Alabama Real Estate Lawyer

Articles Tagged with: Alabama Real Estate Lawyer

What to Do When You Have a Dispute With Your Neighbor

Neighborly disputes are not common, but when they do occur, they can escalate quickly. When they do escalate, you may want to know what you should do. Should you contact the neighbors yourself? Send a cease and desist letter? Call the police? Unfortunately, unless your neighbor is doing something illegal, taking legal action of any kind is not possible. That said, you should refrain from taking matters into your own hands as well, unless you can remain calm and civil in your encounter. That said, if your neighbor is doing something illegal, or encroaches on your property at all, you may be able to seek remedies via law enforcement or even your local court.

Common Causes of Neighborly Disputes and How to Resolve Them

Before you decide how to act on your irritation, you should first consider the cause of your problems and determine whether or not they are worth calling the police or a lawyer over. Some common causes of neighborly disputes in Alabama are as follows:

Noise: According to one survey, 48 percent of all neighborly disputes are triggered by excessive noise. Excessive noise can disrupt persons’ sleep schedules, wake children, interfere with one’s concentration, or simply be a nuisance after a while. Unless city ordinances are in place to limit excessive noise during certain hours, there is not much you can do about your neighbor’s behavior.
Pets and Animals: The second most common cause of neighborly disputes is pets and animals. According to the survey, 29 percent of individuals claim that their neighbors’ pets cause them more problems than the neighbors themselves. That said, many animal complaints come from the fact that the owners did not properly train their pets. If your neighbor’s pets bother you, check your local laws regarding the number of animals allowed per household, types of animals allowed in the home, leash requirements, length of time and frequency of dog barking allowed, and requirements to clean up after pets. If you cannot find any ordinances that can help you, you may want to file a nuisance lawsuit.
Children: Children who are allowed to run around on a neighbor’s property, be excessively noisy, or deface a neighbor’s property can become a nuisance. However, like with pets, children who act out in such ways often have little supervision. That said, in Alabama, parents are liable for any damages caused by their children.
Visual Nuisances: 18 percent of neighborly disputes are the result of visual nuisances, such as trash on the property, unkempt lawns, offensive signs, or other unsightly fixtures. Whether or not a person must clean up his or her yard or remove the offensive sign depends on city ordinances as well HOA rules (if applicable).
Property Boundaries: 17 percent of neighborly disputes stem from property boundaries. Oftentimes, individuals encroach on their neighbors’ properties not out of spite, but because they have misconceptions about where their property begins and ends. Property boundary disputes may be easily resolved by checking the deeds of each property. Individuals can also resolve boundary disputes by checking the assessor’s website, visiting the county recorder’s office, assessing land surveys, or hiring a surveyor to conduct a survey.

Contact a Alabama Real Estate Attorney

If you have an issue with your neighbor, the first thing you should do is discuss the problem with him or her. However, if your efforts prove to be fruitless, it may be worth your while to at least consult with a Birmingham real estate lawyer regarding possible options. A knowledgeable attorney will be honest and upfront about your options and advise you on what you can do to make peace with your neighbor. Contact Cloud Willis & Ellis today to learn more.

What Does It Mean That Alabama is Caveat Emptor State?

In Alabama, the seller of used residential property has no actual obligation to disclose to the buyer any issues with the physical condition of the property. This rule is known as caveat emptor, which in Latin means “let the buyer beware.” Normally it is up to the buyer of the property to discover any issues or defects. Essentially, caveat emptor serves as a warning to buyers that they have no recourse with the seller should the property fail to meet their expectations.

Although it is the responsibility of the buyer to inspect the property for any potential issues, the seller is not free to make fraudulent transactions. There are some instances in which the seller of a property needs to alert the buyer of any potential issues.

