not to know everything about owning a real estate company.
Due to the complexity of real estate law, having a real estate attorney who can safeguard you from a significant financial loss can be a great idea. If you’re going to ask why you need an attorney when starting a real estate business, the information presented above can help answer that question.
So, hire the best real estate attorney now, and you’ll be on your way toward making your real estate company successful.