Tag: real estate

Boundary and Title Disputes in California: Legal Insights

Property lines are not always where you think they are, and sometimes, the owner of a piece of real estate is not clear. Such boundary and title disputes can completely upend your life, so it’s worth looking at some of their root causes and what can be done to resolve them.

What Is a Title Dispute?

A title dispute arises when two or more parties have competing claims to the same real property. For example, one person might build a house on a plot of land only to have another claim to own that very land. The legal proceeding for settling title disputes is called a “quiet title action” because the judge will determine the actual owner and therefore “quiet” any competing claims to the land.

Here are the most common causes of title disputes:

Boundary Disputes

Adjacent property owners can disagree on exactly where the boundary line is between their properties. See more details on this below

Problems with the Deed

Errors or discrepancies in the deed can create big problems later. Most commonly, the problem with the deed is an incomplete or inaccurate description of the parcel.

Easements

An easement is a non-possessory right in real estate, meaning the easement holder doesn’t own the land or have the right to live there but does have some right to use the land in a limited way. For example, a neighbor may have an easement that allows them to cross your property to access their land, or a municipal government may have an easement to build and maintain utility lines on your land.

What to Do in a Boundary Dispute

As mentioned above, boundary disputes are a type of title dispute in which two neighboring landowners can’t agree about who owns a particular part of their respective lands. Historical use, natural terrain features, and fence lines may contribute to this misunderstanding. The problem becomes even more complicated when one builds a structure, such as a home on the disputed part of the land.

If you find yourself involved in a boundary dispute, here is some guidance on handling the situation effectively.

1. Have the Land Surveyed

The first step in resolving the dispute is to determine where the official property lines are by commissioning a property survey. The surveyor will examine county records and plot out an accurate map of what you factually own.

2. Try to Come to an Agreement with Your Neighbor

It’s best to come to an amicable agreement with your neighbor if possible. This may be as simple as building a new fence or agreeing to stay off the property. However, some agreements, such as the granting of an easement, should be formalized in writing.

3. Bring in a Mediator

Sometimes, you may not be able to agree on your own, especially if structures are involved. Bringing in an outside mediator can often help both sides reach a reasonable resolution.

4. Litigation

Obviously, litigation is not anyone’s first choice; it’s expensive, time-consuming, and can breed animosity. In some situations, however, litigation may be your only recourse. If you haven’t already hired an attorney, you definitely should at this point.

Talk to a California Real Estate Lawyer

Real estate title disputes can be tricky to unravel, and they are best handled with the help of a real estate dispute attorney. Having a lawyer’s help can often prevent the situation from escalating and will ensure that your rights as a property owner are protected. To discuss your situation with an experienced professional and figure out how to move forward, contact our office today.

Proposition 13: What Is It and How Can We Help

Proposition 13

Proposition 13, or Prop 13 as it’s often called, is one of California’s more famous voter-approved propositions, as it has profoundly affected homeownership and the housing market in the state for over 40 years. Depending on who you ask, it’s been instrumental in keeping older people from losing their homes due to unreasonable tax increases, or it’s kept young people stuck perpetually renting their homes and primarily benefited corporations by slashing their property taxes.

Whether or not you agree with Proposition 13, it’s good to know the facts. Let’s discuss what it is and how having the services of a real estate attorney may help you navigate its intricacies and save you thousands of dollars per year.

What Is Proposition 13?

Prop 13 was an amendment to the California Constitution approved by state voters in 1978. It was meant to address the problem of California’s rapidly increasing home values resulting in massive increases in property taxes that could force people out of their homes. For example, a retired person who had purchased their home 30 years ago for $50,000 could quickly find their home assessed at a value of $300,000, which would cause a 600% spike in property taxes.

The key components of Prop 13 are:

  • Property taxes are capped at 1% of the property’s assessed value
  • While the same person holds the property, the total property tax can only increase at a maximum annual rate of 2%
  • When title to the real estate is transferred to another person, the value is then reassessed

Reassessment typically leads to higher property taxes for the new owner, as real estate prices in the state have traditionally risen at an annual rate far greater than 2%. Suppose the new assessed value is lower than the original assessed value (perhaps due to economic recession). In that case, the property’s value will be reassessed annually until it matches or exceeds the original assessed value. At this point, the normal 2% rules kick in.