Exceptions to Alabama’s Caveat Emptor Rule

In Alabama, a seller is responsible for disclosing any potential issues to the buyer in the following cases:

A fiduciary relationship exists between the buyer and seller, meaning that the seller is legally responsible to act in the best interest of the seller. For example, if the seller is the buyer’s financial advisor and knows that the property will cost more to repair than its potential resale value, such information should be disclosed. Failure to disclose such information could be considered a breach of fiduciary duty.
The seller is aware of any issue(s) that may pose a risk to the health or safety of the potential buyer. Such an instance might be if the seller knows that the property contains lead paint or asbestos.
The buyer directly questions the seller about any possible issues with the property. The seller has a legal obligation to answer honestly any questions that a potential buyer may have about the property.

When Is a Seller Liable For Damages?

Following a transaction, if the buyer discovers a defect that the seller failed to disclose, the buyer can potentially sue for misrepresentation, negligence, suppression of material facts, or fraud. However, under Alabama law, the seller is not liable for damages simply because he or she failed to disclose information regarding a defect. The buyer must prove that the seller knew of the defect and that the defect would pose a potential health or safety risk to the buyer.

Complete Disclosure Reduces Legal Risk for Sellers

As a seller of property in Alabama, it may be helpful to provide the buyer with a disclosure form during the sale. This will ensure that both the buyer and the seller are informed of any potential areas of improvement that the property may require. Typically, Alabama real estate agents will ask the seller to complete a disclosure form when the seller decides to list the property. The real estate agent will provide this form to any potential buyers before the sale is complete.

If you are selling property without the assistance of a realtor, consider acquiring a disclosure form online or from a local library. The purpose of the disclosure form is to ensure that the seller provides all the necessary disclosures before selling the property. Additionally, it is important that the seller formally acknowledges receipt of the disclosure form, either by signing and dating the form or some other written acknowledgement, such as an email or letter.

Err On the Side of Caution and Retain the Help of a Reputable Real Estate Lawyer

Should you encounter difficulty with real estate transaction regarding the disclosure of any defects, you may wish to contact an experienced attorney. The Alabama real estate attorneys at Cloud Willis & Ellis can assist you in smoothly resolving any potential conflicts.

Resource:

law.cornell.edu/wex/caveat_emptor

Your Guide to Closing on Real Estate in Alabama

Purchasing a home or other piece of real estate is a huge investment, and for most people, it is likely to be the biggest purchase they will make in their lifetime. Though the entire real estate transaction process involves a lot of unique and complex issues, it is the closing process that poses the most challenges. It is at this point that titles pass from seller to buyer, balances are assessed, payments are made, and contracts are signed. Though the process may seem straightforward, it is easy for an inexperienced buyer or seller to make a mistake. Mistakes can be crippling at this point and can open the door for last minute disputes and unnecessary costs. You can avoid these mistakes and ensure that the entire real estate closing process goes smoothly by working with an experienced Alabama real estate attorney.

Closing Checklist

Closing on real estate involves several key documents, many of which need to be completed prior to closing. Those documents include:

A copy of the signed contract, including any and all addendums;
Complete contact information for all parties involved, including sellers, buyers, and realtors;
Complete contact information for all lenders, brokers, and bankers;
HOA contact information and guidelines;
All information regarding the loan payoff for the seller, including information on the loan, account numbers, and social security numbers of buyers;
Survey and home inspection results, if necessary;
Home warranty information, if applicable;
A copy of the Termite Letter, if necessary;
Copies of mortgages, wills, deeds, trusts, Powers of Attorney, or other complete documents related to the transaction;
Buyer’s hazard insurance agency contact information;
A list of repairs that need to be completed before closing and/or invoices for repairs, if applicable; and
Approval letter for one or both parties to use a Power of Attorney during the transaction.

Each of these applicable documents must be present prior to the signing of any real estate deal. At the time of closing, both parties must present the following:

Current driver’s licenses for identification purposes;
Tax ID information and/or social security number of both buyer and seller;
Certification of funds or proof of bank wire for all closing funds from buyer; and
Original, approved, and notarized Power of Attorney.

