By Naomi R. Dewey, Partner
June 2014
Regional statistics show that our residential and commercial real estate market is on the move. Increased activity and reduced inventory are making headlines, and whether you are in the market for your first home or a multi-tenant office complex, knowing when to seek legal advice can help prevent costly headaches. Buynak, Fauver, Archbald & Spray brings a collaborative approach to real estate law, and our team of land use, transactional and wealth management attorneys work together to make sure all aspects of your real estate transactions run smoothly. Our roots are in this community, and our commitment to the neighborhoods where we live, work and play runs deep.
Zoning and Title Reports. Understanding the land use designations, zoning and compliance issues involved in a real estate transaction is crucial. If you are preparing to market a property, it makes sense to order a Zoning Information Report from the City or County. You should also consider ordering a Title Report. Your real estate agent can help you obtain both of these documents. If you find problems with the zoning or title of your property, a land use attorney will work with building officials, public agencies or other third parties to clear violations and bring property back into compliance so that it comes on to the market with a clean bill of health.
Development Permits. Put simply, a Development Permit (sometimes referred to as a Land Use Permit or Coastal Development Permit) tells you what you can and can’t do with a property. Throw in Conditional Use Permits, and a transaction can get very complicated very quickly. If you are buying, selling or leasing a property, or if you plan any construction, the first thing to do is to find out what active permits apply to the property. This can be done in person, through a visit to the public agency for the area where the property is situated, or online. You should also ask for copies if you are buying or leasing. Once you have accurate information, work with your attorney to find out whether the permits are transferrable, when they expire and what flexibility you have to expand or change them.
For clients seeking new Development Permits, our land use team offers the depth of experience and government relations to take your project from concept through to fruition.
Listing Agreements and Real Estate Contracts. With real estate agents charging up to six percent commission, I am always surprised at how few clients have their attorney review or negotiate listing agreements. Remember that the real estate agent you are working with wants your business! If you have particular requests, such as a limit to the number of open houses, a preference to cash buyers or the need to sell a property as-is, discuss those up front with your agent and ask that they are reflected in the agreement. For high-value transactions, if you are the seller or are leasing a property, don’t be afraid to negotiate the listing fee or other financial terms. If you are the buyer, consider building in incentives that will make sure your agent is working hard to keep the price you pay as low as possible. Once you get to the stage of written offers or letters of intent, it makes sense to ask an attorney to review any potential transaction that involves more than just the payment of money in return for possession of property.
Construction and Project Management. Once you know that you can build, and have all the permits in place, you should consider having an attorney draft important contracts with your general contractor and architect. By having an agreement ready to go, you will be able to shape the way changes, cost overruns and completion dates are managed, giving you better control over the process and making sure that your wishes are met. We regularly write or review agreements that range from limited work on interior remodels to large commercial projects. This enables us to keep abreast of trends in the construction industry and tailor agreements to fit client needs. A member of the Santa Barbara Contractor’s Association, we know what it takes to build a solid foundation for our clients. Our firm is also able to work with you to help select teams of architects, contractors and design professionals through due-diligence and competitive bidding processes.
To me, there is nothing more rewarding than seeing legal work become bricks and mortar. As we venture into a recovering real estate market, please don’t hesitate to call or email me and discuss how I can make your dream to buy, lease, build or expand real property come to fruition!
Naomi R. Dewey, Partner
NDewey@BFASLaw.com
(Direct) 805.966.7422
DISCLAIMER: This Advisor is one of a series of business, real estate, employment and tax advisories prepared by the attorneys at Buynak, Fauver, Archbald & Spray, LLP. This Advisor is not exhaustive, nor is it legal advice. You should discuss your particular situation with us or with your own attorney. Our legal representation is only undertaken through a written engagement letter and not by the distribution of this legal advisory.
