Investor Tips To Staying Clear Of Legal Trouble


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Real estate investing can be rather complicated. There are convoluted accounting problems to deal with, decisions involving difficult choices to be made, and of course numerous risks. It is very easy for an investor to get wrapped up into working their way through these challenges, while completely ignoring the seemingly unimportant details that could well be grounds for legal trouble down the road. Real estate investors have an obligation to familiarize themselves with legal matters that can directly affect them or their business if they want to stay clear of the wrong side of the law.

When filling out real estate contract forms, it is absolutely crucial that these forms are filled out correctly with the guide of a legal expert. The higher the stakes, the more important it is to read every line and the fine print before signing on the dotted line. The importance of having these forms reviewed by a real estate attorney cannot be overemphasized. Many investors learn the hard way when they have been sued for violating the terms of a contract that they wouldn’t have signed if they knew the details.

Investors also need to steer clear of discrimination if they want to avoid legal trouble. Rental property investors in particular should be very clear on what connotes discrimination. Denying tenancy to any individual based on some arbitrary criteria could well be interpreted as a violation of the Federal Fair Housing Act. State laws also have strong anti-discrimination laws that investors should be aware of.

Federal and state non-disclosure laws are another area that some investors may not be aware of but they should realize that violating them can carry huge civil penalties. Investors involved in selling or renting property must be aware of disclosure laws and abide by them in order to stay away from future litigations. Running online ads in an attempt to raise capital from private investors is yet another area where investors may unknowingly cross legal bounds if they are not aware of laws governing securities regulations. Hiring labor under the table in an attempt to avoid the payment of withholding taxes, worker’s compensation, and unemployment taxes, is a sure way the attract the attention of the IRS.

There is no full proof way of avoiding legal trouble. The law has such a vast reach and touches just about every aspect of business dealings that it is impossible to guard against every possible scenario that might land one in legal trouble. However, by using the above steps as guides, investors can greatly limit their chances of landing themselves in legal trouble. Investing in a good real estate attorney turns out to be a worthwhile investment for investors who want to operate within the confines of the law.

Asking questions with these tips in mind will help save real estate investors thousands. For more ideas related to real estate investing, call or visit us a Homevestorsfranchise.com. We are the nation’s number one home buying franchise with over 15 years of experience. Our company has a vast assortment of real estate investment and real estate franchise opportunities available to help you grow your real estate business. Come see us for more information.

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