Are you thinking of starting a real estate development company? If so, there are a few laws you need to be aware of. These laws are in place to protect both the developer and the public.
Before considering starting your own company, you need to understand the whole real estate development process. This means learning about zoning, land use, and construction law. It’s also essential to have a firm understanding of financing and investment law. Only once you’ve educated yourself on all of these topics should you even begin to think about starting a company.
The process
Starting a real estate company isn’t just a matter of hanging up a sign and listing some properties. There’s a lot of work that goes into it, and here are a few things you need to know:
Permits and Licenses
The first thing you need to do when starting a real estate development company is to obtain the necessary permits and licenses. Depending on your location, the permits and licenses required may vary. However, some common licenses and permits are needed in most jurisdictions, such as a business license, a construction permit, and a real estate license.
It’s important to note that you may also need to get other licenses and permits, such as an environmental permit, if you plan on doing any work that could potentially impact the environment. If you’re not sure what permits and licenses you to need, you should consult with an attorney or a professional in the real estate industry who can help guide you through the process.
Financing
Another thing to keep in mind when starting a real estate development company is financing. There are different ways to finance a real estate project, such as through private investors, loans, or joint ventures. It’s essential to do your research and choose the option that makes the most sense for your particular project.
If you plan on seeking private investment, it’s important to remember that investors will want to see a well-thought-out business plan before they invest any money. So, make sure you have a solid business plan before reaching out to potential investors.
Construction
Once you have obtained the necessary permits and licenses and secured financing for your project, you can start construction. It’s essential to have a well-thought-out construction plan before beginning any work. The construction phase of a real estate project can be very complex, so it’s essential to have a clear understanding of what needs to be done before starting any work.
Hiring a construction lawyer would also be a wise move. A construction lawyer can help you navigate the construction process and ensure everything is done legally and according to code, protecting you from potential liability.
Primary real estate development acts
You need to be aware of specific laws when starting a real estate development company. These laws are in place to protect you, the environment, and the public. Let’s take a look at some of the most important laws you need to know about.
National Environmental Policy Act (NEPA)
The first law you must be aware of is the National Environmental Policy Act (NEPA). The National Environmental Policy Act (NEPA) of 1970, as amended in 1990, requires the preparation of an Environmental Impact Statement for any “major Federal action” that may have a significant impact on the environment. If you’re planning on developing a project that could potentially impact the environment, you’ll need to comply with NEPA.
Endangered Species Act (ESA)
The second law you need to know about is the Endangered Species Act (ESA). This law protects endangered and threatened species from being harmed or killed by development projects. If your project could potentially harm an endangered or threatened species, you’ll need to obtain a permit from the U.S. Fish and Wildlife Service.
Clean Water Act (CWA)
The third law you need to be aware of is the Clean Water Act (CWA). This law regulates the discharge of pollutants into waterways. If your project involves activities that could discharge pollutants into waterways, you’ll need to obtain a permit from the U.S. Army Corps of Engineers.
National Historic Preservation Act (NHPA)
The fourth and final law you need to know about is the National Historic Preservation Act (NHPA). The Goal of this law is to protect historical buildings from demolition. If your project could potentially impact a historic property, you’ll need to consult with the State Historic Preservation Officer and obtain a permit from the National Park Service.
The bottom line
Starting a real estate development company is no small feat. There are many things to consider, such as financing, permits and licenses, and construction plans. However, if you take the time to do your research and put together a solid team of professionals, you can increase your chances of success. Remember, always consult with an attorney or other professional in the industry before making any major decisions so that you can be sure you are following all applicable laws and regulations.
