A home sale or purchase may be the largest financial transaction we will ever make. With all the work it takes to find the right home, negotiate the price, and procure a mortgage (or find a buyer if selling your home), the actual transfer of funds and title seems like a mundane affair. The orderly exchange of property and large amounts of money cannot be taken for granted, however, especially between two parties who barely know each other. Escrow services exist to make this transfer more secure, but who regulates escrow laws in California?

What Is Escrow?

You may have heard of escrow before without giving it much thought, but if you plan to buy or sell a home, you should familiarize yourself with the term. The legal definition of “escrow” is a transaction in which the buyer and seller transfer funds, evidence of title, or other items of value to a third party until the happening of a specified event or performance of a prescribed condition. At this point, the property is transferred to the respective parties as agreed. What does that mean? Let’s take a common example:

A buyer makes an offer on a house, which the seller accepts. Since the title transfer process is not instantaneous or free, the seller requires “earnest money” from the buyer to ensure they are serious. Similarly, the buyer wants to be sure the title transfer is legitimate and does not want to simply hand over a check to the seller. So, they agree to use an escrow service.

The escrow service holds the earnest money and the written instruments needed to transfer the title to the buyer. Once the various requirements have been completed (the title has been verified, the buyer’s mortgage lender has provided the remaining funds, etc.), the escrow service transfers the money to the seller and registers the property title in the buyer’s name. The transaction is finished, and both parties walk away.

Escrow works as a specialized form of trust in which the escrow agent acts as a trustee of the parties’ property for the duration of a complex transaction.

Licensing of Escrow Agents

Because of their critical role in real estate transactions and because they routinely hold large amounts of other people’s money, escrow agents must usually be licensed by the state. In California, the Department of Financial Protection and Innovation (DFPI) handles the licensing and regulation of escrow agents. While the applications for an escrow license are complex and involve extensive documentation, here are some of the main requirements:

• Only a corporation may receive an escrow license, not an individual
• At the main office, there must be at least one person with a minimum of five years of escrow experience and at each branch office, a person with at least four years of escrow experience
• The corporation must deposit a surety bond with the state of up to $50,000, depending on its financial obligations
• It must maintain a tangible net worth of at least $50,000, including at least $25,000 in liquid assets

While “independent” escrow agents must be licensed in this way, there are numerous other persons and institutions who may perform escrow services without a license. The reasoning is that so-called “non-independent” escrow agents are already regulated in other ways. The four categories of non-independent escrow agents are:

• Banks, trust companies, building and loan or savings and loan associations, credit unions, or insurance companies doing business under California or federal law
• A licensed attorney who has a bona fide client relationship with one of the principal parties and who is not engaged in the business of an escrow agent
• Any person whose principal business is preparing abstracts or making searches of titles that are used as a basis for the issuance of a title insurance policy
• Any broker licensed by the Real Estate Commissioner working as an agent or party to the transaction and performing work that requires a real estate license

Real Estate Law Experts

If you are buying or selling real estate and plan to use an escrow service (which is recommended), be sure to use only a qualified escrow agent, such as a licensed attorney. Our escrow lawyers have years of experience facilitating real estate transactions, helping to resolve disputes, and making sure the process goes as smoothly as possible. Contact us today to schedule a consultation.

Bad things happen to everyone. We’re involved in car accidents, get hurt at work, or are injured in some other way—often through no fault of our own—and then we’re left wondering how to pick up the pieces. A personal injury claim is something that many people end up filing in such instances.

If you’ve been injured and think you may have a claim against someone else, it’s important to understand that how you handle things (from the point of injury onwards) can have huge consequences for your case.

Here are five of the most common mistakes people make concerning personal injury claims.

1. Not Hiring an Attorney for a Personal Injury Claim

You may read this and think, “Of course, an attorney will say that,” but this is absolutely the most common and critical mistake. People who are injured and have a potential legal claim are unlikely to understand the real value or the full extent of that claim. They are also much more likely to make a huge mistake that can undercut their case.

Think of it from the defendant’s side. Insurance companies and other business entities will definitely have lawyers on their side. The standard playbook for those lawyers is to get a potential plaintiff to settle the case for little or no money before talking to an attorney.

