Legal Advice Blog: Legal Advice, Case Insights, & Local Law Information

The excitement builds as you make plans for starting your own business, but there are so many things to do and decisions to make. Be sure to avoid basic mistakes, such as forgetting to protect your intellectual property and failing to secure your interests with written agreements. Taking a short-sighted approach Avoid taking a short-sighted approach to the future of your business. You should have a long-term plan in mind from the very beginning. Think about what you want your business to be in one year, five years or ten in terms of financial goals, future products or personnel. Underpricing products or services As with overpricing your products or services, underpricing can cause serious problems. Keep an eye on competitors. Make comparisons with the pricing of similar products and claim your space in the marketplace. Failing to protect intellectual property Remember the importance of your company name, logo, sensitive documents or photos. You may need to file for a copyright, trademark or other legal protections for your intellectual property. Avoiding the use of written agreements In large part, the days of securing an agreement with a handshake are over. Do not depend on casual business relationships always panning out. Drawing up written agreements with employees, partners, suppliers and anyone who provides services will protect your business interests, ensure accurate record-keeping and help you prevent legal missteps. Relying on professional help From bookkeeping tips to reviewing documents such as non-compete agreements and employment contracts, you will need professional guidance as you launch your business. Having timely professional assistance will help you avoid business startup mistakes and confidently clear any hurdles that arise.

Investment partnerships allow companies to optimize their resources by combining competencies and experience. When leveraged appropriately, a professional partnership provides opportunity and value to all participants. Because people have different opinions, situations may arise where decision-makers cannot agree on the same course of action. Collaborative communication can prevent this difference in opinion from spiraling out of control and causing damage to a partnership’s synergy. Determine charge A host of professional disputes begin because of misunderstandings regarding decision-making authority. According to Business News Daily, participants in a partnership should make fair and clear determinations about leadership roles. These designations can include topics such as buyout rights, monetary distributions and ownership rules. People in charge of making critical decisions have the responsibility to make informed and educated choices to protect the investments of the other participants. Others can voice their opinions which can encourage healthy negotiation to determine the best course of action. However, once decision-makers determine a final outcome, everyone else should offer support. Listen with intent There will undoubtedly be times when disagreements arise in a partnership. This is not uncommon and not all bad. When people understand how to listen to each other and respectfully communicate, they can embrace each other’s differences and reach an amicable and rewarding solution. According to INC., intentional listening plays a big role in collaborative communication. During discussions, people should listen to each other and resist the urge to mindlessly begin forming their response while the other person is talking. They should refrain from interrupting. When it is their turn to talk, people should reiterate their understanding of the other party’s concerns.

Investment partnerships allow companies to optimize their resources by combining competencies and experience. When leveraged appropriately, a professional partnership provides opportunity and value to all participants. Because people have different opinions, situations may arise where decision-makers cannot agree on the same course of action. Collaborative communication can prevent this difference in opinion from spiraling out of control and causing damage to a partnership’s synergy. Determine charge A host of professional disputes begin because of misunderstandings regarding decision-making authority. According to Business News Daily, participants in a partnership should make fair and clear determinations about leadership roles. These designations can include topics such as buyout rights, monetary distributions and ownership rules. People in charge of making critical decisions have the responsibility to make informed and educated choices to protect the investments of the other participants. Others can voice their opinions which can encourage healthy negotiation to determine the best course of action. However, once decision-makers determine a final outcome, everyone else should offer support. Listen with intent There will undoubtedly be times when disagreements arise in a partnership. This is not uncommon and not all bad. When people understand how to listen to each other and respectfully communicate, they can embrace each other’s differences and reach an amicable and rewarding solution. According to INC., intentional listening plays a big role in collaborative communication. During discussions, people should listen to each other and resist the urge to mindlessly begin forming their response while the other person is talking. They should refrain from interrupting. When it is their turn to talk, people should reiterate their understanding of the other party’s concerns.

Leasing real estate to commercial tenants in California involves a certain degree of risk. As a commercial landlord, you may do everything in your power to minimize how long your space stays empty. A potential way to prevent a tenant from breaking a lease term involves including a sublease clause in your commercial lease. According to the California Department of Real Estate, a sublease clause allows a tenant to transfer its right to a portion of premises, or the entire premises, to another entity for part of the existing lease term. Understanding liability in subleases In some ways, a commercial sublease clause favors the lessee by giving that company an out if the lease no longer meets its need. However, in the event that a subtenant fails to keep up with the terms of the lease, the original tenant is on the hook for what the subtenant failed to pay. Subleasing to financially secure subtenants Many California commercial leases allow tenants to sublease their spaces to other entities. However, certain conditions must exist to do so. Before a tenant may sublease to another entity, it must be able to prove that the new subtenant has the financial stability needed to cover the expenses associated with the commercial property. As a commercial landlord, your own duties and responsibilities do not change much when you allow a tenant to sublease your space to someone else. If your lessee sublets some of your space to another entity and that company damages the space, for example, it becomes the duty of your original lessee to cover associated costs.