Why Work With a Real Estate Attorney at Closing

Alabama is one of the few states that requires a licensed real estate attorney to draft and prepare all legal documents involved in a real estate transaction (Ala. Code § 34-3-6(c)). “Legal documents” refers to deeds, titles, Powers of Attorney, Termite Letters, etc. This law was established in 1983 when a title company gave multiple purchasers title as joint tenants with right of survivorship when what he thought he had given them was title as tenants in common. As you can imagine, this led to a huge headache for the purchasers in later years, which is why the State of Alabama decided to limit the preparation of legal documents to a licensed lawyer.

Aside from remaining in compliance with state law, there are several other very good reasons to work with an attorney throughout the entirety of the real estate process. Below are just a few examples of when it is nice to have an attorney on your side:

When you need to negotiate over who pays for repairs after a home inspection reveals costly issues;
When a home has an illegal in-law unit with an existing tenant whom you want to evict;
When you want to enter a rent-to-buy agreement; or
When you are concerned about particular language in your purchase agreement.

Additionally, experienced attorneys have connections with reputable mortgage loan brokers, inspectors, surveyors, and other professionals in the area. Though you may not anticipate the need for a surveyor, if an issue arises with boundaries, it would be nice to have the right professional on call for a quick and fair assessment.

Retain an Alabama Real Estate Closing Attorney When You Make the Decision to Buy or Sell

Whether you plan to buy real estate in Alabama or sell real estate, it would be in your best interests to have a real estate closing lawyer on retainer and ready to help when an issue arises. Contact Cloud Willis & Ellis today to speak with one of our legal representatives regarding your impending real estate transaction.

Overview of Alabama Timeshare Laws

Before purchasing a timeshare in Alabama, it is important to know which protections are provided to you, the purchaser, as without understanding your rights, you may unwittingly forfeit key protections. At Cloud Willis & Ellis, our real estate attorneys help Alabama property owners better understand their rights so that they do not make crucial and costly mistakes. If you own a timeshare in Alabama, or if you are thinking about purchasing a timeshare, consult with our legal professionals about your legal protections and rights.

Timeshare Contracts

One of the first steps in purchasing a timeshare is drafting a timeshare contract. In Alabama, a timeshare contract should include the following:

The date on which the contract was signed;
The contact information of the seller, which should include first and last name and a physical address;
Purchase price;
A disclosure statement that informs purchasers that they are not to rely on any representations of the property given by anyone other those privy to the agreement; and
Information that advises purchasers of their right to cancel the covenant.

Right to Cancel

Timeshare holders have the right to cancel a timeshare purchase so long as they do so within five days (unless the fifth day is a Sunday). If you wish to cancel your agreement, send a written notice to the seller via certified mail. It is unlawful for the seller to deny the request.

If you have not yet received any benefits of the purchase and decide to cancel, you are entitled to a refund. The seller is obligated to issue that refund within 20 days of receiving your notice of cancellation. If you have benefited from the timeshare, you are still entitled to cancel; however, your refund will be in the amount you paid less any benefits you have realized. In the latter case, the seller is obligated to issue your refund within 30 days of receiving your notice.

Public Offering Statement

Every prospective timeshare purchaser in Alabama must include a public offering statement. This statement should include a detailed description of your rights as a timeshare owner and other important considerations that should be made before investing in a timeshare.

Consumer Protections

It is common for timeshare sellers to use incentives such as prizes, free gifts, or vacations in order to entice individuals to attend sales. Alabama law states that sellers must fully disclose the following:

The fact that the promotional items are being used to encourage sales;
The actual worth of the prizes being awarded; and
The chances of winning a prize or award.

Otherwise, the timeshare seller cannot use such promotional items.

