Legal Help

Your Very Own Friendly & Affordable Legal Team

When it comes to managing property deals, whether legal or financial, it’s easy to get caught up in complexities. Taking the weight off your shoulders at an early stage and have ready times your own friendly & approachable lawyer and accountants. Two essential professionals on your team who truly understand local systems.

While it may be tempting to make excuses or avoid tedious money management tasks, real estate professionals must prioritize good accounting habits in order to maintain professionalism. Likewise, when you make a sale, or sometimes a rental, you will need a lawyer who is expert in real estate legislation.

Real estate transactions can be complex. But the good news is that as a real estate agent, if your client asks you anything about the buying process that you don’t yet know, you can simply tell your client that “you don’t like to give legal advice” and refer him to a lawyer. But buyers don’t expect you to know the law in any depth and you will pick up the very few required basics very quickly.

When you make your first sale, or take your first deposit, that’s pretty much where your job ends, and the lawyers take over. Usually, most buyer will already have their own lawyers, as its best they have an independent lawyer. The lawyer will ensure the transaction is finalized without incident and in accordance with the law. This costs you, the agent, nothing. The lawyers will charge the property buyer for these services,

Choosing your own friendly & approachable lawyer means having someone on your team who truly understands local systems. You should choose a lawyer who is expert in land and real estate legislation because at times, you might want to recommend your lawyer, to your clients. You should also instruct your lawyer to ensure your sales commission payment for each property sale, is either transferred to your bank or given to you in a cheque.

Once the purchaser and vendor have reached a price agreement the responsibilities transfer from you to the lawyer. You now have very little to do, other than keep in touch with the lawyer and client to ensure everything is going smoothly. The lawyers responsibilities to your client are as follows:

  • Applications for fiscal personal identification numbers (NIE in Spain)
  • Advice on finance, including mortgages.
  • Advice on planning issues
  • Preparation of powers of attorney
  • Checking property ownership
  • Agreeing terms and conditions of the contract for sales and purchases
  • Checking any outstanding charges, mortgages, secured debts and restrictive covenants that affect the property.
  • Checking the fiscal value of property for tax purposes
  • Preparing completion deeds and necessary paperwork
  • Filing and lodging taxes with the Inland Revenue
  • Registration of title deeds
  • Notifying a change of ownership to relevant authorities
  • Negotiations for long- and short-term tenancy agreements concerning residential properties and commercial premises.

The True Goal of Real Estate Accounting

When it comes to managing financial information, it’s easy to get caught up in complexities. And while it may be tempting to make excuses or avoid tedious money management tasks, real estate professionals must prioritize good accounting habits in order to maintain professionalism.

How to Do Accounting for Your Real Estate Business

Professional real estate agents have a lot to manage when it comes to keeping up with clients, listings, finances, and growing personal business networks. While it may not be the first thing many agents consider, real estate accounting principles can make or break your success. When it comes to good, strong accounting procedures, real estate agents can’t afford to be surprised.

Why Do Real Estate Agents Need Accounting?

If you work for yourself, real estate accounting is important for a variety of reasons, including:

  • Income From Commissions
  • Real estate agents generate income from property sales and from commissions associated with each closed deal. As the primary source of income, it’s vital that real estate professionals accurately track, monitor, and report all incoming sources of cash from these sources.
  • Office-related Charges
  • Although fairly basic, your job duties might require the use of standard office supplies, equipment, and other administrative tools. Larger expenses would include office rentals, event space, and recurring services such as cleaning or maintenance. As more real estate professionals operate in a mobile format, these costs may be minimal.
  • Marketing Expenses
  • Marketing and advertising are the means by which you inform the community about the services you offer.
  • Travel, Mileage, and Transportation
  • Going from property to property to sell, speak with clients, or monitor a network of properties requires a lot of time and travel. Don’t make the mistake of forgetting to include these numbers in your real estate accounting procedures.

Separate Personal and Business Funds

Although commissions and other income sources technically belong to you as a real estate agent, lumping them into your general bank account can become an organizational hassle. It’s wise to create a separate business account so you can keep track of every transaction. You can then connect to your personal account or transfer funds between accounts on a pre-scheduled basis.

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