GOODKIN APCGoodkin APC2024-03-08T09:53:56Zhttps://www.goodkinlaw.com/feed/atom/WordPress/wp-content/uploads/sites/1103281/2019/10/cropped-SiteIcon2-32x32.jpgOn Behalf of Goodkin APChttps://www.goodkinlaw.com/?p=507142024-03-05T09:54:16Z2024-03-08T09:53:56ZWhat businesses must file a report?
As the name implies, the CTA specifically applies to corporations and other businesses where ownership is not readily evident. Limited partnerships and limited liability companies (LLCs) are also required to file a report under the CTA. Companies must disclose the identities of all individuals with a beneficial ownership interest (BOI) to the Financial Crimes Enforcement Network (FinCEN).
What constitutes a beneficial ownership interest?
The CTA provides a very clear definition of BOI. The company filing the report must include identifying information about any investor who has at least a 25% ownership interest in an LLC, corporation or other business with an opaque structure. The report should also include details about who filed the paperwork to form the company.
When is the report due?
Businesses already operating as of January 1st, 2024 have until the beginning of 2025 to file their initial reports. Businesses formed after the CTA took effect must make ownership disclosures during the startup process. Additionally, updated reports are necessary anytime new investors meet the requirements for having a BOI in the company.
It is very easy for those focused on the operations of a business to overlook changes in the law that could end up costing them quite a bit of money. Reaching out to the team at Goodkin APC can help business owners, executives and investors better ensure ongoing regulatory compliance even as the law evolves.]]>On Behalf of Goodkin APChttps://www.goodkinlaw.com/?p=506992024-02-06T05:31:09Z2024-02-10T05:30:57Zbetween different court jurisdictions and even different types of lawsuits.
Still, a significant percentage of business-related lawsuits do eventually settle outside of court. Even those abiding by the most conservative estimates could agree with the statement that a majority of all lawsuits settle or get dismissed by a judge. Why do so many business lawsuits settle out of the courts?
Settling is often more cost-effective
Even in scenarios where businesses or their insurance companies maintain that the defendant is not to blame for a situation, they could potentially still agree to settle the matter outside of court. They may do this to keep costs low, as the expense involved in litigating can extend multiple times beyond the cost of negotiating and settling.
Businesses don't want the publicity
Lawsuits brought by consumers who claim they got hurt by a dangerous product, allegations of abuses made by former employees and even claims of nonpayment by vendors could do real damage to a business's reputation. Allegations made an open court become part of the public record and could harm a company's reputation, even if the organization eventually defeats the lawsuit that it faces. Settlements, even those that require mediation to achieve, are typically much more private and might even include confidentiality clauses for the parties embroiled in the dispute.
Settlements preserve working relationships
Two businesses hoping to work together in the future or an individual who might want to use an employer as a reference later usually prefer to resolve disagreements as amicably as possible. A settlement could lead to far less long-term damage to a working relationship than litigation that goes all the way to trial.
Although filing a lawsuit is sometimes necessary to move a conflict forward, those representing businesses often need to be ready to consider settlement opportunities. Learning from the actions of other businesses can help those running organizations achieve optimal outcomes for their effort.]]>On Behalf of Goodkin APChttps://www.goodkinlaw.com/?p=506822024-01-04T07:00:20Z2024-01-09T06:59:50ZHow penalty clauses work
Contracts may include terms that impose specific financial consequences or liquidated damages for a material breach of the contract. Late fees charged for delays in payment are an example. Other times, companies may have much more extensive policies that could cost the other party thousands for a contract violation.
When used appropriately, penalty clauses can serve as a powerful deterrent to contract non-performance and other violations. The business facing the contract violation could automatically demand payment based on the penalty clause and take legal action if the other party remains non-compliant and refuses to pay the penalty.
Do California courts enforce penalty clauses?
California has many employee and consumer protection laws that can affect the viability of penalty clauses in some contracts. For example, recent court rulings have raised questions about the practice of increasing interest rates on consumer lines of credit when people miss payments. Businesses could have trouble enforcing certain penalty clauses against consumers in the wake of recent rulings.
Many other penalty clauses and contracts requiring liquidated damages are still potentially valid and enforceable in the California civil courts. Those who know there are financial penalties for contract non-compliance may be less inclined to violate a contractual agreement.
