Q: What is the most common Investors’ mistakes you see AZREIA investors (not landlords) make?

A: Investors mistakes usually fall into one of two categories – (1) they don’t understand the written contracts they are using for various real estate transactions or (2) they fail to disclose defects when they sell a property. These mistakes are usually made by investors beginning in this industry, not just AZREIA members. The good news is these mistakes can be easily avoided. First time investors often think that if they are buying a home from someone, they should automatically use a purchase contract. However, if they don’t want to take title or are paying off over time, a purchase contract may not be the way to go. We regularly see realtors do this – they are too comfortable using the AAR forms, that they use such forms even for more creative real estate transactions. Except in rare cases, an AAR form should not be used for a transaction where closing is set off several months. As to failing to disclose, many investors do not follow the adage of over disclosing – no seller of property has ever been sued by giving out too much information. Mark B. Zinman, Williams, Zinman & Parham P.C

Information contained in this article is for informational purposes only and should not be considered legal advice. You should always contact an attorney for legal advice and not rely on information published here.

By Mark B. Zinman, Attorney
Mark B. Zinman, Williams, Zinman & Parham P.C. (Zona Law Group)