Crucially, not all transfers of title will trigger a reassessment. Here are some of the most common scenarios in which a property can be transferred without reassessment.

  • Transfers between spouses
  • Transfers from parent to child
  • Transfers from grandparent to grandchild, if both parents of the grandchild are deceased
  • For people aged 55 or older, replacement of a principal residence of equal or lesser value in the same county or in one of the so-called “accommodating counties,” wherein the assessed value of the former home may be carried over to the new home
  • Transfer upon the owner’s death to a co-owner who has been residing at the property for more than a year before the other owner’s death

Taking Advantage of Proposition 13’s Benefits

Knowing how Prop 13 works and how to take full advantage of it can lead to significant tax savings. This is mainly accomplished by transferring the title in such a way as to avoid reassessment because, in case it wasn’t already clear, reassessment is seldom good. For example, a home with an assessed value of $150,000 could easily be reassessed at $500,000, with property taxes jumping from $1,500 to $5,000.

If you are planning on selling or gifting your home to a family member, domestic partner, or someone similar, it is a good idea to consult with an attorney to make sure that transfer is done in such a way as to avoid reassessment. Talking to one of our experienced real estate experts can save you or your loved ones thousands of dollars in unnecessary tax bills. To schedule a consultation, contact our office today.

Reasons to Hire a Real Estate Attorney When Buying or Selling Commercial Property

commercial real estate attorney

Buying and selling commercial property is a complex process—yet many people are reluctant to hire a real estate attorney because they are worried about additional costs. In truth, the benefits of having a commercial real estate attorney far outweigh the costs. 

A skilled commercial real estate attorney can help you avoid costly mistakes, ensuring a smoother, less stressful transaction. But that’s just the start. Here are a few more reasons to hire a commercial real estate attorney when buying or selling commercial property.  

Protect Your Interests

Real estate attorneys have specialized knowledge and experience in dealing with the legalities surrounding commercial real estate transactions. Because of this, they can protect your interests, ensure that the contract terms are reasonable and that you receive a fair deal. Additionally, a real estate attorney can assist you with any issues that may arise following the purchase of your property, including environmental or structural problems. 

Identify Suspicious Terms

A real estate attorney’s expertise in commercial real estate transactions includes analyzing contracts and identifying suspicious terms or potential pitfalls that could harm their clients. They can also recognize zoning or environmental concerns that may impact the property, thus protecting their clients’ interests throughout the transaction process. 

Smoother Closing Transaction 

State laws vary, but even if your state does not require you to hire an attorney when closing on a property, we recommend it for a few reasons. First, an attorney can help prepare and review all documents and contracts to ensure they are accurate and compliant with laws and regulations. Second, an attorney can mediate between you and lenders, title companies, and real estate agents.  

Increase the Marketability of Your Property

Sellers also have much to gain by working with a real estate attorney. For example, suppose your property has a lien or structural issues. In that case, an attorney can negotiate with lienholders to reach a settlement or help the seller fix structural issues by connecting them with reputable contractors or engineers. 

Attorneys can also offer advice on how to disclose these issues to potential buyers in a way that does not discourage them from making an offer. 

Save Time

An experienced real estate attorney can also help buyers and sellers save time by handling legal issues related to the transaction, such as reviewing contracts, negotiating terms, and ensuring all necessary documents are properly completed and filed. 

This can help prevent delays and ensure a smoother, more efficient transaction process.  Additionally, if any legal issues or disputes arise during the transaction, the attorney can help resolve them quickly and efficiently, which can save time and ensure you avoid legal battles. 

Talk to a Real Estate Attorney

If you need legal assistance with buying or selling commercial property, including reviewing contracts, identifying potential pitfalls, and facilitating a smoother closing transaction, look no further than Hoffman & Forde. Our team of experienced real estate attorneys is perfectly suited to help you navigate the complexities of the commercial real estate market in San Diego, Los Angeles, or Orange County. Contact us today to see how we can protect your interests and ensure a successful transaction.