Involve a Lawyer from Beginning to End
Virtually all purchases of real estate involve two separate negotiations. The first is the letter of intent. The second is the detailed purchase and sale agreement.
Even if a letter of intent is made non-binding, once it is put in writing, it plays a key role in the negotiation and documentation of the formal purchase agreement. Any mistakes or oversights at the letter of intent stage may very well create problems throughout the entire process.
“The single biggest mistake most investors make in buying real estate is getting the lawyer involved after they negotiate the letter of intent. This is too late.” — Attorney Jeffrey H. Lerman
Even a seasoned investor, or an investor with a sharp broker negotiating on the investor’s behalf, needs to involve a lawyer from the first serious communication of an offer, whether written or verbal.
Every negotiation for the purchase of residential and commercial real estate includes numerous economic opportunities and hidden costs, even if the standard A.I.R. form is used. Take advantage of every opportunity to avoid unnecessary costs by putting an experienced real estate investor lawyer to work from the start.
Property owners may not realize that selling their investment requires just as much diligence as the original acquisition. Most sellers want to walk away from the property with no further obligations or liabilities. However, there may be negotiating points that can tie up the investor’s property for years, resulting in costly litigation without any ability to sell or leaving the investor on the hook long after the sale.
A seller must be vigilant in negotiating everything including:
- Legal description of the property
- Purchase price
- The deposit
- The contingency period
- Conditions to close
- Representations and warranties
- Damage and destruction consequences
- Indemnification clause
When it is time to liquidate your real estate investment, count on Lerman Law Partners to get it right from beginning to end. Contact us today. We have offices throughout California in San Rafael, San Francisco, Santa Clara and Los Angeles.