If one understood the repercussions that getting sued has on one’s time, energy, resources and personal life as well, almost every investor would take clear steps to avoid such mistakes not unless you are thrown into a legal situation that is not of your doing.
Mistake #1: The Usage of Poor Legal Forms
Instead of purchasing legal forms from Internet websites, discount supply stores or even borrow them from friends. So, buy legal forms that pertain to your business, fill them out with great care (rather than have real estate broker fill them up) and get a real estate lawyer to review the documents even if it costs you a few hundred dollars more.
Mistake #2: Illegal Discrimination
Renting your home with a bias towards lower income groups, one’s sex, race and color are an immediate no-no as they protected by the Fair Housing Act of 1968 which prohibits discriminatory practices. Many a landlord can ‘get served’ if they do this on purpose and it is most likely that most will be unaware of this Act as well.
Mistake #3: Improper Disclosures
State and federal laws require laws that have been put in place to be followed, and it is a normal practice that one should fill out property disclosure forms truthfully (or by just remembering to add) details that the buyer or your tenant should known about which could include anything from plumbing to electrical problems to damage caused by the house.
If one remembers to review these steps as an investor, you will find that these will make a difference to your role as an investor if not in the short-term but in the long run as well.