Knowledgeable Montana Real Estate Lawyer with a Unique Edge – Accepts Clients Throughout the U.S!
Prior to becoming an attorney, Michael Rabb worked as a real estate and right of way agent in Arizona, working closely with escrow agents, real estate agents, developers and government agencies in the development and sale of raw and improved land. He then obtained his California real estate broker license. This past experience provides an extra layer of understanding for individuals and real estate professionals who retain The Rabb Law Firm, PLLC to help close residential, agricultural and commercial transactions.
Real Estate Transactions
Prior to entering into a real estate sales contract, it is essential that you understand the provisions laid out in the contract. If need be, ask yourself the following questions:
- Do the terms of the contract reflect your intentions?
- Are there provisions that should be contained in the contract, but are not?
- Is it feasible for you to abide by the terms of the contract?
- If you breach the contract, what are the consequences?
- If the other party breaches the contract, what is your recourse?
The Rabb Law Firm, PLLC provides assistance in developing real estate sales and purchase contracts and is well-equipped to answer any and all questions you may have.
The period between when the contract is signed and the transaction is closed is known as the “executory” period, though you may hear it referred to as “being in escrow.” The sales contract is usually contingent upon various occurrences, and the executory period is the time in which the buyer and seller ensure that those contingencies are met. Many questions and issues arise during this period, and the Rabb Law Firm, PLLC provides its clients with exemplary advice and guidance during this critical period.
Closing the Deal
Closing is the final stage of the sales process. Except in rare circumstances, this is where the property is transferred from seller to buyer. It is essential that the deed contain the proper provisions, including an adequate legal description of the property. Furthermore, the sales contract typically states what type of warranties the seller will provide in their deed to the buyer. It is the buyer’s responsibility to ensure that these warranties are contained in the deed at the time of transfer.
Under Montana state law, sellers are required to disclose certain known defects so that buyers can make informed decisions regarding whether or not to buy a property. These potential defects typically affect the property’s structure, mechanics and/or electrical system, as well as its plumbing and sewer systems. If the property has a history of pest infestation, the sellers must disclose this as well.
Development & Financing of Real Property
Like a stock or bond, the development of land is an investment. The owner of the land, like an investor in the stock market, expects a return on their investment. One feature of real estate, however, that distinguishes it from other investments is that an owner/investor can borrow against the cost of acquiring and constructing their investment. In other words, the owner/investor leverages their investment. The word “Leverage” simply refers to using borrowed capital to invest in something that will have a rate of return higher than the cost (interest) of borrowing that capital.
Financing is real estate’s life-line. Most, if not all, developments are financed, at some point or another. Some financing is for an extended period of time – a 30-year mortgage – other financing can be for a brief period of time – construction loans. The type of loan, the purpose of the loan, and the terms of the loan dictate the investor’s rate-of-return on their investment.
Not only does financing of a development dictate the rate-of-return on that investment, but various laws and regulations can have a serious impact on the investor’s bottom line. Development of real property in Montana and many other states is heavily regulated. The development could be subject to subdivision laws, will be subject to land/use law, and could require compliance with certain building codes and environmental regulations; like those imposed by the Montana Environmental Policy Act (MEPA), for example. Understanding what potential hurdles the develops will encounter is essential to protecting your investment and ensuring that that the rate of return will exceed the cost of borrowing the capital.
Nationwide, developers and lenders alike look to The Rabb Law Firm to help guide them through real estate financing and development process. Call The Rabb Law Firm, PLLC to discuss your development needs today. (406) 404-1747
Contact The Rabb Law Firm, PLLC to Get Started
For most people, the transfer of real property is the most significant financial transaction they will make in their life. Whether you need guidance through the purchase and sale of your home, farm, ranch, or commercial property, or if issues arise after the transaction closes, The Rabb Law Firm, PLLC can provide you with the legal help you need.