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Cashier’s checks have a reputation for being safe, and that’s what makes them perfect for scams. Whether you’re selling something online or in-person, cashier’s checks deserve extra attention. Get familiar with the most common red flags, and you’ll significantly improve your chances of avoiding fraud. Safety and Cashier’s Check Fraud Why are cashier’s checks considered ‘safe?? When they’re legitimate, they offer guaranteed funds: Recipients don’t have to worry about a personal check bouncing, and money from the check is usually available for spending within one business day (at least the first $5,000 should be available). Unfortunately, cashier’s checks are much less safe than they used to be. If you don’t know and trust your buyer, you simply cannot assume that a cashier’s check is just as good as cash. A Typical Cashier’s Check Scam The most common cashier’s check scam goes something like this: A “buyer” wants to purchase a product and will use a cashier’s check. For whatever reason, the buyer has a check issued for an amount in excess of the purchase price. Still, the buyer wants the seller to “just go ahead” and deposit the check. Finally, the buyer requests that the seller return the excess money, typically in cash, by wire transfer, or via Western Union. The return payment might go directly back to the buyer or to a third party. Note the key elements: The buyer uses a cashier’s check or money order. They explain that this is their only option for payment. The seller or recipient gets a check for more than they asked for. The seller is supposed to send the extra money back to the buyer or to a ?helper.? If you’re faced with a situation that looks anything like this, you’re almost certainly dealing with a thief. Timing is essential: Don’t send any money or merchandise until you are 100 percent certain that the paying bank has actually sent the funds. This is often referred to as the time when the check ?clears,? but that term can be confusing?even for bank employees. Funds from a cashier’s check will be available to you for withdrawal within one business day, but that doesn’t mean that the funds actually exist or that they moved to your bank. That process can take several business days or longer. The less you know about your buyer, the longer you should wait. How cashier’s checks bounce: These scams work because everybody believes that cashier’s checks are safe. If the bank lets you take cash, the check must be good, right? Unfortunately, your bank assumes that the check will be good, but the responsibility for the deposit is ultimately yours. If you use that money (to send it to a ‘shipper,? for example), you may have to replace the funds. Once your bank finds out that the check is bogus, the deposit will be reversed?which could leave you with a negative account balance. With an empty bank account, you’ll end up bouncing checks and missing other important payments. What’s more, victims of these scams can lose hundreds or thousands of dollars. Protect Yourself Take steps to protect yourself from fraud: Never accept a check for more than you asked for. If possible, go to the bank with whoever is paying you and watch them get the cashier’s check from a teller. Stand in line with them so there’s no “switcharoo.” Verify funds on any check or money order you receive. This isn’t a foolproof tactic, but it’ll weed out some of the sloppier thieves. Insist on other forms of payment that you know are more reliable (such as a wire transfer) but be careful about giving out your bank account information. Only deal with local buyers on Craigslist and similar sites, and insist on cash payments if you can’t go to the bank together. Inspect any check you receive, looking for signs that it’s a fake. Misspelled words and poor quality paper without any security features are common on fake checks. If you must take a check for more than your asking price, inform the seller that you’ll wait at least two weeks before sending any money or sending merchandise. Speak with a bank manager when you deposit suspect checks. Explain the situation and your concerns, and ask when you can be 100 percent certain that the payment is good. Better yet, don’t accept suspect checks. Step away from the situation before you accept a cashier’s check and trust your gut. With a fresh perspective, you may notice odd clues that indicate trouble. Red Flags Thieves are good at what they do, but they often give hints. Ask yourself if the situation makes sense. For example, when buyers don’t ask typical questions or know much about the item you’re selling, why are they so eager to buy? It may turn out that they have no intention of using whatever you’re selling. Why would a person you?ve never met trust you with thousands of dollars? If they can contact you, they can surely give adequate instructions to have the bank issue a cashier’s check correctly. If the excessive amount was, in fact, the buyer’s fault, wouldn’t the buyer pay the $8 (or whatever) fee to have an accurate check printed instead of giving you?a complete stranger’the opportunity to steal the cash? Finally, if they can come up with extra money, they can surely afford to pay a separate cashier’s check fee or write a different check to their ?agent? or ?associate? who you’re supposed to forward the money to. More Examples Cashier’s checks show up in numerous scams. Keep an eye out for any of the situations below. Con artists continue to change their approach over time, but these are some of the classics. Money mule: You receive payments, and you’re supposed to deposit the payments to your account and forward the money to somebody else. Often advertised as a work-at-home check processing job, these schemes are usually problematic. In some cases, you’re laundering money for criminals. In other cases, …

