leasehold http://www.artwoo.com Returned search results for leasehold Copyright 2008 Tue, 02 Dec 2008 17:01:02 +0000 http://www.artwoo.com/rss/leasehold London Conveyancing and the Long Term Lease Extension! http://www.artwoo.com/article/london-conveyancing-and-the-long-term-lease-extension http://www.artwoo.com/article/london-conveyancing-and-the-long-term-lease-extension#comments Tue, 16 Sep 2008 04:43:27 +0000 leasehold reform actlong term leasesprofessional legal adviceperpetual renewallease extensiontrust notefreeholder http://www.artwoo.com/article/london-conveyancing-and-the-long-term-lease-extension Leasehold Reform Act 1993 gives certain tenants the right to extend their in London and other parts of England. But what should you know about s?

Firstly you need to know:

Who can extend?

You can apply to extend your lease only if you are what is known as a "Qualifying Tenant" under the 1993 Act. You are a Qualifying Tenant if:

1.) You are the tenant of a residential flat.

2.) You are not a business tenant.

3.) The original term of your lease was longer than 21 years (or contains an explicit right for ); and

4.) You have been the owner of the lease for at least two years.

You have the right to claim a lease extension from your landlord if:

1.) Your immediate landlord is the of the property (if your immediate landlord is a leaseholder, the question of an extension will depend on the length of the term your landlord has left on his lease); and

2.) Your landlord is not a charitable housing trust.

(NOTE: There are other leases which may qualify for renewal. If you are unclear please seek .)

After meeting the qualification guidlines the next big question is:

What will it cost?

You will need to pay a premium for the lease extension. The price is the cumulative total of the following:

1.) The diminution of the value of the landlord's interest in the flat.

2.) 50% of the marriage value of the existing lease term and the additional 90 year lease; and

3.) The compensation for loss in clause of other property owned by the landlord.

The date on which the tenant applies for a lease extension will be the date of valuation.

In addition to paying you own legal fees you will also be required to pay the landlord's legal fees and the costs of the valuation.

Some other very popular questions that have been asked on lease hold are:

What happens if I want to buy a leasehold flat and I want to extend the lease?

As you need to have owned the lease for at least two years you will not be able to extend the lease after you have acquired it. Therefore, it is common practice for the seller of the leasehold to make an application to extend the lease and then assign the benefit of the application to you as purchaser.

What lease will I be granted?

You have the right to be granted a lease of 90 years (plus the present unexpired term) from the expiry date of your current lease. The rent will be a peppercorn (i.e. rent free). The lease will be broadly on the same terms as your existing lease but may be subject to amendment (depending on any modifications, exclusions and/or additions to the demised premises).

It is worth noting that the landlord will retain a redevelopment right at the end of the existing term of the lease. The landlord will have to pay the full value of the remaining 90 year lease to you and the termination is subject to a court application by the landlord.

What is the procedure?

As a Qualifying Tenant your solicitors will serve a preliminary notice to obtain information from your landlord. Your solicitors will then serve the notice of claim which will state:

1.) Details of the property.
2.) Details of the lease (showing that you are a Qualifying Tenant);
3.) Details of the premium offered; and
4.) A date for the landlord's counter-notice.

The landlord should then respond and will probably require payment of a deposit equal to 10% of the premium offered.

The landlord will value the premises and serve a counter-notice which will state whether they object to the claim.

If the parties cannot come to an agreement they can apply for the Leasehold Valuation Tribunal to determine the claim.

This article is free to republish provided the authors resource box below remains intact.Robert Johnson is part of Healys who specialise as a London Coveyancing Solicitor and who also aids the Brighton Conveyancing Solicitor office.]]> A Glossary of Terms for the Estate Agent http://www.artwoo.com/article/a-glossary-of-terms-for-the-estate-agent http://www.artwoo.com/article/a-glossary-of-terms-for-the-estate-agent#comments Mon, 27 Oct 2008 07:57:22 +0000 mortgage indemnityproperty exchangesecurity feebridging loanadditional securitysolicitorshome buyer http://www.artwoo.com/article/a-glossary-of-terms-for-the-estate-agent
The majority of homeowners are often befuddled when it comes to buying or selling property. This is because it is often a difficult process that requires a level of knowledge to fully understand it. Not only is the process difficult however but understanding exactly what the estate agent is saying is also not easy. This is because the terminology bandied around in estate agent circles is often a language of its own; hopefully the following article will go some of the way to decoding exactly what your estate agent is talking about.

In mortgages the term 'additional ' is often used. This usually refers to the sum that is paid in order to protect the lender. In some circles it is also called a ' premium'.

The term '' is also extensively used in property circles. It refers to the funding that can be given to a before the money from the sale of their house has come through. For many homeowners these are an essential part of funding a new property.

Almost certainly your estate agent will refer to the 'chain', this is not a piece of linked metal outside but instead refers to situation where one buyer needs to sell their house before buying another, often these chains can be rather long extending over a number of different parties. It is labelled as a chain because if one of the links fails often the whole chain will fail.

It is more than likely that your estate agent will mention 'Conveyancing charges', these are the payment for any legal fees that are involved with the property process, normally they are payable to . In addition the term 'contacts race' may be used to describe the situation where more than one party is competing for a particular property.

'Exchange of contracts' is another large part of estate agent terminology. Normally agents pursue this situation as this is the point where a seller has accepted the offer of a buyer and is willing to put the terms of sale in writing.

Two terms that often confuse homeowners are 'freehold' and 'leasehold'. Your estate agent should be able to explain however that the difference between the two is relatively simple. A freehold is property where the buyer purchases both the property and the land it sits upon, in contrast a leasehold property is only the bricks and mortar, and not the plot it rests upon.

'Gazumping' or 'gazundering' are both terms used by the estate agent. Both are negative and refer to the tactics of some buyers and sellers. The first refers to the tactic of sellers accepting higher offers after a verbal agreement has been reached with a buyer. The latter refers to buyers attempting to change the price just before the contracts are exchanged.

The 'structural survey' is something that should always be carried out before buying a property. Normally it will be performed by a chartered surveyor and attempts to find the any structural problems that could arise during ownership of the property, an example would be subsidence.

The 'title' and 'title deeds' are vitally important in the property process. It is only after these deeds have been obtained that legal ownership is guaranteed.

It is hoped that this article has been helpful in providing vital information on the terminology used by estate agents. Moving house is a stressful experience; hopefully with a glossary of terms it will be possible to make the process a little bit simpler and easier.Property Expert, Donald Donaldson, takes a look a glossary of terms for estate agents.]]> UAE Property Guide, Part 7 Of 8 - Sharjah Property http://www.artwoo.com/article/uae-property-guide-part-7-of-8-sharjah-property http://www.artwoo.com/article/uae-property-guide-part-7-of-8-sharjah-property#comments Mon, 18 Feb 2008 02:25:02 +0000 gulf cooperation councilunited arab emiratesdecency lawswest coastsmanmade islandsgulf of omanlease system http://www.artwoo.com/article/uae-property-guide-part-7-of-8-sharjah-property United Arab Emirates (the UAE), and the only emirate to have coastline on both the east and of the UAE thanks to its enclaves which border the . The majority of the emirates of the United Arab Emirates are all surprisingly small with Sharjah having an area of just 2600 square kilometres, comprising 16 kilometres of shoreline along the Persian Gulf and extending 80 kilometres into the interior of the country. The emirate of Dubai and the emirate of Ajman both border Sharjah, and with the recent growth of these three emirates the urban areas have expanded to all but meet at the borders.

Sharjah maintains strict under which unmarried men and women are not allowed to mix, and enforces a conservative dress code for men and women. Sharjah is also the only emirate in the UAE in which the possession, consumption or sale of alcohol is banned.

Some emirates of the UAE have only recently started to allow foreign freehold ownership of property, before 2002 the only option available to foreign nationals was 99-year leasehold agreements. Sharjah has not passed any laws regarding freehold ownership by foreigners and the 99 year is still the only option available to non UAE or GCC () citizens who wish to purchase property in Sharjah.

