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With the Uniform Residential Landlord and Tenant Act (URLTA), there are some rules and regulations that current and potential landlords and tenants need to know about. You may not be giving services you owe your tenants under the law.
Many of our clients own one or more residential rental properties that they rent out. For the most part, these clients are people potential tenants in the community can trust. We know them to always try to do the right thing, and our legal advice helps them do that. That’s how we know there seems to be a lot of confusion and myths about what the law actually says about various rental problems.
Most of the time, if the rental property lies in a certain county in Tennessee where the population is over 75,000, it falls under URLTA. For example, residential locations here in Wilson fall under the URLTA of Tennessee. If the county’s population is under 75,000, then the laws are usually governed by Tennessee case law and are much more difficult to traverse.
These laws can be somewhat difficult to understand. When understood, they are a guide for the landlord. They can lead a landlord through the many minefields of landlord-tenant law. With the help and advice of an attorney, any landlord can understand what they need to do.
In almost all instances of landlord-tenant disputes, it takes an attorney who is a veteran in this area. Our law firm has handled hundreds of these disputes, many of which settle outside of litigation. Our residential real estate attorneys can help you proceed through your contracts as a landlord or tenant. If you have a legal question about the Uniform Residential Landlord and Tenant Act, please contact us today.
Commercial real estate property can seem simple from the outset. It’s a piece of property you use to run a business, as opposed to the residential property you live on. But then how does an apartment building work? Isn’t that residential real estate since people are living there, or is it commercial real estate since it’s owned by and makes a profit for someone who is not living on it? Can a real estate property be considered both at the same time?
When it comes to real estate law, it’s important to know and understand the distinctions between commercial and residential real estate properties. The laws that govern them are different, and when you have properties that have to deal with both types, you need a real estate attorney who can handle them both.
What Are the Criteria to Be a Commercial Real Estate Property?
Real estate property is classified as commercial or residential based on how the owner uses it, with a few exceptions. This means that a group of apartments or an apartment building is considered a commercial property.
If one building or property has two physical establishments, it can be considered a commercial and residential property at certain times. Think of a business with an apartment above it or a house with a family business operating on the same plot of land. This can be a commercial and residential real estate property, which leads to some complicated real estate laws, regulations, and taxes to deal with.
If there is only one place of residence being used for the business, such as a singular home that’s rented out, the property is residential. Using a residential space to temporarily make a profit does not change it into a commercial property until it can support more than one family.
What Are All the Commercial Real Estate Property Types?
There are four types of commercial real estate properties that all businesses typically fall under. These labels take the work performed in these locations into consideration and what services and utilities the space provides. These four types are:
Office space: These have basic utilities such as electricity, water, internet access, and food storage. They are the closest to residential spaces, in terms of what they provide. The main difference is that office spaces do not typically have bathing utilities and should not be used as living spaces.
Industrial-use: Locations that hold and maintain a line of production, through machines or labor, are industrial-use properties. This is where products are created, assembled, or where their parts are created. Farmland is considered an industrial-use real estate property.
Multi-family rental: These are commercial locations that offer multiple residences as a service. Once a residential real estate location has multiple units and can support multiple families, it cannot be considered a residential property. A large house that can support multiple families is not the same as a multi-family building designed to be for multiple families.
Retail: These are locations that sell products directly to consumers. The products can range from food, to clothes, to non-essential items and everything in between. As long as they accept some form of compensation and are open to the general public, they would be considered retail. If they are only open for appointments and/or specific individual consumers, the location will be considered an office space property, not a retail property.
These distinctions are important because they have different laws and tax laws to abide by. While they are all commercial real estate properties, they do not have all the same restrictions.
What Are All the Commercial Property Classifications?
Commercial real estate properties also have classifications. A property has to meet certain levels of classification, or it may not be used for certain business purposes. These classifications are based on the age, infrastructure, and location of the commercial property. Some industries, zoning locations, and licensing authorities have more extensive classifications, but most use the three-class model.
Class A: These are the highest quality buildings. These can be old or young, but either way, they’ve been properly maintained so that they have not fallen in quality. The physical infrastructure of these buildings is sound and will stand the test of time and natural disasters that are common in the location.
Class B: These buildings are typically older, but are of quality. They are safe to work in for most or all business purposes. They may need to be updated to meet the needs of certain commercial ventures. These buildings can be restored and potentially improved to meet Class A standards.
