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16 Dec. 2024

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How to invest in real estate safely: the importance of legal support

Finance
Popular
How to invest in real estate safely: the importance of legal support

Investing in real estate can be profitable, but it is important to minimize the risks to ensure its success. Find out how to choose the right property, conclude a deal, and why legal support is key to your financial security and protection of interests

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Investing in real estate has always been considered a reliable way to preserve and increase capital — both for privateand corporate investors. However, this process is accompanied by many legal nuances, ignoring which can lead to financial losses or conflict situations.


Investing in real estate can be profitable, but also accompanied by risks. The correct approach to this process guarantees the preservation of funds, the minimization of risks and the achievement of your financial goals. Here are the key steps to help make your investment safe:


Market research and object analysis


Before investing, it is important to understand thetrends of the real estate market: what types of objects are currently popular, in which region the demand is highest and what are the potential returns from your investment. For example:


• residential real estate can bring stable rental income;

• commercial objects — high profit prospects, but also more risks.


A lawyer can help gather information about the object, check its history, legality of ownership, land status and possible restrictions.


Checking the legality of the agreement


An agreement in the field of real estate is not just an agreement on the price of an apartment or house, but also a whole set of agreements related to the terms and stages of payment, the date of transfer of the property to ownership, verification of the legality of ownership of the property, the presence of encumbrances and many others factors that matter. Therefore, an investment agreement regarding real estate can be born only after a long and thorough negotiation process, where it is desirable for each of the parties to involve a professional in the field of law, who will help to correctly argue their position during the negotiation process and legally correctly structure the agreement.


Correct structuring of the agreement


Real estate is not only a physical object, but also a complex legal asset. It is important to consider the following in the agreement:


• terms of payment (stages, terms, method);

• terms of transferring the object into ownership;

• responsibility of the parties in case of violation of agreements;

• conflict resolution mechanisms.


A lawyer will help create a contract that will protect your interests at every stage of the deal.


Involvement of a professional team


In addition to a lawyer, it is important to cooperate with:


• an independent appraiser who will provide a real market valuation of the object;

• architects or engineers to check the technical condition of the facility;

• experienced realtors who will help you find the best options.


All these professionals should work together under the guidance of a lawyer to ensure a comprehensive approach to the deal.


Optimization of the tax burden


Investors are often faced with tax obligations related to the acquisition, holding or sale of real estate. A lawyer will help to develop a strategy to minimize taxes and comply with the law.


Help with the settlement of real estate disputes both in court and out of court


In the life of every buyer, seller or owner of real estate, landlord or tenant, a situation may arise when his rights are violated, and it is necessary to protect them. For example, a landlord can close access to a rented space, or a neighbor can block the use of an attic that is jointly owned. It is best to try to resolve the conflicts of the situation using the knowledge and experience of a lawyer specializing in real estate.


A lawyer will be able to assess the situation and offer options for protecting your rights both in court and out of court.


Also, a company that invests in real estate in Ukraine, or builds its own facilities, or makes joint investments with Ukrainian companies, will feel the urgent need for professional legal advice, and in case of difficulties and conflicts - protection and representation of interests in courts.


Conflicts in the field of real estate often arise not with counterparties under lease, purchase, or investment contracts, but with utility companies, condominiums, condominiums, STs, with local self-government bodies, and state bodies. To represent interests in a conflict with communal, state structures, local self-government bodies, you also need to have a specialist in the field of law.


Long-term planning


If you plan to receive income from real estate (rent, resale), a lawyer will help you develop a clear asset management strategy, taking into account the peculiarities of Ukrainian and international legislation.


The described steps are only the basic aspects of safe investing. Hiring the specialists of Intermarium Law Firm will help you avoid mistakes, save money and get the most out of the deal.


Intermarium Law Firm specialists provide full support to investors who wish to purchase real estate both at the construction stage and on the secondary market.


Intermarium Law Firm provides legal services:


- Individual investors in real estate

- Corporate investors

- Real estate agencies

- Construction companies

- Housing and building cooperatives

- Garden societies and cooperatives

- To the owners of real estate objects


Intermarium Law Firm has a well-coordinated team of specialists in various fields of law and can ensure the protection of the rights of its clients in the field of real estate and construction. The company's lawyers solve complex cases and provide support to large foreign investors and investment companies in Ukrainian real estate.


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