Leasing real estate to commercial tenants in California involves a certain degree of risk. As a commercial landlord, you may do everything in your power to minimize how long your space stays empty. A potential way to prevent a tenant from breaking a lease term involves including a sublease clause in your commercial lease. According to the California Department of Real Estate, a sublease clause allows a tenant to transfer its right to a portion of premises, or the entire premises, to another entity for part of the existing lease term. Understanding liability in subleases In some ways, a commercial sublease clause favors the lessee by giving that company an out if the lease no longer meets its need. However, in the event that a subtenant fails to keep up with the terms of the lease, the original tenant is on the hook for what the subtenant failed to pay. Subleasing to financially secure subtenants Many California commercial leases allow tenants to sublease their spaces to other entities. However, certain conditions must exist to do so. Before a tenant may sublease to another entity, it must be able to prove that the new subtenant has the financial stability needed to cover the expenses associated with the commercial property. As a commercial landlord, your own duties and responsibilities do not change much when you allow a tenant to sublease your space to someone else. If your lessee sublets some of your space to another entity and that company damages the space, for example, it becomes the duty of your original lessee to cover associated costs.

Easements give other people some right to your property. This may seem unfair, but according to SFGate, easements are a fixture in property law, and they prevent a property from becoming worthless due to lack of access. There are many ways that someone may create an easement, and if you do not control the process, it could result in loss of rights to your own land. Providing access to another property If a person or entity on the other side of your property does not have access to a public road except by going across your property, an easement may be necessary. By granting an easement, you can control how and when the neighbor can use your property. Because you are voluntarily allowing the easement, you can put terms and conditions for the use in writing and legally limit your neighbor’s access to the minimum amount necessary. Allowing use without your knowledge You may have an easement on your property without knowing it. If the person who owned the property before you divided the land and sold it to you and another person, there may already be a private road in place. Your neighbor could be using the road without either of you knowing that he or she is using your property. If your neighbor’s property is commercial real estate and significant traffic or even heavy equipment crosses your property, it could take a toll on your land. Not only that, if your neighbor takes certain steps, you could lose your rights to control the land. Becoming a permanent legal easement A prescriptive easement occurs when your neighbor uses your land continuously for five years without your consent, and a reasonable person would have known that it was happening. A court may then rule that your neighbor’s use is legal, even though you never granted an easement. Thus, you cannot claim your neighbor is trespassing on your land if you decide you do not want the use to continue. Reviewing your property boundaries on the official description in the deed can help you to see where an implied easement may exist so that you can set your own parameters on its use.

Easements give other people some right to your property. This may seem unfair, but according to SFGate, easements are a fixture in property law, and they prevent a property from becoming worthless due to lack of access. There are many ways that someone may create an easement, and if you do not control the process, it could result in loss of rights to your own land. Providing access to another property If a person or entity on the other side of your property does not have access to a public road except by going across your property, an easement may be necessary. By granting an easement, you can control how and when the neighbor can use your property. Because you are voluntarily allowing the easement, you can put terms and conditions for the use in writing and legally limit your neighbor’s access to the minimum amount necessary. Allowing use without your knowledge You may have an easement on your property without knowing it. If the person who owned the property before you divided the land and sold it to you and another person, there may already be a private road in place. Your neighbor could be using the road without either of you knowing that he or she is using your property. If your neighbor’s property is commercial real estate and significant traffic or even heavy equipment crosses your property, it could take a toll on your land. Not only that, if your neighbor takes certain steps, you could lose your rights to control the land. Becoming a permanent legal easement A prescriptive easement occurs when your neighbor uses your land continuously for five years without your consent, and a reasonable person would have known that it was happening. A court may then rule that your neighbor’s use is legal, even though you never granted an easement. Thus, you cannot claim your neighbor is trespassing on your land if you decide you do not want the use to continue. Reviewing your property boundaries on the official description in the deed can help you to see where an implied easement may exist so that you can set your own parameters on its use.

Leasing commercial property is a great way to grow your business. When entering into a commercial landlord/tenant agreement, your lease will be the blueprint between you and the property owner. A good lease will offer protection to both parties, while also providing guidance in the event disputes arise. However, not all commercial leases are in your best interest. Forbes lists some clauses and language to look out for if you want to protect your investment. In the very least, these clauses require clarification, or modification if you believe they will adversely affect you down the road. Provisions that favor only one party Leases are supposed to favor both parties equally. Provisions that offer benefits only to the landlord – or worse – can be construed as detrimental to you, are clearly not in your best interest. If one such provision exists in a lease, it is likely that the document was designed to favor the property owner and not the tenant. Vagueness surrounding obligations Both you and the property owner will have certain obligations when it comes to the commercial property. These obligations and responsibilities must be explicitly stated, otherwise disputes are bound to occur. When they are not, occurrences out of your control may become your responsibility. As a result, you may face legal action for a situation that the landlord should have been in control of. Typos and errors While mistakes are part of being human, leases are an important legal document. Accordingly, they must be reviewed and edited diligently to ensure they are accurate and free of mistakes. Numerous mistakes may indicate the landlord is also careless in other ways, which can directly impact you should the building require repairs or maintenance. Never let a questionable clause or provision slip by unnoticed in a commercial lease. It is best to have the document reviewed by an attorney to pinpoint any issues, so you can make the right decisions for your business.

