HICKSVILLE, N.Y., July 20, 2019 /PRNewswire/ -- Private lenders are lenders that are non-institutional or non-bank sources of money and funds. This includes family, friends, or even private entities. When deciding to invest in real estate, many borrowers choose to go through private lenders, in contrast to banks or credit unions. Private lending is a much more relationship-based circumstance that often feels more comfortable and dependable to the borrower. However, with any monetary loan, it is best to have someone oversee what is being stated in the documents. Oftentimes, privately loaned money for real estate purposes are secured by a note and a mortgage. However, the terms may be different than if the loan was made by an institutional lender. To ensure that you understand the transaction, a knowledgeable and experienced attorney by your side is essential. Real estate litigation attorney Long Island, Markotsis & Lieberman Esq., explain an attorney's role in private lending representation.
When the parties involved are discussing the loan and its circumstances, it is best to have an attorney involved. Real estate attorneys have the knowledge and capability to determine what the most practical and fair terms are and can express this to those affected. If questions or disputes arise, they can assist in putting it to rest and help decide what the best compromise would be. Keep in mind that a majority of private lending situations are between family or friends, and it can be a bit difficult to express each person's wants and needs. An attorney can help communicate these.
Draft Legal Documents
When dealing with two parties that don't necessarily have experience writing or drafting legal documents, it can be quite beneficial to have an expert there to assist you. Real estate attorneys understand what is legal and can help put the agreed-upon terms into writing. Having a document that breaks down the terms and agreements of the loan will help avoid any conflicts, and make it clear to the party what they are agreeing to. In addition, this will be helpful down the line if either party needs to reference the agreement they made.
Understanding A Legal And Fair Deal
If your lender or borrower already has a drafted document which dictates the terms and agreements of the loan, you should have an attorney oversee it. You want to make sure that you understand the terms and that the terms are what was agreed, without terms which were not agreed between the parties. No one wants to find out that they are bound to terms they did not know about after the fact. With the assistance of an attorney, such issues can be avoided.
About Markotsis & Lieberman, Esq.: Markotsis & Lieberman, P.C. Long Island Real Estate Attorney is a general practice law firm. Practice areas include real estate, litigation (commercial and civil), business formations, agreements and transactions, and wills, trusts and estates. Our team of seasoned attorneys are here to guide you through every step of the legal process providing personalized attention to every client. When you're facing a complicated legal situation, our team of legal experts is there to fight for your rights.
SOURCE Markotsis & Lieberman, P.C.
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