Legally Ever After Episode 14 – Legal Tips: Real Estate & Construction Defect Litigation - Law Mother

“Depending on how you're acquiring real estate, whether you're in an LLC or you're working for your own companies and do some sort of joint venture agreement, I really highly recommend you reach out to an attorney that could help you draft up the right documents,” explains Chad Johnson, attorney with Johnson Law. There is a lot to know about real estate law when it comes to investing. Chad shares his tips for how to protect yourself and your investment.

If you are just getting started in real estate investing, it is best to work with a real estate or construction attorney who can help you draft the right contracts. Under Colorado law, investors who are involved in the process of fixing a property are viewed as developers and can be held liable for non-disclosure or negligence when making those decisions. Additionally, when investing in new construction that is under 8 years old, there is a greater risk of finding a construction defect.

Cover your legal tracks from the start when getting involved with real estate investing. You can save money on the back end by being more prepared on the front end. Learn more about how to protect yourself and what to do when your property has a construction defect.

Quotes:

“Depending on how you're acquiring real estate, whether you're in an LLC or you're working for your own companies and do some sort of joint venture agreement, I really highly recommend you reach out to an attorney that could help you draft up the right documents.” (3:12-3:28 | Chad)
“You may just be an investor, but under Colorado laws, if you're making any decisions on what is getting fixed and what is not getting fixed, then you are more of a developer, and you can be held liable for either negligence or non disclosure in making those types of decisions.” (8:49-9:07 | Chad)
“There's definitely nothing wrong with over disclosure. There's certainly something wrong and even illegal under disclosure.” (14:14-14:20 | Chad)
“If you're buying a home that's under eight years old, and you do start to see signs of VAT or major water intrusion or other major defects, you talk to a defect lawyer right away.” (19:47-19:56 | Chad)