Fraudulent Timeshares

Any timeshare sales that were made on basis of misrepresentations are considered fraudulent and therefore invalid in the state of Alabama. Just like with regular real estate in Alabama, timeshare sellers are required to be truthful and honest in their representations of properties. Common misrepresentations that may result in the invalidity of a contract include:

Misrepresentations regarding the extent to which the accommodations will be available to the purchaser;
Misrepresentations regarding the benefits, nature, size, location, characteristics, or services associated with the property;
Falsifications regarding the contents of the agreement in general;
Falsities regarding conditions under which a buyer may transfer rights to an accommodation in one location to an accommodation in another location; and
Fraudulent information regarding cancellation rights.

In addition to not making any fraudulent statements regarding the property both during the sale process and in the contract, sellers are obligated to uphold all terms and conditions outlined in the contract. If the contract includes any language designed to dupe buyers, or if it includes provisions that waive the buyer’s rights provided to him or her by Alabama timeshare laws, the contract will be considered invalid, in which case, the buyer would be entitled to appropriate damages, including a full refund.

Foreclosure

When you buy a timeshare, you are responsible for keeping up with mortgage payments as well as assessments, which include utilities, maintenance fees, special assessments, and taxes. If you fail to make these payments, you will likely face foreclosure.

Understand Your Rights Before Making a Purchase

At Cloud Willis & Ellis, we want Alabama property owners to make the most of their real estate investments. Part of maximizing one’s investment in real property involves knowing one’s rights and restrictions. Whether you already own a timeshare and Alabama or are thinking about purchasing one, reach out to the Alabama real estate attorneys at Cloud Willis & Ellis today to discuss your rights.

Resources:

alisondb.legislature.state.al.us/alison/CodeOfAlabama/1975/34-27-54.htm

arec.alabama.gov/arec/pages/professionals/licensing/timeshare_law.aspx?AspxAutoDetectCookieSupport=1

Pitfalls to Avoid When Drafting a Residential Lease Agreement

Real estate can be a solid investment if you take the time to find the right deal, and while owning your home is a great first step, investing in rental properties can be even better. However, before you sign on your first tenant, you need to have the right legalities in place, or, more importantly, a strong contract with little to no room for interpretation. Though landlord-tenant laws are different from state to state, most landlord-tenant agreements contain many of the same mistakes. These mistakes can make a real estate investment less lucrative or, in more extreme cases, a loss. A Alabama real estate attorney can help you improve your lease and avoid these types of costly mistakes.

Four Common Pitfalls of a Residential Real Estate Contract

Most unplanned and unforeseen costs stem from one of four real estate contract mistakes. Those are:

Including Illegal Clauses

In any residential real estate agreement, the landlord is responsible for keeping the premises habitable, and the contract serves to hold the landlord to that standard. However, some landlords try to include provisions in the lease that shift the burden of maintenance to the tenant. Doing this is illegal and can result in costly legal issues and unnecessary scrutiny. Some examples of illegal clauses include asking a tenant to paint his or her own walls, replace the carpet in the unit, or repair plumbing issues on his or her own.

Agreeing to Fix or Maintain Too Much

On the opposite end of the spectrum, some landlords try to overcompensate for the law and so agree to do too much in their landlord tenant agreements or before even signing a lease. For instance, a tenant may point out a “problem” that is more of just an aesthetic issue than an actual problem. To appease him or her, you may agree to remedy the issue, but bear in mind that even oral statements are binding. If you agree to make an improvement, even verbally, you can be held to that promise, even if it turns out that the improvement was slightly more expensive than you thought it would be. For instance, explaining to the tenant that new windows are out of your budget would not keep him or her from legally backing out of a lease or worse, contacting an attorney.

Asking for First and Last Month’s Rent

Most states have outlawed the practice of asking for first and last month’s rent as a security deposit. Alabama is one of those states. Under Alabama law, landlords may ask for a security deposit that is equal to one month’s rent, and additional fees for pets, changes to the unit, and for situations that create a liability for the landlord. However, they may not ask for a deposit equivalent to first and last month’s rent.

