Real Estate Articles

More apartment and office buildings are allowing pets

Many landlords – both residential and commercial – have been trying to set themselves apart and attract more tenants by allowing pets.

It’s true that pets can cause damage to a building, but it’s also true that there’s a growing demand for pet-friendly environments, and allowing pets can make a rental property much more attractive.

Some 17 percent of businesses across the U.S. now allow pets at work, according to one recent survey. Most of these are small businesses and traditional stores – such as a bookstore with a cat – but many large companies such as Google and Apple now allow pets in offices, and other businesses are following suit.

If you’re a landlord (or a tenant) and you want to have a pet policy, it’s best to spell things out in the lease. For instance, the lease might specify what types of animals are allowed, and require that all pets be healthy, vaccinated, housebroken and well-socialized. A lease might also require that pets be kept on a leash in any common areas. A landlord might want to set aside certain common areas as pet-free zones.

While pets can cause damage to a building, there’s a growing demand for pet-friendly environments, and allowing pets can make a rental property much more attractive to prospective tenants.

Both landlords and tenants will want to make sure that their insurance policies cover dog bites.

Landlords might want the lease to specify that the tenant will be responsible for any damage caused by a pet. They might also want to insist on a larger security deposit from tenants with pets. [Read more...]

Who’s responsible for damage from a fallen tree?

A big storm comes up and knocks down a tree in Bob’s yard. It falls over the property line and damages his neighbor Janet’s car. Is he legally liable for the damage?

As with much in the law, it depends. Generally, though, Bob would be responsible if he knew the tree was in danger of causing damage to Janet’s property, or if a reasonable person in his position would have noticed the danger. For instance, Bob might be responsible if the tree was dead or dying and was leaning precariously over Janet’s driveway, or if Janet had complained to him previously that tree limbs were falling onto her parking space.

On the other hand, if the tree appeared healthy, and it was a total surprise that a hurricane or tornado blew it some distance onto Janet’s yard, Bob probably wouldn’t be liable.

In any event, Janet’s first step should probably be to file a claim with her insurance company.

If you’re a property owner, it’s a good idea to check your trees periodically to see if any of them poses a danger. Falling trees can cause serious personal injuries that are a lot more expensive than a car repair.

If you feel that a neighbor’s trees are a danger to you, and your neighbor won’t do anything about the problem, you have a number of legal options. You might be able to report the dangerous condition to the city, or to a utility company (if the tree is endangering utility equipment), or possibly sue the neighbor for allowing a nuisance. You might also be able to trim the part of the tree that overhangs your property, although you’re generally not allowed to trim the part that’s on your neighbor’s property.

Be careful buying a condo that’s new construction

With the real estate market still in the doldrums, a lot of people are thinking that this is a good opportunity to buy a brand new condominium, rather than one in an older community.

New construction has a lot of advantages – but it can also be more complicated, and there are some potential trouble spots as well. You should definitely speak with your real estate attorney before you sign anything in order to make sure you’re protected.

There are three big advantages to new construction:

One, everything’s new! You get to enjoy a brand-new kitchen, brand-new bathrooms, brand-new appliances, etc. Plus, you can avoid paying for major common-area maintenance items that an older building might need, such as repainting or roof repairs. [Read more...]

Converting Investment Property to Your Primary Residence

As a general rule, when a single family property is sold and the seller has used the property as his or her primary residence for at least two of the last five years as his or her primary residence, there is a $500,000 exemption on the gain. This is known as a Section 121 exemption. (There are some very important exceptions to this, be sure to talk to a real estate attorney or an accountant). Anyone who has investment property, whether it is a commercial building or even a two family home, must understand that upon the sale of the property, he or she may have to pay capital gains taxes. There has been talk lately of increasing the capital gains tax rate. A good way to defer the gain is by doing a 1031 exchange. Please call us with any questions. Here is an interesting article on Section 121 and 1031 exchanges. [Read more...]

How to Simplify Buying a Lakefront Home.

Buying a lakeside home may be a dream for many people, but there are potential issues and problems to be aware of when buying such property . For example, a lakeside home may be in a flood zone, in which case, the mortgage lender will require flood insurance which may be costly. There may be dock rights or beach rights which may be involved and should be reviewed by an experienced real estate attorney. As with the purchase of any property, you need to do your due diligence. Here are some questions to ask:

Just Add Water. How to Simplify Buying a Lakefront Home. (original source)

MANSFIELD, MA — Plunging real estate prices and Baby Boomers looking to downsize and simplify their lives are two trends that have led a number of prospective buyers toward purchasing a lakefront home. While the dream of living on a lake has become more tangible for many, so too are the potential for problems if you do not know what to look for and what to ask. [Read more...]

Massachusetts Home Seizures Threatened in Loan Case: Mortgages

There is no question that the real estate market has suffered as home values have plummeted, mostly due to the increased number of property foreclosures.  Banks have been inundated with foreclosures and have made a number of mistakes during the foreclosure process.  Some of these mistakes have lead to the invalidation of the actual foreclosure by the courts.  In U.S. Bank v. Ibanez, a major landmark case, the prior homeowners were able to get their home back because the assignments between lenders were not properly executed in a timely manner.  Another recent case, Bevilacqua v. Rodriguez, a decision also from the Massachusetts Supreme Judicial Court, had the same result.  The prior owners were able to regain the title to their homes. The SJC will be hearing a similar case soon.  The key question will be whether the ruling is applied retroactively.    If it is, a number of homeowners could have significant title problems, even if the foreclosure happened years ago from a prior owner.  Here is an interesting article on point:

By Kathleen M. Howley and Thom Weidlich – BusinessWeek

Feb. 21 (Bloomberg) — The highest court in Massachusetts is poised to rule as soon as this month on a foreclosure case that could lead to a surge in claims from home owners seeking to overturn seizures.

