3 Common Legal Mistakes that Real Estate Investors Make

If there’s anything that true about real estate investing, it is the fact that you can reduce your chances of getting sued to zero. Despite this threat, investors still continue to make legal mistakes that will put their businesses and lives at risk.

So, here are three common legal mistakes that Real Estate Investors make:

#1: Cheap Legal Forms
Buying legal forms from discount office supply stores, borrowing them from friends or even downloading them from the internet aren’t options that you should consider if you’re planning to use good legal contracts.
Consider it as an investment and buy a good legal contract to prepare the deal and better still, have a real estate lawyer look at it.

#2: Discrimination
If you’re a landlord with prejudices based on sex, color, income and so on and so forth, you have to be aware of the fact that this is prohibited by The Fair Housing Income Act of 1968. The Americans with Disabilities Act protects disabled people.
Of course, if you have a good reason to reject an application, make sure that you document it well – or else, you’ll find yourself dealing with a lawsuit.

#3: Improper Disclosures
No matter what you do, improper disclosures will lead to a lawsuit, sooner rather later. As a landlord or a real estate investor, you have to be aware of the federal and state regulations in regards to every little aspect of the house.
Whenever you’re in doubt, disclose everything that would avoid problems later on – whether it is plumbing problems, electrical issues or water damage.