Sharjah has commenced development of the Nujoom Islands which is to be the biggest tourism, residential and commercial project in Sharjah. The Nujoom Islands project will consist of 10 , and three areas of mainland; the development will increase the coastline of Sharjah by 30 kilometres. The development is situated near the town of Hamriya 15 kilometres from Sharjah city. Sharjah also being the name of the major city in the emirate of Sharjah.

The project will be aesthetically pleasing with a ratio of 40% development and 60% landscaped roads, gardens, parks, and beaches. The ten islands will be connected to both the mainland and each other by a series of bridges, and will be separated by a series of water channels. The Nujoom Islands project will house over 40,000 residents and will provide many services and amenities such as schools, banks, mosques, restaurants and clubs. The development will also have several centres spread throughout, including a large commercial centre and nine smaller commercial centres, six centres for light industry and two entertainment centres.

Residential and tourist accommodation for the project will consist of four hotels, two resorts, 145 apartment buildings, 40 high rise towers (for commercial and residential uses) and 1,400 villas set in either park side or waterside locations. The Completion date for the Nujoom Islands is 2010.

Developers have also built and are constructing several towers in Sharjah City including the ABBCO tower, Sharjah Gate, and two towers being developed by Tiger Real Estate, the Al Sandos tower and the Al Taawun Tower. The Tiger Real Estate Towers are being sold on a 99 year leasehold basis with an option to transfer to freehold ownership when, or if, the law permits. Sandcastles Property offers for sale a wide range of property for sale in Sharjah [ http://www.sandcastles-property.com/property/sale/sharjah.html ] and a large range property to buy in Dubai. ]]> 2008 Home Information Pack Review One Year After Implementation in the UK http://www.artwoo.com/article/2008-home-information-pack-review-one-year-after-implementation-in-the-uk http://www.artwoo.com/article/2008-home-information-pack-review-one-year-after-implementation-in-the-uk#comments Sat, 22 Nov 2008 21:50:23 +0000 royal institution of chartered surveyorscaroline flint mpinstitution of chartered surveyorsperformance certificateday marketingepcsenergy performance http://www.artwoo.com/article/2008-home-information-pack-review-one-year-after-implementation-in-the-uk Performance Certificate for houses with 4 or more bedrooms was launched on the 1st August 2007. The principle was to ensure that buyers will know how energy efficient a house is before they buy it, and also so that some of the legal work in regards to that can be dealt with in advance, saving time and money for those concerned.

Now that time has passed since the introduction of Home Information Packs and Certificates, we can trace the impact the scheme has had on the UK. All houses of a particular size that are put on the market are now subject to the rules and must have the necessary Home Information Pack (known as HIPs) and Energy Performance Certificate (known as ).

There was much concern and debate over the introduction of HIPs at the time. They had a somewhat shaky start when the Government was taken to court by the over the plans which delayed the 1st June launch and led to a negotiated compromise with RICS and the initial 4 bedroom house implementation.

Home Information Packs affect all those in the UK who hold an interest in conveyance and areas connected with conveyancing. It will not be until the end of 2008 when HIPs become mandatory for all homeowners, however, on the 8th May 2008, the Housing Minister, , announced the extension of what were intended to be temporary provisions for First and leasehold requirements in the HIP Regulations from 1 June to 31 December 2008. This allows a property to be marketed where the HIP has been commissioned and paid for, or arrangement for payment been made, and the documents are expected to arrive within 28 days.

Yet people are still uncertain as to the exact makeup of a Home Information Pack. Within a HIP, you can expect to find a number of compulsory legal documents and searches. These include a Home Information Pack Index, an Energy Performance Certificate (which gives a "fridge type" efficiency rating for the property and makes suggestions for improvements), a Sale Statement, a list of Standard Searches, Evidence of Title, and, where appropriate, additional information for leasehold and common hold sales.

Of these documents, it is important to note that there can be variations from HIP to HIP depending upon the provider. For the list of Standard Searches, a better provider will incorporate the best kind of detailed Full Official Local Authority Search. Some HIP providers use other kinds of searches provided by personal search companies. However, this can occasionally cause problems with buyers or their lenders who will not always accept personal search results. Consequently, this can cause difficulties to get in the way of a successful sale, which is, of course, the last thing a homeowner wants. This one simple area of Home Improvement Packs shows just how vital it is to get good advice on HIPs.

This article is free to republish provided the authors resource box below remains intact.Ian Robinson is the managing partner of Hampshire Law Firm Churchers -- with 5 offices throughout the Portsmouth Harbour region including Cosham Solicitor, Fareham Solicitor, Gosport Solicitor and Lee-on-the-Solent.]]> UAE Property Guide, Part 8 Of 8 - Umm Al-Quwain Property http://www.artwoo.com/article/uae-property-guide-part-8-of-8-umm-al-quwain-property http://www.artwoo.com/article/uae-property-guide-part-8-of-8-umm-al-quwain-property#comments Tue, 19 Feb 2008 05:35:01 +0000 gulf cooperation councilunited arab emiratesal salam cityaqua parklease contractssurface propertyforms of water http://www.artwoo.com/article/uae-property-guide-part-8-of-8-umm-al-quwain-property United Arab Emirates (the UAE). This emirate has arguably the most attractive natural environment on the entire coast of the UAE, it is located in a wetland setting of islands, inlets and creeks which provide a haven for various forms of wildlife and seabirds. Only a kilometre from Umm al-Quwain city is Seneyah Island, a nature reserve for Al Qaram trees, deer and a large variety of birds including flamingos and large colonies of cormorants which nest in the mangroves around the eastern edge of the island.

The many water activities are a major attraction for tourists to Umm al-Quwain. The city is built around a creek, which is used for all sport. Umm al-Quwain also boasts Dreamland the world's largest .

Umm al-Quwain law number three for 2006 states that non-UAE or GCC () nationals cannot own land but can own property in designated investment areas. It goes on to say that expats are able to benefit from the ownership of under 99-year .

One current development that allows foreigners to invest by way of purchasing 99-year leasehold of the properties is . The development is being built over fifteen years in three phases; it is expected to be fully completed by 2020.

Al Salam City is being built in Um al-Quwain city as a combined residential and commercial project. Phase one of the project will include the construction of the infrastructure for the entire project as well as 1,000 residential villas in the first residential area and the construction of 200 buildings of 5 to 10 floors in the second residential area. This first phase is expected to be completed by 2009 and will include some 15,000 residential units. The entire project when fully completed will house some five hundred thousand residents and is designed to be family friendly, with every apartment and villa cluster having their own access to a private park, nurseries, children's play areas and swimming pools. The Al Salam City development will also contain a 50-storey hotel and a huge shopping mall.

The White Bay development has recently begun construction; this development is a resort style residential community being constructed both on the existing natural shoreline and on 2 manmade islands. The development will consist of 8000 residential units made up of a combination of waterfront and park view villas, terraced condominiums, town houses and mid-rise apartments with no building exceeding 15 stories. The development will feature hotels and a shopping strip along with a harbour and marina. The project will be constructed in ten phases with a final completion date of 2011. The property will available under 99-year leasehold.

Umm al-Quwain Marina is a development project being constructed in the emirate of Umm al-Quwain. This construction will be another property development that will consist of both the use of the natural shoreline and the construction of manmade islands. It will house some 8000 residential units of various types as well as 1200 hotel and resort rooms. Sandcastles Property offers for sale a wide range of property for sale in Umm al-Quwain [ http://www.sandcastles-property.com/property/sale/umm-al-quwain.html ] and a large range property to buy in Dubai. ]]> Financial Terminology: Jargon Buster F-L http://www.artwoo.com/article/financial-terminology-jargon-buster-f-l http://www.artwoo.com/article/financial-terminology-jargon-buster-f-l#comments Wed, 12 Apr 2006 13:00:06 +0000 personal loanscar loansloan providersproperty surveyifashouseholdextra http://www.artwoo.com/article/financial-terminology-jargon-buster-f-l
1. Fraudulent application An application where false information has been used to illegally obtain a loan.