If the defendant can’t settle the case, the next best thing is to convince the plaintiff to delay hiring an attorney as long as possible in hopes that they will trip themselves up and spoil their own case. They do this because it is in their best interest, and their interests are directly opposed to yours.

Most plaintiff’s attorneys who handle personal injury cases do so on a contingency basis. This means the client does not pay any upfront fees, and the attorney instead receives a percentage of any compensation the client collects. There is no downside to consulting with an attorney in this scenario, so don’t delay.

2. Failure to Document Evidence

A personal injury claim only has value if it can be proven, so it’s important to collect and retain evidence. The more objective the evidence, the more helpful it is (as opposed to relying solely on your own testimony).

For example, if you are in a traffic accident, call the police. They will investigate the scene and create a report. If there are witnesses, talk to them and get their contact information. Take photos of everything and if other people take photos, ask for copies. Anything that documents the event and its consequences has the potential to be helpful.

3. Making Unnecessary Statements

As a general rule, starting from the moment of the injury, it is best to make as few statements about the incident as possible. This includes statements to family, friends, and especially to potential defendants. Don’t post anything on social media. Everything you say can be used as evidence, and defendants will be searching intently for anything that weakens your case. One common issue is that some people are naturally very polite, and they end up apologizing for something that isn’t even their fault—that apology can be used as evidence of their guilt.

This rule goes hand in hand with having an attorney. If anyone wants to talk about the incident, you can (and should) simply refer them to your attorney and politely end the conversation.

4. Not Documenting the Full Extent of Your Injuries

If you don’t document your injuries, it will be more difficult to receive compensation for them later. Some people are accustomed to suffering in silence; they receive treatment for broken bones after an accident but never mention that they’ve started to have migraines or nightmares every day. If you tell a healthcare provider about any issues you are having as they arise, other people are more likely to believe they are real.

5. Settling Too Quickly

It’s natural to want to settle a case quickly. Lawsuits can take a long time to resolve, and people often just want to move on with their lives. They may also really need the money that is being offered just to pay for basic necessities or medical care. Defense attorneys know this, and they will try to take advantage of it. They will drag out the case and offer $100,000 to settle a claim that is worth a million dollars or more.

If it is at all possible, avoid falling into this trap. Holding on a little longer is usually worth the trouble.

Speak to a Personal Injury Claim Attorney

If you’ve suffered an injury and think you might have a legal claim, don’t make one of these mistakes. Contact our office to speak to an experienced personal injury claim attorney as soon as possible.

At one time or another, most renters will consider whether breaking a lease is a good idea. There can be a lot of reasons to break a lease—a decrease in earnings, poor conditions on the rental property, or perhaps they just found a better deal. But people often stick it out because they’re worried about the potential fallout. Breaking a lease agreement can be done but it’s important to understand what happens if you do so and when it might be legally justified.

What Happens When You Break A Lease

When you move out of a rental property before the lease term has expired (i.e., “break the lease”), the primary consequences are financial. Simply put, you’ll probably owe the landlord money for the remainder of the lease.

For example, if you have a 12-month apartment lease with $2,000 in monthly rent, you’ve agreed to pay the landlord $24,000 in 12 monthly installments. If you move out after six months, you still owe them $12,000. If the lease is month-to-month and you leave without giving the landlord the required notice (usually 30 or 60 days), you would owe rent for that notice period.

The landlord does have a legal responsibility to “mitigate damages.” Rather than just leaving the property empty, they have to attempt to find another suitable tenant to take your place. If they do find another tenant, you would generally be responsible for paying rent for the time the property was sitting vacant, but not the period after someone else is paying rent.

Because breaking a lease is essentially like incurring debt and not paying it, it will also likely have a negative impact on your credit score and could make it difficult to find another rental.