Putting the Amount of Possible Rent Increase in Writing

It is not uncommon for landlords to need to raise rent when new caps are put in place. Often, landlords will outline the prescribed caps in the lease agreement so that there are no surprises when an increase is necessary. While the intention is good, including caps in the lease could end up hurting a landlord in the long run. This is because caps are not always the same, and if a landlord underestimates what the next cap will be, he or she could be held to the caps outlined in the lease as opposed to the real, higher caps. If you want to indicate that caps are possible, simply put that, but do not include any set rates.

Work With a Real Estate Attorney

Real estate can be a lucrative investment, but only when you approach that investment in a smart way. In addition to waiting for the right deal to come along and finding the right tenant before renting out a unit, you want to be sure to draft a sound contract. You can do this with the help of an experienced Alabama real estate lawyer who understands real estate law and who can help you draft a contract that is legally binding and free from potential interpretations. Contact Cloud Willis & Ellis for lease assistance today.

Remedies for the Breach of a Commercial Real Estate Contract: Monetary Damages

It is not an uncommon occurrence: hands have been shaken, the contract signed, the deal, for all intents and purposes, finalized…and then someone gets cold feet. Whether buyer or seller, it is not uncommon for individuals to wonder if they made the right decision. After all, purchasing and selling real estate is a big deal. This is especially true when the deal does not go as smoothly as anticipated. Sometimes, deeds are hard to come by, and in others, money gets tight. Yet, these are problems that both buyer and seller should have thought about beforehand, as trying to renege on a commercial real estate deal is a huge no-no. In fact, breaching a real estate contract can result in bigger problems than lost titles.

Commercial real estate is not easy to come by, and it is certainly not easy to sell. When a seller backs out of a contract, it can take the buyer months or even years to find a comparable property in the same location. When a buyer backs out, the seller loses expected capital and is forced to go through the selling process all over again. Whether you are the intended buyer or seller of a breached commercial real estate contract, know that remedies are available. To learn more about what those remedies are, reach out to the Alabama commercial real estate attorneys at Cloud Willis & Ellis today.

Remedies

There are five types of legal remedies a person or entity may pursue for the breach of a commercial contract in Alabama:

Monetary damages;
Restitution;
Rescission;
Reformation; and
Specific performance.

Monetary Damages

Monetary damages are awarded when a financial loss occurs as a result of contract breach. This typically applies when a seller is responsible for the infringement, though it can occur when the opposite happens. For instance, say a buyer planned to expand his or her operations to a new warehouse and began transporting materials and equipment to the property once the contract was signed and the deal “done.” Halfway through the process, the seller backs out. Now the buyer has to pay to move everything back into the old warehouse or, if the equipment was new, pay for storage until he or she can find a new building. The seller may be liable for costs associated with the false move. In addition to recovering costs for moving, the buyer may also be able to recover damages for potential lost profits that an expansion would have earned him or her.

On the other hand, if the buyer backed out at the last minute, the seller might be entitled to monetary damages in the amount the net earnings he or she would have gained had not the breach occurred. Both this type of breach and a seller’s breach would be considered total breaches. In a total breach, the injured party is entitled to an amount of compensation equal to what he or she would have earned had the terms of the contract been fulfilled.

A partial breach is different, but it is not typically something that would occur in a commercial real estate transaction. However, that is not to say it could not occur. For instance, a buyer may only agree to buy a piece of commercial property if the seller agrees to make certain repairs or modifications. But, when the deal is done and both parties are set to walk their separate ways, the buyer may realize that the seller did not uphold his or her end of the deal. If something like this occurs, the plaintiff may be able to recover damages for the work not completed.

A Real Estate Attorney Can Help Defend Your Legal Rights

Monetary damages are the most common type of damages awarded in breach of commercial real estate contract cases. Specific performance, which will be explained more in depth in our next post, is generally the courts’ go-to remedy in cases of commercial real estate transactions gone bad. If you were set to buy or sell a piece of commercial real estate only to have the other party pull out of the agreement, and if you sustained losses as a result, reach out to the Alabama real estate attorneys at Cloud Willis & Ellis to learn more about your legal options. If recovering monetary damages is not possible, restitution, rescission, or specific performance remedies may still be an option. Contact our law firm today to get started.