The justices are deciding whether to uphold a lower court ruling that gave a Boston home back to Henrietta Eaton after Sam Levine, a 25-year-old Harvard Law School student, argued in front of the nation’s oldest appellate court that the loan servicer made mistakes when it foreclosed because it didn’t hold the note proving she was obliged to pay the mortgage.

“If the Massachusetts court says this defense works, that would have a huge ripple effect across the country,” said Kurt Eggert, a professor at Chapman University School of Law in Orange, California.

[Read more...]

How to Avoid the Professional Tenant

A “Professional Tenant” is a tenant who “knows how to work the system” by taking advantage of select protections in the law to live rent free.  Being able to spot and avoid a “Professional Tenant” is one key to  being a successful and profitable landlord.  This “Professional Tenant” usually follows certain behavior patterns that should raise a red flag for the Landlord.  A common scenario we encounter with clients follows a sequence like this:  First, the prospective tenant  has a story to explain why he/she can only pay first month’s rent and will promise to pay the last month’s rent or security deposit once he or she moves in the apartment.  Second, he or she will start complaining about living conditions within a few months of moving in to your property.  Third, the tenant will then complain to the Board of Health and request an inspection, which inevitably leads to the issuance of a violation/citation by the City or Town to the landlord requiring that the landlord make repairs within a short period of time.  Fourth, the tenant, knowing the landlord only has a certain period of time to make repairs, will refuse to allow the landlord access to the apartment in order to make the required repairs.   Fifth, the tenant will then withhold rent because the repairs were not timely made.  The landlord, now needing to evict the tenant, ends up losing several months of rent until the eviction is complete.  The professional tenant has successfully lived rent free for several months and at the same time caused substantial  loss of income and emotional grief to the landlord.   How do you avoid the Professional Tenant? The landlord’s only protection is to do a thorough screening of a prospective tenant upfront by checking credit reports, speaking to prior landlords, etc.  Here is an excellent article from a colleague:

Attorney Richard D. Vetstein | Avoid The Professional Tenant

Using best practices to screen and select good tenants is the most important thing a Massachusetts landlord can do to avoid costly non-payment and eviction problems down the road. As the saying goes, an ounce of prevention is worth a pound of cure.

I have come across a sub-set of tenants which are extremely dangerous to Massachusetts landlords. They should be avoided like the Plague. I like to call them Professional Tenants. [Read more...]

Common Misconceptions about Offers to Purchase

There are a number of misconceptions regarding offers to purchase property. For example, some people may think that an offer is a written expression of an intent to enter into a purchase contract and not an actual contract.   To the contrary,  in Massachusetts, it is well settled law that an Offer, by the buyer in writing, accepted by the seller in writing, is a legally binding document.  The Seller can be forced to sell the home to the buyer based on the terms of the Offer.  Here are a few common misconceptions regarding offers to purchase:

 Posted by Rona Fischman on Boston.com Legal Issues

Sam Schneiderman, Broker-owner of Greater Boston Home Team is our Monday guy. Today he discusses what to expect when making or receiving a real estate offer.

Whether it is a short sale, lender owned property (REO) or market sale; there seem to be many different ideas about how buyers should submit offers and how sellers should respond to offers. Today, I want to clarify some of the rules of engagement for buyers and sellers in the Greater Boston market.

Here are the most common misconceptions that I hear from buyers, sellers and agents:

[Read more...]

New disability access requirements will take effect in early 2012

The Americans With Disabilities Act was passed 20 years ago and required retail and other commercial business owners to renovate their properties to make them accessible to the disabled. For the first time since then, the U.S. government has comprehensively revised the requirements. The new requirements will go into effect on March 15, 2012.

The changes include new rules for the following: van-accessible parking, maximum height and “reach ranges” for certain objects, service animals, communication devices for the hearing-impaired, seating requirements in theaters and other assembly areas (including access to stages), pool access, hotel reservations, wheelchair accessibility for employees, the use of mobility devices other than wheelchairs (such as Segways), and more.

In addition, the U.S. Justice Department has updated its list of modifications that all building owners are expected to consider, including ramps, curb cuts, access to vending machines, widening doors, accessible door hardware, rearranging toilet partitions, grab bars and raised toilet seats, and insulating pipes under sinks to prevent burns.

Higher standards are required for new construction and for older properties that are undergoing substantial renovations.

Exactly what is required varies and depends on the nature of the property and the expense involved in making it more accessible, but all commercial property owners need to be aware that new requirements are taking effect soon.

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Buying or selling real estate at an auction can be complicated

A small but growing percentage of real estate is being sold at auction. The advantage of an auction for a seller is that the property will definitely be sold quickly, although usually at a lower price. So auctions often attract sellers who simply want to unload a property, such as a lender that has foreclosed on it, or an executor whose heirs want cash and not real estate.

Auctions often attract buyers who are looking for a deal – although auctioned properties are usually sold “as is” with no guarantees, so unless you’ve done careful homework and had everything inspected thoroughly, the property might not be as good a deal as you first thought.

Auctions require special contracts and agreements that aren’t part of a traditional real estate transaction.

Because auctions are unusual and require special contracts and agreements, a seller will definitely want to work with an attorney as well as an auctioneer.

[Read more...]

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