What’s “Cash for Keys” in a Foreclosure? If you lose your home to a foreclosure sale, the new owner might offer you a lump-sum of money to voluntarily move out. This kind of transaction is called ?cash for keys.? People who go through a foreclosure can do a remarkable amount of damage to a house if they think the process was unfair or that the new owner is being unreasonable. Also, the legal process to evict someone from a foreclosed property is often costly and time-consuming. So, to incentivize the former homeowners to move out peacefully and voluntarily, the new owner?usually the bank that foreclosed’sometimes offers them a lump-sum of money. This type of transaction is called a ?cash-for-keys? deal. How Cash-for-Keys Deals Work A cash-for-keys arrangement often works like this: After your legal right to live in the home ends?whether that’s shortly after the sale or at the end of a redemption period?you’ll receive a letter from the new owner (usually the bank), or someone acting on the new owner’s behalf, offering you a lump-sum of money. Typically, the amount will be a few hundred to a few thousand dollars. In exchange for the funds, you’ll have to agree to vacate the home by a set deadline. You’ll also have to leave the property in ?broom swept? or ?broom clean? condition, which means you?ve cleaned up the place, didn’t vandalize anything, didn’t leave garbage behind, and didn’t strip the home of fixtures, like appliances, lights, or copper wiring. If you move out by the deadline and leave the property in satisfactory condition, then you’ll get the money. You’ll likely have to agree to a final inspection where you’ll hand over the keys and get a check. The money you get is intended to pay for your relocation costs. Your Likelihood of Getting a Cash-for-Keys Deal Cash-for-keys agreements are commonly offered following foreclosures and during evictions, and sometimes as part of a deed in lieu of foreclosure agreement. You’re more likely to get this kind of offer if the bank is the buyer at the foreclosure sale and the property becomes REO. Having a cash-for-keys policy is a standard procedure with many foreclosing banks. If a third party buys the home at the foreclosure sale and doesn’t offer you a cash-for-keys deal, you should consider proposing one. You’ll have to move out eventually anyway, and you might as well try to get some money to soften the blow. Negotiating a Cash-for-Keys Deal For the new owner, providing a cash-for-keys deal is usually faster and much cheaper than pursuing an eviction and possibly having to fix up a damaged property after the disgruntled homeowner moves out. So, if the new owner offers you money to leave, but you think it’s unfairly low, you can ask for a higher amount. Though, don’t get greedy. You shouldn’t ask for more than what you reasonably believe you’ll need to relocate. If you ask for too much, the bank or another new owner might withdraw the offer. Talk to an Attorney If you’re not comfortable negotiating a cash-for-keys deal on your own?or you have questions about how long you can legally live in the property?consider talking to a foreclosure lawyer. An attorney can tell you about your options before and after a foreclosure sale, inform you about foreclosure procedures in your state, and help you work out a cash-for-keys deal to help cover your relocation costs. HTTPS://KCREALESTATELAWYER.COM

Buying your first home comes with many big decisions, and it can be as scary as it is exciting. It’s easy to get swept up in the whirlwind of home shopping and make mistakes that could leave you with buyer’s remorse later. If this is your first rodeo as a homebuyer or it’s been many years since you last bought a home, knowledge is power. Along with knowing what issues to avoid, it’s important to glean first-time homebuyer tips from the pros so you know what to expect and what questions to ask. First-time homebuyer mistakes Here are 14 common first-time homebuyer mistakes, along with first-time homebuyer tips on how to avoid them: Looking for a home before applying for a mortgage. Talking to only one lender. Buying more house than you can afford. Moving too fast. Draining your savings. Being careless with credit. Fixating on the house over the neighborhood. Making decisions based on emotion. Assuming you need a 20 percent down payment. Waiting for the ?unicorn.? Overlooking FHA, VA and USDA loans. Miscalculating the hidden costs of homeownership. Not lining up gift money. Not negotiating a home buyer rebate. 