Nearhood Law Offices, PLC Nearhood Law Offices, PLC | Business Formation & Real Estate Attorneys 2026-06-05T07:22:53Z https://www.nearhoodlaw.com/feed/atom/ WordPress /wp-content/uploads/sites/1104738/2019/05/apple-touch-icon-75x75.png On Behalf of Nearhood Law Offices, PLC <![CDATA[What is a silent partner?]]> https://www.nearhoodlaw.com/?p=48945 2022-09-26T14:37:04Z 2022-09-26T14:37:04Z There are many reasons to bring on a business partner when starting a company. You may find someone who has skills that you don’t possess, for example, and you realize that working together can make the business stronger. The two of you may even decide to share ownership and decision-making power 50-50. But this is certainly not the only tactic that you can use. You may also be interested in bringing on a silent partner. What does this mean and what advantages does it give you?

They merely provide financial capital

A silent partner is someone who has been brought into the business and does own a share of that company. But the agreement doesn’t give them any power to make decisions for the business. Their role is just to provide money or capital for the business to function. Not all investors are interested in doing this. Many of them want to know that they have a say in the company if they’re going to invest substantial money in that business.  But there are also investors who understand that the business has the best chance to thrive if the person who is running it is the absolute best person for the job. The investor may have the money to make the business possible, but that doesn’t mean that they know how to run the business or how to set it apart from the competition. They may agree to be a silent partner because they know the best chance to make money back on their investment is to let you run your company with their financial backing. If you are setting something like this up, it’s very important to get all of the legal details correct so that everyone understands their roles and obligations.]]> On Behalf of Nearhood Law Offices, PLC <![CDATA[What happens if a house doesn’t pass inspection?]]> https://www.nearhoodlaw.com/?p=48943 2022-09-26T02:38:05Z 2022-09-26T02:38:05Z There are certainly cases in which it is a surprise that a house does not pass inspection. This can also happen with commercial property. The seller believes that everything is in order, the buyer has walked through the property and didn’t see any problems and they have brought in an official home inspector. Unfortunately, that inspector found some serious problems with the property. What happens now? There are typically three different options:

End the deal

One option is for the buyer to simply walk away from the deal and the negotiations. If they had a home inspection contingency in their offer, they’re not obligated to do anything else. They just don’t have to buy the home.

Make repairs

In some cases, the potential buyer will just ask the seller to make specific repairs before they accept the house. In theory, the home inspector will be able to point out all of the individual issues that caused the house to fail. A seller may find that it is easiest to just hire someone to quickly make those repairs and then move forward with the transaction.

Renegotiate the price

In other cases, especially if it seems like making repairs it’s just going to take too long, the two parties will renegotiate. Perhaps the home inspector found that the house needs a new roof and it’s going to cost $20,000. Rather than putting the new roof on, the seller may agree to just take $20,000 off of the purchase price. The buyer can then use this to get a new roof or not, as they’d like. If you’re involved in a transaction on either side and it gets complicated, be sure you understand your legal options so that you can fully protect your interests.]]> On Behalf of Nearhood Law Offices, PLC <![CDATA[Policies and procedures every business should have]]> https://www.nearhoodlaw.com/?p=48941 2022-09-13T01:56:32Z 2022-09-14T01:54:46Z Running a business can be difficult, but it is important to remember that you can do things to make it easier. One of those things is creating and implementing policies and procedures.  Many business owners don't think about this until they are in the middle of a crisis, but having these documents in place ahead of time can save you a lot of trouble. 

Why are policies and procedures important?

All businesses, regardless of size or industry, must have specific policies and procedures in place. These are the written rules that govern how companies operate. They guide employees on how to handle various tasks, responsibilities, and situations. Additionally, they can help to reduce the risk of errors, accidents, and legal problems.  Some of the essential policies and procedures that all businesses should have include:
  • Safety
  • Security
  • Attendance
  • Discrimination
  • Harassment
  • Social Media
Having well-defined and enforced policies in these areas can help to create a positive work environment and avoid legal problems down the road. Of course, there are many other types that may be appropriate for a particular business, depending on its individual needs. Furthermore, your company may have departmental policies specific to its job duties.  It is also important to consider the legal implications when creating policies. A legal opinion can provide invaluable guidance on whether a proposed policy or procedure is likely to stand up to scrutiny in a court of law and may also identify potential ways to mitigate any legal risk. ]]> On Behalf of Nearhood Law Offices, PLC <![CDATA[When your buyer backs out of a real estate deal]]> https://www.nearhoodlaw.com/?p=48939 2022-09-13T01:53:20Z 2022-09-13T01:53:20Z It's every seller's nightmare: they've found a buyer for their home, the contract is signed, and a closing date is set. But then the buyer gets cold feet and decides to back out of the deal.  Does the seller have any recourse? The answer is, “It depends.”

