Avoiding Common Pitfalls in Real Estate Deals: Legal Insights
Real estate can be a hugely rewarding business. But if you’re going to get the best from your investments, you’ll need a fairly deep understanding of the market, and the regulations and laws that govern it. Let’s take a look at what this might mean.
Understanding Recent Legal Reforms in UK Real Estate
The Labour Party ascended to power having made a manifesto commitment to ending so-called ‘no-fault’ Section 21 evictions. This means that landlords face greater barriers to getting rid of problem tenants, and that tenants will enjoy some protection against unfair rate increases.
Of course, it isn’t just Section 21 that’s getting overhauled. The Renter’s Rights Bill is fairly comprehensive, with many different changes pending. Whether you’re a landlord or a tenant, it’s worth ensuring that you understand the law, so that you can stay on the right side of it.
Mitigating Risks in Property Contracts and Transactions
A property transaction involves a specific legal process. Where land sales are concerned, having a written agreement is particularly essential. You (or your conveyancer) will need to ensure that the terms of any contracts are binding, and that every legal formality has been observed. If you don’t, then you might find that your ownership of the property can be later called into question. On the other hand, if you’re the party who ends up falling victim to substandard conveyancing, it might be you takes action to correct the problem.
Dispute Resolution and the Role of Legal Professionals
In the world of property, disputes are commonplace. Tenants and landlords might interpret their contracts differently. Evictions might be handled in a way that falls short of what is legally acceptable.
There are a number of ways of settling disputes. Often, the simplest and most affordable of these is to go through the Property Ombudsman, which has been operating in the UK since 1990. If you decide to go through the courts, then be sure that your interests are being represented by a competent solicitor with specialist experience in real estate!
Navigating Leasehold and Freehold Complexities
When you own a property ‘freehold’, you own both the property itself, and the land it is on. This contrasts with ‘leasehold’ ownership, which means that you own the property, but not the land. The latter is common in apartment buildings and other multi-storey properties.
Leasehold properties often impose additional costs, like service charges and lease extensions. This means that the property owner may need to pay for the rest of the building and the area to be maintained. Remember that, in law, the lease is a form of tenancy, and so the property owner may enjoy additional protections. For the avoidance of stress and hassle, it’s worth maintaining a good working relationship with the landlord.
