As a commercial real estate investor, there is a good chance that you will invest in real estate located in another state, where local customs may be very different from where you live. Knowing some of these practices, you can avoid mistakes that can cost you money. While people say, when you are in Rome, do what the Romans do. Often, however, there is disagreement as to whether the seller or the buyer is in Rome. This article discusses some of the common practices that you need to know. It may or may not explain why these practices – that is what they are, what can be a very long history.
You often see this independent monetary contribution in the contracts in Texas (TX), Georgia (GA) and North Carolina (North Carolina), but not in California (California), where love and affection acceptable for attention. Brokers who write in these states, often insist that you pay the seller 1000- $ 5,000 as an independent review of the right to terminate the contract during a typical 30-day test period. As a non-standard investor, you have to pay for airfare, hotel accommodation, meals and car rental to visit the property as part of your due diligence. So if you decide that the location is not as good as shown on a satellite map or for any reason, it does not make sense to pay more dollars 1000-5000, to terminate the contract. While the law in these states requires an independent monetary consideration, he really talks about what should be this amount. Thus, you should choose a large amount from $ 1 to $ 10 to make a legal contract!
Neabkladany sur & # 39; major deposit
In the CA there is no refund of the deposit by the decision of the court CA. In most, if not all real estate contracts in all states there is an item about the defeat of damage in connection with the violation of any of the contracting parties. this often enough. However, some brokers and vendors outside the CA often insist that all serious & # 39; significant deposits of "going", that is non-refundable and are released after the expiry of the seller due diligence. Although the goal is to make sure that you double wondered about the violation, it may be difficult to recover any suras & # 39; a major deposit, if
- You unforeseen situation, for example, hit the truck or suffered a heart attack and are going to heaven or anywhere will not be able to close the deal.
- The property is partially damaged or even burned down by arson.
- Seller spends it all, and your credit is not approved due to soil contamination found later!
You are in a poor position to negotiate with nothing to offer, if the money you have in the seller. Therefore, it is advisable to keep a deposit in a decree before closing. However, sometimes you have to make tough choices, especially if you have a few suggestions that you can purchase the desired property.
In California, the property is automatically remeasured at cost. The rate of real estate tax is about 1.25% of the purchase price. In connection with Proposition 13, property taxes may only increase by a small percentage each year, unless ownership is changed.
The TX property tax rate is about 3% of the estimated tax or value. However taxable value may or may not be purchased at the cost, which is often higher. If the county the county reported a higher purchase price, you will pay property taxes based on the higher purchase price. Therefore, a good idea not to inform the higher purchased price, because it is not required. Recently, the local government is trying to attract revenues through aggressive revaluation of property values. The new estimated value may be much higher, e.g., 100% of the old estimated value. If this happens to your property, you can hire a professional company, which is protesting against an increase in property taxes even on the property with the lease NNN. The success rate seems pretty high. As an investor, it is reasonable and prudent to keep the costs as low as possible NNN to your tenants. You definitely want your golden goose continued to lay eggs.
In Florida, the monthly state tax on commercial real estate sales, so make sure you know who has to pay it. In Illinois, the real estate tax rate is quite steep and is about 5%. The rate of property tax for the NC is about 1.45% of the taxable value, which does not change after the sale.
In California, the demo company may engage in closing a real estate transaction. In GA, FL and NC, the company conducting the decree may contain for you just deposit and you have to hire an attorney who is licensed in the state to make the closure. These states are often referred to as "the State Bar." Supporters say that the real estate deal is very complicated, so to help you to be a lawyer. For opponents all about safety for lawyers. If you invest the property in the state attorney you want to hire an attorney who charges a single fee, as a & # 39; the amount of work is very predictable. You will receive an assessment, based on the fact that you need to make a lawyer. He or she did not win, as long as you do not let him or her in writing to do so. The lawyer will review all the documents and give a blessing before you sign them. It is desirable to avoid a lawyer who will charge you by the hour. Most likely, you are dealing with a lawyer who is looking for a great day of payment.
In CA the buyer automatically receives a report of the previous property rights, which indicates the owner and various information, such as deposits and the amount of the loan on the property. If you cancel a transaction, usually pay no demonstration of any payments. The state attorney lawyer will do a search and review the names. Then, a company engaged in the title, provides liability insurance against vice. In case of cancellation of the transaction lawyer and Escrow company may charge a fee for their work.
If you make an offer, you have often stated that the buyer and seller share closing price on the basis of practices in the county where the property is located. The CA or TX sellers typically pay for insurance insurance property owners based on the purchased price, which guarantees the buyer a clear ownership (technically you should not buy the owner's title insurance when refinancing assets because ownership was insurance if you purchased the property.) The buyer accounts to pay for a premium based on the loan amount. This policy requires the lender the lender, to protect it from damages resulting from claims of other property. Of course, if you pay the existing property then kredytadavtsy not. However, GA is the buyer, as a rule, for shoppers to pay both for the owners and for the loan. So make sure that you have sufficient funds to cover the transaction.
In California, sellers are often passed the interests of buyers of ratification. In other states the seller to list their interest to the buyer by a general or special warranty deed.
- Total warranty deed used to transfer to the buyer of real estate interests of the seller. Seller indicates that the ownership of the assets to be transferred to the & # 39 is free and devoid of defects, liens and encumbrances. The buyer can sue the seller for harm caused faulty ownership.
- Special warranty deed is also used to identify interest in real estate. However grantadavets does not guarantee the presence of defects arising from the conditions that existed before he / she has assets. Thus, the special warranty deed is not as good as a general warrant. However, most sellers will use this action for obvious reasons.