Consequences for both the seller and buyer

A real estate deal is a complex and legally binding transaction, and there can be significant ramifications if a buyer decides to back out. For the seller, it can mean lost time and money spent on marketing the property and negotiating with other buyers. It can also cause emotional distress, as the seller may have already been counting on the sale to go through. Most purchase agreements will include contingency clauses that allow the buyer to cancel the deal if certain conditions are not met, such as not being able to obtain financing or if the home doesn't pass inspection.  However, if the buyer backs out without a valid reason, they may be required to forfeit their earnest money deposit. It is usually 1-2% of the purchase price, which could be a substantial amount of money on a more expensive house. Therefore, it is important for buyers to carefully consider all of the risks before reneging on a real estate deal. If the buyer gets cold feet and decides to back out of the sale, the seller may have legal recourse and potentially sue the buyer for breach of contract. Sometimes, a court may order the buyer to pay the seller's legal fees and any other damages awarded. If you’re in this position, it’s wisest to get legal guidance.]]> On Behalf of Nearhood Law Offices, PLC <![CDATA[Do you owe your business’s debts? ]]> https://www.nearhoodlaw.com/?p=48927 2022-08-26T14:54:58Z 2022-08-26T14:54:58Z Your business has to take on a certain amount of debt just to get off the ground. Say that you run a restaurant where you need to buy appliances and other such assets. You also have to rent a space, you may need to hire employees and buy inventory or products. It all depends on the type of business you’re running, but there’s a certain amount of debt that is required. Some business owners worry about this because they don’t want to take out enormous loans, have the business fail, and then personally have to pay those loans back. It’s one thing to take something of a risk with a new business, but personal liability could threaten their family life and their stability. They don’t want to lose their home or their car, for instance, or their retirement savings.

Are you running an LLC?

You may be liable for the business's debts if you’re running something like a sole proprietorship. This is essentially just a business that’s running under your own name, and it is fundamentally tied to you. The earnings that you get from the business count as personal earnings and the debt that you take on also counts as your own personal responsibility. However, if you chose to set your business up as an LLC, this business structure can protect you. LLC stands for limited liability company, and this means that you have a limited liability for the financial issues that the business may face. If your LLC takes out a loan and then goes bankrupt, you may have to pay back what you can from the business's assets, but you don’t have to make personal payments. Whether you’re setting up a new business or trying to resolve an issue that has arisen, you can see why it’s always important to understand exactly what your legal obligations are.]]> On Behalf of Nearhood Law Offices, PLC <![CDATA[What can throw off a real estate comp? ]]> https://www.nearhoodlaw.com/?p=48924 2022-08-26T03:50:47Z 2022-08-26T03:50:47Z With real estate sales or purchases, comps are very important. These are comparable properties, and they help to define the value of another property. For instance, if you’re selling a three-bedroom home for $500,000 but the comps in the area show that three-bedroom homes are all selling for $400,000, your value may be too high. However, comps are not perfect. There are certain things that can throw them off and make them inaccurate, including the following:

The sales happened a long time ago

Comps only work when the sales happened recently. If it was more than six months ago, the real estate market could have changed so that that sale price is no longer accurate.

The comp is in the wrong location

Values can change very drastically from one neighborhood to the next. This is true for both residential and commercial real estate. If the comps are in the wrong location, you’re going to get inaccurate values.

The homes haven’t actually sold yet

In some cases, people will consider homes that are on the market to be comps. If everyone around you is selling properties for $300,000, for instance, it’s assumed that your house is probably worth about the same. But the problem is that you can’t know if that property is actually going to sell for $300,000 or if it will be much more or less. Listing prices do not work as comps. The real estate process can be very complicated, and you can see how important it is to get every detail right. Be sure you always know about your legal options.]]> On Behalf of Nearhood Law Offices, PLC <![CDATA[Why do merger and acquisition transactions end up in litigation?]]> https://www.nearhoodlaw.com/?p=48922 2022-08-17T13:51:52Z 2022-08-17T13:51:52Z Merger and acquisition transactions are legally complex. Disputes among the parties involved can open a legal can of worms, and what’s more, they can occur at any stage of the process, even after everything has been finalized. As a buyer or seller in such a transaction, it is crucial to anticipate and avoid these problems beforehand. Doing so may help you avoid the costly financial and legal consequences of a legal showdown. Below are some common sources of misunderstanding in a merger and acquisition deal.

Disclosing confidential information

Violating pre-contractual obligations such as non-disclosures can brew conflict. Mergers and acquisitions deals involve gaining access to the innermost details of a business or company, financial or otherwise. When such information is leaked to third parties, it can be a potential source of dispute.

Incomplete or inaccurate disclosures

Issues can arise when the seller does not provide factual documentation about the business that affects the deal. This may include information regarding tax liabilities, pending lawsuits or regulatory investigations.

Improper language in the documents

Loosely worded or ambiguous clauses in the sale and purchase agreement can be confusing and lead to contention. Fallouts may be inevitable if the agreement is improperly drafted. For example, if you have provisions that create a legal relationship between the buyer and seller after closing the deal, it is crucial to make everything clear to all the parties.