2. Flexible repayment Allows you to vary monthly payments to fit temporary changes in your circumstances. You can pay off some of the loan amount in months where you have excess cash (for example, as a result of a bonus or commission), or you can reduce payments, or even withdraw cash, when you need extra funds. Not common on dedicated .

3. Freehold Outright and full ownership of the property and land.



G

1. Gazumping When before the exchange of contracts a seller accepts a new offer on their house, having already accepted an initial offer.

2. Gross annual income Your Annual Income before any Tax deductions but excluding bonuses.

3. Ground rent An annual charge payable by leaseholders to the freeholder of the land - normally due for flats or apartments.

4. Guaranteed loan A term commonly used in direct marketing campaigns by . Essentially, loan providers conduct a credit score on their existing customer base before targeting these customers in a mailing campaign. The loan company then knows that all applicants targeted qualify before they apply. The customer also has the knowledge they will be approved. The aim is to improve take-up rates from direct mailing campaigns.

5. Guarantor A person who promises they will pay the borrower's debts if the borrower fails to.



H

1. Helpdesk A service provided by an organization to provide support during and after the application process.

2. Homebuyers report A aimed at providing more information than a mortgage valuation but less information than a full structural survey. It will help the borrower to decide whether to purchase and help the lender to decide how much to lend.

3. income The total income of all members of a household. It is used by loan providers in evaluating applications for joint .



I

1. Stands for Independent Financial Advisor. These advisors should be able to offer you the full range of products from all of the financial product providers or from a panel of provider that they believe to be the best. Can be one man bands up to multi-national companies. IFAs should carry out fact finds on you in order to help them recommend the best courses of action for your finances.

2. Interest only mortgage A mortgage where only interest is charged during the mortgage term. The capital will need to be repaid at the end of the term, usually from the proceeds of an investment plan such as an endowment policy.

3. Interest rate The percentage to be paid by you on the capital borrowed. Interest rates vary from loan provider to loan provider. A standard calculation of the total cost to you of borrowing money is presented as Annual Percentage Rate (APR) charge. You can use APR (or typical APR) to compare the cost of various loans.. The APR will include the interest rate charged, and any other charges that are associated with taking the loan.



J

1. Joint credit Credit issued to a couple based on the assets, income and credit history of both people. Both parties are responsible for making repayments according to the terms and conditions of the loan.



L

1. Land Registry Certificate Provides details of the property including a plan and, if the property is leasehold, a copy of the lease.

2. Land Registry fee A fee paid to the Land Registry to register ownership of a property.

3. Leasehold If you buy a lease holding, you own the property for a set number of years, after which the freeholder owns the property. Most flats in England are leasehold. Legislation has recently been brought in to enable leaseholders to club together to buy the freehold.

4. Life assurance An insurance policy that pays a lump sum on death, normally to cover the repayment of a mortgage if the borrower dies during the term.

5. Loan application form A form that must be completed by you to become a personal loan customer.

6. Loan provider A bank or other financial institution that offers personal loans.

7. Local authority search Questions to the local authority regarding plans for new road building, planning permission for any building work previously carried out, connection to the mains sewer, etc.

8. Lock-in period This is the number of years that you have agreed to stay with the lender. Depending on the deal, it could be as low as six months up to the whole of the term. Should you attempt too pay off the mortgage or remortgage during the lock-in period, you may be liable to pay redemption penalties. Always make sure you know how much you are locked in for with your mortgage.

9. Loan to Value (LTV) The size of a mortgage as a percentage of the value of the property (or its purchase price) About The Author: Richard can be found at: http://www.hallamfinance.com - Loans and Mortgages for People Who Are Different ]]> Are You Looking For A Small Business Loan? http://www.artwoo.com/article/are-you-looking-for-a-small-business-loan http://www.artwoo.com/article/are-you-looking-for-a-small-business-loan#comments Mon, 29 Jan 2007 06:27:12 +0000 small business loanspersonal loans securedshort term loansvague definitionsmall business loanpayday loan companylifeblood http://www.artwoo.com/article/are-you-looking-for-a-small-business-loan
Loan market in the UK is swamped with enormous number of loan options. Different loans have been designed keeping in mind the diverse needs and expectations of the UK residents. A payday loan is lent out till the borrower receives his next paycheque.



Business loans are normally offered on Freehold and long Leasehold properties with Bricks and Mortar valuations required. Legal and valuation fees are payable by the client.

There are numerous reasons to use a . For starters, cash advance personal loans are short-term loans, thus you do not incur longstanding finance charges and fees.

Are you looking for a ?

A small business loan is designed for a wide range of UK small, medium and startup business needs including the purchase, refinance and expansion of a business.

Finance is the of a business. Without it you cannot grow.

are generally available from £50,000 to £1,500,000 at highly competitive interest rates from leading small loan lenders. A small business loan can be secured by all types of UK business property, small and residential properties.



Small Business Loans can offer up to 79% LTV (Loan to Valuation) with variable rates, depending on status and length of term.

Talk to your financial lenders about how you can go about qualifying for these types of loans and you will be well on your way to paying down debt and living a debt free, hassle free lifestyle.

Personal loans are loans taken by people for personal reasons. This might sound as a of personal loans.

Secured loan helps borrowers in making the best use of the equity stored in his or her property that helps him in borrowing a larger amount of loan and that too for a longer loan term.

Consolidation loans have loan terms ranging from 10 - 30 years. A good consolidation loan would be that which fits beautifully in your financial situation. Consolidation loans are advantageous to almost anyone because of the ease with which you can customize them to your financial stability and your choice.

Though these processes are time consuming, they are not superfluous. This explains the reason why fast loans carry a higher rate of interest. By diverting from the normal loan processes, the loan providers are creating a degree of risk involved.

Small business loans are normally offered on Freehold and long Leasehold properties with Bricks and Mortar valuations required. Legal and valuation fees are payable by the client. Small business loans are available for Self-Declaration with CCJ's and Mortgage Arrears.

Small Business Loans cover most types of UK property, including:

* Development property, new and redevelopment

* Country properties

* Retail / offices / factories / warehouses

* Investment and owner occupied

* Leisure buildings (Hotels / Pubs)

* Professional practice premises

You may freely reprint this information on your website provided the following caption remains intact. "This information courtesy of http://www.directonlineloans.co.uk Click here to see full range of loans "

A business loan is designed for a wide range of small, medium and startup business needs including the purchase, refinance, expansion of a business, development loans or any type of commercial investment.

Online processing of loans is of special help in making instant loans possible. Online processing of loans does not simply mean using a computer for sorting and arranging data.

Credit card debts can mount up and get out of control quickly, you can reduce them today! Shop for the best interest rates online and ask questions. Ask specific questions for a secured personal loan. The loan service is not confined to a group of people. Lenders in the UK aim to cater to the needs of each and every individual.

Typically the lender is the U.S. Department of Education rather than a bank or financial institution. The federal government provides four types of direct loan financing. Learn ways to reduce your debts today at http://www.reduce-debt.info ]]> The Law Of Condominium Ownership http://www.artwoo.com/article/the-law-of-condominium-ownership http://www.artwoo.com/article/the-law-of-condominium-ownership#comments Wed, 20 Jun 2007 00:29:55 +0000 condominium ownerstenant in commonthis means thattenants in commonhomeowners associationeasementproceeds http://www.artwoo.com/article/the-law-of-condominium-ownership tenant in common" together with the other tenants. Since you have ownership rather than mere leasehold rights, you can sell your unit and build up equity in it.

A tenant in common is a fractional owner of the common property, meaning, for example, that if the property is sold he is entitled to a certain percentage of the . A tenant in common can also generally sell his interest in the property without the permission of the other (some restrictions may apply). Finally, a tenancy in common is undivided - all tenants in common have an equal right to possess the entire property. if I am a tenant in common with a 1% fractional interest in the lobby, I cannot tape off an area equal to 1% of the total area of the lobby and claim it as my exclusive property, and neither can anyone else. But if the building is sold, I am entitled to 1% of the net proceeds of the sale of the lobby.

What do you own outright when you buy a condominium? Usually, all you own outright is whatever is inside the four walls. You do not own the plumbing (except as a tenant in common).