Justifications for Breaking a Lease Agreement

The situation above may sound dire, but there are a number of legal justifications for breaking a lease, meaning that you could do so without paying the remainder of the rent due. Here are some of the justifications recognized in California:

1. The property is unsafe or uninhabitable

There’s a legal principle called “constructive eviction,” where conditions at the rental property are so poor that the tenant has no choice but to leave. These conditions have to be serious problems—e.g., no heat in cold winter, no lock on the front door, etc.—that are the landlord’s responsibility to fix. The landlord also must be given a reasonable amount of time to address the problem.

2. Harassment or violation of your rights

This is an extension of the constructive eviction principle described above. For example, suppose a landlord repeatedly enters the property without giving you at least 24-hour notice or performs deliberately harassing actions such as changing the locks. In that case, you may be able to break the lease without paying rent.

3. Active military duty

Under federal law, a member of uniformed services who is called to active duty may terminate their lease within 30 days of the next rent payment, regardless of how much time is left on the lease term.

4. Victim of domestic violence and other crimes

Under California law, if you or an immediate family member has been a victim of domestic violence, stalking, assault, or other crimes, this can justify terminating a lease early. In these cases, the tenant is only responsible for 14 days of rent following notice to the landlord.

If You Need to Break Your Lease

If you’re in a position where you need to break a lease agreement, advice from an experienced attorney can make the process much easier. An attorney can evaluate your situation to see if you have a legal justification for breaking the lease. Even if you don’t, they can negotiate with the landlord to minimize the negative consequences. Contact our office today for a consultation.

In California, as in other states, professionals in a wide variety of fields are required to hold a license in order to practice their trade. Such professions range from medical doctors to accountants to private investigators. Each has a licensing board or other authority that makes and enforces rules on competence, ethical standards, and more.

If a professional falls afoul of their licensing board for one reason or another, the board may file an accusation of misconduct against them. The professional will then be given a chance to defend themselves in an administrative hearing, often before an administrative law judge (ALJ). If they are found to have committed some sort of misconduct, punishment can include the suspension or even revocation of their license.

Is it possible to get your license back after it’s revoked? The answer is yes, and you have a couple of options.

Petitioning for Reinstatement

Your license can either be revoked with stay or revoked without stay. A revocation with stay is a type of probation. It means the board will hold off on actually revoking your license for a period of time, during which you must fulfill certain requirements (taking educational courses, for example). A revocation without stay, on other hand, is a final judgment, but that doesn’t mean you don’t have any options left.

Most boards allow professionals to petition for reinstatement after some time has passed. This period can vary, but is usually one to three years. At this hearing, you can show that you have resolved the issue which led to the revocation, call fellow professionals as witnesses to vouch for you, and generally convince the board that there will be no further problems. If successful, the board can restore your license and you will be able to practice again.

Appealing the Board’s Decision

You can always appeal a board’s decision if you believe it was mistaken or unfair. Depending on the particular board involved, there may be an internal appeals process, which must first be exhausted. If you have tried everything at the board level, you can appeal its decision to a regular state court.

The court can overrule the board if it lacked jurisdiction, denied you a fair hearing, or abused its discretion. California courts have recognized license revocation as depriving someone of the “fundamental right” to practice their profession, and will look to see if the punishment was too severe for the misconduct. If the board’s decision to revoke is overturned, it may still impose some other punishment, such as probation or suspension.

Learn More About Your Options

If you are facing disciplinary action by a licensing board or your license has already been revoked, your livelihood is at stake and it’s critically important to have assistance from an administrative law attorney. An experienced attorney can help ensure you receive a fair hearing, minimize disciplinary action, and even get your license back.

Our team of administrative law experts practice all across Southern California. Contact us today to schedule a consultation.

Accessory dwelling units (ADUs) go by a few names: an in-law house, granny flat, carriage house, backyard cottage, and more. They are increasingly popular with homeowners looking to provide a living space for family members or to generate monthly rental income.

With a housing crunch affecting much of California, the state government has a strong policy encouraging the construction of ADUs to provide more affordable housing options. Just this year, a new set of laws went into effect that incentivize building ADUs and remove many of the legal barriers that may have stopped homeowners in the past. Here is a quick rundown on accessory dwelling units in California.

What Is an ADU?

