James L. Roberti, P.C.James L. Roberti, P.C.2025-03-31T13:00:24Zhttps://www.jrobertilaw.com/feed/atom/WordPressOn Behalf of James L. Roberti, P.C.<![CDATA[What can go wrong at closing?]]>https://www.jrobertilaw.com/?p=470262023-12-17T21:11:02Z2023-12-17T21:11:02ZWhen you’re closing on a home or another piece of real estate, the last thing that you want is any surprises – especially at closing.
After weeks (maybe months) of hard work, negotiation and paperwork, everything is supposed to come together on closing day. While most real estate closings come and go without any trouble, some potential problems could turn what should be a day of excitement into one filled with stress and frustration.
1. Title issues
A title is said to be “clouded” when there are problems that could affect ownership rights or draw into question an owner’s right to transfer their interest to someone else. Issues like undisclosed liens, disputes over boundaries with a neighbor and even clerical errors can all lead to major delays.
2. Financing problems
Buyers sometimes find out at the last minute that their loan won’t make it through underwriting. Challenges in obtaining financing can be caused by unexpected changes in the buyer’s credit score, employment status or other financial circumstances. Even something as simple as a buyer putting some new furniture on a credit card can cause a mortgage lender to pull out of the deal.
3. Home inspection fails
Lenders generally want to make sure that there are no hidden problems with a property that could affect its value. If a last-minute home inspection reveals major problems that weren’t already disclosed, that could be the end of the deal.
4. Appraisal gaps
Lenders also want to make certain that they aren’t lending more for a property than it is actually worth.
5. Cash flow snags
Buyers need to get their downpayment to the closing agent on time – and problems can arise through nothing more than electronic errors or delays between one bank and the next. That’s why many closing agents recommend that buyers use a cashier’s check or certified check to bring their downpayment to the closing, instead of relying on wire transfers.Closing on a piece of real estate is a lot more complicated than many people realize. Obtaining qualified legal assistance well before the big day can save you a lot of hassles and keep your real estate deal on track.]]>On Behalf of James L. Roberti, P.C.<![CDATA[Does Massachusetts regulate short-term rentals?]]>https://www.jrobertilaw.com/?p=470242023-10-17T13:18:09Z2023-10-17T13:18:09Zregulating short-term rentals and imposing certain requirements on property owners renting out homes to individuals on a daily or similar short-term basis.
Owners must register properties and pay appropriate taxes
Registration as a short-term rental property owner is a crucial step for legal compliance in Massachusetts. Some municipalities may also require local registration. The state needs to know that an individual will rent out their property on a short-term basis. They will typically need to provide proof of appropriate insurance as well.
Additionally, there will be tax obligations passed to property owners engaging in short-term rental arrangements. There is an excise tax that will cut into someone's profit margins when renting out a home. There are excise tax exceptions in some cases for those who do not rent out their property for 14 days or more each year.
There are also restrictions on what types of units people can rent to others on a short-term basis. Generally speaking, such properties usually need to be single-family homes or two or three-family homes where the landlord renting the property occupies one of the units. Renting out individual apartments in a large complex on a short-term basis would likely run afoul of state and local regulations.
Provided that someone rents a property for two weeks or more in a given year, they will likely need to abide by all state and local requirements. Small mistakes regarding registration, insurance and tax payments could end up costing a landlord more than they generate through short-term rentals. As a result, ensuring that one is familiar with the Massachusetts rules for such rental arrangements will be of the utmost importance for those looking to maximize the revenue that they generate with the real property they own.]]>On Behalf of James L. Roberti, P.C.<![CDATA[How common are disputes about obstructed views?]]>https://www.jrobertilaw.com/?p=470172023-08-17T01:45:32Z2023-08-17T01:45:32ZDisputes about views are a common source of litigation
Those upset by property improvements or changes that affect their view might take the matter to the Massachusetts Land Courts. The Land Courts hear disagreements ranging from easement issues to one neighbor trimming a tree that grows on someone else's property. They also hear claims brought by those who either want to prevent a project that would affect their view or seek compensation from a neighbor who has blocked their view.
Such claims are common enough that the state does have some specific laws that apply. For example, there is a statute against so-called spite fences, which involves someone intentionally erecting a fence on their property to impact the view that a neighbor has or to make the boundary between the properties less attractive. The nature of the obstruction, the relationship between the parties and the value of the properties involved can all play a major role in the likelihood of a claim related to an obstructed view succeeding in the land courts.
Some people are able to secure easements to protect their view rights. It is sometimes possible for people to hold their neighbors accountable for affecting their property value, and it is also often possible for landowners to move forward with a project even though their neighbors are unhappy about some of their decisions.