Leasing commercial property is a great way to grow your business. When entering into a commercial landlord/tenant agreement, your lease will be the blueprint between you and the property owner. A good lease will offer protection to both parties, while also providing guidance in the event disputes arise. However, not all commercial leases are in your best interest. Forbes lists some clauses and language to look out for if you want to protect your investment. In the very least, these clauses require clarification, or modification if you believe they will adversely affect you down the road. Provisions that favor only one party Leases are supposed to favor both parties equally. Provisions that offer benefits only to the landlord – or worse – can be construed as detrimental to you, are clearly not in your best interest. If one such provision exists in a lease, it is likely that the document was designed to favor the property owner and not the tenant. Vagueness surrounding obligations Both you and the property owner will have certain obligations when it comes to the commercial property. These obligations and responsibilities must be explicitly stated, otherwise disputes are bound to occur. When they are not, occurrences out of your control may become your responsibility. As a result, you may face legal action for a situation that the landlord should have been in control of. Typos and errors While mistakes are part of being human, leases are an important legal document. Accordingly, they must be reviewed and edited diligently to ensure they are accurate and free of mistakes. Numerous mistakes may indicate the landlord is also careless in other ways, which can directly impact you should the building require repairs or maintenance. Never let a questionable clause or provision slip by unnoticed in a commercial lease. It is best to have the document reviewed by an attorney to pinpoint any issues, so you can make the right decisions for your business.

In certain real estate transactions, you may find yourself drafting your own home sale contract as opposed to someone else creating it for you. This can happen when you are buying or selling a home without a real estate agent or buying a property directly from the seller. In these instances, it is important to include specific elements in the contract to reduce problems later. Contract requirements According to FindLaw, a home sale contract must include the following elements: The full, legal names of both the buyer and the seller The property address and a description of the property The amount you are buying or selling the property for Signatures from all parties involved Including these elements in your contract ensure that it is both legal and binding. Additional components While you can still sign a contract that has only the bare-bones requirements, it is often a good idea to add other clauses and specifics. For example, including financing, contingency and inspection clauses can protect both parties in the future. Federal law also requires homeowners to disclose certain risks, such as potential lead paint exposure. It is a good idea to add specifics to the home sale contract that detail: the date that both parties sign the contract, the date that the buyer can take over the property, the names of any agents involved in the transaction and any money that is put towards the purchase. This list is not exhaustive. If you have any questions about the validity of your home sale contract, it is a good idea to have a professional look over the paper before you sign it.

In certain real estate transactions, you may find yourself drafting your own home sale contract as opposed to someone else creating it for you. This can happen when you are buying or selling a home without a real estate agent or buying a property directly from the seller. In these instances, it is important to include specific elements in the contract to reduce problems later. Contract requirements According to FindLaw, a home sale contract must include the following elements: The full, legal names of both the buyer and the seller The property address and a description of the property The amount you are buying or selling the property for Signatures from all parties involved Including these elements in your contract ensure that it is both legal and binding. Additional components While you can still sign a contract that has only the bare-bones requirements, it is often a good idea to add other clauses and specifics. For example, including financing, contingency and inspection clauses can protect both parties in the future. Federal law also requires homeowners to disclose certain risks, such as potential lead paint exposure. It is a good idea to add specifics to the home sale contract that detail: the date that both parties sign the contract, the date that the buyer can take over the property, the names of any agents involved in the transaction and any money that is put towards the purchase. This list is not exhaustive. If you have any questions about the validity of your home sale contract, it is a good idea to have a professional look over the paper before you sign it.

Investing in California real estate alongside like-minded individuals may offer many advantages. It may give you access to more knowledge or capital than you would have otherwise, for example. It may also make it easier and faster for you to generate wealth through your investments. An important aspect of any solid investment partnership is a strong partnership agreement, and the language you include in yours may have far-reaching effects. According to SmallBusiness.Chron.com, a strong investment partnership agreement contains specific elements and gives you something to reference in the event that something unanticipated arises. What areas do you want to make sure to address in your investment partnership agreement? The contributions and expectations of everyone involved Make sure that your agreement dictates exactly how much each partner contributed from the get-go. If you have plans in place as far as who plans to invest what and when moving forward, be sure to include this information, too. Profit and loss information In the absence of an investment partnership agreement, there is an assumption that all partners are going to split profits evenly. You have the opportunity to dictate otherwise in your agreement, though. You may use the agreement to stipulate how much of a percentage each partner has in the business. If preferable, you may use it to state that each partner’s profits and losses are going to fluctuate based on their contributions to the business. While these are some key areas to address in your agreement, there are many other areas you may also want to consider therein. You may also want to use the agreement to outline who has decision-making authority, for example, to address the process of adding or removing partners if need arises.