Customers that give non-refundable deposits to resort projects that are not yet built, are doing so primarily on the trust of the company. What might seem like a good deal could cost an investor in such a property dearly. Take for instance the project in Mexico recently that went belly up prior to being completed. Everyone lost all their deposits, investments and money. Worse, the company doing the project was part of the Trump Corporation, and had their name on it.Since this project was in Mexico, there was little if anything anyone could do, there was no money left in bankruptcy for anyone, nothing left, all gone, and that is all she wrote. And it could not have come at a worse time, with the overall stock market down, even more alarming was the fact that many of the folks that put money down, did so to have a place for their retirement in Mexico. Now their dream is gone along with all the money they gave.For some these deposits were for speculation or vacation homes, and even though they could never have imagined the whole thing going bankrupt and their money all disappearing, they can recover from it and chock it up for experience. And maybe that’s the purpose of this article, maybe you too can remember this so you are not caught with the same bad experience.Real Estate law is not as cut and dry as you might think and when you are dealing with investments in other nations, especially speculative resort properties like this you are gambling, so make sure you understand that and act accordingly. Please consider this.
Just when you thought you knew everything about real estate law, there comes along something that changes everything. Let me explain something that recently happened to a friend of mine that owns a coin op carwash and a mini storage unit does right by an airport. The new Department of Homeland Security laws requires that each Airport have a buffer zone between the airport fence and the rest of the world. This is to protect against so-called terrorists coming onto the airport property or firing a weapon over the fence.Despite what you might think about such a topic, or how you lean politically this can be a huge problem if you own a piece of property that is adjacent to the airport. In this case, my friend found that his properties were cut in half by imminent domain and the government bought the properties at the bottom of the market. When they cut off the back of his coin op carwash, it was no longer usable and therefore he had to tear down the facility because he couldn’t make money with it any longer.There simply was not enough room to turn around in vehicles and therefore no one came to get their cars washed anymore. He couldn’t sell the carwash equipment or the building to anyone else for the same reason. They didn’t give him enough to pay for his losses but he was stuck.He originally purposely put the carwash and the mini storage unit next to the airport because he knew someday that land would be worth more. So even though his businesses were barely making the payments as it was during the recession he figured that his investment was safe and he was going to use that money to retire someday when he sold the properties in 20-years.Just because you think you know real estate law, does not mean that your investments are safe. Please consider all this.
Many federal legislators never stop long enough to read the bills they are signing. This leads to unintended consequences. Take for instance the new home energy efficiency rules that were tucked inside the alternative energy spending bill. There is a clause in that bill that prevents homeowners from selling their property if they don’t have proper weather stripping and if their homes are not energy compliant. But if the homeowner cannot afford to upgrade, then they are not allowed to sell there home to the new buyer or the new buyer is not allowed to buy the home until things have been upgraded.This obviously means there will be fewer home sales at a time when the real estate market is in the trash can, and it could lead to more foreclosures. It’s laws like this that don’t help anyone and while we may be helping ourselves to better efficiency in our energy usage, we are violating the personal property rights of the owners and getting in the way of the right of free contract which is guaranteed in the Constitution.All too often the government gets in the way of private agreements and contracts in the free market, and each time they do their unintended consequences hurt the rights of citizens. Further, many homes were built, which are very old can never be fully energy compliant and therefore they will either have to be torn down or they cannot be sold.What if the home is part of a probate proceeding and the property must be sold. What if the government ends up with a home due to property taxes not being paid? There are all sorts of ramifications of these laws and it just adds another layer of paperwork, and will cause further lawsuits in the future. Real estate laws are already complicated enough and personal property rights are something that we protect in the United States. Please consider all this.