What to Do When Tenants Refuse to Leave

The tenant-landlord relationship is a tricky one, and it can be difficult for a landlord to not cross boundaries when he or she feels like his or her property is being abused. However, when a landlord signs a tenant agreement and hands over the keys to the property, they essentially hand over their rights to the property to the tenant. Once this happens, it can be very difficult for the landlord to regain his or her rights while the lease agreement is still valid.

That said, if the tenant either abuses the property or fails to uphold his or her end of the contract, the landlord is not without options. If you are a landlord and if you are having trouble with a tenant who has violated the terms of the contract in any way, you do have rights. The Birmingham real estate attorneys at Cloud Willis & Ellis can help you understand your landlord rights and ensure that those rights are upheld, even when the odds seem to be in the tenant’s favor.

Reasons You Can Evict a Tenant in Alabama

First and foremost, you need to know why you can evict a tenant in Alabama. No, you cannot just evict a tenant because they are rude to you, or because you do not like their lifestyle choices. You need to have a valid reason, which, according to Alabama law, is one of the following:

The tenant failed to pay rent;
The tenant broke the terms of the lease; or
You want to end the terms of a month-to-month lease, in which case, you must give a 30-day notice.

Now, let’s talk about how you can go about evicting a problem tenant.

Notice is Necessary

Legally speaking, you are required to give the tenant either a 7- or 14-day notice depending on your reasons for terminating the lease (Alabama Code Section 35-9A-421). You are also obligated to give the tenant a chance to remedy the situation. For instance, if you want to evict the tenant for unpaid rent, you must give them a 7-day notice that specifies how much is owed, including late fees. If they pay the total amount before the seven days is up, the notice becomes void and you no longer have a reason for evicting them. Likewise, if you cite your reasons for eviction as being their subleasing a room or part of your property, and if the illegal tenant moves out within 14 days of you serving the notice, you no longer have an eviction case.

These laws purposefully make it difficult for landlords to evict tenants simply because the tenant made him or her mad. Just like when a tenant agrees to your terms and conditions upon signing the lease, you as the landlord make a choice in who you let live on your property, and you cannot renege on your agreement simply because you failed to do your due diligence when “hiring” a tenant, so to speak.

The High Road is the Best Road

Too often, landlords try to resolve the issue on their own by turning off the power, locking the tenant out of the home, or scaring the tenant off of the property. Each of these actions is illegal, and by taking measures into your own hands, you risk forfeiting your rights entirely. Even if your actions seem perfectly reasonable, a judge may view your “self-help” measures as harassment and deny your eviction, even if you had a very valid reason for wanting to evict the tenant in the first place. In the worst-case scenarios, your self-help measures may result in damages for the tenant, damages which you may be forced to repay in the end.

You also want to be wary of filing frivolous lawsuits. For instance, you may believe that your tenant having friends over and partying every night is a perfectly valid reason for an eviction, but the judge may tell you that the tenant is free to do as he or she pleases so long as he or she is not violating the terms of the rental agreement. You can be penalized for wasting the courts time, so it is best to keep your claims related to key tenancy problems, such as major lease violations, unpaid rent, or damaged property.

The Right Lawyer Can Help You Uphold Your Rights

At Cloud Willis & Ellis, we understand how frustrating it may be to have a person whom you let live on your property treat you disrespectfully by violating the terms of your lease agreement or behaving poorly in any way. However, we also understand that the law tends to favor tenants, and that by acting rashly you may jeopardize your rights. Do not let this happen, and seek the guidance of an experienced Birmingham real estate attorney before you attempt anything on your own. We can help you deal with stubborn tenants in the best way possible—the legal way. Call our office today to schedule an appointment, or schedule your consultation directly online.