Class C: These buildings are the oldest, located in low-income areas where many properties are Class B or C. To make these buildings safe and capable of serving as commercial real estate properties for most or all types of businesses, they need maintenance and renovations.
Need Legal Help for Your Commercial Property?
The real estate law attorneys at Tressler & Associates have been helping local business owners for many years with their contracts, leases, zoning laws, and more. There are a lot of legal barriers that business owners need to be aware of and ready to deal with. Having an experienced legal attorney will help you avoid roadblocks to your business’s success. For helpful consultation, please contact our law firm today.
When you buy real estate in Tennessee, there are different options when it comes to having your property titled. It is important to know the differences because it changes your rights to the property. Here is an explanation of the basic title options available in Tennessee.
All Types of Title Options
Tenants In Common: This is the default title option for everyone except married couples. When a property is held as tenants in common, everyone with ownership rights to the property has a right to use the property. Unless otherwise specified, the ownership of the property is equal. This means when you’re selling your property, you split the proceeds equally with the other owners. Because this is the default rule, unless the owners specifically use another option, the owners will be considered tenants in common. It is also important to note that property held as tenants in common by individuals will likely have to go through probate in order to be transferred.
Joint Tenants with Rights of Survivorship: Joint tenants with rights of survivorship own the property equally. The biggest distinction here is that there are survivorship rights. This means that the surviving joint tenant(s) will acquire the deceased joint tenant’s portion upon their passing. This means that you do not have to go through the probate process to transfer the property. It is automatic until the last tenant living passes away. There are strict specifications on how to form the title. So if you need to title your property in this manner, you need an attorney to properly accomplish your goal.
Tenants by the Entirety: This is the default rule for married couples and is only available to married couples. Tenants by the entirety is very similar to joint tenants with rights of survivorship in that the survivorship rights exist, meaning probate will not be needed to transfer real estate when the first spouse dies. However, tenants by the entirety has one major difference–extra creditor protection. Creditors of only one spouse cannot attach to and sell the interest of the debtor spouse if the property is held as tenants by the entirety. The creditor must be a creditor of both spouses or have the permission of the non-debtor spouse to have that ability. The creditor can only attach to and sell the debtor spouse’s survivorship rights. Because of the survivorship rights and creditor protection, tenants by the entirety is an attractive option.
Young couple with keys surrounded by form of house
Contact Tressler & Associates for Real Estate Help
Title options are not simple. A real estate attorney can help you understand them and find the right one for you. If you are unsure how your property is titled or want to see if there are better options for you, contact our real estate attorney for help. We would be glad to find the best option for your situation.
Are you currently buying or selling a home? Is this your first time buying or selling a home? If so, you should probably consider owner’s title insurance. There are a lot of questions people have regarding this insurance policy, but among the greatest is, “Do I really need this?” This is a completely reasonable question. In Tennessee, you are not legally required to have it, and no one wants to pay for something unnecessary.
What Does Owner’s Title Insurance Do?
At its most basic level, owner’s title insurance protects a property owner from the consequences of a claim on the title of the property. Most people assume this protects you from someone saying, “Hey, this is my house!” Although that is true, it’s not the primary reason. This would seem rather silly because this is such an uncommon and strange occurrence. A claim would likely appear in a different form. Most claims are almost completely out of the purchaser’s control.
The Need Behind Insurance
For example, human error is an ever-present risk. Of course, businesses strive to do their best, but we are human and we make mistakes. From the surveyor’s measurements of the property to the title search to the recording of liens, there is room for mistakes. And of course, there is always a possibility of fraud. Has someone intentionally not conveyed their marital interest? Is someone using fake IDs? Subject to certain limitations, owner’s title insurance protects homeowners from these types of risks.
It is also important because of the monetary protections. If there is a title issue, you will probably not be able to sell your property until you resolve the issue. If you do not have title insurance, you will have to resolve that problem out-of-pocket.
Keep in mind that even though your lender has a lender’s title insurance policy at closing, that does not automatically cover you. A lender’s policy only covers the lender.
Tressler & Associates Can Help You Get Title Insurance
Owner’s title insurance is a one-time payment at closing and one of the cheapest types of insurance you will find. Because of the broad protection that it supplies, we recommend all property owners obtain owner’s title insurance.
