6 Liabilities Every Real Estate Developer Should Know About
There aren’t very many professional prerequisites to becoming a real estate developer. In most states, you don’t need any specific education or license, but that doesn’t mean it’s an easy profession to enter. Indeed, successful real estate developers possess skills that often can’t be taught — a proclivity for business and a sense of ambition, for example. Even if you have these traits, though, you need to be on the lookout for liabilities such as the following six.
1. Improper and Insufficient Lighting
Lighting is one of the most important safety features for any structure that includes a parking garage. Without the right lighting, motorists and pedestrians may not be fully visible, which will dramatically increase the likelihood of accidents and injuries. Lighting is especially important if your garage features canopies or tunnels, and it can also act as an effective deterrent against crime, too.
2. Funding That Falls Through
Funding is an essential component of any real estate development. Too often, though, real estate lenders don’t offer the terms or funds that a project needs to proceed. This can leave you in the lurch if you’ve already invested in the development. Look for a lender like Curlee Capital that specializes in real estate developments to avoid this outcome.
3. Contracts With Unclear Terms
Contracts are another common source of liability that real estate developers must be vigilant about. As a developer, you will enter into contracts with contractors and clients, and it’s imperative that the terms be explicit. Anything less would leave you open to liability. If you need to revise a contract, you may do so in Word since Word documents are easier to edit than PDFs. If you need to know how to convert Word to PDF, you can simply use an online converter to upload the Word document, turn it into a PDF, and download the new file.
4. Safety Issues on Construction Site
Once you have your contracts and funding in place, you can start planning the construction phase of your development. Safety issues are a major liability at this point, though. According to statistics, 10% of workers in the construction industry experience an injury each year. Real estate developers must take steps to prevent this by overseeing construction and mandating the use of personal protective equipment.
5. Unprofessional Professionals
Sometimes, despite your best efforts to implement safety standards, workers will disregard protocol and behave in ways that are unsafe. If you end up hiring professionals who act unprofessionally, this is a major liability to the project and your business. You need to correct the problem as soon as possible or release the contractor in question.
6. An Unsafe Build Site
The most important part of real estate development is choosing a site that’s suited to development. If you choose a property that’s unsafe, you are setting yourself up for liability and disaster. A site may be unsafe if it features major obstructions or contains steep slopes. Real estate developers must inspect land stringently before proceeding with construction.
Real Estate Developers Must Minimize Liabilities
Real estate development can be an exciting opportunity. It requires business expertise and familiarity with safety, though, if you want to avoid major liabilities. Invest in the right lighting for your parking garage and ensure that your chosen build site is safe if you want to avoid common risks.