Businesses that integrate the right terms into their contracts can minimize their risk of major contract defaults and can benefit from more options for recourse should one occur. In these ways, seeking legal guidance to draft custom contracts can help organizations more effectively protect against operational disruptions and losses.]]>On Behalf of Goodkin APChttps://www.goodkinlaw.com/?p=505112023-12-08T09:17:24Z2023-12-08T09:17:24ZPrivate nuisances affect fewer people
The scope of impact is the main factor separating public and private nuisances. A private nuisance might involve someone engaging in rude or offensive behavior that impacts other people. A private nuisance is essentially the unreasonable or unlawful use of a property that interferes with a neighbor's rights.
Actions that affect people's health or their ability to use their own property as they see fit, like keeping a dangerous and aggressive dog unchained in the yard, could also constitute a private nuisance. Actions that are offensive to the senses, including making unpleasant odors or being visibly nude on private property, could also constitute a private nuisance. A reasonable person would generally need to agree that the behavior is offensive or inappropriate.
Public nuisances tend to affect multiple neighbors or the entire neighborhood. The impact on the multiple parties affected does not have to be exactly the same for conduct to constitute a public nuisance. Operating a drug house is a public nuisance, as is engaging and prostitution out of a residential property. Even loud parties that require police intervention late at night could be a form of public nuisance.
State prosecutors can bring charges against those who become public nuisances. Prosecution isn't possible for private nuisance allegations in most cases, but litigation can be an option. Homeowners can file a lawsuit against an adjacent property owner whose actions affect their quiet enjoyment of their property or its potential resale value.
Ultimately, seeking legal guidance and learning more about the rules that govern real estate disputes between neighbors, including nuisance claims, may benefit those trying to navigate a difficult situation involving a neighbor.]]>On Behalf of Goodkin APChttps://www.goodkinlaw.com/?p=505122023-11-03T06:42:21Z2023-11-03T06:42:21ZThere are issues with boundaries or property use
Sometimes, neighbors may disagree about where the boundary line between two parcels actually falls. The actual placement of the boundary can impact the use and value of the land. Someone overstepping a boundary might eventually lead to claims of adverse possession if the owner does not challenge their behavior in court. Other times, people may go to court because a neighbor's use of their property has affected their enjoyment of their property or the value of their land.
There are undisclosed property defects
Issues that people discover with a new home after taking possession can influence not only their enjoyment of the property but often also its actual value on the open market. Buyers who discover significant defects after taking possession of a property may end up taking the seller to court to seek reimbursement for the cost of repairing those defects or the diminished value of the property because those defects exist
There are problems with a construction project
Construction defect claims are lawsuits brought by property owners against businesses that they hired to construct, remodel or repair a property that they own. Such lawsuits can lead to a court order to correct the issue with the property or compensation for the owner. On the other hand, sometimes construction firms or the businesses that supply them with materials take a property owner to court over nonpayment. Lawsuits seeking liens against real property to compel someone into payment are also relatively common in Massachusetts.
Ultimately, recognizing when a conflict related to real property might justify going to civil court could help homeowners and businesses better protect their interests.
]]>On Behalf of Goodkin APChttps://www.goodkinlaw.com/?p=505132023-10-09T06:27:01Z2023-10-09T06:27:01ZCertain types of property benefit from consistent demand
When looking at vacancy rates and default rates for loans, certain commercial property investments tend to work out better for investors than others. Multi-family homes and apartment buildings are among the most in-demand types of commercial real estate. They can also be a source of immediate and long-term revenue. However, they may come with a host of financial obligations, including the requirement to continually maintain the units and repair them if tenants damage them. Manufacturing or industrial properties often tend to see consistent demand too, although economic downturns can have a rapid impact on the value and vacancy rates for industrial properties in certain areas.
Some properties are better for long-term investments
Despite slower leasing for retail properties, they still maintain a relatively low vacancy rate nationwide, although it varies drastically from one municipality to another. Retail facilities in high-end neighborhoods often command the highest rents but also have the highest sale prices and tax rates. Retail facilities in some neighborhoods may be cheaper but may also be vacant for longer in between tenants.
Office properties, on the other hand, remain in a slump. Despite widespread efforts to return workers to office settings, some industries and businesses will inevitably remain remote or will embrace a hybridized model going forward. Retail and office spaces are, therefore, often better options for those looking for lower current prices and more long-term investment opportunities. From converting office buildings to high-end condos to investing in up-and-coming neighborhoods by buying retail facilities while the area is still in development, there are many ways for investors to make money off of a commercial property that others may not see as a viable investment.
Ultimately, learning more about the current commercial real estate market in California may help people make more judicious purchasing decisions.]]>On Behalf of Goodkin APChttps://www.goodkinlaw.com/?p=505142023-08-23T03:55:54Z2023-08-23T03:55:54ZChanges to the land itself
With an easement appurtenant, the actual legal description of the land is changed. The easement becomes part of the land, and an inherent part of that property. What this means is that the easement is transferred along with that property it is purchased by a new owner. A seller of the affected property is required to disclose that it exists before the property is purchased by someone new, as the easement can impact the value of the property in question.