The great city of Nashville has recently shown an increase in population which is a sign of a growing economy. With new buildings continuously covering the city, Nashville has become a top destination of attraction and business. These are positive signs that the economy is thriving in the real estate world, which leads to a demand in both commercial and residential properties.
In order to take advantage of the real estate market, which has been on the rise for many years now, it is important to obtain the services of a real estate attorney so that you can legally protect yourself. Consulting with a real estate attorney provides many benefits to a successful transition. An attorney is able to create or evaluate an existing lease for the property that you currently own, or wish to own in the future. There can be many liabilities that are not known while being the owner of a property. In order to feel confident when you are going through a lease agreement, it is necessary to seek the guidance of a professional who can get the facts and provide the proper services.
There are a few policies that can protect you from any issues that may arise during the process of buying or selling a property. The first is for the owner to obtain owner’s title insurance. This is necessary so an owner will be protected from any issues concerning the title of the property that may arise, and you will not have to solve those issues alone or out-of-pocket. The next is for a lender to also have title insurance. If the owner or lender has a title insurance policy, that is not enough to be protected. Both the owner and the lender must acquire title insurance so that you can be properly covered and not have to worry about any of the issues because you will be protected.
Our attorneys make this a peaceful process and assure that your interests will be protected. Let us take the stress off of you and eliminate any possible risks of liability. Have a professional help take you through the proper steps to be safe in your purchase or sale of property.
In the days leading up to a real estate closing, costs in addition to the purchase price are often a point of confusion. What are real estate closing costs? Who is paying title expenses? Which of the other expenses are you responsible for? These questions, and many more, are some of what real estate attorneys sort out daily. In short, the answer to all of these questions is that it depends.
What Goes Into a Real Estate Closing?
The primary document used in answering, “who is paying what,” is the real estate contract. This is why it is important to understand your real estate contract before signing. Most expenses can be negotiated within the contract. For example, it is negotiable as to who will pay for the following items:
Closing Costs
Title Expenses
Transfer Taxes
Recording Fees
This is not an exhaustive list and, of course, there are exceptions to what can be negotiated. For example, the Buyer will almost always be responsible for Lender fees. However, the Buyer can negotiate with the Seller to have the Seller pay a certain amount towards the Buyer’s costs. Ask your drafter for an estimate of all costs associated with closing and who will be responsible for each of those expenses.
The answer to these questions also depends on the purchase price and loan amounts themselves. Several of the expenses, such as title insurance, is directly dependent on those numbers. In Tennessee, we also have a transfer tax that is due upon any transfer of real estate. That tax is also based on the purchase price.
How Can an Attorney Help with Your Real Estate Closing?
To help with these estimates, Tressler & Associates, PLLC, has a calculator on our website, titled the “TRID Calculator.” This calculator will give you an estimate of the costs associated with your residential transaction. One point of caution, however, is that it will not show Lender fees or the other side’s closing fee.
The closing fee is a flat fee that is the same for both parties in the transaction, so the other side’s closing fee will be the same as the closing fee shown to you on your estimate. We would be glad to walk you through the details of our TRID Calculator.
The bottom line is that “who pays what” in your transaction will be dependent on your contract. We would be glad to draft your contract and assist in negotiating the terms. We want you to be sure of your purchase or sale before signing a contract.
Tressler & Associates Can Help
If you are unsure how to negotiate your closing, how to gauge your closing costs, or need any other legal help with your real estate transaction, Tressler & Associates is here to help. Contact us today.
We do many title searches every day in our office. In their most basic form, a real estate title search is where we search all pertinent public records to determine what has been publicly filed regarding a piece of real estate. It’s common for us to find some unexpected liens against the property we’re researching.
Usually, an unexpected lien is the seller’s mortgage. These will not interrupt your property purchase because the sale of the house will pay off the lien. However, this is not always the case, so you should never skimp on the title search.
What Should You Do if You Have Unexpected Liens?
It is never fun to surprise a seller with news that there is a lien filed against them, but it is necessary. These liens will need to be released prior to closing on the sale. If not dealt with, you can be left having to deal with the liens yourself as the buyer, or lose out on the sale as the seller. What’s so bad about them is that they can act like unwanted debts.
What do you do if the property you’re hoping to purchase or sell has one or more unexpected liens? First of all, don’t panic. It’s quite possible that the lien is something the seller would not be aware of and will handle it to sell their property. Sometimes the lien may not even be the seller’s, but a clerical mistake that can be fixed.
