USURY LAW (LIMITATIONS ON INTEREST RATES CHARGED ON LOANS)

[vc_row triangle_shape="no"][vc_column][vc_column_text]The California Constitution prohibits loans that are made primarily for personal, family or household purposes from having interest rates above 10% per year. This is California’s general usury law. However, there are many exceptions. First, as implied from the above, loans made for business purposes are not capped at 10% interest (although there are other caps).[/vc_column_text][vc_empty_space][vc_column_text] HOME LOAN EXEMPTION [/vc_column_text][vc_empty_space][vc_column_text]Second, a loan that is taken out to be used primarily for buying a home (i.e. a mortgage) or improving a home (i.e. a construction loan) are not considered loans for personal, family or household purposes, and thus are not capped at 10%...

07 July

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THE IMPORTANCE OF THE “ESTOPPEL CERTIFICATE”: ENSURING POSITIVE RETURNS FROM THE PURCHASE OF AN INCOME PROPERTY

Posted by Kevin Hellon

in Real Estate: General

[vc_row triangle_shape="no"][vc_column][vc_column_text] ABSTRACT [/vc_column_text][vc_empty_space][vc_column_text]An Estoppel Certificate is a document typically used in performing due diligence prior to the purchase of tenant-occupied property. The purpose is for a lender and purchaser to have written confirmation from tenants of certain terms. Important amongst these are: the rental amount; security deposit; duration of lease, renewal options; and, as discussed further below, a “subordination” clause. The subordination clause is used to confirm that the tenants have agreed, in their lease, that their interest is subordinate to future mortgages. Without such confirmation, the tenants’ leases have priority over mortgages that are subsequently obtained. Furthermore, only a tenant whose...

07 July

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A BRIEF OVERVIEW : MECHANIC’S LIENS

Posted by Kevin Hellon

in Real Estate: General

[vc_row triangle_shape="no"][vc_column][vc_column_text]In California, contractors who perform work on real property can issue a mechanic’s lien against the property. If a contractor is not paid for the work they performed, they can issue a mechanic’s lien that allows them to collect payment by forcing a sale of the property where the work was done. Subcontractor, material suppliers, and equipment lenders can also issue mechanic’s liens. However, there are strict procedures and deadlines that must be followed to ensure that the claim is valid. If these are not followed, a mechanic’s lien will not be valid and the right to enforce may...

07 July

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HOW TO PUT A LIS PENDENS ON PROPERTY IN CALIFORNIA

Posted by Kevin Hellon

in Real Estate: General

[vc_row triangle_shape="no"][vc_column][vc_column_text] A LIS PENDENS IS NOT A LAWSUIT [/vc_column_text][vc_empty_space][vc_column_text]A Lis Pendens is not a lawsuit—it is a document that notifies the world that there is an ongoing lawsuit. The literal translation of Lis Pendens is “suit pending.” It is also sometimes referred to as a “Notice of Pendency of Action.” As the name suggests, the purpose is to let others know that there is an active lawsuit. A Lis Pendens is filed with the County Recorder in the county where the piece of property that the law suit involves is located. When any document is recorded with the County Recorder, it puts...

07 July

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DO I NEED A LITIGATION GUARANTEE IN LAWSUITS INVOLVING PROPERTY?

Posted by Kevin Hellon

in Real Estate: General

[vc_row triangle_shape="no"][vc_column][vc_column_text]At ANAND LAW, we are both real estate attorneys and real estate brokers. Combining expertise, we add value, reduce overall cost, and maximize efficiency for our clients involved in real estate disputes. These disputes often arise between co-owners, neighbors, and lenders. When parties disagree as to the ownership of real property, quiet title, partition, and foreclosure actions can be used to force a resolution. Examples of these types of disputes include disagreement as to who holds title or how much they hold, and disagreement as to the the priority of liens. In any of these types of disputes, it is...

USURY LAW (LIMITATIONS ON INTEREST RATES CHARGED ON LOANS)

THE IMPORTANCE OF THE “ESTOPPEL CERTIFICATE”: ENSURING POSITIVE RETURNS FROM THE PURCHASE OF AN INCOME PROPERTY

A BRIEF OVERVIEW : MECHANIC’S LIENS

HOW TO PUT A LIS PENDENS ON PROPERTY IN CALIFORNIA

DO I NEED A LITIGATION GUARANTEE IN LAWSUITS INVOLVING PROPERTY?

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