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Huntington Beach Business And Real Estate Law Blog

Avoiding real estate litigation due to zoning law issues

When buying property in California for residential or commercial purposes, it is smart to be cognizant of the potential risks involved with that process. When there are problems with the transaction or the property, it can lead to financial loss and other risks. In order to avoid real estate litigation, a buyer will want to find out about the property's zoning classification and what that will mean for any goals for the land or building.

Zoning laws determine how an owner can use a specific piece of property. It can come as a surprise to a property owner that there are limits to what he or she can do. It refers to the local government's right to control development and keep certain areas separate, such as residential properties and industrial properties.

Strong contracts result in fewer employee disputes

California business owners understand the importance of reducing legal complications whenever possible. One way to do this is by having strong employment contracts. When carefully and thoughtfully drafted, these are tools that business owners can use to protect their legal interests and clearly outline each party's rights and responsibilities.

Employee contracts provide an explanation of what an employee can and cannot do, specifically when leaving the company. For example, a nonsolicitation clause can prevent a frustrated employee from encouraging others to leave the company or taking important information with him or her when leaving. Additionally, it is possible to include terms that will mandate all disputes to go through the arbitration process instead of heading straight to litigation.

What risks should I assume as a contractor?

In a construction deal, there are often several different parties involved. From designers to owners and contractors to sub-contractors, there are plenty of cooks in the kitchen. Because of this, establishing liability for different parts of the project is a crucial part of a well-conceived contract.

As a contractor, you should know what risks you should and shouldn’t be responsible for. This awareness and attention to detail can help you avoid disputes in the future.

Buy a business and bypass the business formation process

Starting a business can be an exciting step for California entrepreneurs, but it is not always the optimal choice for those looking to own their own business. In some cases, it is smarter to purchase an existing business than to navigate the business formation process. There are many benefits to taking this route, but a potential business owner will want to think carefully about the long-term implications of any choice regarding his or her business. 

One of the benefits of buying a business instead of starting one is that the buyer will obtain a proven business plan and be able to earn a profit faster. When it is not necessary to start a business from the ground up, an owner may see a faster return on his or her initial investment. It is important, however, to fully understand the type of business the company is and what that means for personal liability and taxes.

What does the CCPA mean for your business?

At this point, it’s clear your business needs to have an online component to succeed. Exactly what you do online will depend on your business, but you’ll almost certainly collect some forms of user data. That means you could be subject to the California Consumer Privacy Act (CCPA), so what do you need to know about it?

For starters, you should know that the law is currently a major point of discussion among lawmakers. Ever since the law was passed, people have been volunteering their wish lists of changes. Some want exceptions. Others want tighter restrictions and more clearly drawn guidelines for enforcement. But while these arguments may lead to changes of some details, it is less likely they’ll lead to any fundamental changes to the law.

The potential for real estate litigation for boomerang buyers

When the market crashed, leading to the housing crisis that lasted from approximately 2006 to 2014, millions of people lost their homes or found themselves living in desperate financial situations due to mortgages they could no longer afford. Fortunately, the rebound in the economy means that many of these people are now financially able to buy homes again. While this is exciting, boomerang buyers would be wise to proceed with caution, taking steps to avoid future complications, including potential real estate litigation.

Buying a home is an exciting step, especially for California buyers who lost their homes due to unfortunate circumstances. The origins of the housing crash came from lenders approving subprime mortgages to people who could not qualify for other types of mortgages. In just under a decade, there were more than seven million foreclosures and almost two million short sales. 

Avoiding missteps during the business formation process

Starting a business is an exciting and sometimes overwhelming step for a California entrepreneur. There are many important decisions a person will have to make, and it's critical for a person to be cautious and careful to avoid missteps. Problems during the business formation period, even small ones, can lead to significant complications down the road. 

It is easier to start a business now than ever before. There are many resources available online, but this can also increase the likelihood of a mistake. It's beneficial to understand the legal ramifications of every choice made, including the type of business entity. Poorly formed partnerships or other types of businesses can lead to legal complications and disputes that can threaten the success of a business. 

Making smart decisions during the business formation process

Starting a business is an exciting venture for a California entrepreneur, but there is much more involved with this process than just finding a storefront or launching a website. The business formation process involves many complex and important choices, including deciding on the type of structure a company will have. Before a founder makes any important decision that can affect the finances of his or her business, it is smart to know all of the options available. 

There are two main types of business structures available, including limited liability companies and corporations. The choice a business owner makes will affect taxes, personal liability for business debts and more. Limited liabilities companies, or LLCs, are popular choices because this type of entity can protect an owner's personal assets if the company ever gets into financial trouble and owes a significant amount of debt.

Tenants' rights issues could lead to real estate litigation

When a Californian rents residential property, he or she has certain rights. There are laws in place that protect the interests of tenants, and they provide protections against things like invasion of privacy and other types of mistreatment from landlords. In some areas of California, however, provisions intended to help renters may actually not be helping them at all. In one town, this led to many disgruntled renters and the potential for real estate litigation.

Lawmakers passed certain measures actually intended to protect the interests of renters. Landlords are now required to provide tenants with one-year leases, but there is no provision that keeps them from raising the rent each year as well. As a result, many people are facing rent amounts that are more than they can afford. Landlords can also evict tenants or refuse to renew the lease at the end of one year if they choose to do so.

Avoiding business litigation due to violation of privacy laws

Recently, the state of California passed new laws regarding how companies and businesses of all sizes and types treat the information and data they collect from consumers. It is in the interests of business owners to understand what these new laws mean for their company. A disregard of legal changes or lack of understanding over how the law is applied could expose a company to business litigation in the future.

These new privacy laws are among the strongest and strictest in the country. Essentially, California consumers have more rights than ever before regarding how companies treat their information. This includes the gathering and selling of data. At the beginning of next year, when the law goes into full effect, consumers will be able to request that companies provide them with all of the personal data they have collected going back 12 months. 

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