An accessory dwelling unit is an independent living space that is added on to an existing property with a single-family dwelling. An ADU can be a detached building, or an area of the original house that has been repurposed as independent living quarters. The latter type is known in California as a Junior Accessory Dwelling Unit (JADU).

State law allows for a maximum ADU size of 1200 square feet or, in the case of a JADU, no more than 50% of the square footage of the original house. For example, if the original house is 2000 square feet, a JADU may not exceed 1000 square feet. Local laws may relax this restriction, however.

Changes in State Law

 For a variety of reasons, not all counties and municipalities have been friendly to the idea of allowing homeowners to add an ADU to their property. In order to discourage the practice, local governments could enact restrictive zoning laws, make it difficult to acquire a permit, and more. Similarly, homeowners’ associations could prohibit ADUs via their covenants, conditions, and restrictions (CC&Rs).

New state laws have made it much harder to prevent a homeowner from building an ADU. For example, local governments can only restrict the construction of ADUs based on availability of water and sewer service, and the impact on traffic and public safety. If an ADU permit application has not been acted on within 60 days, it is automatically approved. CC&R’s cannot unreasonably restrict or effectively prohibit the building of an ADU. Homeowners considering adding an ADU should find it much easier now.

Accessory Dwelling Units and Property Taxes

For most homeowners, one of the most important questions is how an ADU will affect their property taxes. The short answer is: it will raise your property tax, but not as much as you might be thinking. The value of the new addition will be added to your overall property value, but it will not trigger a reassessment.

For example, if the assessed value of your property is $200,000, but the actual market value is $500,000, building an ADU valued at $100,000 will bring the total assessed value to $300,000, not $600,000.

Additional Considerations

Besides navigating the new laws, building permits, government incentives, tax implications, and rental agreements, homeowners should also consider creating an LLC to protect their assets. If something goes wrong and a renter takes you to court, all of your assets are potentially at risk; an LLC can help reduce this exposure. It may also help you benefit from more tax deductions.

Think of building an accessory dwelling unit on your property? A consultation with Hoffman & Forde can help you do it faster and more cost-effectively, as well as minimize your legal exposure.

Rental Agreement Laws

California has some of the most complex landlord-tenant laws in the nation. There are extensive protections for tenants, as well as separate rent-control laws in a number of municipalities such as San Francisco, Los Angeles, Sacramento, and others. Residential rental agreements must clearly communicate the terms of the tenancy and abide by all applicable laws.

Faulty or poorly drafted rental agreements can create all kinds of headaches for landlords and possibly provide an eviction defense for tenants. To minimize problems in the future, we highly recommend that property owners consult with a real estate attorney when creating their rental agreements.

Basic Terms of a Rental Agreement

Every rental agreement for a residential property should include these key terms at the very least:

• Names of All the Tenants – It’s also a good idea to include an occupancy limit and identify what happens if additional people come to live on the property without notifying the landlord.

• Physical Address of the Property

• Rental Period – Identify the time period the lease will last (commonly 6, 12, or 24 months). Also state whether it will become a month-to-month agreement after the initial period expires. Note that, under California law, the tenancy will automatically continue month-to-month if the landlord accepts rental payment.

• Rent Amount

• Rent Payment Details – Identify when the rent is due, where and to whom it should be paid, the method of payment, and late fees.

• Security Deposit Information – In California, the security deposit may not exceed the value of two months’ rent (three months if the property is furnished).

• Utilities Payment – Identify which party is responsible for the payment of utilities such as electricity and gas.

• Maintenance and Repairs – Identify which party is responsible for maintaining and repairing the property.

• Pet Policy – Clearly communicate the policy on pets, including what types of pets are allowed and the responsibilities of the tenant.

Tenant Protection Act

Passed in 2019, the Tenant Protection Act made significant statewide changes to California landlord-tenant law, including adding just-cause termination requirements and restrictions on rent increases. Here is a brief summary of the major changes.

Once a tenant has occupied a property for 12 months or more, the landlord may only terminate the tenancy for “just cause.” Just cause can include failure to pay rent, material breach of rental agreement terms, criminal activity, and more. There also “no-fault” causes to terminate, such as when the owner or the owner’s immediate family wishes to occupy the property.

