Memphis attorney Vincent Perryman discusses Real Estate Law with Neal Hanna

Memphis attorney Vincent Perryman discusses Real Estate Law with Neal Hanna. Real Estate Law in Memphis TN involves contract negotiations, development issues, entity planning, setting up corporations or LLCs to own or develop properties. The closing process when selling a Memphis house involves, negotiating the contract, selecting a closing agent, relaying the closing agent to the lender and finalizing paperwork. The process of closing on the sale of a house differs from state to state, but in Memphis, TN it lasts around 30 to 45 days. A title abstract is created and then a title commitment will be sent to the lender. The Memphis resident selling the house will need to obtain the pay off of the existing loan if one exists. About three days before closing the closing documents are created and a hard figure of the closing costs will be calculated based on local Memphis and Federal interest rates. The party responsible for closing costs will need to get a cashiers check or have the money wired. At closing the buyer and seller are generally not in the room at the same time. The buyer will go through the documentation and then the seller receives the money and signs all paperwork at that time as well. The number one issue at closing on a real estate sale in Memphis is when the buyer is presented different terms and numbers of interest rates and closing costs. Occasionally repairs may not be complete at closing that were requested in the contract on condition of sale. This can be worked around in an extension contract. With the market down, investment property is the hot item in the real estate market right now.

In the Memphis area if someone had some extra money during a down economy there are multiple areas individuals can investment money into. There are many websites that list Memphis area foreclosures. It is good to sit down with a local Memphis Real Estate attorney to setup an LLC or Corporation to hold these investments. There are some liabilities involved in investing money in Memphis Real Estate. Some examples are the "slip and fall". This is when the Memphis tenant injures themself in or on the property due to negligence by the landlord. The investor needs some insulation from the tenants. If the LLC is sued for an injury in Memphis, TN everything in the LLC is susceptible to that law suit. It is a good idea if you own multiple properties in Memphis to obtain an individual LLC for each property in the event one is sued the additional properties are not at risk. It does add some cost so the margins of profit should be calculated before spending the additional money on this separation. Some of the things needed in Memphis when renting is to have a good lease in place in order to protect the landlord. This will protect the landlord in the event the tenant does not pay and helps in the eviction process in Memphis Civil court. There should also be a check list of the condition of the property that the landlord and the tenant go over on move in and move out. If the investor uses a Memphis property management company to handle the rental property some of the things they should look for and expect are to get a clear understanding of the fees, a point for point break down of what you will be paying and receiving. Most Memphis management companies offer a full service from advertising for rent, handling maintenance calls, collecting rent, eviction process, and complaints about noisy neighbors.

How should the application process be handled in finding a good tenant in a Memphis TN rental property? To start get their Social Security Number and get a good credit check and get 2 or 3 references to get a good background of the future tenant. This will help track down the tenant in Memphis, TN and surrounding areas if they leave owing money on rent to the landlord. Check the Memphis general sessions web site to determine if the tenant has be evicted in the past. When drafting contracts for Memphis commercial lease some businesses put the lease in the name of the business. The landlord should also get the name of the Memphis business owner to guarantee the business will pay rent. This will allow the landlord to look to the individual rather than the Memphis business for the rent in the event the business no longer exists. Occasionally the landlord puts a right to move tenants from one Memphis location to another, giving the landlord the right to move the tenant to another Memphis location in the event another business needs more room and has to expand into your location. Build outs are when a tenant moves into a completely unfinished Memphis location and the landlord is going to build the location out to the tenants specifications. It also could be if the finished location is going to be changed from the existing finished site. Generally the build out at the landlords expense comes with a long term lease and the cost of the build out is covered over the length of the lease.