The real estate business is a highly-regulated business and fraught with scams, fraud and unethical practices.A good real estate will help you along the way, but you should stive to educate yourself as well.you should be aware about the following:
- Ruled for Landlord-Tenant
You must know about What takes to evict someone? How much does it cost? How much time does it requires? Are there any housing rules to apply in my city? Is there any limit to the amount of rent increases that I can ask for? Is there any limit to security deposits? How long can I hold a security deposit after the tenant leaves? Is there any minimum grace period before I can charge a late fee?
- Documents
What have to be used in my area such as in the form of contract, deed, mortgage, note, lease, etc are commonly used in my area? Is special forms required for licensed real estate agents? You should learn the local forms and how to custom-tailor them for your needs.
- Recording
Where does the legal documents get recorded? How much costs for filling? Which format the documents must follow? Does any transfer tax required? Contact your local title company or the County recorder's office for information.
- Disclosure Laws
What should be disclosed to a tenant or buyer regarding the property? Lead? Asbestos? You can usually find this information by contacting your local real estate investor's association.
- Interest Rate Limits & Other Loan Regulations
How much the charging interest rates until it becomes usury? In most states it can limit upto 21% and in few states there is no limit. Once you loan money or sell houses on credit with owner financing, you may have to comply with Federal Regulation Z (Truth-in-Lending), the Real Estate Settlement Procedures Act (R.E.S.P.A.) and other state counterparts.
- Licensing Laws
Know about Real Estate Agent Licensing Laws.If you are rehabbing homes, you may need to comply with building regulations and be licensed as a home builder or developer. Also, be aware of Consumer Protection laws that regulate high-pressure sales, foreclosure purchases, sale-leasebacks and other distress real estate transactions.
No comments:
Post a Comment