Probate Real Estate - Is a Legal Background Necessary?

I know many of you haven't gotten started yet in Probate Real Estate because you are afraid you will run into legal hassles. Well, guess what? When it comes to legal stuff, I'm not the sharpest knife in the drawer either.

However, I'm still extremely successful in Probate Real Estate.

How can that be, you ask? Here's the secret. Buying Probate Real Estate is not a legal process even though the Probate is conducted through the judicial system. Probate Real Estate as I describe in my book, is nothing more than a method of prospecting for folks who might be interested in selling their house at a discount. That's it!

Let me explain it to you this way.

If I thought folks who owned blue houses would give me a discount, I would have figured out a method to contact folks who own blue houses. I have discovered that is not the case. Blue house owners are not a good place to prospect for good deals. Green ones aren't either! What about yellow houses? Nope - wrong again.

How about Probate houses? Now we are talking!

People who have inherited homes ARE more likely to sell these houses at a discount because they don't want them. Why? They have just inherited the house, and most people don't need another house! What they DO need is more long green (cash money), and the sooner the better, thank you very much!

Consequently, I have devised a system to get a hold of them and see if we can put something together. "I'll buy your house quickly if you'll give me a little discount." Simple enough?

So once I find a willing seller, and I'm the willing buyer, we've got a deal. Now it's just like buying the house next door. Even the blue house next door! You and the seller agree on the price, you write a Sales Agreement and the two of you close on the property. Just be sure to use a title company or an attorney, whichever is appropriate in your state, for the closing. They will keep you out of hot water.
Pretty simple, huh?

That's why you don't need any legal knowledge, or legal training. There are no "special" forms or "special" contracts. As a matter of fact, let me give you a little free tip here.

When you go to write your Sales Agreement, if you want to keep in compliance with your local State and County regulations, go down to the For Sale By Owner office in your area and pick up their "forms" packet. It'll cost you around $25. In it you will find a copy of the Sales Agreement that is used in your area. It should also have a short instruction sheet on how to properly fill it out. That's the one to use. Just use their instructions to fill out your Sales Agreements and you'll be good to go. That will also keep the real estate police from knocking at your door!

So now in the two minutes it took you to read this article, you have learned all the legal stuff you need to know about buying Probate Properties.

I'm a Tenant - Get Me Out of Here

You are renting commercial premises; business is tough; you want to move to smaller (or just plain cheaper) premises to cut costs; you dust off that lease you signed a couple of years ago to find there are another 8 years to run. What can you do?

This is a question that I'm expecting to be asked a lot this year as businesses attempt to tighten their belts.

Many tenants sign up to 5, 6 or 10 year leases without giving a moment's thought to the enormity of the financial commitment they are making. One of the things I always point out to tenants entering into a new lease is the total financial commitment they are making. For example, a 5 year lease at £20,000 per annum is a total commitment of £100,000. It's amazing how few business people think of it in those terms.

In addition to the rental costs, there are the costs of keeping the premises in good repair which for an older building can be absolutely astronomical.

If you find yourself staring down the barrel of several more years' rent on premises you don't want with a nasty repair bill for the premises as the sting in the tail, there are a few strategies you can adopt to try and soften the blow.

have your lease reviewed by a lawyer. Leases tend not to be written in the most straightforward of language and it is essential that you ask a lawyer who specialises in commercial work to review the lease to establish whether there are any clauses that can be used to your advantage. These are a couple of examples of provisions your lawyer will be looking for:

Break clauses - your lease may contain a clause allowing you to end the lease early but these clauses need treating with extreme care as very often conditions need to be satisfied and notices served in a particular way to ensure that you don't lose your right to end the lease early. Messing up service of a break notice is one of the most expensive mistakes a tenant can make.

Alienation Provisions - see what I mean about the language used in leases? 'Alienation' means your right to deal with the lease by either selling it on to someone else or alternatively subletting. These provisions tend to vary from lease to lease and again it is essential you understand what you have the right to do before you embark on the search for someone to take the premises off your hands.

