The The Ritchie Law Firm is very active in the practice of real estate law. The Firm handles many transactional real estate matters where it assists in the purchase, lease and sale of real estate with buyers, sellers, and real estate professionals such as appraisers and brokers.
The Firm additionally assists real estate developers in real estate development, subdivision platting, commercial development, real estate zoning and sale of real estate.
Real Estate Contracts
When buying or selling real estate it is absolutely critical to have a written contract of sale. Generally, each state has a body of law known as the "statute of frauds". These laws require that certain contracts be in writing to be enforceable unless certain exceptions are met. Real Estate Contracts are generally required to be in writing. Apart from legal requirements, practical considerations require a detailed written contract for the sale or purchase of real estate. The real estate contract describes exactly what is being sold and the terms and conditions of the sale.
The contract sets forth the precise price and terms of payment. The real estate contract specifies the time for performance of each party's obligations such as title examination, title insurance, vacating the property, paying for the property, providing the deed, providing certificates regarding condition of the property, performance of inspections and much more. The real estate contract is the key to having a transaction that is firm and enforceable and for the protection of the interests of all the people involved in the transaction.
Deferred Exchanges
The Firm is also involved in assisting people with deferred exchanges and like kind exchanges under Section 1031 of the Internal Revenue Service Code involving real estate and other investment assets. A deferred exchange or like kind exchange is used by people to avoid the requirement to pay capital gains tax on a real estate or other investment property transaction by deferring it to the purchase of a replacement property.
This transaction generally involves the use of a Qualified Intermediary. In its most basic of explanation, a person selling investment property reinvests the proceeds from the sale in another investment property and by using the deferred exchange or like kind exchange procedure does not pay capital gains tax on the sale because the proceeds are used to purchase another investment property. This frees up the money that would have gone to pay capital gains tax to be reinvested in the replacement property.
Real Estate Disclosure
Real Estate Disclosure Law is voluminous. It has both statutory provisions and case law provisions. Many states have implemented specific laws providing for when real estate disclosures must be made, who must make them, and what the disclosures must contain. Generally speaking, real estate disclosure laws make requirements on the sellers of real estate to disclose to the prospective buyer any defects in the property.
As an example, some of the most common issues that arise are: termite damage or termite infestation that has not been disclosed, structural defects or mechanical defects that have not been disclosed, prior uses of the property for manufacture of drugs that has not been disclosed, Environmental Hazards and many other issues. This is a problem that can generally be eliminated with a good real estate contract that covers everyone at the beginning of the transaction. However, even when there is a contract disclosure issues can arise.