Furthermore, in many condominium arrangements, the common areas are owned not by the unit owners as tenants in common, but by a homeowners' association to which the belong. This association is usually a corporation in which the unit owners are shareholder (giving the homeowners' association an independent legal identity), and the unit areas lease the right to use the common areas.

If the condominium has a parking area, condominium owners might have what is known as an , which is a type of property right allowing certain uses such as walking and driving through it, and parking your car there. In an easement, someone else owns the property and you just have the right to use it.

DISCLAIMER: The foregoing is intended for reference only and not as legal advice. "Real Estate Law in Plain English" is located at http://realpropertylaw.blogspot.com. See also http://realpropertylaw.blogspot.com/2007/05/how-to-legalize-condominium-pro= ject.html. ]]> Real Property Law: Nuisances http://www.artwoo.com/article/real-property-law-nuisances http://www.artwoo.com/article/real-property-law-nuisances#comments Sun, 03 Jun 2007 00:19:58 +0000 nuisanceabraham lincolnnoise pollutionlegal advicecyabillable hourneighbor http://www.artwoo.com/article/real-property-law-nuisances CYA Disclaimer: The following is intended for reference purposes only and not as .

"He's such a , constantly drumming his fingers on the table like that!"

Just what is a "nuisance", anyway? Well, it has one meaning in common parlance and another more specific meaning in law, although the meanings are somewhat similar. A nuisance is legally defined as "an unreasonable interference with the use and enjoyment of property". By the way, lawyers just LOVE that deliciously ambiguous word "reasonable", because they can bill hour after arguing endlessly over what is "reasonable" under a given set of circumstances. In fact, you could probably boil all of law down to that one word =96 if it's "reasonable" then you can do it, but if it's not, then you can't.

Unlike trespass law, nuisance is only actionable if you can show that the offending condition caused you actual harm. Note that "harm" is a quite flexible concept and commonly includes things like (the loud rock 'n roll blaring out of the apartment next door at all hours, for example). Smoke from a nearby factory can be a nuisance. So can foul odors, stadium lights left on at night, heat, dust, and many other things. On the other hand, some things are not nuisances. The fact that your 's house is an eyesore will not support a nuisance claim, because for some reason ugliness is not considered a nuisance (it might violate the rules of the neighborhood association though, if you live in one of those snooty upper-class developments). It has been recorded that was once told by his neighbor that he was the ugliest man she had ever seen. When Lincoln noted that he couldn't help it, the woman replied, "Yes, but you might stay indoors!" She wouldn't have won a nuisance action against him.

What can you get if you win a lawsuit for nuisance? You can get damages or an injunction. Damages means money, and if the nuisance is continuing (if it will continue even after you win the case, as in the case of factory smoke, for example), you could end up with a fair chunk of change representing the reduction in the value of your property (or leasehold, if you are a renter). You might also get an injunction, subjecting the defendant to liability for contempt of court if he continues the offending activity. "Real Estate Law in Plain English" is located at http://realpropertylaw.blogspot.com. See also http://realpropertylaw.blogspot.com/2007/05/rules-for-protection-of-mortgag= ers-or.html. ]]> Buy To Let - The Pitfalls http://www.artwoo.com/article/buy-to-let-the-pitfalls http://www.artwoo.com/article/buy-to-let-the-pitfalls#comments Mon, 26 Jun 2006 21:32:06 +0000 arlahome improvementsrent checkground renttax deductionsletting agentrunning costs http://www.artwoo.com/article/buy-to-let-the-pitfalls
Tenants

While you may be lucky and find the perfect tenant by chance, it's a good idea to interview potential tenants first. You can ask for references from previous landlords or employers to reassure yourself that they are trustworthy and solvent. While students provide a large part of the tenant market, bear in mind that young people are not always as responsible as they should be!

The property

When looking for a property to buy, try to focus on suitable areas where you are likely to find a ready supply of tenants -- close to a university, for example, or in a city centre near businesses are safe bets for students and young professionals looking to rent. Check out local transport links and shopping facilities too. You should also consider the resale aspects of the property -- you may not want to keep it forever, and a large part of your investment is the equity of the property. This is called capital growth -- sometimes it may be worth buying in a more downmarket location where the rent will be lower, if you consider that property prices are likely to rise. If, however, you want to maximise your income, the more expensive areas of town might bring you higher rent. Leasehold properties are subject to .

Agents

A will charge around 10% of the monthly rent to take care of finding tenants, and if you want a full management service to minimise the work you do, expect to pay around 15%. It's advisable to choose an agent that is a member of the -- check www.arla.co.uk for details.

Tax

You can make for the maintenance of your property, including general '' like insurance, cleaning, and agents fees. are not tax deductible, nor are initial costs of furniture and fittings. However, you can claim a wear and tear allowance of 10% of the rent you receive.

Mortgage

Often a buy to let mortgage is assessed on the anticipated rental income from the property -- the rent potential. Expect to pay slightly higher interest rates, and provide a larger deposit on the property. Lenders usually require 20% to 25% of the value of the property. Joe Kenny writes for the loan comparison sites http://www.selectloans.co.uk and also http://www.ukpersonalloanstore.co.uk ]]> The Quitclaim Deed - You Can Sell A House That You Don't Own! http://www.artwoo.com/article/the-quitclaim-deed-you-can-sell-a-house-that-you-dont-own http://www.artwoo.com/article/the-quitclaim-deed-you-can-sell-a-house-that-you-dont-own#comments Sun, 06 Aug 2006 02:27:07 +0000 quitclaim deedquitclaim deedsreal estate transactionsreal estate agentssalewarranty deedleasehold http://www.artwoo.com/article/the-quitclaim-deed-you-can-sell-a-house-that-you-dont-own sale, you have to present a document, called a , which states that you are the legal owner of the property and that the title you have on hand is the original copy. But what if you don't have the title of the property yet you have the legal rights to it? What document can you then, present to prospective buyers? For situations such as these, the appropriate form to use is the called the form.

A Quitclaim Deed is a document which states that, although you may not own the property in question, nor have its title in your possession, you do have the legal right to use it and are authorized to dispose of it (through sales). are used you acquired the property in question through other means such as receiving it as an inheritance or when you became a co-owner by virtue of marriage. Quitclaim deeds are also for properties owned by the state but you are authorized to use through .

Quitclaim deeds are fairly straightforward. A quitclaim deed should include the names of both the buyer and the seller, the amount the buyer and seller agreed the property is worth, the location of the property, and of course, a notation wherein the seller waives or releases all his rights, interests and claims on the property. In addition to these, for a quitclaim deed to be considered legal, it should bear the signatures of the parties involved, those of the witnesses and, must also carry a notarial seal and signature.

In the past, home sellers had to request lawyers or to prepare quitclaim deeds for properties they want to put up on sale, but this has all changed now. In recent years, several real-estate related sites have been established and these sites assist those involved in by providing not only great tips on selling or buying a property; but also the necessary documents that will be needed to formalize any real estate arrangement.

Most real estate websites carry all sorts of real estate related documents and these can easily be purchased and downloaded by web users. The format and content of these forms have been well researched to ensure that these will be recognized by local, state and federal agencies. In each site, there is a listing of standard / generic forms but there are also forms that follow the requirements and content of specific states.

If you need real estate documents, real estate websites usually give you the option to either download forms by bulk or set, or you can purchase forms on a per piece basis, buying and downloading as the need arises. In addition, these downloadable forms, although these conform to a certain format, can easily be modified to suit your requirements. Should you wish to include more or limit the information on your Quitclaim Deed, for example, you can easily do so. http://www.theinternetone.net ]]> What You Should Know About Home Information Packs (HIPS) http://www.artwoo.com/article/what-you-should-know-about-home-information-packs-hips http://www.artwoo.com/article/what-you-should-know-about-home-information-packs-hips#comments Sun, 20 Jan 2008 17:15:00 +0000 eventual collapseperformance certificateinsurance detailsleasehold propertynew legislationtitle documentinterested buyers http://www.artwoo.com/article/what-you-should-know-about-home-information-packs-hips
What is a HIP?

