In my real estate law practice, clients often ask about land trusts and how to use them in Ohio. The truth is that in my opinion these structures needlessly complicate an investor’s deal structure and don’t provide any benefits that aren’t already available with an Ohio LLC. They’re often pushed by ‘strategists’ who don’t have […]
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Mechanics Lien Basics for Contractors
Mechanics Lien are the easiest way for a contractor to collect from deadbeat customers. The legal process, however, is not easy. Below we’ll detail some of the requirements and give a practical overview of the process. Why a mechanic’s lien? A mechanics lien has the same effect as a mortgage on the property. If you […]
Continue ReadingSuing the seller for fraud
Every time there’s a torrential downpour, we can count on many new homebuyers calling us with stories of wet basements and leaky roofs. These problems can put a homeowner out thousands. It’s only fair that a seller who advertised the home as perfectly dry and habitable should be held to account for concealing a leaky […]
Continue ReadingBorrower-paid attorney fees in foreclosure? Unlawful
Many promissory notes and mortgages contain a provision awarding attorney’s fees for foreclosing on the borrower. This even includes Fannie Mae’s uniform mortgage for Ohio. Many lenders can and do successfully collect attorney’s fees on collection and foreclosure judgments. However, as we know elsewhere in real estate law, just because the contract says you can do […]
Continue ReadingQuiet Title Basics, or How to Remove a Mortgage Lien
We see it all the time — an investor bought a property that seemed like a sweet deal, but turned out to have a mortgage on it from a prior owner. No wonder it was so cheap! The investor calls me up and asks me what we can do about it. Let’s set aside the […]
Continue ReadingDue-on-Sale News: Fannie Mae allows transfers into LLCs
An enterprising investor on BiggerPockets discovered this useful nugget in the Fannie Mae Servicing Guide from 2017: Section D1-4.1, Information Relating to Transfers of Ownership Applicable to All Mortgage Loans D1-4.1-01, Determining Whether a Transfer of Ownership Is Permitted (11/12/2014) […] D1-4.1-02, Allowable Exemptions Due to the Type of Transfer Unless the previous borrower requests a release of […]
Continue ReadingHousing Discrimination: The story of Mrs. Grybosky
Discrimination is a bad, bad thing — especially in housing. But what if I told you there was a quasi-police force out there who pays shills and plants to apply for your rental apartment, record your every word, and hunt for signs of housing discrimination? What’s worse, when they find something, they sue you, recover […]
Continue ReadingMortgage Financing Rundown
We detailed the traditional types of financing available to residential property investors in an earlier post. To recap, when you’re about to sign a purchase agreement, it’s important to consider whether you want the property to be titled in the LLC’s name or your own personal name. Generally, it boils down to this: 90% of […]
Continue ReadingMore fines for unlicensed activity in Ohio
JOHN FROLA, JR. AND MUNICIPAL SOLUTIONS, LLC, Uniontown, Ohio, was found by the Commission to have violated Revised Code 4735.02, unlicensed activity, and was assessed a civil penalty in the amount of $20,000.00. The Commission found that John Frola, Jr. and Municipal Solutions, LLC sold, exchanged, purchased, rented, or leased or negotiated the sale, exchange, […]
Continue ReadingFor buyers: How to cancel a real estate purchase agreement
Real Estate Purchase Agreements: Tips for Buyers For many first-time real estate investors, purchasing their first property will be the first or second time they’ll make a large transaction. The number of risks involved in real estate investing can fill our hearts with doubt. For the doubters, you’re in luck. Standard real estate purchase contracts […]
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