Actually... I just made that up. Why would play a dirty trick on you
like that? To make a point - learn the laws and the customs that are
common to your real estate business, and make it a point to learn the
difference between the two. Too many people just -œwing it-• without
learning the laws and the customary practices in their business. Such an
attitude can lead to lost profits, failed businesses, and unnecessary
lawsuits. RESPA Rule -œ5b-•. Do you know it? If not, you can get
sued, go to jail and have your property condemned for up to 18 months by
the Federal government. Actually... I just made that up. Why would play
a dirty trick on you like that? To make a point - learn the laws and the
customs that are common to your real estate business, and make it a point
to learn the difference between the two. Too many people just -œwing it-•
without learning the laws and the customary practices in their business.
Such an attitude can lead to lost profits, failed businesses, and
unnecessary lawsuits.
Reliance on the -œProfessionals-• Most investors rely on advice from
real estate brokers, title company representatives, and lawyers when it
comes to their real estate. Most so-called -œprofessionals-• do not know
anything other than what was told to them by their bosses, their
colleagues, and from word of mouth. Like the game -œtelephone-• in which
each participant secretly whispers a phrase or sentence whispered to them
by the preceding participant, the end result is a hodge-podge of half-
truths and urban myths. Case in point, ask 10 real estate brokers if
flipping is legal, and you get 10 different answers. Attorneys
Aren't Much Better Surprisingly, most attorneys don't know the law or
misstate the law when you ask. An attorney's answer is often a knee-jerk
-œdon't do that-• response because the attorney fears being sued for
giving bad advice that might lead to the client losing money. Challenge
the answers you get from attorneys and ask for a citation of the law so
you can read it yourself. Recently, I attended a closing at which
it was demanded that I place my fingerprint in black ink on all the
closing documents. "Why?", I asked. "I don't know - our legal counsel
said it is required", was the reply. "Let me speak to your legal
counsel", I demanded. The lawyer walked in the closing room and
insisted, "It's now required by the Patriot Act". "Really... which
provision?", I inquired. He gave me a blank stare, then admitted, "Well,
I was at a legal conference last month and I was told it was their
interpretation of the Patriot Act that all closing required the
fingerprint". Can uou see how things get twisted around so that people
accept these things as legal gospel?In short, you should seek advice of
experts in areas where you are not sure. But, you should always question
things, research the law, and know what it says. Don't take the
"expert's" word for it - learn the law and be able to recite it.
Know the Difference Between Law and "Custom" Many uninformed investors
also accept what is customary practice without questioning it. For
example, a title company may say, "We can't do double closings... they
aren't legal". The reality is, many title companies won't do them for
fear of potential fraud, but that is a company decision, not law. Ditto
for many mortgage companies, who insist on 6 or 12 months of seasoning
before they will refinance a loan on a recently-purchased property.
Seven out of ten mortgage brokers will tell you that "nobody does it
anymore", when in fact that's their own reality in their own small world.
In short, don't accept the answer you get from one person as "that's the
way we do things". Challenge the professionals you do business with to
make an exception for you, or take your business elsewhere. In
summary, learn the law, learn the local customs, and take the time to
learn the difference. You will close more deals, avoid more problems and
have a leg up on your competition, 99% of which doesn't have a clue.
Click Here for more info for Respa Rule 5B Written exclusively for
Legalwiz.com by Attorney William Bronchick, Certified Registered
Nationally-known attorney, Author, Entrepreneur and Speaker.
Related Articles -
Bronchick, William Bronchick, Bill Bronchick, Flipping properties,
property flipping, house flipping, contract for deed, installment land
contract, fr,
Email this Article to a Friend!
Receive Articles like this one direct to your email box!Subscribe for
free today!