Under the rent-increase provisions, in any 12-month period a landlord may not increase the rent by more than the rate of inflation (defined by the Consumer Price Index) plus 5%, or a total of 10%, whichever is lower. A number of dwelling types are excluded, such as single-family homes and buildings that are less than 15 years old.

Landlords must disclose these changes in the law to existing and new tenants by written notice or in an addendum to the rental agreement.

Consult a Landlord-Tenant Attorney

In this complex and always-changing legal landscape, it is crucial to have expert advice. Our team of Southern California real estate attorneys can help you draft a rental agreement that makes sure your interests and property are protected. Schedule an appointment today.

With different contracts involved in real estate transactions, it’s highly possible for homeowners and property owners & sellers to encounter litigation. Let’s take a look at common causes of real estate litigation and if you’re in San Diego, what to look for when hiring a lawyer to help with your case.

Common Causes of Real Estate Litigation

Real estate disputes and challenges can be caused by the following.  

Breach of Contract

In real estate transactions, typically two parties will have reached an agreement or contract which can include agreements with respect to purchase, sale, partnership, a lease or other agreements. When one or more parties fail to uphold their end of the contract, whether the agreement was oral or written, a lawsuit can arise. In a case claiming breach of contract, the plaintiff needs to prove that they have upheld their contractual duties, while the defendant has failed to perform the contract’s terms. The wronged party may receive compensation for the damages and losses they endured because of the breach.

Negligence or Breach of Duty

Real estate agents must provide buyers with what they need to make an informed decision regarding the purchase. By law, real estate agents are required to work to benefit the client and their best interests—this includes disclosing information relevant to the purchase and keeping client information confidential. Failure to fulfill due care and not taking appropriate action can lead to a lawsuit. 

Failure to Disclose Property Defects

Thorough inspection of a property is required to help buyers make an informed decision. In California, residential property sellers are required by law to disclose the property’s condition and defects. These include structural defects or even if a death occurred at the property within the last three years. Without thorough documentation and failure to disclose property defects to a potential buyer can lead to litigation.

Boundary Disputes

Another common cause of real estate challenges includes boundary disputes. This type of dispute may arise between neighbors and involve misunderstandings regarding property lines. One way to prevent or resolve boundary disputes is to order a survey which accurately reflects the boundary lines. In some cases the owners can resolve the dispute with a quiet title action, which asks the courts to determine the property’s boundary lines.

Choosing Your Real Estate Attorney

There are other real estate disputes that can arise and it’s best to be prepared in all cases. A real estate attorney can help you prevent these disputes. If you’re already facing litigation, it’s important to choose an attorney that has the expertise, creative approach, and cost-effective solutions you need. 

Experience & Expertise

Whether the property is commercial or residential, look for a real estate attorney or law firm that has the expertise to handle your case. As a boutique law firm, Hoffman & Forde has access not only to real estate attorneys but also a group of professionals across multiple industries. 

Creative Approach

While creativity may be the last thing you look for in an attorney, it’s important to recognize that each case will be unique and will then require a unique approach. Our accessible team at Hoffman & Forde does just that.

Cost-Effective Solutions

You’re already investing a considerable amount of time, money, energy, and other resources to secure your property. Choose a law firm that provides clients with the most cost-effective solutions possible. 

Your San Diego Real Estate Litigation Attorneys

Resolve your case effectively with our commercial and residential real estate attorneys at Hoffman & Forde. Schedule a consultation today to see how we can help.

There is no universally accepted definition of administrative law, but rationally it may be held to cover the organization, powers, duties, and functions of public authorities of all kinds engaged in administration; their relations with one another and with citizens and nongovernmental bodies; legal methods of controlling public administration; and the rights and liabilities of officials. 

Administrative law is to a large extent complemented by constitutional law, and the line between them is hard to draw. The organization of a national legislature, the structure of the courts, the characteristics of a cabinet, and the role of the head of state are generally regarded as matters of constitutional law, whereas the substantive and procedural provisions relating to central and local governments and judicial review of administration are reckoned matters of administrative law. But some matters cannot be exclusively assigned to either administrative or constitutional law.