Approach your landlord and ask for a rent reduction. This might sound like a pretty stupid suggestion but when commercial tenants are thin on the ground the last thing a landlord wants is for the obligation to pay the rent to push his tenant into bankruptcy or administration. I currently have a client who has agreed to temporarily reduce his tenant's rent from £90,000 per annum to £45,000 per annum to enable the tenant to trade through a bad period. The alternative was that the tenant would have gone into administration and the landlord would have received nothing. In the current climate the premises would be difficult to relet and landlords now have another issue to consider - business rates on empty properties which came in on 1st April this year.

Consider winding up your company and transferring the business to a new company. This might be morally objectionable to you but if you are fortunate enough to have negotiated a lease in the name of a limited company with no directors' guarantees then by winding up the company you can effectively escape your obligations. Before you consider this approach you will, of course, need specialist legal and accountancy advice.

Closing Contracts

When you are in the process of having a contract closed in Tax delinquent Investment you need to consider a time frame. Remember not to make that contract null and void, so give it a very good time frame of about 60 to 80 days. This is for your security, as well as the sellers, so there is still a way to back out of a contract, if you need to.

But, of course, you do not want to wait 60 to 80 days before you close. You want to close much faster. You want to close, ideally, as fast as possible, because the faster you buy it, the faster you can sell it, and the faster you make money. So, therefore if you work with a title company, make sure you send the sale agreement to the title company, once it is accepted. Tell them you expect them to close escrow on or before a specific date. You want the title to be ready as soon as possible, so if it can be ready the week after the sale that would be best. Then they know that they do not have to wait until the close of escrow. Very often, title companies wait until the very last moment. They are trained to wait on attorneys. They are trained to wait until the day of close of escrow comes and they close a day or two prior to that. The title should be ready a month earlier than close of escrow, ideally.

In my experience sellers are ready after 10 days. Then, they sit there and wait, and if you do not remind them. They just let the paperwork sit there for another 50 days before they say, "Okay, let's arrange for closing." So, you want to make sure that you are on top of the situation. Remember, just because they have agreed to sell does not mean that they will chase after you, you still have to do some legwork. This is your investment and it is in your best interest to make sure it goes smoothly from beginning to end.

In Tax Delinquent Investing, follow through is just as important as acquiring and convincing the seller. You will be dealing with third party organizations that is used to playing the waiting game. Remember, this is your money we are talking about. Would you leave a wad of cash sitting around? I think not. Make sure you direct the third parties accordingly so that your investment process can go as smooth and seamless as it can be. Your investment is turned around faster and easier.

5 Steps to Selling Your House

Selling your house is one of biggest transactions you'll ever make, so it is vital that you get it right.

Before actively marketing your property you will need to have available (or at the least applied for) a Home Information Pack (HIP). This can be arranged through your solicitors, estate agents or even direct with a HIP provider.

Once you have found a buyer and have accepted an offer on your property, here's what happens next.

1. Preliminary Matters

Once you have instructed a solicitor to act on your behalf, you will need to provide proof of your identity to comply with Governmental and Law Society guidelines.

Your solicitor will also ask you to complete standardised documentation that will form part of the contract package to be delivered to the Buyer's solicitors which are called the Property Information Form and Fittings and Contents Form (an additional form called Leasehold Information Form may also be needed if the property you are selling is held on a leasehold tenure).

If you have a mortgage on your property you need to provide the solicitor with your mortgage account number. This will enable them to obtain the Title Deeds from your lender.

2. Before Exchange of Contracts

If your property is registered then a copy of the Title for your home will be ordered electronically through HM Land Registry. If your Title is unregistered then it will be up to your solicitor to present a Title to the Buyer's legal advisor based on the historically documentation within the Title Deeds.

The solicitors representing you in the sale transaction will then provide a contract package to the Buyer's solicitors. This comprises of a draft contract, copies of the Title to your property and the Property Information Form and Fittings and Contents Form referred to above.

Once a contract package has been issued to the Buyer's solicitors it is normal for them to raise a number of enquiries concerning the Title for the property as well as its historical and present physical state. Your own solicitor will deal with these enquiries on your behalf (as many of them may be technical and difficult to understand!) however, there may be some questions where your input is required.