1. Looking for a home before applying for a mortgage Many first-time buyers make the mistake of viewing homes before ever getting in front of a mortgage lender. In some markets, housing inventory is still tight because there’s more buyer demand than affordable homes on the market. And in a competitive market, you could lose the property if you aren’t preapproved for a mortgage, says Alfredo Arteaga, a loan officer with Movement Mortgage in Mission Viejo, California. How this affects you: You might get behind the ball if a home hits the market you love. You also might look at homes that, realistically, you can’t afford. What to do instead: ?Before you fall in love with that gorgeous dream house you?ve been eyeing, be sure to get a fully underwritten preapproval,? Arteaga says. Being preapproved sends the message that you’re a serious buyer who’s credit and finances pass muster to successfully get a loan. 2. Talking to only one lender This one is a biggie. First-time buyers might get a mortgage from the first (and only) lender or bank they talk to, potentially leaving thousands of dollars on the table. ?A good mortgage loan officer can look at your situation and diagnose any potential roadblocks ahead to give you a clear understanding of your home-buying options,? Arteaga says. How this affects you: The more you shop around, the better basis for comparison you’ll have to ensure you’re getting a good deal and the lowest rates possible. What to do instead: Shop around with at least three different lenders, as well as a mortgage broker. Compare rates, lender fees and loan terms. Don’t discount customer service and lender responsiveness; both play key roles in making the mortgage approval process run smoothly. 3. Buying more house than you can afford It’s easy to fall in love with homes that might stretch your budget, but overextending yourself is never a good idea. And with home prices still rising, this is easier said than done. How this affects you: Buying a home that exceeds your budget can put you at higher risk of losing your home if you fall on tough financial times. You’ll also have less wiggle room in your monthly budget for other bills and expenses. What to do instead: Focus on what monthly payment you can afford rather than fixating on the maximum loan amount you qualify for. Just because you can qualify for a $300,000 loan, that doesn’t mean you can afford the monthly payments that come with it. Factor in your other obligations that don’t show on a credit report when determining how much house you can afford. 4. Moving too fast Buying a home can be complex, particularly when you get into the weeds of the mortgage process. Rushing the process can cost you later on, says Nick Bush, a Realtor with TowerHill Realty in Rockville, Maryland. ?The biggest mistake that I see (first-time buyers make) is to not plan far enough ahead for their purchase,? Bush says. How this affects you: Rushing the process means you might be unable to save enough for a down payment and closing costs, address items on your credit report or make informed decisions. What to do instead: Map out your home-buying timeline at least a year in advance. Keep in mind it can take months ? even years ? to repair poor credit and save enough for a sizable down payment. Work on boosting your credit score, paying down debt and saving more money to put you in a stronger position to get preapproved. 5. Draining your savings Spending all or most of their savings on the down payment and closing costs is one of the biggest first-time homebuyer mistakes, says Ed Conarchy, a mortgage planner and investment adviser at Cherry Creek Mortgage in Gurnee, Illinois. ?Some people scrape all their money together to make the 20 percent down payment so they don’t have to pay for mortgage insurance, but they are picking the wrong poison because they are left with no savings at all,? Conarchy says. How this affects you: Homebuyers who put 20 percent or more down don’t have to pay for mortgage insurance when getting a conventional mortgage. That’s usually translated into substantial savings on the monthly mortgage payment. But it’s not worth the risk of living on the edge, Conarchy says. What to do instead: Aim to have three to six months of living expenses in an emergency fund. Paying mortgage insurance isn’t ideal, but depleting your emergency or retirement savings to make a large down payment is riskier. 6. Being careless with credit Lenders pull credit reports at preapproval to make sure things check out and again just before closing. They want to make sure nothing has changed in your financial picture. How this affects you: Any new loans or credit card accounts on your …

When two or more people own a home, either as a joint tenancy or tenancy in common, each individual owns a share (or interest) of the entire property. This means that specific areas of the house are not owned by any one individual, but instead, are shared as a whole. While joint tenants are similar to tenants in common in many ways, particularly with regard to their right of possession to a given property, there are some important differences. This article covers the basic differences between joint tenants and tenants in common. Tenancy in Common While none of the owners may claim a specific area of the property, tenants in common may have different ownership interests. For instance, Tenant A and Tenant B may each own 25 percent of the home, while Tenant C owns 50 percent. Tenancies in common also may be obtained at different times; so an individual may obtain an interest in the property years after one or more other individuals have entered into a tenancy in common ownership. Joint Tenancy Joint tenants, on the other hand, must obtain equal shares of the property with the same deed, at the same time. The terms of either a joint tenancy or tenancy in common are spelled out in the deed, title, or other legally binding property ownership document. The default ownership characterization for married couples is joint tenancy in some states, and tenancy in common in others (see Top 10 Reasons for Unmarried Partners to Own Property as Joint Tenants). A joint tenancy can be broken if one of the tenants transfers or sells his or her interest to another person, thus changing the ownership arrangement