As the name suggests, a HIP is a collection of documents that's compiled by the property owner (or estate agent) and made available to all . Inclusion of certain documents is required under this while other documents need only be included at the seller's discretion. The types of documents that fall under the "Required" category include:

=95 An index that describes everything included in the HIP =95 A summary of the terms associated with sale of the property =95 Evidence of =95 Results of standard searches =95 Energy =95 Property and a copy of the lease (if a )

The need to produce such documents is nothing new. What's different about these changes to the 2004 Housing Act is the timing. A complete HIP must be ready before a piece of property is put up for sale. If any of the required documents are not included in the HIP, the seller must note this on the index and must prove that a reasonable effort is being made to obtain them.

Previously, buyers didn't usually have access to these important property-related documents until after they made an offer. By this time, most had already invested a considerable amount of time and/or had incurred considerable fees associated with the intended purchase. Finding out there were off-putting problems with the property after an offer had been made created many other problems including transaction delays and worse, of the transaction.

What you see is what you get

Now everything a buyer needs to know about a property is fully disclosed right upfront. For the first time, what buyers see truly is what they will get. At a glance they'll know the results of local searches and home condition reports. They'll know of any deed-related problems and more. And rather than being the responsibility of the prospective buyer, as had been the case in the past, any associated costs are now the responsibility of the seller.

What's especially helpful to prospective property buyers is the required addition of an Energy Performance Certificate. All homes with this certificate are assigned a rating from A through G after being evaluated by an accredited Energy Assessor (EA).

The EA evaluates such things as the presence of installed energy-saving features like double-glazed windows and energy efficient appliances, overall gas and electrical consumption, and the potential impact to the environment as a result of the carbon dioxide emissions the home discharges into the environment. Anyone buying a property that's been assigned a low rating of either F or G is eligible to receive discounted rates if they choose to incorporate any of the suggestions the EA makes. Adam Labno is a UK property investor who has a passion for property and helping home-owners and sellers in providing cost cutting property solutions.Owner of U.K property business' including http://PropertyFlaunt.com, for which this article is marketed for, in bringing full transparency to the UK market. ]]> The Effect Of Hips On Property To Buy http://www.artwoo.com/article/the-effect-of-hips-on-property-to-buy http://www.artwoo.com/article/the-effect-of-hips-on-property-to-buy#comments Sun, 30 Dec 2007 01:20:10 +0000 carbon emissionsgazumpingperformance certificateenergy consumptionlabour partybuilding insurancetitle documents http://www.artwoo.com/article/the-effect-of-hips-on-property-to-buy
They're more commonly known as Hips, and since a few weeks ago, are now mandatory for anyone offering their property to buy in England and Wales.

So what really is a Hip, and how will it affect you?

Well the origins can be traced back just over ten years. A proposal was first made to address the problem of in the 's 1997 manifesto.

Later research showed that a staggering 28 per cent of sales fell apart before contracts were exchanged, but gazumping actually happened in less then 2% of sales.

The research identified a need to make house sales faster, more transparent and easier for people to understand. Making it easier and safer to find a property to buy would theoretically bring even more confidence to the market, keeping property prices stable.

Hips were finally announced in the Queen's speech in November 2003.

The original plan was that every house for sale would need one by the 1st June this year. But just ten days before, the government announced they would actually start in August =96 and that would be for houses with four or more bedrooms.

This was extended to cover three bedroomed properties in September, and then all houses in December.

Every pack must contain a set of documents that are no more than three months old when the property is first marketed.

They include a sale statement, the for the property, and an energy . This will help people considering buying your home assess its , and see what measures they could take to cut their fuel bills and . You must also get local authority and drainage searches done.

If the property is leasehold, your Hip must also include a copy of the lease, a policy and contact details for the landlord or managers of the land.

So how did the introduction of Hips this year actually affect the availability of property to buy?

Robert Moore is the surveying partner of Anker and Partners estate agents in Banbury, Oxfordshire.

He saw a definite trend of people rushing to get properties on the market before Hips came in.

And he believes it has stopped some people putting their house up for sale.

He said: "Hips have deterred people who weren't really serious about selling their home, because it now costs them money to speculatively put their house on the market. But that's not a bad thing."

It was hard for Robert to see if Hips affected the amount of property to buy on the market, because of other factors affecting the world of property this year.

He said: "The supposed downturn in the market and the problems with Northern Rock happened at roughly the same time as Hips came in, so it's very hard to make a true assessment.

"We are still seeing some people who have a generally low awareness of Hips. For people who don't keep up-to-date with the property market, they are not aware of the new hoops you need to jump through until they find property to buy and want to put their house on the market."

However Robert did note there was still a temporary work around with Hips, which allowed people to put their house on the market even if they haven't got a pack completed. As long as the pack has been commissioned, it is legal to offer your property to buy.

This condition is unlikely to last long into 2008. For more information about the effect of Hips on property to buy please visit http://www.propertytoday.co.uk ]]> What Will Happen To Property Prices In 2008? http://www.artwoo.com/article/what-will-happen-to-property-prices-in-2008 http://www.artwoo.com/article/what-will-happen-to-property-prices-in-2008#comments Sun, 30 Dec 2007 17:35:00 +0000 performance certificatetitle documentsmortgage paymentsenergy performancehouse saleslocal authorityhips http://www.artwoo.com/article/what-will-happen-to-property-prices-in-2008
2007 has been an interesting year with several significant developments that have affected the market in various ways.

The biggest was the introduction of Home Information Packs, more commonly known as .

Research ten years ago revealed that more than a quarter of all fell apart before the exchange of contracts, leaving an obvious gap for something to better regulate the market.

That was the foundation of Hips, and they were formally announced in the Queen's speech in November 2003.

You have to get a pack put together when selling your house in England or Wales. It must contain a number of documents that have to be no more than three months old.

They include an energy , statement of sale, for the property and searches. There are other requirements if the property is leasehold.

So how have Hips affected property prices? After all the planning, they actually arrived at the beginning of August for houses with four bedrooms or more. Then on the 10th September they were extended to three bedroomed homes, and finally rolled out to the remaining one and two bedroomed properties on 14th December.

The effect they had was to add expense to the process of putting your property on the market. And some believe that reduced the supply of houses to the market a little, as speculative sellers were less likely to instruct an estate agent.

Another key factor that affected property prices in 2007 was interest rates. Since August 2006, rates had risen five times. And that pushed up typical .

The effect many people believe that had on the market was that sellers were more likely to stay put than move. Even if they could get a good property price in a sale, if they were struggling to meet mortgage payments, there would be little incentive to move (other than downsizing).

Interest rates went down in December which is good news for buyers and sellers. As inflation holds steady at just over 2 per cent, it's possible there will be more cuts to come in the New Year.

The final issue was a slowdown in price growth throughout the year, after nearly ten years of what has looked like continuous growth. Reports vary, but some banks and building societies have acknowledged a slight fall in prices in the last month or so.

So those were the key issues of 2007. But what trends will we see with property prices in 2008?

On one hand you can look at the economics of the market and see that house price growth is pretty certain. There is an accepted shortage of housing, and this won't get better if speculative sellers don't list their homes.

Market rules say where there is demand and a shortage of supply, property prices will rise.

On the other hand, we may just be in for a period of price correction after a decade of growth. The market will grow, but only in line with inflation, meaning there is no real growth.

What's for certain is that the future of property prices for the year is going to be in the hands of the Bank of England. Further drops in interest rates are likely to have a positive effect on house sales, which in turn will give prices a boost.

If the economy cools off as predicted in 2008, your house price may be in for a year of growth after all. To find out more about property prices to help you with your property search please visit http://www.propertytoday.co.uk/Frontpage.aspx ]]> Choosing Whether To Sell Your Home Privately http://www.artwoo.com/article/choosing-whether-to-sell-your-home-privately http://www.artwoo.com/article/choosing-whether-to-sell-your-home-privately#comments Fri, 09 Nov 2007 20:20:02 +0000 selling your homeleasehold propertyprivatelydaunting taskselling pricegenerous discountfinancial suicide http://www.artwoo.com/article/choosing-whether-to-sell-your-home-privately daunting task of you will need to make a decision on whether to sell it on the open market through an estate agent or sell it .