You will need to make sure that the information you provide in any documentation is accurate and that the responses to any questions asked by the Buyer or your own solicitor are true.

Your Buyer is likely to instruct their solicitor to carry out searches through the Local, Drainage, Environmental and the Chancel Check authorities. This is to ensure that there are no hidden surprises within the said authorities records that would prevent the Buyer's from proceeding with the transaction.

Once the Buyer has received a Survey report and their solicitor is in receipt of search results, replies to enquiries and offer of mortgage (if applicable) then they are in a position to effect exchange of contracts.

3. Exchange of Contracts

When the form of the sale contract has been agreed between solicitors, your legal advisor will ask you to sign your copy of the contract. Just because you have signed your contract, it doesn't mean you have sold your house - the agreement is only binding once the contracts have been exchanged.

Immediately prior to exchange the completion date is agreed with all parties in the chain. There is no set period between exchange and completion. Completion can even be arranged a year in advance if appropriate! It may also be possible to agree a simultaneous exchange and completion date. However, this date depends upon the availability of all parties in the chain to physically move out of their existing house and into their new home.

Once exchange of contracts has been effected you are in a legally binding contract to sell your property.

4. Preparing for Completion

You'll need to arrange a removal firm to empty your house, and inform the relevant utility and other companies that you are moving.

Your solicitor will arrange for your mortgage to be paid off and settle your estate agents commission account (if applicable). In addition you will be asked to sign one final document by your solicitor called the Transfer Deed. This document will be utilised by the Buyer's solicitors to register their clients interest in the property at HM Land Registry following completion. Rest assured your solicitor will not release this document without first having received the full balance of the sale proceeds.

5. Completion Day

The sale will be completed once the purchase funds have been received from the Buyer's solicitors. Everything from the house must be removed, except for any fixtures and fittings that you have agreed to sell to the buyer or will be including in the sale price.

You will need to leave the keys to the property with your estate agent, unless you have agreed differently with the buyer. Once this has been done you have successfully sold your house.

Selling your home can be made much easier when you know what is going to happen next. Now you know what to expect of you, you can continue to look for your dream home.

Difference Between Judicial and Non-Judicial Foreclosure

Judicial Foreclosure

Judicial foreclosures are processed through the court system. The lender files a complaint stating what debt is owed with an explanation of why they should be allowed to recover the property from the borrower in lieu of debt settlement. A notice of Lis Pendens usually accompanies this complaint. A Lis Pendens means a notice of pending action. The home or property owners are notified that there is intent to cure a default by mail and publication to have an opportunity to protect their interest in the court. If the court finds probable cause of default in debt settlement, it is then ordered that the amount owed is valid along with court costs. The property is then to be sold at public auction. When the property is sold, it is then presented in front of the court to protect the lender's interest.

Non-Judicial Foreclosure

Sometimes Non-Judicial foreclosures are referred to as power of sale foreclosure. This procedure does not involve the court. The mortgage company sends a notice of default or a right to cure default and files a recording in the county recorders office. Often local publications are used along with these proceedings. There are some states that do not require a notice of default and can proceed without any direct contact with the owner. Most states require a time period for these proceedings and after this lapse the public auction is held and the property is sold to the highest bidder. Homeowners are generally allowed to redeem the property in a process called Statutory Redemption. This time period varies from 30 days to one year, depending on each state law.

Facing a foreclosure is frightening and often times confusing since each state is different. You should not face this alone. Act now to contact your lender to see if you can work out a repayment option to settle the debt. If this isn't a satisfactory solution, get a foreclosure expert to help you with the foreclosure. There are too many laws and terminology that the common man might not understand. You really need to take a look at your finances to see where your problem lies and be upfront and honest with your lender.

Using a Power of Attorney For Real Estate Contracts

The use of a Power of Attorney in connection with real estate contracts and be a powerful tool, but care should be taken to avoid potential pitfalls. Here are a few common questions that Arizona real estate lawyers commonly face with regard to the use of the Power of Attorney in the real estate context.