The outcome of such cases can often come down to very technical rules about open space and new construction, as well as local ordinances. Discussing the details of an obstructed view claim can help someone evaluate their case and whether there is a specific law or established precedent for a case similar to theirs previously litigated in Massachusetts.]]>On Behalf of James L. Roberti, P.C.<![CDATA[What the 2023 real estate looks like for MA buyers and owners]]>https://www.jrobertilaw.com/?p=470152023-06-15T10:17:14Z2023-06-15T10:17:14ZInterest rates are up noticeably
Part of what pushed the buying spree in 2020 and 2021, other than the surge in remote employment, was the continuation of historically low interest rates. That trend has since reversed, with rates climbing up to the highest they have been in over a decade. Although plenty of people will still buy despite the higher interest rates, there has been a bit of a cooling off in demand because of those higher rates. The pressure of higher interest costs has slowed the rapid growth of home prices.
Supply improved but remains low
There are more properties to view now than just a few years ago, and they may sit on the market a bit longer than previously before selling without multiple offers. Especially when it comes to residential properties, the number of listings continues to remain lower than average, in part because sellers worry about their ability to secure alternate housing. Certain kinds of commercial properties are easier to come by on the market than others. Multi-unit homes remain popular, as do retail facilities in or near residential neighborhoods. Higher interest rates and a shifting economy have started to put pressure on certain aspects of the commercial real estate market, including multi-office buildings.
With fluctuating prices and interest rates, having protective documents in place during a real estate transaction has arguably never been more important for both buyers and sellers. Adjusting one's plans to reflect the current real estate market and being proactive about embracing protections, like contingencies in offers, will be important for those who are attempting to navigate the real estate market in Massachusetts.]]>On Behalf of James L. Roberti, P.C.<![CDATA[What happens to joint real estate holdings when a business partnership ends? ]]>https://www.jrobertilaw.com/?p=470122023-04-15T00:16:42Z2023-04-15T00:16:42ZSome business partnerships last for decades. Others fizzle out after only a few years. Either way, the end of that business partnership can be a complex process.
What has to happen is that the business’s debts need to be paid and then the assets have to be divided between the two former business partners. Real estate holdings that are jointly owned are simply assets that that business has acquired. As such, both people have a right to them, and they must be divided in some fashion between those individuals.Of course, this is a bit more difficult to do than with cash assets. You can split up the contents of a bank account, but what happens to the land your business was on or the buildings that you used when you were running the company?
One person can buy the other person’s share
In some cases, the partnership will end, but the business will continue with only one partner. That person can buy the share that is owned by the other individual. This gives them full ownership, and they can move forward. It also gives the exiting partner the portion of the assets that they deserve thanks to their initial investment.It can be expensive to do this, naturally. In some cases, the remaining partner may have to take out business loans or seek other sources of funding. They may even bring on a new partner who can make the purchase and share in ownership.
Both partners can sell the real estate
If it isn’t possible to have one person buy the other person’s share, or if both business partners want to exit the business at the same time, then they can simply sell the real estate and split up the money that they earn. For instance, maybe the business is viable, but they both simply want to do something else with their careers. They could find a third-party buyer who wants to run the business after them. This person then purchases the real estate and all of their business assets, the partners split up the money that they earn, and the situation is resolved.
Solutions may be hard to come by
In some cases, with so much money on the line, it can be hard to find a satisfactory solution for both business partners. This is why it’s important for them to understand the legal options at their disposal and the steps that they’re going to need to take.]]>On Behalf of James L. Roberti, P.C.<![CDATA[3 things that can go wrong before closing and how to fix them]]>https://www.jrobertilaw.com/?p=466862023-02-21T13:01:04Z2023-02-21T13:01:04Z1. The discovery of damage during inspection or walkthrough
Sometimes, a professional with experience evaluating properties will locate defects that a buyer and their real estate agent failed to notice. Surprises during an inspection report can drastically alter what a buyer thinks a property is worth and might lead to cancellation of the closing.
Even when an inspection reflects what the buyer anticipates, damage to the property could still cancel their closing. The final walk-through performed by the buyer or their agent could uncover damage to the property, such as broken windows or holes in drywall, caused by the seller leaving the premises. There may also be issues with the seller taking items, like appliances or window treatments, that the buyer should have received with the property.
2. An underwhelming appraisal
The buyer and seller may agree about what they think the property is worth, but there is no guarantee that their idea aligns with the current real estate market. Property values constantly fluctuate, and the prices from just a few months ago may no longer be realistic in some cases.
A low appraisal might mean that there is an appraisal gap, so the buyer cannot secure the financing they require. That could force them to walk away from the closing if they can't cover the gap with their own resources.
3. An issue with financing
An appraisal gap is only one of many situations that could prevent a buyer from securing the financing they require to purchase a home. When a married couple makes an offer on a home, one spouse might lose their job before closing. Perhaps the buyer overextends themselves using credit cards in the weeks leading up to their closing, which ultimately means that despite their pre-approval, they can't obtain the mortgage they need to close on the property.
Buyers and their agents can help protect against such situations by adding appropriate contingencies to their offers. Clear communication and assertive negotiations when things go wrong can also help to ensure the closing goes as planned or that the losses for the parties involved are minimal.