Is There a Difference Between a Quit Claim Deed and a Quiet Title Action?

In the world of real estate, there are dozens of terms that homeowners, landowners, potential property owners, agents, brokers, and a slew of other people need to know. If a term is used wrongly, it could mean the difference between a landlord holding interest in a property (leased fee) and accidentally handing interest over to their tenants (leasehold), or the difference between a person buying an actual piece of property (condominium) versus investing in a share of a corporation that owns a building (cooperative). There are dozens of terms that sound the same in real estate but that mean two entirely different things. Two of those terms are “Quit Claim Deed” and “Quiet Title Action.” At Cloud Willis & Ellis, we often get inquiries about one or the other, and more often than not, what a client seeks is actually not what they ask for. To clear up all confusion, this post will briefly explain the differences between the two, how to tell which applies to your situation, and why you do not want to confuse the two.

The Difference Between a Quit Claim Deed and a Quiet Title Action

A quit claim deed is a tool that allows a property owner to transfer interest in real property to someone else. You can use this tool to transfer interest in your own property to a family member, loved one, or friend, or they can use the tool to transfer interest into your name. The process is fairly easy, quick, and does not require a lot of legalities. There is generally no opposition that comes with a quit claim deed.

A quiet title action is a tool used to remove a person’s interest from a property. Generally speaking, no one wants to be forcibly removed from their property, making a quiet title action a bit more complicated. A formal lawsuit is involved with this process, thereby requiring more resources—time, money, and knowledge. You can learn more about a quiet title action and how the process works in Section 24-9-8 in the Alabama Housing Code.

How to Know Which Applies to Your Situation

Every situation is different so it is always best to consult with a Mobile real estate lawyer regarding your needs. That said, there is one fairly straight forward way to determine which tool applies to your situation: answer the question, Is the transfer of property contested? If the answer is no, a quit claim deed may suffice; if the answer is yes, you may have a legal battle on your hands, in which case you would need to file a quiet title action.

One example that illustrates the differences between the two is as follows:

Post-Divorce

Jason and Amber get a divorce. Amber “won” their beach front property in the divorce, but the judge’s decision does not mean that Jason’s interest in the property has been removed. In order to remove his ownership interest, one of two things must happen:

Jason must sign over his ownership interest in a quit claim deed; or
Jason refuses, or disappears, or otherwise makes it difficult for Amber to obtain full ownership interest in the property. Amber must then hire a real estate lawyer, who would likely file a quiet title action to help his client remove Jason’s ownership interest in the property. The process will require adhering to many different statutes and notices and can take up to five months or even longer, depending on the circumstances of the case.

The end result is the same—one person ends up with ownership interest in a property and one without—however, the two processes are very different. Depending on who you are in the situation—“Jason” or “Amber”—it could be detrimental to your interests to confuse the two.

Ready to Transfer Ownership?

Whether you want to transfer ownership interest to someone else, allow someone to transfer ownership interest to you, or would like to remove someone’s ownership interest from one of your properties, it would be wise to retain the help of a knowledgeable real estate attorney. At Cloud Willis & Ellis, our team is ready to help you find the best option given your unique circumstances. Contact our team today for immediate legal assistance.

How Does A Lien Affect A Real Estate Transaction?

In the field of real estate law, when carpenters, plumbers, painters, or other types of general contractors do work on your home, they can place what’s known as a “mechanic’s lien,” or a legal notice on the home (as an asset) in order to ensure that they get paid. Once a lien is placed on a home (as a consequence of an unpaid debt), it can drastically slow down a real estate transaction.

In real estate, liens occur more frequently than many buyers and sellers realize, precisely because they are often due to unpaid bills, taxes, or a judgment made in court; all of which often occur when it comes to buying, selling, or managing residential or commercial property.

Types of Liens

In addition to mechanic’s liens, there are also:

Judgment liens: liens linked to losing in court, where a judgment has been entered against you. This can be filed against your home until you pay the judgment; and
Tax liens: liens filed against your home if you fail to pay county, state, or federal taxes.

