Is it true that almost everyone who invests in real estate will end being sued at some point? I stumbled into that interesting bit of information earlier and it had me wondering whether anyone who wants to get into the real estate business should retain a good lawyer before they wade in just in case . . . Your thoughts?
I think having access to good legal advice is necessary in all walks of life but especially if your dealing with a lot of financial matters. While a lot of lawyers can be expensive and I think a lot of people will be unwilling to pay the fees, at the end of the day they can also save you a lot of money aswell, especially if it all goes wrong.
Actually retaining a lawyer to work for you full time will be quite expensive and probably unnecessary at least for a while. But you'd definitely want to build relationships with the prominent attorneys in your area - particularly the real estate attorneys. And don't hesitate to utilize their services whenever they're needed.
I agree with the legal advice. May I cite an experience although I will omit the details. When the father's house was being sold, they consulted a lawyer on how to go about it because the mother was already deceased and the property was a conjugal one. The advice of the lawyer was to submit the property for extra judicial settlement so everything would be legal. But since that is a long and tiring process, a broker advised to just forge the signature of the dead wife. And since the buyer had fully agreed to that second option, that was how the property was sold.
I doubt that the majority of people who own real estate end up getting sued but the likelihood is that landlords get threatened with court action all the time. Even for something as simple as asking for overdue rent can result in the retort "I'll see you in court", such is our lawsuit culture. So whilst it's unlikely that you'll need to use a lawyer on a regular basis, it doesn't hurt to keep up to date with the laws surounding rental properties in your area.
For cases like that, my recourse would be to make a diplomatic approach on the issue. It is not nice to have that misunderstanding with the tenant since it was agreed upon that they would live in the apartment in exchange of the rent. And since overdue rent is a violation of the said agreement (stipulated in the lease contract) that see you in court attitude is an empty threat. I have seen such bickerings and it is mostly not due to financial constraint of the tenant but mostly because of a stained relation with the landlord.