to a tenancy in common for all parties. However, a tenancy in common can be broken if one or more co-tenants buy out the others; if the property is sold and the proceeds distributed amongst the owners; or if a partition action is filed, which allows an heir to sell his or her stake. At this point, former tenants in common can choose to enter into a joint tenancy via written instrument if they so desire. This type of holding title is most common between husbands and wives and among family members in general since it allows the property to pass to the survivors without going through probate (saving time and money). Right of Survivorship One of the main differences between the two types of shared ownership is what happens to the property when one of the owners dies. When a property is owned by joint tenants, the interest of a deceased owner automatically gets transferred to the remaining surviving owners. For example, if three joint tenants own a house and one of them dies, the two remaining tenants each obtain a one-half share of the property. This is called the right of survivorship. Tenants in common have no rights of survivorship. Unless the deceased individual’s will or other instrument specifies that his or her interest in the property is to be divided among the surviving owners, a deceased tenant in common’s interest belongs to the estate. HTTPS://KCREALESTATELAWYER.COM

What is the gift tax? The gift tax is a tax on the transfer of money or property to another person while getting nothing (or less than full value) in return. Many people don’t get hit with the gift tax, because the IRS generally doesn’t care about what you give away to other people unless that giving exceeds some lofty amounts. And even if it does, it might mean you just have to fill out some paperwork. How much can you gift? Two things keep the IRS? hands out of most people’s candy dish: the $15,000 annual exclusion in 2018 and 2019, and the $11.2 million lifetime exclusion (in 2018). In 2019, the lifetime exclusion rises to $11.4 million. Stay below those and you can be generous under the radar. Go above, and you’ll have to fill out a gift tax form when filing returns ? but you still might avoid having to pay any gift tax. How the annual gift tax exclusion works In 2018 and 2019, you can give up to $15,000 to someone in a year and generally not have to deal with the IRS about it. If you give more than $15,000 in cash or assets (for example, stocks, land, a new car) in a year to any one person, you need to file a gift tax return. That doesn’t mean you have to pay a gift tax. It just means you need to file IRS Form 709to disclose the gift. The annual exclusion is per recipient; it isn’t the sum total of all your gifts. That means, for example, that you can give $15,000 to your cousin, another $15,000 to a friend, another $15,000 to the neighbor, and so on all in the same year without having to file a gift tax return. The annual exclusion also is per person, which means that if you’re married, you and your spouse could give away a combined $30,000 a year to whomever without having to file a gift tax return. Gifts between spouses are unlimited and generally don’t trigger a gift tax return. Gifts to nonprofits are charitable donations, not gifts. The person receiving the gift usually doesn’t need to report the gift. How the lifetime gift tax exclusion works On top of the $15,000 annual exclusion, you get an $11.2 million lifetime exclusion (in 2019, that rises to $11.4 million). And because it’s per person, married couples can exclude double that in lifetime gifts. That comes in handy when you’re giving away more than $15,000. ?Think about buckets or cups,? says Christopher Picciurro, a certified public accountant and co-founder of accounting and advisory firm Integrated Financial Group in Michigan. Any excess ‘spills over? into the lifetime exclusion bucket. For example, if you give your brother $50,000 this year, you’ll use up your $15,000 annual exclusion. The bad news is that you’ll need to file a gift tax return, but the good news is that you probably won’t pay a gift tax. Why? Because the extra $35,000 ($50,000 ? $15,000) simply counts against your $11.2 million lifetime exclusion. Next year, if you give your brother another $50,000, the same thing happens: you use up your $15,000 annual exclusion and whittle away another $35,000 of your lifetime exclusion. ?What the gift tax return does is it keeps track of that lifetime exemption,? says Julie Malekhedayat, a CPA and principal at accounting and advisory firm Abbott, Stringham and Lynch in San Jose, California. ?So if you don’t gift anything during your life, then you have your whole lifetime exemption to use against your estate when you die.? The IRS generally doesn’t care about what you give away to other people unless that giving exceeds some lofty amounts. And even if it does, it might mean you just have to fill out some paperwork. What is the gift tax rate? If you’re lucky enough and generous enough to use up your exclusions, you may indeed have to pay the gift tax. The rates range from 18% to 40%, and the giver generally pays the tax. There are, of course, exceptions and special rules for calculating the tax, so see the instructions to IRS Form 709for all the details. What can trigger a gift tax return? Caring is sharing, but some situations often inadvertently trigger the need to file a gift tax return, pros say. Spoiling the grandkids with college money Picciurro explains it like this. ?Let’s say Grandma and Grandpa say, ?We don’t