Protecting your interests during a merger and acquisition

The thrill of buying or selling your company may cloud your judgment, and if you are not careful, you will be left counting your losses. Since you cannot leave anything to chance in such once-in-a-lifetime transactions, you should seek informed guidance before you begin the process. It could determine whether you will get a raw deal or not while protecting you from future legal liabilities.]]> On Behalf of Nearhood Law Offices, PLC <![CDATA[What does a cloud on title mean?]]> https://www.nearhoodlaw.com/?p=48920 2022-08-16T17:10:34Z 2022-08-16T17:10:34Z A title is a legal right to ownership of a property, including the right to sell. If there are doubts about the property's ownership or third-party claims, its title is said to have a cloud. As a result, it may be impossible to find buyers for your property since a cloud on the title stays with it even upon transfer. No one wants to buy a property whose ownership is unclear.

What could cause a cloud on a title?

Any unresolved issues regarding the property can cause a cloud on the title. For instance, if there are past or present ownership disputes that make the chain of title unclear, the title could be defective. This may happen during the probate process when due process is not followed. Liens on a property could also cloud its tile. A lien is a legal claim against your asset as collateral to satisfy a debt. Some common liens include a mechanic's lien, tax lien, or judgment lien. Unresolved liens can sum up to a tidy figure, and you may lose the property in extreme cases. Fraudulent activities done with a property can also cloud the title.

What can you do about a cloud on a title?

Fortunately, you can resolve clouds of title and erase any doubts about the ownership of your property. Depending on the cloud on title, there are various ways of going about it. Paying outstanding debts and using quit claim deeds are some ways you can clear defects on your title. However, you first need to know how to identify all existing clouds on your title. A clear title can save you a lot of headaches. Not only will you have peace of mind, but closing a sale will be a smooth process without unnecessary delays.]]> On Behalf of Nearhood Law Offices, PLC <![CDATA[Is your business partner right for you?]]> https://www.nearhoodlaw.com/?p=48886 2022-07-30T21:22:15Z 2022-07-30T21:22:15Z Starting a business is a big step when investing in your future, that’s why you want to take every right step along your journey. People often find that their journey can be eased by having a business partner by their side to provide unique skills and cut down on work.  But, choosing the right partner can be tricky. What if you’re having doubts about your business partnership? What are some signs that you should worry?

Trust builds any relationship – and a lack of trust destroys it

Every dollar you and your partner spend proportionately affects your business. That’s why you should have a business partner you can trust by your side. A business partner who impulses purchases may be spending unnecessary savings that were meant for larger improvements. The wrong business partner may pocket savings for their own advantage – ultimately putting your business at a disadvantage. If you find assets missing that your business partner can’t explain, then you may need to take that as a red flag and find someone else to help run things. You may even consider how you trust your partner to handle your business while you’re away. It’s never welcoming to hear that your business partner hasn’t accomplished anything by the time you get back from a break. You should be able to rely on your partner to make the right decisions in your stead that benefit your business. If you’re unsure if your business partner is right for you then you may need to seek legal assistance. The wrong business partner may only drag your business partner down – separating yourself from them may negate damages.]]> On Behalf of Nearhood Law Offices, PLC <![CDATA[5 things property inspectors can miss]]> https://www.nearhoodlaw.com/?p=48884 2022-07-30T21:14:00Z 2022-07-30T21:14:00Z Everyone who's experienced in looking at real estate knows they’ll need an inspection. A perfect inspector will be able to tell you every flaw and danger on a property allowing you to reconsider your investment. But, inspectors are only human, and that could mean they’ll make mistakes and overlook serious issues. Here’s what you should look out for:

1. Issues with pools and fountains

Some inspectors won’t look at water features on an estate. You may need to look at the contract you set up with your inspector to see if they’ll even consider evaluating a pool or fountain. If your inspector doesn’t look at these, then you may be missing large issues.

2. Roofing problems

Most inspectors won’t step foot on a roof, but instead, note if there are any missing shingles or damage seen from the ground. This could mean there are larger issues with the roof that won’t be immediately revealed. Roofing issues can be expensive and cause bigger issues.

3. Fencing trouble

Your inspector may not look at the fencing around a property. There may be issues with the fence that show security issues or weathering.

4. Inner wall issues

It’s unlikely an inspector will be able to see issues inside a wall – unless the walls have a secret entrance. There may be issues with a home that can’t be easily revealed, leaving an inspector’s evaluation somewhat incomplete.

5. Water damage

There are some issues with homes that can only be found with the right weather. The basement may leak in the spring or the patio may bulge in the winter. There may be signs that there are issues, but only a thorough inspector may find them. A small issue with an estate could cost you heavily. If you find there are issues with an estate you’re looking to invest in then you may need to know your options. ]]>