Q. What is a Power of Attorney?

A. A Power of Attorney is simply a signed document that authorizes one person to act on behalf of another. A Power of Attorney is commonly used in Arizona real estate transactions when a party is not available to sign closing documents and wishes to designate another person to sign for them. In such cases, if a Power of Attorney must be used, it should be limited (Referred to as a "Special" or "Limited" Power of Attorney) to the discrete use for which it is intended. In most cases, an Arizona real estate lawyer should be consulted to make sure the Power of Attorney serves only the purpose it was intended for.

Q. Who are the parties to a Power of Attorney?

A. The parties are the principal (who grants the power) and the agent or attorney-in-fact (who gets the power).

Q. What is the scope of the given power?

A. This depends on what the document says. In most cases the principal should avoid a "General" Power of Attorney, which allows the agent to do anything the principal has the power to do. A Special or Limited Power of Attorney (described above), on the other hand, will allow the agent to do only what the principal requires to get the job done.

Q. How long does a Power of Attorney last?

A. Again, this can be controlled by what is stated in the document. If the written document does not specify an expiration date or event, the document generally remains in effect until it is revoked or until the principal dies or becomes incapacitated or incompetent. In most cases, an expiration date should be included in the document because even after a Power of Attorney is revoked it remains effective with regard to third parties who don't know it has been revoked.

Q. What is a Durable Power of Attorney?

A. In some cases the principal wants the Power of Attorney to survive his or her disability. In such cases a Durable Power of Attorney is used to avoid the automatic revocation of the Power of Attorney upon the principal's incapacitation or incompetence.

Q. Are there any special requirements for a Power of Attorney in Arizona?

A. Yes. In most cases the Power of Attorney must be signed by a witnesses not related to the principal and must also be notarized. Also, if the agent is to receive any compensation, this must be spelled out and separately initialed by the principal and witness. There are other requirements and harsh penalties, including possible criminal repercussions, so its a good idea to have an Arizona real estate lawyer help.

Q. How should the agent sign a document on behalf of the principal?

A. The agent should sign the principal's name "by _____ (Agent) as his attorney-in-fact."

As suggested above, you should be very careful before granting a Power of Attorney to someone else, or before agreeing to act on behalf of someone as their agent. Its always a good idea to seek legal counsel from an experience Arizona real estate lawyer before doing so.

Kevin R. Harper is an Arizona real estate and business litigation attorney, representing individuals and small businesses throughout the state of Arizona from his Central Phoenix office located at 1 N. Central Ave., Suite 1130, in downtown Phoenix. His firm also has an office in Chandler, Arizona and represents individuals and businesses all over the state of Arizona.

How Do I Obtain Copyright?

You obtain your copyright to any project the moment you put words to paper, or ink to your sketch, or snap the photograph. The rights to your project are yours to keep. Until you sign a contract or make any agreement otherwise, you retain the rights to your work at all times. This means you have the right to pursue legal action if anyone were to use your work without permission. You might also need it if someone takes you to court, claiming you stole their ideas or work.

However, some people are not satisfied with this. Also, while you could take someone to court over exploitation of your copyrighted work, you might need to have some proof that you did create the work first. If you actually intended to sell your work, like your photographs and your text, you can register for a copyright. The United States Copyright Office will let you register your work, or groups of your work, and you will be able to get more money and make a better claim if you should ever have to go to court.

People used to say you could put copies of your work in an envelope and mail it to yourself using the United States Postal Service. It is called the "Poor Man's Copyright Registration". The truth is that while it might help in court proceedings, it is really better if you go ahead and register your copyright to your work officially.

You should especially copyright your work if it is something you intend to keep and resell again and again, and make a living off of your work, like a photograph or a piece of art. You should know that if you write an article or a book, usually the publishing company that purchases the work will obtain the copyright for you, and it might be better to let them do so. If you're uncertain, it doesn't hurt to go ahead and get the copyright registered for your project anyway. It can certainly be helpful if you should ever need to use it when you go to court over copyright violations.