What if the Lien Isn’t Your Seller’s?
An example could be when a court judgment is issued against someone with a name similar to the seller. These judgments are then recorded and will show up on our title search. For example, if there has been a judgment for $5,000.00 declared against a woman named “Stacy S. Smith” in your county and your name is “Stacy M. Smith,” this will probably show up on our title search because it is possible that this is the same person.
We will simply compare your or the seller’s social security number to the true defendant to clear you or them of that lien with the clerical office. Thankfully, this is often the end of that unexpected lien for a seller.
What if Liens Are Your Seller’s?
If the lien does belong to the seller, there are several routes to solve it. First of all, there is a small possibility that the lien has expired. Depending on the type of lien, it must be renewed or re-recorded every so often to remain valid. If it is not re-recorded in a timely manner, the lien does not apply to your real estate. If it has not expired, you will probably have one of two options:
Wait for the seller to pay the lien or pay it yourself. We can obtain the payoff for you from the creditor.
Tressler & Associates attorneys can negotiate the lien on your behalf. Negotiating a lien, especially an old lien, can sometimes decrease the amount you would have to pay for the creditor to release the lien. If the lien is valid, it will need to be released by the creditor before you can close the sale.
No matter what pops up on your title search, we are here to help guide you and make your closing as smooth as possible.
Contact the Title Search Attorneys at Tressler & Associates to Protect Against Unexpected Liens
If you have any questions or concerns about unexpected liens on your property, you need the help of a law firm that can complete a title search. We have the experience and ability to help you close your deal if you are the buyer or seller.
If you have been contacted about a lien on the property you’re looking to buy or sell, you need to act quickly. Contact us today for help.
We are pleased to announce that for all our clients closing on their real estate purchase or sale with Tressler Title, we are now offering an assessment of your Estate Documents at the same time, with an attorney from Tressler & Associates, PLLC, for a low flat fee.
Closing on a property is often an important time to amend your existing estate documents. For those without any existing documents it is a great time to handle it as you can sign both documents in one visit to our office!
WHAT WILL YOU GET?
An Attorney at Tressler & Associates, PLLC, will first review your Buyer or Seller’s estate documents during the course of their closing with Tressler Title. Then the attorney will schedule a phone call with your Buyer or Seller to discuss any updates that may be needed or desired, especially in light of the closing. If new or amended documents are needed, they can be signed at closing! That’s right, close on real estate and update (or create) estate documents all at once.
WHAT DOES IT COST?
The cost for a review and phone call with an attorney is $250.00, however, if additional documents or amendments are needed, the $250.00 fee will be applied towards the total cost of the documents. All fees for this service can usually be paid through the closing itself.
Keep in mind…this service can also be taken advantage of by real estate agents, lenders, and other vendors who are all valuable parts of the closing process.
We look forward to securing your peace of mind in new ways!
Landlord-Tenant Law is an area of law where so many decide to represent themselves without guidance from a lawyer. It seems like a good idea to some because they will save on attorney fees. However, most of the time, it ends up costing them much more in the long run. Landlord-Tenant law is a minefield of potential mistakes. Just figuring out which set of laws applies to the county you live in Tennessee can be challenging, even when only considering eviction notices.
Find out why having an experienced real estate lawyer assist with Landlord-Tenant matters is in your best interest.
What Issues Can Landlords Face?
One area where we constantly see Landlords making a mistake is with eviction notices. Landlords especially choose to misrepresent themselves by either not using an eviction notice or using them incorrectly. If a Landlord uses an eviction notice incorrectly or not at all, it can lead to a dismissal of the Landlord’s case from court. This can cost the Landlord a significant amount of money. It can also possibly open the Landlord up to a lawsuit for Wrongful Eviction.
Tennessee law requires a Landlord to give a non-paying tenant an eviction notice. In most cases, the Landlord must give the Tenant an opportunity to cure their non-payment. This ability must also be clearly set out in the notice. The law sets out specific days and other matters which must be in an eviction letter. We do not recommend that you try to traverse this area of the law alone. If you see a potential legal matter concerning your rental properties, please call a real estate attorney at our office immediately.
CONTACT US
If have a rental property and need help with an eviction or have any other legal situation, contact us and we would be glad to find the best option for your situation.