Selling your home privately usually entails offering buyers a from the price that an estate agent could achieve on the open market. Because of this it may appear as though selling your home privately does not make financial sense.

However, a closer look at the situation may reveal that selling your home in a short space of time for a reasonable discount makes perfect sense.



Selling Your Home at a Discount

These days there are hundreds of companies and individuals who offer to buy property from people who are looking for a quick sale. Most of these businesses make offers in the region of 75-90% of the market value of the properties. In return they offer to buy the property quickly and in some cases they pay for costs such as legal fees.

At first glance this may seem like . However, if you calculate how much money it can cost to sell your home on the open market the discounted price may not seem so low after all.



Selling Your Home through an Estate Agent

First of all there is the estate agent's fee. This fee is payable upon selling the property and is usually around 2% of the final in the UK. This can account for a significant chunk of the final selling price and raises the question of whether the value of the fee should have been discounted from the market price initially in order to trigger a fast sale on the private market.

In addition to the estate agent's fee you will be liable to pay for legal costs. These costs are charged for work relating to transferring the title of the property as well as carrying out searches and are usually higher for than freehold. This is because the solicitor will be required to do more work when transferring ownership of the lease.

If there is a mortgage secured on the home you are selling then you will be liable to keep up with the repayments while the property is still in your possession. If you have vacated the property and do not have a tenant paying you rent, you may find yourself paying funding the mortgage payments on the property you have for sale as well as paying rent or making mortgage payments for the home you have moved in to.

Finally, you will be required to continue to pay for council rates and utility bills while your home is on the market. If the property is vacant you may be able to secure a discount on the council rates.



Weighing up the Options

Instead of attempting to sell your home on the open market in order to achieve the highest price possible you may be better off accepting a discounted price upfront. If you sell your home quickly at a discounted price you will not be liable to pay for all of the costs detailed above.

Additionally, if you accept an offer from a business that specializes in buying property quickly, they may also pay for your legal and survey fees. Of course, if they relieve you of your home quickly, you will also not be liable to make further mortgage payments and will not have to continue paying for council rates and utilities while your home languished on the open market.

All of these additional costs combined can account for a few extra percentage points off the open market price of your home. When added to the estate agent's fee the outgoings you are likely to pay by selling your home on the open market could total between 5-10% of the open market value.

Finally, your home may not achieve the advertised price originally set by the estate agent. It is likely that you will have to provide a discount of around 5-10% in order to secure a sale.

From this, it is clear to see that the discounted prices quoted by companies offering to help you sell your home quickly may make financial sense after all. Michael Sterios is a writer for http://www.webuypropertyfast.co.uk ]]> What Exactly Are Home Information Packs? http://www.artwoo.com/article/what-exactly-are-home-information-packs http://www.artwoo.com/article/what-exactly-are-home-information-packs#comments Thu, 23 Oct 2008 01:50:24 +0000 charge receiptsperformance certificatemiss understandingdocument resultsholiday accommodationinitial ideaenergy performance http://www.artwoo.com/article/what-exactly-are-home-information-packs
Introduction to Home Information Packs

In 2004 the home information pack (HIP) was introduced in England and Wales as a mandatory document that is needed to be produced before a property can legally be bought or sold. It was introduced to stabilise the sale process and includes documents such as the energy , sustainability document (for new houses only), sale statement (which includes the address being sold, the capacity of the seller etc) and proof of property ownership. If the property is leasehold or commonhold it will also require documents such as a copy of the lease, landlord contact details and recent service . The average cost of the HIP's documentation has been estimated at around £300 to £600 for the majority of houses within England and Wales, but this isn't all a new additional cost as the majority of these expenses were present in past systems. At the moment the failure to produce a complete HIP in a fine of £200. The seller is always responsible for the cost of the HIP; it must always be in place when the property is available on the market and be with the group associated with advertising the property. A home information pack can be commissioned from a variety of sources, including estate agents, solicitors, specialist hip providers or you can just compile it yourself, but make sure it includes all of the necessary documentation. The HIP's document is always free to receive and you should receive it within 14 days of the request. There are only a few circumstances in which a HIP is not required, for instance non-residential properties or the sale of .

Some of the major parts of a home information pack include,

Home Condition Report

The was that a home condition report would be included in any HIP document; this document would detail the condition of the property, avoiding miss-understanding with any problems with the property totally visible to the buyer. These reports are to be carried out by certified home inspectors to enable all property reviews to be standardised with similar quality levels, this isn't mandatory at this moment but may become so in the future.

Certificate

This document is designed to provide the house purchaser with the ability to assess the properties energy consumption, these as with the home condition report need to be undertaken by an official third party, and in this case a qualified Domestic Energy Assessor (DEA). This process is in place to improve the energy performance of homes within the buying and selling process, this has the benefit of improving the energy consumption of houses and saving on energy bills for the buyers. This is a required part of the HIP's documentation.

It is always a good idea to check the official government sites to view the current laws regarding HIP's, and always get in contact with the estate agents to receive their help in putting together your HIP document and what is legally required. You could alternatively use a third party group to assemble the pack, for example use a specialist HIP's provider or use an estate agent to compile the document.The author is a contributing writer for reallymoving.com. reallymoving.com are one of the leading providers of the Home Information Pack and home information pack costs online.]]> UAE Property Guide, Part 4 Of 8 - Dubai Property http://www.artwoo.com/article/uae-property-guide-part-4-of-8-dubai-property http://www.artwoo.com/article/uae-property-guide-part-4-of-8-dubai-property#comments Thu, 07 Feb 2008 12:35:00 +0000 sheikh mohammed bin rashidgulf cooperation councilunited arab emiratesmohammed bin rashidtop tourist destinationsemirate dubaiman made islands http://www.artwoo.com/article/uae-property-guide-part-4-of-8-dubai-property United Arab Emirates. It is situated on the coast of the Persian Gulf and is bordered by the emirates of Abu Dhabi to the south and Sharjah to the northeast; Dubai also shares a border with Oman in the southeast.

Dubai is the second largest of the emirates in size, and has the largest population of any of the emirates in the UAE, approximately 1.5 million. This population is largely metropolitan in Dubai (sometimes called Dubai City to distinguish it from the emirate), which is the largest city in the UAE.

Dubai was the first of the emirates to allow freehold ownership of property to non - UAE (United Arab Emirates) or GCC () citizens. Prior to a decree issued by crown prince General Al Maktoom (the ruler and prime minister of Dubai and the Vice President of the UAE) in 2002 foreigners were only able to rent or take 99-year leasehold over property. The properties available for foreign ownership are in areas of Dubai that have been designated by the government for this purpose.

The decision by the government of Dubai to diversify the economy and focus on service and tourism industries in addition to the traditional oil based economy has seen many exciting and unique property developments announced, constructed and in various states of construction throughout the city and the emirate. Dubai city is currently one of the world's fastest growing cities; and is rapidly becoming one of the in the world.

The Palm Island developments and The World are two totally unique concepts in property development that have excited the imaginations of people all over the globe. These two separate developments - both the ideas of Sheikh Mohammed bin Rashid Al Maktoom to increase tourism to Dubai, involve the construction of off the coast of Dubai in the Persian Gulf. The three islands of the Palm Island Development alone will add 520 kilometres of beaches to Dubai City.

The palm Island developments consist of three islands The Palm, Jumeirah, The Palm, Jebel Ali and The Palm, Deira. The three islands are actually man made peninsulas, shaped like palm trees with trunks and fronds surrounded by crescent shaped breakwater islands. The developments will house between them exclusive water front villas and apartments, restaurants, shopping malls, health spas, sporting facilities, water theme parks, marinas and over one hundred luxury hotels. Property owners began taking residence on Palm Jumeirah in 2006; the completion of the entire three-island development is expected by 2015.