Contesting Liens & Transaction Delays

A lien will place a real estate transaction on hold if, when the title company performs a search on a home placed under contract, any liens have been filed against the property. A mortgage company will then typically finance the property until the lien is satisfied by the seller. However, if the seller decides to contest or otherwise avoid paying the lien, the sale can be put off indefinitely.

To a buyer, the seller’s refusal to pay the lien can be interpreted as a breach of contract, warranting either walking away from the transaction or accepting responsibility for the lien itself in order to secure the transaction. For example, buyers purchasing homes that are the subject of foreclosure may have to pay off the debt. Under these circumstances, real estate attorneys must typically get involved in order to help the parties come to an agreement.

In addition, if you are a seller and are dealing with especially complicated liens on your home, you will want to seek legal counsel in order to start resolving the issue as soon as possible.

Experienced Birmingham, Hoover, and Mobile Real Estate Attorneys

When it comes to real estate transactions, there are so many details involved in that having an experienced real estate attorney on your side who knows the applicable federal and state laws can help ensure that the process goes smoothly.

The attorneys at Cloud Willis & Ellis provide excellent real estate attorney services. From investigating and resolving complex title issues, to helping deal with liens, we strive to handle every aspect and answer your questions and concerns with a strong commitment to professionalism and service. Contact us today to find out more.

Good Deeds – A Primer

Whenever property is transferred, a deed is required. What some people may not realize, however, is that not all deeds are the same – in fact, there are several different types of deeds, all of which have very different functions. What may be considered sufficient in one transaction may not meet the requirements of another real estate transaction and, therefore, it is very important to understand what the different types of deeds are and what functions they serve – and, even more importantly, what functions they do not.

Types Of Deeds Allowed In Alabama

Most types of deeds can be used in Alabama. With the exception of the Beneficiary Deed, the following are allowed in Alabama real estate transactions:

Warranty Deeds – there are two types of deeds that fall into this broader category of warranty deeds. In each, the seller or grantor of the property makes certain covenants regarding the property. With a General Warranty Deed, the seller makes covenants that he or she owns the property and has the right to convey it, that the property is free of any encumbrances unless otherwise noted, and that they will defend title against any claims. The Special Warranty Deed is a similar document, and also conveys interest in property with specific covenants made by the seller with respect to encumbrances and defending title, but only against claims made under the seller.
Quit Claim Deeds – these deeds are deeds that simply transfer any interest one party has in a piece of real estate to another party. With this type of deed, the party transferring its interest in the property makes no claim that they actually have any interest in the property itself. Quit Claim Deeds are typically useful only in certain circumstances such as transferring property between family members or to remove one spouse’s name from a deed during a divorce and property settlement process.
Deed of Trust/Deed of Release – Part of the lending process, the Deed of Release cancels out the Deed of Trust. The Deed of Trust is used to give a lender a security interest in a piece of property. If the borrower does not meet payment requirements, the Deed of Trust gives the lender the authority to foreclose and sell the property to recoup their money. This document is usually used along with a loan and promissory note. Once the loan is paid off, the lien holder signs a Deed of Release to cancel the Deed of Trust.

Do I Need An Attorney?

Using a knowledgeable and experienced real estate attorney is not only a wise step to protect your interests, but in Alabama, real estate attorneys are the only ones who can write deeds or documents between sellers and buyers that are actually legally binding. Speaking with an experienced real estate attorney from the beginning steps of your transaction is the best way to ensure your protection.

Cloud Willis & Ellis – Your Real Estate Attorneys

When you need an attorney to handle your real estate transactions, turn to the office of Cloud Willis & Ellis, LLC. Our attorneys have helped buyers and sellers protect their interests with their legal needs during real estate negotiations and transactions and will ensure you are protected as well. Contact Cloud Willis & Ellis, LLC today to meet with our legal professionals.

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