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Real estate is the biggest investment most people will
ever make, yet most don’t think it is worth the money to
have an attorney review their purchase agreement, title
commitment, proposed closing documents, or title
insurance policy.
True Story
I was contacted by a client who was selling her
condominium which included a stall in the enclosed
garage. She lost her husband a number of years
earlier. She assumed she was the sole owner of the
condominium and the garage stall because an Affidavit of
Survivorship had been filed. Unfortunately, the
garage stall had required a separate deed and the closer
had chosen the wrong form. The garage stall title
did not contain the words “as joint tenants”. I
had no choice but to petition the Probate Court for an
Order removing her deceased husband’s interest from the
garage stall. It cost my client more to remove her
deceased husband’s name from the title to the garage
stall, than the total value of his interest.
This whole mess could have been prevented if this couple
had me review the proposed closing documents prior to,
or at, the closing. It would have cost them a lot
less.
Call me before you sign a
purchase agreement, or have me review your proposed
transfer documents prior to your closing. Believe
me, it is money well spent.
Contact me to
schedule a no charge initial consultation to discuss
your real estate questions.
Small Business (Closely-held
Businesses)
You
can form your own business entity simply by using the
forms available from the Minnesota Secretary of State's
Office. However, that will
only get you a Certificate of Incorporation from
the Secretary of State that confirms that you have met
their filing requirements. Legally, that
Certificate alone does not mean you have an active,
legally recognized, business entity.
I work with clients to form business entities which are
separate and distinct from
their personal interests. Business entities allow
you to separate your personal assets from your business
assets. If your business should falter, and you
have an active, legally recognized, business entity,
with all documents in place, your personal assets
cannot be reached by your
business creditors, unless they have been pledged as
collateral or you have personally guaranteed a business
debt.
There are a number of actions that must be taken in
order to ensure your business will be distinct from your
personal affairs. I can complete and continue the
process necessary for the protection afforded by
business formation (LLCs, C corporations, S
corporations, and Partnerships). I can also help
you with the transfer of existing business entities.
A necessary part of the formation of the business entity
is planning for its problems and the possible sale or
transfer to the next generation.
Another True
Story
I helped a client incorporate his new business. It
was just a family affair, but it grew quickly. My
client hired a non-family member and wanted to give him
an ownership interest in his new corporation. This
was easily accomplished. I immediately advised my
client to complete a Shareholder Control Agreement
outlining how he and his new business partner would
handle things in the event of the disability or death of
either of them. My client thought it was a good
idea but, since he and his business partner were both
middle aged, he didn’t see the urgency. His
business partner was suddenly hospitalized for an
unknown stomach ailment and died within a few days.
This man’s stock in my client’s corporation was
inherited by his widow. Now my client found
himself in exactly the situation
that I tried to avoid. It cost my client thousands
of dollars in fees and countless hours of his time to
reach an agreement with the widow to purchase her stock
in his company. Had he completed and executed his
Shareholder Control Agreement when I proposed it, the
outcome would have been known, enforceable, and a lot
less expensive. Don’t try to form your own
business entity. I can help you complete the
process correctly and completely. It is time and
money well spent.
Contact me to
schedule a no charge initial consultation to discuss
your questions about forming a business entity.
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