The World development is a 300-island man made archipelago off the coast of Dubai in which the islands form the shapes of the worlds' continents and from the air the entire development looks like a map of the world. Once the land reclamation to form the islands is completed (the expected completion date is 2008) the owners of the various islands will be free to commence construction of their developments or properties on their own private islands. Sandcastles Property offers for sale a wide range of property in Dubai [ http://www.sandcastles-property.com/property/sale/dubai.html ] from villas to hotel rooms. Dubai Property is becoming one of the worlds premier property investment opportunities. ]]> Land Use Rights For Foreign Investors In China http://www.artwoo.com/article/land-use-rights-for-foreign-investors-in-china http://www.artwoo.com/article/land-use-rights-for-foreign-investors-in-china#comments Thu, 30 Nov 2006 18:27:18 +0000 indefinite periodeminent domainexpropriationchinacommon lawmortgage leasegrant land http://www.artwoo.com/article/land-use-rights-for-foreign-investors-in-china
In , neither domestic companies nor Foreign Invested Enterprises may own land outright; instead they own Land Use Rights. There are two kinds of Land Use Rights -- Allocated and Granted. In comparison with Western concepts, Allocated Land Use Rights are in some way similar to leaseholds, and Granted Land Use Rights are in some ways similar to life estates.

Allocated Land Use Rights are generally provided by the government for an (usually to state-owned entities) and cannot be pledged, mortgaged, leased, or transferred by the user. Furthermore, Allocated land can be reclaimed by the government at any time.

Granted Land Use Rights are provided by the government in exchange for a grant fee, and carry the rights to pledge, mortgage, lease, and transfer within the term of the grant. Land is granted for a fixed term -- generally 70 years for residential use, 50 years for industrial use, and 40 years for commercial and other use. The term is renewable in theory (although no foreign investor has been in China long enough to find out how this works in practice). Unlike the usual case in Western nations, Granted land must be used for the specific purpose for which it was granted.

Allocated Land Use Rights may be converted into Granted Land Use Rights upon the payment of a grant fee to the government. Even Granted Land Use Rights are subject to by the government under unusual circumstances (in exchange for fair compensation similar to the power in the US). This state of affairs tends to work in favor of the foreign investor -- land granted to Foreign Invested Enterprises is seldom expropriated, but agricultural land is often expropriated in order to make room for foreign invested projects.

How the Law Applies to Foreign Invested Enterprises

Most foreign invested Joint Ventures obtain Land Use Rights from the Chinese party. A common problem is that the Chinese party holds only Allocated Land Use Rights for the land it occupies (be looking for this if the Chinese party is a state-owned entity). In this case, the authority to transfer the Land Use Rights is vested in the local Land Administration Bureau, and the Chinese party will not have the right to transfer it to the Joint Venture.

Nevertheless, if the Joint Venture can purchase long-term Granted Land Use Rights from the Land Administration Bureau through a land use grant contract, the Joint Venture will then be able to mortgage the land or transfer it to a third party. Keep in mind, however, that vacant land must be 25% developed before Granted Land Use Rights can be acquired. Do not attempt to acquire Granted Land Use Rights if you do not intend to develop it within a short time, because even if the land qualifies as 25% developed and thus eligible for a grant, it can still be classified as "vacant", and vacant land can be reclaimed if development is not begun within 2 years of transfer.

A second option would be for one of the investors to obtain Granted Land Use Rights and then lease the land to the Joint Venture. However, vacant land cannot be leased to a third party (such as a Joint Venture or other Foreign Invested Enterprise) by the grantee. It is also worth noting that a lease needs to be registered in order to protect the leasehold against potential competing claims.

Thirdly, if you are willing to settle for Allocated Land Use Rights, the Foreign Invested Enterprise could simply have the land allocated to it by the local Land Administration Bureau.

In the case of a Joint Venture, a fourth option would be to have the Chinese party contribute its Allocated Land Use Rights to the Joint Venture as part of its capital contribution, in which case the Chinese party would be liable for annual land use fees.

Another common problem is that the land and the building(s) on it are owned by different parties, creating a potentially messy legal situation if all parties are not willing to cooperate.

Most importantly, it would be a good idea to require the Chinese party to prove the status of its Land Use Rights with documentary evidence before applying for project approval. Further, pre-transfer due diligence should include a thorough environmental impact self-assessment (see the Glossary for details). Finally, keep in mind that payment and transfer of 'title' through public registration with the Land Administration Bureau cannot take place simultaneously -- registration of land transfers will not be allowed unless a receipt for payment is submitted with the registration transfer application. David Carnes is licensed to practice law in California. He speaks and reads Mandarin Chinese and has several years experience working with Chinese law firms and Sino-American joint ventures. Check out his website, China Legal Bulletin, at http://www.lunaticwisdom.com/blog1. ]]> Three Tests To Determine A Fair Value: An Example From Texas http://www.artwoo.com/article/three-tests-to-determine-a-fair-value-an-example-from-texas http://www.artwoo.com/article/three-tests-to-determine-a-fair-value-an-example-from-texas#comments Mon, 31 Dec 2007 12:25:00 +0000 texas appraisal districtsuniform taxationtax taxationmass appraisaltexas constitutionvalue assessmentspersonal properties http://www.artwoo.com/article/three-tests-to-determine-a-fair-value-an-example-from-texas Texas appraisal districts, taxpayers, and their representatives relating to the reliability of the commonly used income approach model. It examines the elements of the model, presents associated problems, and provides a suggested resolution.

THE sets out five rules for the property tax. Taxation must be equal and uniform. All property must be valued and taxed equally and uniformly. This applies to similar types of property-for example, all residential homes, commercial properties and . No single property or type of property should pay more than its fair share of taxes.1 Sometimes, the methods used in the past must be reexamined and tested to achieve equal and . This article originated because of differences of opinion among Texas appraisal districts (districts), taxpayers, and their representatives relating to the reliability of the commonly used mass appraisal income approach model (the model). Although this approach provides districts with a standardized analysis and is direct and systematic, it is, in the opinion of some, inconsistent. An examination of the district's model illustrates the fundamental differences of opinion in the definitions and application of three major components needed to secure market . The areas of disagreement revolve around the use of market value sales data, the application of the fee simple estate ownership, and the fairness and equality of valuations.

The Model

In the normal course of a valuation review, the district examines the property's December 31, 12-month profit and loss statement and the January rent roll. They generally use a model whose result is determined by these steps:

1. The January rent roll and the most recently signed leases or lease. By using these leases, an aggregate rate is arrived at as of January 1-one rental rate being applied to the entire property. Another method is to use the district's defined lease rate by applying mass appraisal standards

2. The district's market vacancy is deducted

3. The district's standards for operating expenses, generally with no allowances for reserves, tenant finish out, or leasing commissions, for example, is deducted

4. A net operating income (NOI) on the subject property is calculated

5. A standardized capitalization rate that districts have determined is reflective of the market, property class, and age is applied, which in their opinion, results in a fee simple market value

In all fairness to districts and their staff, they do not, as a policy, limit themselves to the income approach to value. Generally, they give consideration to additional information, such as recent appraisals, purchase prices, asking prices, the sales comparison approach, and the cost approach to value.

THE PROBLEM

To determine a fair value, commonly accepted valuation techniques, such as the sales comparison, income, and cost approaches should be considered, and then the most appropriate method used. However, because this article revolves around property tax valuations, the valuation should use a test consisting of three tax components to avoid an incorrect result. The components, as previously stated (i.e., market value, fee simple estate, and fair and equal taxation) make up the analysis of property to determine a fair valuation. The following paragraphs review some commonly used terms.

The first term to understand for property tax purposes is market value. The Texas Property Tax Code (Texas Code) requires all property to be appraised at market value as of January 1 of each year. The Texas Code defines market value as follows:

Market value means the price at which a property would transfer for cash or its equivalent under prevailing market conditions if:

1. Exposed for sale in the open market with a reasonable time for the seller to find a purchaser;

2. Both the seller and the purchaser know of all the uses and purposes to which the property is adapted and for which it is capable of being used and of the enforceable restrictions on its use; and

3. Both the seller and purchaser seek to maximize their gains and neither is in a position to take advantage of the exigencies of the other.

