When buying or selling a piece of property, you may need to pay taxes, including capital gains, property transfers, and income taxes. The amount you'll pay will depend on the profit you make. A real estate tax attorney can help you overcome the legal hurdles that come with these processes. If you work with them, you may have less to stress about. Keep reading to find out three things they'll handle for you.
1. Drafting Construction Contracts
Construction agreements are drafted before a new structure is built or an existing building undergoes a significant remodel. As with many other deals, these contracts are governed by state law and vary from jurisdiction to jurisdiction. When drafting this contract, you should ensure it's legally binding and doesn't lead to wrong interpretations. It should also outline the responsibilities of each party involved, including the contractor, the owner, and the architect.
When you hire a lawyer to draw up a construction contract, they'll ensure it includes all necessary clauses. For example, it will detail whether or not you will enter into mediation to resolve any disputes that arise during or after the project's completion. They'll also make sure it includes provisions for early termination of this contract if either party violates its terms.
2. Property Transfers
Property transfers include sales and purchases of residential and commercial properties. There are different procedures for these transactions depending on the type of property in question. To complete these procedures effectively, you need someone who understands state law and can help you with each step of the process.
An attorney will help you figure out which title company to work with when transferring property ownership. They'll also determine what fees are required by law during the transfer and ensure you follow the correct procedures and provide certain information to the title company, including a deed of trust, an abstract of title, and a property survey.
3. Maximizing Tax Benefits
If you're a real estate investor, you'll likely want to purchase properties in areas with the most tax benefits. A lawyer will help you maximize these benefits by purchasing the right property. They'll also help you determine whether buying properties as a sole proprietorship or through a limited liability company is more beneficial.
Working with a real estate tax attorney may help you avoid several hassles related to property ownership and taxes.
Contact a real estate tax attorney near you for more information.