In many scenarios, an easement appurtenant may be critical to someone else’s ability to use their own property. A common example of a situation in which this kind of easement may come into play involves when one property separates the other from a main road. The owner of the property that has been separated may have an easement allowing them to drive across the first property. Without that permission, they would not be able to use their own land.
Easements can get complicated, and they are just one factor to consider when buying or selling real estate. If you are going through the process of navigating a real estate transaction, it’s very important to know exactly what legal options you have and what your rights are. That way, you can make truly informed decisions about your situation.]]>On Behalf of Goodkin APChttps://www.goodkinlaw.com/?p=505152023-07-23T14:45:02Z2023-07-23T14:45:02Zbiggest missteps to avoid:
Failing to screen tenants
You may trust your “gut instincts” a lot when it comes to business but don’t make that mistake when it comes to your tenants. Failing to thoroughly vet your potential tenants can lead to problematic occupants who pay rent late, cause damage to the property or behave in ways that cause conflicts with other tenants. Always do thorough background checks, verify a prospective tenant’s employment and income, and contact previous landlords for references.
Using generic or “boilerplate” leases
Another common mistake is using a generic or poorly drafted lease agreement. A comprehensive lease agreement is essential for protecting your rights as a landlord and clearly outlining the responsibilities of both parties. Tailor your lease agreement so that it covers essential terms such as rent, security deposit, pet policies, maintenance responsibilities and eviction procedures. (Remember: If it isn’t written down in your agreement, you can’t hold your tenant to it.)
Failing to keep lines of communication open
Inexperienced landlords often overlook the importance of clear and timely communication with their tenants, and that breeds resentment and leads to trouble. Establish an open line of communication with your tenants and respond to their inquiries or concerns promptly. Consider using technology such as email, texts or property management software to both streamline and document your communications.
Not understanding landlord-tenant laws
Not understanding the intricacies of the Fair Housing Act or other landlord-tenant laws, including those on the local level regarding things like security deposits and eviction procedures, can result in major legal issues and financial losses.
With these guidelines in mind and a little legal guidance, you can navigate the landlord role with confidence and better ensure that your investment stays profitable.]]>On Behalf of Goodkin APChttps://www.goodkinlaw.com/?p=498432023-06-23T20:36:32Z2023-06-23T20:36:32ZWhat are the protections?
One example was the LA County Eviction Moratorium, which began on March 4, 2020. Lawmakers designed the protections to help keep renters in their homes when it was difficult to pay rent during the worst of the COVID-19 pandemic.
Can landlords move forward with legal remedies?
The LA County Eviction Moratorium protections ended on March 31, 2023. As of April 1, 2023, landlords could move forward with the expectation tenants make full rent payments for those due on or after April 1. Landlords can now consider eviction options for those who fail to make these payments.
Landlords are also able to consider suing tenants for rent owed. This is allowed even if the tenant paid 25% of the rent due from September 2020 through September 2021.
It is important to note that some local jurisdictions may have permanent tenant protections. Any landlord looking to move forward with eviction action may be wise to seek legal counsel to ensure their actions are within the bounds of the law.]]>On Behalf of Goodkin APChttps://www.goodkinlaw.com/?p=497872023-06-21T20:03:30Z2023-06-21T20:03:30ZNew methods take precedent
What changed most in the home buying process beyond looking for new dwellings versus staying put is the significant changes in the most straightforward practices when it comes to showing and buying homes.
Even though national orders to stay home, wear masks, and social distance has expired, countless people remain skittish about bringing people into their houses. Many states and localities maintain their restrictions, leaving open the chance of yet another variant spreading through the country.
In the end, it is left to the seller’s discretion as to how showings will commence, mainly if they are still residing in their home. Sellers have notified many agents to schedule appointments for showings on clients that are pre-approved. As with any industry post-COVID, comfort with the process is still paramount, including access to hand sanitizer, gloves, and other types of protection.
Many new home seekers still prefer to see the dwelling in person. When the pandemic began, real estate agents were initially slow to adapt. As sales and customers began to wane, they began to think “outside the box,” relying on social media and virtual tours.
The housing market remains competitive, with little time to schedule online tours or walk through the home. The time span from listing to sale is measured in days, if not minutes and hours. For many prospective homeowners or those looking for a larger home, a successful bid may come down to the luck of the draw.
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