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Palos Verdes Estates Real Estate Law Blog

The right experience matters when facing business law issues

The people in California who run businesses are oftentimes focused on similar overall goals: hiring the right people, expanding, and increasing profitability. However, running a business is usually a complicated affair, and those who are in charge of a business need to be ready for anything and adapt as needed. In some cases, that may include addressing complicated legal issues.

When the future of a company is on the line in a business law matter, the right experience can make the difference between a successful result and a more complicated situation. For example, starting a business is in itself a huge step. Making the right decisions from the start, including choosing a business structure and making sure the appropriate legal documents are drafted, is crucial. For existing businesses in California, contracts are oftentimes the backbone of their relationships with vendors, contractors and suppliers. The terms of those contracts must be carefully considered and worded to avoid being taken advantage of by others.

The basics about contracts

Most construction companies in California depend on the terms and conditions of contracts to form the basis of their business relationships with landowners, vendors, contractors and suppliers. Indeed, most businesses of any kind will depend on contracts in this manner. The written contract is the bedrock outline of the legal obligations that companies have to one another when they enter into an agreement. Construction companies in California should know the basics about contracts.

For starters, why is a contract needed to begin with? Well, in essence, a contract is a "legally binding" document, which means that, once a company signs on to the terms and conditions of a contract, that company is bound to comply, or face consequences. If a company is alleged to have "breached" a contract, the other party or parties to the contract usually have options to force compliance, such as taking the case to courtroom litigation, arbitration or mediation. Some contracts even include financial penalties for non-compliance.

Changing weather patterns mean changes in contracts and insurance

At least once in the past year or so, you have probably been surprised by the weather. Temperatures can fluctuate wildly, and rain can be torrential or just enough to be annoying. If you were a meteorologist, you would probably experience frustration at the fact that your job has become more difficult since global weather patterns appear to be changing.

As a construction contractor, you would more than likely feel the same way. Your work often depends on the weather, much more than in most other industries. The weather has probably affected your bottom line on more than one occasion since it's hard to predict, and accounting for it in your contracts has never been more important.

Court halts construction of new school

Any type of construction project can be tricky in California, as all parties involved attempt to balance environmental concerns, water concerns, aesthetic concerns and, for public projects in particular, financial concerns. Sometimes, the parties representing these various concerns are able to sit down, negotiate and come to a deal. However, in other cases, courtroom litigation becomes inevitable.

That appears to have been the case in San Diego recently, when a superior court ruled in favor of a group of concerned citizens who sued to stop the construction of a school near George Berkich Park. According to reports, all construction on the school project has been halted as a result of the injunction that the court issued preliminarily on November 18, and then confirmed on December 2.

Home sale statistics on the rise in Southern California

When the local and national economies are in good shape, the housing market is usually in good shape too. For those who are selling real estate in Southern California, times are good. However, there are deals for buyers who are willing to do their homework and understand the legal implications of buying and selling real estate.

According to reports, statistics show that the housing market in Southern California is staying strong; even getting better with each month. Reports indicate that home prices have climbed 2% on a year-to-year review and that sales of homes jumped a whopping 8.2%. Mortgage interest rates are at near-record lows which, according to the report, has likely played a role in buyer interest in jumping into the real estate market nationwide and in Southern California.

What are some common construction law issues?

At any given time in California there are thousands of construction projects in progress. That means that there are thousands of different ongoing business relationships between designers, builders and suppliers. There are also contractors and subcontractors involved in many different construction projects. With the intricate web of obligations and duties that exist in a typical construction project, there is always the possibility of legal issues popping up. So, what are some common construction law issues?

Well, for starters, there could be disputes over the scope of work to be completed in a construction project. For example, a subcontractor may interpret the designs and plans involved in a project differently than a general contractor. That may result in less work being completed, or incorrect work being completed.

How would an economic recession impact real estate investment?

For several years the national economy has been in great shape, including the economy in California. The stock market is strong and so is the real estate market - two of the pillars of our economic power. However, for a few months now our readers may have been seeing news reports about the potential for an economic recession to occur sometime soon. For those who have investments tied up in real estate in California, the potential impact of an economic recession may weigh heavily on their minds.

So, how would an economic recession impact real estate investments? Well, as one recent news article pointed out, there will always be economic recessions and those who plan accordingly should be able to find real estate investing opportunities no matter what the state of the market. Getting the right information about local conditions, as well as any legal issues that may come up with any given investment, are the crucial steps that help ensure that any given investment move is a good one.

The lasting impact of business law decisions

Starting a business in California can be exciting, but maintaining profitability and success is hard work. From business formation to contract matters to potential legal disputes, there is a range of issues that business leaders in California must be prepared to face. When it comes to legal matters, the decisions that business leaders make can have a lasting impact.

The decision to start a business, and the exact formation of that business, is a crucial first step. Choosing the right entity to create can impact the company's long-term profitability, as well as the ability for the owners or controlling interests to avoid personal liability if something goes wrong. Taxation of the business is also a crucial matter to consider.

Timing a residential real estate transaction in California

Anyone who has ever owned and sold a home knows that timing is crucial. Put your house up for sale during the wrong time of the year and it may sit on the market for weeks, or even months. But, if you put the house up for sale during the hottest time of the buying season - typically late spring or early summer - you may benefit from a hot market, with bidding wars developing for your suddenly much sought after home.

Timing is why it is important to listen for news about the real estate market in southern California. In many ways, potential sellers need to look into the future to make sure they are going to be hitting the market at the right time.

The interplay between the economy and the real estate market

The national economy has been in decent shape for several years now, and millions of Americans, including many in California, have benefited greatly. Thousands of new jobs open every month, the stock market is in good shape and, perhaps most importantly for homeowners everywhere, the real estate market is holding strong. However, there are always naysayers out there, and some are starting to throw around the dreaded "R"-word: Recession.

There is no doubt that the health of the real estate market is inextricably tied to the overall health of the national economy. We all learned that lesson, some of us the hard way, during the so-called Great Recession, in which the burst of a housing market bubble set off a global economic crisis. While the impact of that market dip was felt more keenly in some locations over others, California was not immune to the impact. With whispers of an economic slowdown potentially approaching, a recent article looked at a simple question: Is it time to sell, buy or stay put?

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