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 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 the development, platting, zoning and sale of real estate.
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.
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.
The Firm is also involved in assisting people with deferred exchanges under Section 1031 involving real estate and other investment assets. A deferred 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 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 to be reinvested in the replacement property.
Real Estate Law on the issue of disclosure is voluminous. It has both statutory provisions and case law provisions. Many states have implemented specific laws providing for when 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 infestation that has not been disclosed, structural or mechanical defects that have not been disclosed, prior uses of the property for manufacture of drugs that has not been disclosed, 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.