really like your husband and we don’t really like you, but we really like our grandkids. So we’re going to give $60,000 and we’re going to put it ina 529 plan for them so their college is paid for.? Well, Grandma and Grandpa just triggered the gift tax exclusion because it’s over [$15,000].? A special rule allows gift-givers to spread one-time gifts across five years? worth of gift tax returns to preserve their lifetime gift exclusion. Springing for vacations, cars or other stuff If you fork out $40,000 for Junior’s wedding, or just pay for the crazy-expensive honeymoon, get ready to do some paperwork. ?Those kinds of things are actually gifts that people normally wouldn’t even think about,? Malekhedayat warns. If you’re paying tuition or medical bills, paying the school or hospital directly can help avoid the gift tax return requirement (seethe instructions to IRS Form 709for details). Laid-back loans Lending money to friends and family is usually a bad idea, and the IRS can make it even worse. It considers interest-free loans as gifts, Malekhedayat says. ?Or if you give them a loan and later decide they don’t need to repay the loan to you, that’s also making gifts,? she warns. Elbowing in on a non-spouse bank account ?Let’s say you live by Grandma, so for convenience, we’re going to put you on Grandma’s bank account. Guess what just happened?? Picciurro says. ?If you’re put as a joint [owner] on a bank account with somebody and you have the right to take the money out at …

What is Blockchain? If this technology is so complex, why call it blockchain. At its most basic level, blockchain is literally just a chain of blocks, but not in the traditional sense of those words. When we say the words block and chain in this context, we are actually talking about digital information (the block) stored in a public database (the chain). Blocks on the blockchain are made up of digital pieces of information. Specifically, they have three parts: Blocks store information about transactions like the date, time, and dollar amount of your most recent purchase from Amazon. (NOTE: This Amazon example is for illustrative purchases; Amazon retail does not work on a blockchain principle) Blocks store information about who is participating in transactions. A block for your splurge purchase from Amazon would record your name along with Amazon.com, Inc. Instead of using your actual name, your purchase is recorded without any identifying information using a unique digital signature sort of like a username. Blocks store information that distinguishes them from other blocks. Much like you and I have names to distinguish us from one another, each block stores a unique code called a hash that allows us to tell it apart from every other block. Lets say you made your splurge purchase on Amazon, but while its in transit, you decide you just cant resist and need a second one. Even though the details of your new transaction would look nearly identical to your earlier purchase, we can still tell the blocks apart because of their unique codes. While the block in the example above is being used to store a single purchase from Amazon, the reality is a little different. A single block on the blockchain can actually store up to 1 MB of data. Depending on the size of the transactions, that means a single block can house a few thousand transactions under one roof. How Blockchain Works When a block stores new data it is added to the blockchain. Blockchain, as its name suggests, consists of multiple blocks strung together. In order for a block to be added to the blockchain, however, four things must happen: A transaction must occur. Lets continue with the example of your impulsive Amazon purchase. After hastily clicking through multiple checkout prompt, you go against your better judgment and make a purchase. That transaction must be verified. After making that purchase, your transaction must be verified. With other public records of information, like the Securities Exchange Commission, Wikipedia, or your local library, there is someone in charge of vetting new data entries. With blockchain, however, that job is left up to a network of computers. These networks often consist of thousands (or in the case of Bitcoin, about 5 million) computers spread across the globe. When you make your purchase from Amazon, that network of computers rushes to check that your transaction happened in the way you said it did. That is, they confirm the details of the purchase, including the transactions time, dollar amount, and participants. (More on how this happens in a second.) That transaction must be stored in a block. After your transaction has been verified as accurate, it gets the green light. The transactions dollar amount, your digital signature, and Amazons digital signature are all stored in a block. There, the transaction will likely join hundreds, or thousands, of others like it. That block must be given a hash. Not unlike an angel earning its wings, once all of a blocks transactions have been verified, it must be given a unique, identifying code called a hash. The block is also given the hash of the most recent block added to the blockchain. Once hashed, the block can be added to the blockchain. When that new block is added to the blockchain, it becomes publicly available for anyone to view even you. If you take a look at Bitcoins blockchain, you will see that you have access to transaction data, along with information about when (Time), where (Height), and by who (Relayed By) the block was added to the blockchain. Is