Real Estate Newsletters

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...]

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.

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...]

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.

The Massachusetts real estate attorneys concentrate in Massachusetts real estate law and serve the entire Greater Boston North Shore region including the communities of Everett, Revere, Chelsea, Somerville, Cambridge, Medford, Arlington, Winchester, Woburn, Burlington, Stoneham, Melrose, Wakefield, Saugus, Lynn, Peabody, Salem, Marblehead, and Swampscott. Our real estate lawyers speak and provide legal services in Spanish and Italian.

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...]

Winter 2012 Real Estate Newsletter

Home appraisers are the unofficial umpires of residential real estate sales, deciding whether offering prices are fair or foul. But much more often than in the past, they’re striking out deals and sending buyers and sellers back to the dugout. Each month, between 10 and 20 percent of real estate agents are seeing accepted offers to buy a home founder or collapse as a result of appraisals that came back too low, according to recent surveys by the National Association of Realtors.

Low appraisals hurt both buyers and sellers. When an appraisal comes back lower than expected, buyers usually can’t qualify for as large a mortgage. That means they have to put up a larger down payment to buy the house – something they often can’t do. As a result, the sale might fall through, or the seller will have to lower the price in order to salvage the deal.

There are ways to improve your chances of a good appraisal. But first, it’s important to know why this problem has arisen lately.

[Read more...]

Fall 2011 Real Estate Newsletter (view in PDF)

Starting October 1, 2011, large home mortgages on expensive houses are harder to get – because the U.S. government is trying to gradually play less of a role in the mortgage market.

Currently, government-related entities such as Fannie Mae and Freddie Mac guarantee or purchase the majority of home mortgages in the U.S. Lenders are much more willing to provide mortgages if they know the loan can be backed by these entities.

However, the U.S. doesn’t guarantee all mortgages – it only backs mortgages that meet certain criteria. In particular, there’s a size limit to how large a mortgage it will guarantee. That limit varies based on how expensive the housing market is in a particular area. Early this year, the limit was up to $729,750 in the country’s priciest markets.

But the government is eager to play less of a role in the mortgage arena. And one way to do that is to reduce its backing of the most expensive mortgages. So as of October 1, the government is reducing the maximum size of a mortgage that it will guarantee.

This will make it harder for home buyers to get a large mortgage, because lenders will be less willing to offer mortgages if they aren’t backed by the government. Borrowers who want a big mortgage may find themselves facing a number of obstacles, including higher interest rates, more stringent income requirements, demands for a higher credit score or a lower debt-to-income ratio, or having to come up with a larger down payment.

[Read more...]

Summer 2011 Real Estate Newsletter (view in PDF)

Cash is playing a more significant role in residential real estate sales right now than at any time in recent memory.

Consider the following:

» The median down payment on houses was 22% last year.

That’s according to a study by Zillow.com of sales involving conventional mortgagesin nine major U.S. cities. It’s the highest figure ever since the data started being kept back in 1997.

By comparison, just three years ago the figure was 11%. And back in late 2006, it was only 4%.

The main reason for the change: Banks are tightening their standards and demanding larger down payments to qualify for mortgages. Banks are figuring that borrowers who can afford a larger down payment are less likely to default, and less likely to end up in a situation where they are “underwater” – meaning the value of their house falls to the point where they owe more than the house is worth.

[Read more...]