A fee simple estate is defined as: "Absolute ownership unencumbered by any other interest or estate subject only to the four powers of government." The fee simple estate is divided into several components:

1. Leased Fee. The lessor's interest, the right to receive the rent as stipulated by the lease, and the reversion of the property at the expiration of the lease

2. Leasehold. The lessee's interest and the right to use and occupy the real estate during the term of the lease, subject to any contractual restrictions. The leasehold may include rights to develop, alter, or sublease, for example

As previously mentioned, the Texas Constitution states that taxation must be equal and uniform and that all property must be valued and taxed equally and uniformly. In addition, no single property or type of property should pay more than its fair share of taxes.

Consider, on the surface, some of the problems a knowledgeable investor might have with the district's income model described above. Furthermore, recognize that the model is simply, in reality, a pro forma, a projection of the property's future net operating income (NOI). Forecasting a property's performance is difficult and is not conducive to mass appraisal techniques. It is difficult to predict all the ups and downs of a property, the real estate industry, and the numerous external factors that can affect property. Therefore, it is difficult to predict the performance of a property. Due diligence must be used in the model's forecast.

To begin with, the methods to determine market rental rates should be considered. The approach might be standardized; however, it is generally not based on intimate knowledge of each property's individual lease property, nor is it usually confirmed by comparable market leases. It can be argued that using the model's technique to determine a single rental rate for an entire building creates, in theory, a single tenant property. Having a single tenant building can be looked at in the same manner as an investor owning one stock. Extending this analogy, an investor with a multi-tenant building might be the same as an investor with a diversified investment portfolio. Thus, a single tenant property could have more risk than a similar multi-tenant building. This possible increased risk is reflected in the capitalization rate that is discussed later. Moreover, the model does not consider income appreciation, depreciation, or the effects of inflation. The same arguments can be used in predicting the occupancy rate of a property.

Using the district's standards for operating expenses and not making allowances for reserves, tenant finish out, or leasing commissions, is not typical for a knowledgeable investor. An investor also considers the operating expenses of like properties in the subject's neighborhood or submarket. Considering the arguments noted above, it is questionable if the NOI derived from the district's pro forma is accurate.

At this point in the review of the model, additional areas of concern appear. Now, the concepts of fee simple and leased fee estates come into play. Contrary to the district's position, its approach assumes that a knowledgeable investor uses a leased fee capitalization rate when buying a property on a fee simple basis. The market place reveals that a knowledgeable buyer is counting on income appreciation when purchasing a leased fee estate. The model noted above relies on the assumption that an aggregate lease rate (which averages three to five years lease term depending on property type), as well as the district's stabilized occupancy rates, apply to the property. In other words, it is assumed that the property will maintain these lease rates and occupancy levels throughout the year for purposes of taxation. This, in the opinion of some, creates a dilemma. These problems are explained by Jeff Tarpley, MAI, with the Dallas appraisal firm of Butler-Burgher, Inc., in the following excerpt from a recent fee simple appraisal:

....This method involves capitalizing the stabilized net operating income (NOI) by an appropriate capitalization rate (Ro) in order to estimate the stabilized value of the project. Ideally, the Overall Capitalization Rate (Ro) utilized in Direct Capitalization is typically derived from comparable sales. Income producing properties subject to existing lease(s) are normally purchased on the basis of actual rents at the date of sale (leased fee estate). However, the subject is being appraised on a fee simple basis (subject to market rent at the date of valuation). The overall rates derived from existing rents at the date of sale (leased fee) are much lower than those derived utilizing market rent (fee simple). Mathematically, this is attributable to market rent being higher than existing rents; consequently, the resulting overall rate should be higher. With regard to appraisal methodology, this is a reflection of the risk inherent in attempting to achieve market rents when there are higher than actual rents at the date of sale. For example, tenants may resist paying the higher rates and vacate the property. In addition, the landlord may have to offer tenant finish out and other concessions above those offered in the past in order to lease the building at higher market rental rates. Paul Edward Pennington is President and Principal of P. E. Pennington and Co., Inc. Mr. Pennington has authored numerous articles on property tax management . Read the entire article at http://www.pennin.com/three_tests.htm ]]> Property in Dubai Remains Strong and in Demand http://www.artwoo.com/article/property-in-dubai-remains-strong-and-in-demand http://www.artwoo.com/article/property-in-dubai-remains-strong-and-in-demand#comments Tue, 05 Aug 2008 14:30:25 +0000 manpower shortageconstruction workforceripple effectswarning bellsgulf constructionnews analystsproperty sector http://www.artwoo.com/article/property-in-dubai-remains-strong-and-in-demand
It is quite unique and dumbfounding, the immense boom that the Emirates has and is experiencing for a number of years now... and continuing without any dramatic signs of cessation.

Many of the surrounds of Dubai is also experiencing the of such a booming economy, from the , to education, medical, transport and food industries -- all of which have been affected by the upsurge in tourist percentages, as well as the vast majority of foreign expatriates -- who have claimed Dubai as their home away from home, while they are employed by one of the many businesses which have opened up location in Dubai and the surrounding cities, in an attempt to further strengthen and grow the economy, on the whole.

Examples of such can be seen in Kuwait, where property companies in general may get good rankings reaching 70 percent at available selling centers, compared to nearly 30 percent for phone services and 50 percent for specialized salesmen and warranties.

A successful property company is required to provide professional real estate services to customers, however, the ring, when one considers the fact that many a developers is of the persuasion that contractors should or need to tend towards implementing only plush and luxurious projects for the sake of opulent and wealthy groups.

Another worrying factor which has recently surfaced, is the fact that the UAE's construction sector is currently facing a that could delay a number of projects, as was reported by Gulf News.

"Analysts say Indian workers, who make up about 80% of the UAE's , are shying away due to high inflation and the decreasing value of dirhams against a strong rupee. Fuelled by increasing disposable income and falling barriers Qatar real estate market growth is sustainable" states Markaz study which showsand#8232;Kuwait Financial Centre 'Markaz' in its Qatar real estate report, "forecasts the current growth rates in the real estate market in Qatar to be sustainable."

Many property analysts also agree that it is due to "The demand-led price growth has been a reflection of the buoyant economic conditions in Qatar. Until 2003, Qatar GDP grew at a rate less than 8% p.a."

When one considers the facts, it is quite clear and apparent why the emirates continues its upward surge:

Since 2003, the rate of growth has not dipped below 11%.

Increasing disposables incomes and importantly the opening up of the sector to foreigners to buy real estate has supported the real estate growth.

This had resulted in the demand supply gap to widen in the last three years, with demand outstripping supply.
The growth in economy has in turn resulted in an increase in the expatriate population.

The factor of expatriate population is important in Qatar as expatriates' form almost 67% of the population.
In the last six years, expatriate population in the country has increased by 5% on a CAGR basis.

In 2004, the Qatar government relaxed its real estate policies to allow foreigners to own real estate.

The increase in personal disposable incomes and the resultant change in preferences of consumers from apartments to villas, all of these drivers generated considerable pressure on an already stretched supply.

Currently, the viewpoint generally is that "demand is outstripping supply in all the spheres of Qatar real estate - Residential and Commercial (office, retail, hospitality, and Industrial) segments. Residential Demand, for both freehold and leasehold residential units outstrips the supply in Qatar. However, 'Markaz' expects the shortage ratio to narrow down going forward, as it expects Doha (major housing market) to see more supply of housing units by 2010. Building permits issued to the residential sector have surged by 27% on a YoY basis in 2005."

Clear as day is the fact that Dubai is not without flaws and complexities, which often time could relate into somewhat of complications and unnecessary head-aches, the final point one should remember is that even with all the problems relaying to supply and demand, Dubai is continually still in very clear demand, and with the factor alone, it will continue to exponentially grow as a super power in not only the property industry, but economically as well!Property Select offers a comprehensive selection of overseas Property in Dubai and the Unite Arab Emirates (UAE), including a news feed, members club and reviews of the latest property developments from around the world.]]>