With real estate prices continuing to climb, flipping houses has never been more popular. However, not all flipping projects go to plan. A real estate law firm can help you find legal solutions when your flipping project goes wrong.
Here are some common services provided by real estate law firms dealing with flipping disasters.
Investor Drama
To leverage buying power, many people are partnering for home flipping projects. Although these partnerships can make your investment dollars stretch further, they can also lead to some potential legal nightmares.
When You Can't Sell: flipping a house is almost always predicated on quickly improving and selling a property. What happens, however, when you can't sell the property quickly? If your investment partner is not able to pay for a mortgage on a house you thought you'd flip quickly, a real estate law firm can help you sue them to dissolve your partnership. In these cases, you need to provide meticulous records. If a real estate law firm is able to prove where the money is coming from, what the total investment looks like, and what the totality of your collective debts is, they can file an injunction to dissolve your financial partnership. It is critical that you file this injunction before you miss mortgage payments and/or pay the mortgage payments without the help of your financial partner(s).
Contractor Disputes
Another common pitfall of home flipping projects is contractor disputes. If a contractor doesn't provide the services they promise or their craftsmanship is substandard, a real estate law firm can petition local courts for repayment.
Contract Construction: contractor disputes are commonly adjudicated in court based on the original contracts involved in the case. Real estate law firms can help you scour these contracts to demonstrate every clause and deadline your contractor might have failed to meet. If the dispute is less than $10,000, the case can often be settled quickly via a small claims court.
Receipts: some disputes can be traced to contractors purchasing inferior products. If you suspect that your contractor has short-changed you, a real estate law firm can audit their purchase requests and receipts. If your real estate law firm can show that the receipts don't match the purchase requests, you're very likely to win if you decide to take the matter to court. If you're working with a contractor to help you flip a house, always demand that they keep detailed records of every penny they spend and product they use.
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