In the United States, administrative law (or regulatory law) is a branch of public law that applies to federal as well as independent agencies. Administrative federal law defines the duties and responsibilities of executive branch agencies and independent agencies; when the executive, legislative, and judicial branches of federal government are unable to directly carry out their constitutional duties, federal- and state-level government bodies issue directives to monitor activities in complex areas.

In California, “[t]he Office of Administrative Law (OAL) ensures that agency regulations are clear, necessary, legally valid, and available to the public. OAL is responsible for reviewing administrative regulations proposed by over 200 state agencies for compliance with the standards set forth in California’s Administrative Procedure Act (APA), for transmitting these regulations to the Secretary of State and for publishing regulations in the California Code of Regulations.”

Administrative Procedure Act

The Administrative Procedure Act (APA) enacted June 11, 1946, is the United States federal statute that governs the way in which administrative agencies of the federal government of the United States may propose and establish regulations and grants U.S. federal courts oversight over all agency actions. It is one of the most important pieces of United States administrative law, and serves as a sort of “constitution” for U.S. administrative law.

Hoffman & Forde’s Administrative Law Firm Services

Our team of attorneys are experienced defending professionals from malpractice claims, regulatory complaints and licensing board hearings in California. Our attorneys bring years of success to administrative and professional licensing law having represented every kind of licensed professional including medical personnel, real estate agents & brokers, accountants, engineers, contractors, social workers, insurance brokers, and fiduciaries. Business owners & managers are subject to the influence of government and the law in the workplace. When facing reproval, penalties, fines, probation, suspension, revocation or even a lifetime ban trust our attorneys to defend your license and your livelihood.

Your Southern California Administrative Law Attorneys

At Hoffman & Forde, our attorneys are experienced California administrative law attorneys, and we defend licensed professionals and businesses before the Medical Board, Department of Insurance, Department of Real Estate and other California licensing agencies. We have many years of administrative hearing experience before the Office of Administrative Hearings (OAH), as well as license defense experience in other administrative law forums.

As a boutique law firm, we have experts across disciplines and relevant industries. With our creative solutions, your estate plan will be tailored to you and your goals. Invest in legal advice and set up your family for the future for peace of mind. Call us today for a consultation.

2020 has brought with it a range of legal issues in the commercial real estate space. Commercial tenant conflicts, while common, have become more prevalent and can take many different forms. That’s why more than ever, connecting with a top-of-the-line commercial tenant attorney in San Diego has never been more important. Savvy clients can prevent conflict before it occurs, or reach mutual agreement with proper legal counsel. Here’s what to expect from a good commercial tenant attorney.

Experience With A Range of Situations

An experienced commercial tenant attorney is able to represent tenants in all kinds of important ways. Whether they’re facing unlawful evictions, rent payment problems, or claims of breach of lease agreement issues, this kind of attorney can navigate nuances with skill. They should also be able to help with drafting leases and working through safety and health issues, code compliance, rental discrimination, and more.

Knowledge of California Laws Helps Businesses

Every state has its own commercial tenant laws. That’s why California business owners need local legal counsel with the knowhow to navigate these laws. When rent increases without warning, eviction looms, or there are issues with maintaining the space, businesses could fall into some unfavorable situations if they aren’t careful. A good San Diego commercial tenant attorney can help before signing a lease and after.

Foresight and Resolve

A good commercial tenant attorney can offer legal counsel at the first sign of trouble to avoid litigation. However, they can also be aggressive when needed and won’t hesitate to go to court if necessary. These attorneys look out for their client’s best interest at all times.

Choose Our Commercial Tenant Attorneys 

At Hoffman & Forde, we know that not all cases are the same. But we’re experienced and knowledgeable when it comes to California laws for business owners. We put clients first and provide creative solutions that best fit your case. As a boutique lawyer, you get the specialized skills of our commercial tenant attorneys and legal counsel across related disciplines. Our five-star reviews also attest to our firm’s professionalism and dedication to our clients’ success. Call us today to find out more about our comprehensive legal services and how we can help.