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Palos Verdes Estates Real Estate Law Blog

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?

How mediation might help in construction disputes

Although most construction companies in California work hard to keep business relationships steady and profitable for all involved, sometimes those plans just don't pan out. And so, the unfortunate reality is that construction disputes do occur, leaving the parties attempting to mend broken relationships or, at the very worst, seeking to salvage something good out of a deal gone bad.

Fortunately, there are options for how best to approach construction disputes. One such option is mediation. Mediation could help the parties resolve their differences, get over the hurdle of the problem presented and get back to a respectful and profitable relationship. Or, mediation could help the parties reach an agreement on how to at least resolve the dispute through compromise.

Protecting your construction company with the right insurance

Owning a construction company may provide you with a lot of satisfaction, but you may also experience some trepidation because of the risks associated with your chosen industry.

When it comes to protecting your company, you can take many steps, including purchasing the right insurance in order to help you through any rough times that arise.

Seeking a beneficial resolution to various construction disputes

Disputes involving a California construction project can be complex. They can cost your company time and money, and it's smart to know how to handle these types of situations from the very beginning. You understand how important it is to work for a practical, timely solution for the benefit of your construction company and your relationships with your clients. 

Disputes can easily lead to litigation, which is not only expensive for both parties, but it can also impact other aspects of your company's operations. There are certain methods you can employ to help you handle disputes, but it's smart to remember that it's always in your rights to shield the interests of your company.

How can breach of a construction contract lead to litigation?

With California being the most populous state in the country, there are all kinds of construction companies involved in many different projects at any given time. These companies are oftentimes in competition with one another, but there are also many times when they work together on projects. Whether the relationship is between different construction companies, or between construction companies and their contractors, vendors and customers, usually there is a contract underpinning the rights and obligations of the respective parties.

So, when a breach of a construction contract occurs, how can this lead to litigation? After all, most businesses have continued prosperity in mind and prolonged litigation usually isn't a step in that direction. However, when the breach is a significant one, the relationship between the parties may be permanently fractured. At that point, it may be best to attempt to salvage what can be salvaged from the deal.

Be detail-oriented in real estate transactions

California residents can obviously become trepidatious when they are getting involved in a real estate transaction, whether it is residential or commercial in nature. These types of transactions often involve thousands, if not hundreds, of thousands of dollars. With such an expenditure of funds, the results must be right.

Anyone involved in a real estate transaction will want to be detail-oriented in their approach to getting the deal done. The back-and-forth between a potential buyer and a potential seller should almost always be done in writing, so that there is a verified record of what is being offered, accepted or countered. In most cases, the biggest issue is the purchase price for the real estate involved, but there can be other details to worry about as well, such as what fixtures or assets on the real estate will be included in the sale and how the buyer will secure financing.

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