Full of codes and regulations, real estate law in California can be hazardous and just plain difficult to navigate. However, whether you are a business or an individual, real estate can be just as difficult for the uninitiated. Each component of real estate law helps to minimize the risk of damage to both buyers and sellers. But without understanding these components, disputes and other nasty situations can arise and cause trouble for you.
Laws and Codes of Conduct
Many people refer to real estate as an “investment,” and in many senses, that is absolutely the case. It may be safer than traditional investing, but the consequences of bad conduct can be devastating. Because of this, there is a code of conduct all people involved in real estate must follow. This code of conduct covers everything from buying, selling, representation, and how to handle misconduct from others.
Land and Property
There are specific codes for buying, maintaining, and selling land and property. These codes include rules about licensing, disputes, fees, loan requirements and modifications, disclosure requirements, expected behavior regarding investigations, and the duties of the real estate commissioner. They are written to protect all parties from dishonesty, theft, and generally dangerous practices. Ignoring these codes can bring serious consequences and inquiries to more than just one party.
Consequences for Misdeeds
Because real estate codes benefit and protect everyone involved, they are actually part of California’s laws. As such, the consequence for ignoring the laws will result in inquiries, investigations, trials, and eventual sentencing, depending on the severity of the offense and the validity of the claim. Prosecutors and the State of California take this very seriously; some offenses, such as fraud, carry the hefty penalty of prison time, while others carry the penalty of fines and other such consequences.