Property investments can incur a lot of disputes if you’re not careful. Here’s our top tips on how to avoid them.
Investing in property can be a lucrative strategy. However, it can also involve a lot of risk-taking and parties can sometimes find themselves in conflict over property disputes as a result.
Those involved with common property disputes may need the help of specialist right-of-way lawyers, especially in built-up areas or cities such as London. Property investment is meant to be a way of making money, so the last thing an investor needs is a dispute preventing potential sales and profits from being made.
With this in mind, let’s take a look at what you need to know in regard to reducing the chance of a property dispute…
Carry out Research and Due Diligence
The first thing you should do is conduct extensive research on the property prior to making an investment. This is called doing your due diligence, so you know what to expect.
You will want to research the property itself, making sure you know about its location and market conditions. This will help you with making an investment to decide if it’s the right choice for you.
Obtain Clear and Detailed Contracts
When you sign a contract to invest in the property, you need to make sure that you’re working with a good standard of contract. Imprecise wording and poor detail often make for areas of weakness in your contract.
You should make sure that your lease is clear and detailed. Any agreements that you sign should be legally sound and checked by a professional. If you enter into any kind of agreement with another party, it needs to be in writing rather than a verbal agreement.
Practice Regular Communication
You need to make sure that you engage in regular and proper communication with all stakeholders involved in the investment process. You should also keep close contact with tenants, property managers and other investors.
These lines of dialogue will allow you to stay up to date on what’s going on, and also know if anybody is unhappy with the arrangements currently in place. A lot of disputes arise due to poor communication between parties, so it’s important to remain in touch.
Maintain Compliance with Regulations
National laws and regulations surrounding property will change from time to time, so you need to ensure that your legal experts are up to date on these regulations at all times.
Try and make sure you are aware of regulations at all levels, from local to national. This will make sure that you are not caught out by a change in policy that triggers a dispute.
Check The Details of Your Insurance Cover
Always make sure that you have the correct insurance for your property investment. Insurance might seem like a lot to pay for, but it can pay for itself many times over if you run into any problems.
Ideally, you will want to secure property insurance, liability insurance, and landlord insurance. However, the exact combination of insurance policies that you will need will depend on your personal situation.
Seek Legal Advice
You should always seek legal advice when you are investing into property. A qualified solicitor is the best resource you can possibly have.
You should speak to your solicitor about reviewing contracts to make sure that they are legitimate and have them look over any terms on the lease. It’s important to identify any potential issues, and have constant support when you need it.
Stay Informed About the Market
If you’re going to invest in property, it’s important that you understand what the market is doing at any given point. Staying informed is a very sensible strategy.
You should be aware of any shifts or changes in the market. This will help you to make the right decisions with your investment and know about any dangers ahead of time.
Reducing the risk of a dispute in property investment…
It’s important to be safe and sensible with property investment. You need to make sure that you are investing wisely if you want to get the best results. The great thing about property investment is that if you do it right, it can be very lucrative.
With that being said, disputes do happen. Taking reasonable measures to prevent this will help you to have a much easier time investing.
Please be advised that this article is for general informational purposes only, and should not be used as a substitute for advice from a trained financial professional. Be sure to consult a financial advisor if you’re seeking advice on your finances. We are not liable for risks or issues associated with using or acting upon the information on this site.