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Denver Real Estate Law Blog

Sellers must disclose home defects prior to the sale

Can you imagine buying a $1 million home, only to discover that it requires tens of thousands of dollars worth of termite control treatments? Home sellers are required by law to disclose defects related to the properties they sell. Failing to do so could leave the home seller liable for the cost of repairs later incurred by the purchases of the property.

State laws in Colorado require home sellers to reveal all material defects to prospective purchasers of their properties. For a home defect to be "material," it must be such that -- had the homebuyer known about the flaw before agreeing to purchase the property -- the homebuyer would have reconsidered whether to make the purchase.

Homeowners associations can create challenges when selling a home

When you own a condominium property, it's likely that you belong to a Homeowners Association (HOA). You may also belong to an HOA if you live in a neighborhood. While there are many benefits to belonging to an HOA -- such as rules that require neighbors to keep their houses beautiful so property values stay as high as possible -- there are some disadvantages, too. These disadvantages become particularly apparent when a homeowners association is in a bad state of financial health.

When you sell a home or condo, the buyer will usually need to get approval for a loan from a lender. The lending bank will be very interested to investigate the financial condition and financial health of the HOA associated with the property being purchased. If the HOA has any pending problems, it could result in delays associated with loan approvals. The sale of your home could even be canceled.

Factors to consider when negotiating a rental lease

If you're a business owner looking to rent a space to conduct business, you may need to negotiate the amount you will pay to lease the property. When negotiating the terms of a commercial lease, it will help you to have an understanding of the market and general prices in the area where you want to rent. This article will talk about several factors you may want to keep in mind when negotiating your commercial leasing arrangements.

The location of the property and the current market conditions surrounding the property will influence the amount you need to pay in rent for the property you want. In many cases, property owners will determine rent amounts by establishing an annual cost per square foot for the property and multiplying that by how many square feet you plan to rent. After arriving at this figure, the landlord will divide the annual cost by 12 months to arrive at the monthly rate. In the final rent amount, the landlord may include additional costs that account for the upkeep of shared common areas, utilities, taxes, insurance and maintenance.

Amazon's potential impact on local rentals

In September, the online retail giant Amazon announced that they are seeking to build a second corporate headquarters and are waiting on competing bids from state and local governments. The New York Times named the Denver area as the best choice for the new headquarters, which promises to bring up to 50,000 jobs and $5 billion in local investments.

Real estate investors recently bought 432 acres of land near Louisville in Boulder County, which they intend to use as a lure for Amazon. Because the Denver area appears to be a top candidate, it is worth examining how Amazon's could impact the local rental market and greater economy.

5 kinds of commercial real estate properties

Denver area real estate investors who hope to purchase commercial real estate may want to look at the different options available to them. In fact, there are a lot of different kinds of commercial real estate that you might want to invest in depending on your interests, experience and what's available for purchase in the area you're focusing on.

Let's say, for example, that you have a lot of experience in the maintenance and upkeep of multi-family residential properties. Perhaps you will be interested in buying an apartment building or an apartment complex. This article will review five different kinds of commercial real estate properties that you might want to consider in this regard.

Google buys $131 million property in Boulder

Google recently paid an estimated $131 million to acquire property that will become its new Boulder campus. The technology giant purchased the property from Forum Real Estate Group. Google says that the purchase demonstrates its commitment to the city of Boulder. According to the company's lead representative in Boulder, Google values the talent base in Boulder, the community and the quality of life.

Forum Real Estate Group began construction at the campus in 2015, which is located on Pearl Street in Boulder. The first two buildings constructed offer 100,000 square feet of space with room enough to house a total of about 1,000 employees.

3 real estate investment risks

Are you thinking to invest in real estate property for the first time? Maybe you've owned your home for many years, but now you're thinking of investing in commercial or residential property for purely investment purposes. If this sounds like you, there are three categories of risk you'll want to know about when it comes to real estate investment:

  1. Volatility risks: These risks relate to the rise and fall of the price of your real estate on the market. Penny stocks and startup company stocks are some of the most volatile investments on the market. Generally, real estate is considered to be less volatile, but as many investors found out 10 years ago, the real estate markets can also be subjected to frighteningly drastic ups and downs.
  2. Concentrated risks: When you put all of your eggs in one basket, there's some serious risk there. What if your investment property burns down? What if the neighborhood goes downhill and all the property values fall? What if real estate prices, in general, take a tumble? Real estate investors might be tempted to invest all their money in one sector of the economy -- the real estate market. Be careful with this. Diversity is the key to minimizing any kind of investment risks.
  3. Leveraging risks: Most real estate investors don't have enough money to simply buy a property with their own cash. These investors have to take out a mortgage loan. If property values fall, and your property is worth less than your loan, or if you lose your source of income and can't pay the loan, serious financial problems can develop.

Can you identify any other real estate investment risks? Due to these and other risks, Denver-area real estate investors may be able to benefit from an in-depth evaluation of their real estate investment plans by consulting an experienced real estate attorney.

Factors to consider when buying your second home

One of the first decisions you'll want to make before you even start looking for a second home is how much of a fixer upper are you looking to buy. Many savvy investors enjoy picking up homes that can easily have sweat equity built in them. However, if you purchase a home that has too many flaws, then you may cut into your budget and the turnaround time that you intend to be able to flip or rent it within.

Getting involved in a home that needs complex repairs also puts the home at risk of sustaining further damage, may require you to hire an architect or engineer or require permitting that you cannot instantly obtain. In addition, you may find that the property needs more repairs than you anticipated. Regular maintenance may also be required to keep the home in tip top shape.

Protect yourself when signing a new construction builder contract

When builders are creating a new-construction residence, they often sign contracts ahead of time with prospective buyers. However, these contracts are not always for the benefit of the buyer. They're usually drafted for the benefit of the builder. You'll therefore want to avoid agreeing to an in-house builder agreement at all cost. Instead, you may want to create your own home purchase contract.

Here are some great tips to follow when signing a new home purchase agreement:

What are some alternatives to home foreclosure?

If it looks like your home will be foreclosed by your lender in Colorado, you may still have some options that you could employ as an alternative to the foreclosure process. This article will take a look at three potential foreclosure alternatives, which you can discuss with your lender to determine if you qualify.

Three alternatives to home foreclosure are:

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