Recognizing the challenges that could derail a residential real estate transaction can help people plan to better protect their interests.]]>On Behalf of James L. Roberti, P.C.<![CDATA[How is the trend toward remote work that started during the pandemic affecting real estate development?]]>https://www.jrobertilaw.com/?p=466842022-12-20T00:10:02Z2022-12-20T00:10:02ZThe Great Reshuffling
First and foremost, a phenomenon known as the Great Reshuffling saw people moving across the country. Often, these were people who used to live in a place with a very high cost of living, but their job turned remote, so they began looking for a better cost of living. For example, someone who lives in a small rural community while making the same salary that they earned in Boston may see that money go a lot farther.
The Great Reshuffling also meant that more homes were needed in areas outside of the major cities. This has driven up the value of these homes, and it may also create commercial opportunities, such as co-work spaces. Essentially, whenever you have an influx of individuals, that is going to change the supply and the demand for the property in the area. In this case, demand could go up, even though the businesses employing those new workers aren’t even in town.
What is happening to office buildings?
One of the biggest questions that has arisen from this is what’s going to happen to all of the office buildings the people used to have to go to before they could work from home. These buildings were once seen as a necessity, but they are now an afterthought because people can have a computer in their house. They have no reason to be in the same room as their co-workers.
It will certainly be interesting to see how this impacts the value of existing buildings or future construction projects. Again, this may also cause a shift in how properties are used, as numerous remote workers might be interested in co-work spaces that are similar to the old office environment.
If you’re interested in investing in real estate at such a volatile time, be sure you know exactly what options you have.]]>On Behalf of James L. Roberti, P.C.<![CDATA[How can environmental regulations affect purchase and sale agreements?]]>https://www.jrobertilaw.com/?p=466822022-10-13T17:31:36Z2022-10-13T17:31:36Zenvironmental standards cannot be upheld.
How could this happen?
One way that this could happen is if someone was buying a residential unit that wasn’t part of a municipal sewer system. Instead, it had a septic system. The person may agreed to purchase the residential unit, but only on the grounds that the septic system is examined and found to be up to environmental standards. Replacing it or connecting to the municipal system could be very costly and the buyer doesn’t want to have to take on that cost.
Does this make it harder to sell?
There can be situations in which this makes it harder to sell a piece of property. Some individuals may not be interested in looking at property that has any environmental questions. Others may be more likely to offer a lower price because they assume that there are going to be different costs and issues that come up in the future.
But the biggest thing to remember is simply that adhering to the regulations still means that the property is valuable and can be sold as is. If it does adhere to these regulations, it shouldn’t be a problem. Make sure you know about all of the legal steps that you’ll need to take as you work through this process.]]>On Behalf of James L. Roberti, P.C.<![CDATA[Can my neighbor legally block my view from my home?]]>https://www.jrobertilaw.com/?p=466802022-08-18T20:20:13Z2022-08-18T20:20:13ZObtain an easement
If you are on good terms with your neighbor, they may be happy to accept financial compensation to protect your view. They can grant you an easement now that will prevent them or any future owners from making changes to the property that obstruct your view. Of course, an easement will not help if someone has already built or grown an obstruction affecting your view currently.
Explore trimming the trees
Sometimes, the removal of a few branches would be sufficient to give you the same view you once enjoyed. In some cases, you may be able to trim branches that hang over your property. You could also file a complaint to compel the trimming of tree branches on your neighbor's side of the property line. In these situations, you will usually have to pay for the forestry professionals who come out to provide the service.
Look into and enforce local ordinances
In some municipalities, there are view ordinances. Communities can adopt rules that protect the rights of the people who live there to maintain a view. These rules may limit the height of trees and the placement and overall height of buildings. If your neighbor constructed a property that you believe violates a view ordinance or other local construction rules, you may be able to take them to court.
Although your view may be invaluable to you, if you don't take steps to protect it now, you may not actually have a legal right to that view when things change in the future. Learning more about Massachusetts property and land use laws will help you assert yourself in a conflict with your neighbor about what you can see from your home.]]>On Behalf of James L. Roberti, P.C.<![CDATA[What will interest rate increases do to the real estate market?]]>https://www.jrobertilaw.com/?p=466762022-06-30T15:39:24Z2022-06-15T20:25:06Zincreased interest rates in a move that will impact how much interest people pay on their mortgages. What impact will those changes potentially have on the current Massachusetts real estate market?
The goal is to cool the market off while avoiding a recession
Increasing interest rates is an effort to stave off the concerning levels of inflation reported in recent months. Even a small increase in interest can massively increase how much someone pays for financing a transaction over the course of a 30-year mortgage. With money costing more to borrow, people will be less likely to overextend themselves on houses, which could reduce the demand in some markets.
Properties may end up listing for slightly lower amounts, and demand may decrease because of the current cost of financing. However, a slower market doesn't always mean a drop in prices. Some experts warn that interest rate hikes alone won't be enough. Higher financing costs can translate to less demand and then fewer people listing their properties for sale, which can help markets maintain previous price increases.
When possible, being strategic about when you list your property and when you buy real estate can help you get the best price for the investment you intend to make. It can also maximize the return on that investment. Learning more about the local market and relevant real estate laws can help you be a savvy seller or a well-prepared prospective buyer.]]>