Blockchain Private? Anyone can view the contents of the blockchain, but users can also opt to connect their computers to the blockchain network. In doing so, their computer receives a copy of the blockchain that is updated automatically whenever a new block is added, sort of like a Facebook News Feed that gives a live update whenever a new status is posted. Each computer in the blockchain network has its own copy of the blockchain, which means that there are thousands, or in the case of Bitcoin, millions of copies of the same blockchain. Although each copy of the blockchain is identical, spreading that information across a network of computers makes the information more difficult to manipulate. With blockchain, there isnt a single, definitive account of events that can be manipulated. Instead, a hacker would need to manipulate every copy of the blockchain on the network. Looking over the Bitcoin blockchain, however, you will notice that you do not have access to identifying information about the users making transactions. Although transactions on the blockchain are not completely anonymous, personal information about users is limited to their digital signature or username. This raises an important question: if you cannot know who is adding blocks to the blockchain, how can you trust blockchain or the network of computers upholding it? Is Blockchain Secure? Blockchain technology accounts for the issues of security and trust in several ways. First, new blocks are always stored linearly and chronologically. That is, they are always added to the end of the blockchain. If you take a look at Bitcoins blockchain, you will see that each block has a position on the chain, called a height. As of February 2019, the blocks height had topped 562,000. After a block has been added to the end of the blockchain, it is very difficult to go back and alter the contents of the block. Thats because each …

Social media marketing is an important part of any real estate business. Its crucial to share the right type of content in the right ways to generate leads and increase potential sales. At the same time, its not just about what you share but where you share it. Here are 9 social media platforms and how they can help you up your digital real estate marketing game. Facebook The big daddy of social media, Facebook has a massive user base as well as built-in marketing tools for targeting neighborhoods and demographics. While organic reach has been limited in order to promote its paid advertising options, Facebook is still an excellent place to run social media content. Instagram Image and video content has traditionally been a popular way to generate attention, and Instagram is the biggest and most well-known site with such a focus. Sharing on this platform is a great choice when it comes to using attractive visual elements, either as a standalone post or as part of other content such as a blog post. Make sure to hashtag appropriately! Twitter The happy medium between Facebook and Instagram, Twitter is perfect for sharing all types of content. Twitter is ideal for short posts, thanks to its character limit, is great for sharing images and videos and perfect for linking to content from an outside source. Hashtags are even more important on Twitter than they are on Instagram, so be on your game. LinkedIn If you want your real estate business to be taken seriously, its imperative that you have a LinkedIn account associated with your offices. This professional social media platform is ideally used for networking and job searching but is a fertile ground for posting high-quality content related to your real estate business. Doing so can help establish your realty company as a professional brand. Trulia Trulia isnt strictly a social media platform ? its more of an MLS listing site ? but the TruliaVoices section of the website allows interaction with community members. Establishing yourself as an authority on Trulia Voices by answering questions about the home buying process will build trust within that community, thus making it more likely your real estate practice will be remembered in a positive light. That kind of social capital can be invaluable. Zillow Zillow shares many similarities with Trulia. As such, Zillows Discussions forum is yet another place where you can boost your brand awareness and authority by answering questions and providing support. This makes it important to maintain a presence on Zillow as well as Trulia in equal measure you should not do one without the other. ActiveRain Like LinkedIn but specifically for real estate professionals, ActiveRain is another great networking member site that offers excellent social media opportunities. In addition, ActiveRain is a solid source for digital support structures for your real estate business, as members offer advice. A unique referral system also provides additional functionality. MeetUp Not as formal as LinkedIn and with a more local bent, the MeetUp social media site can help you network with colleagues and professionals. You can interact with local prospective home buyers and share content relevant to your neighborhood or chosen locale. NextDoor NextDoor is all about building solidarity in your neighborhood. Centered around street-level communities, NextDoor is great for building a positive reputation on your block where your offices are located. From sharing recipes to asking for landscaping tips, NextDoor members interact on an intimate level. HTTPS://KCREALESTATELAWYER.COM

What Is Title Insurance And Why Is It Important? The median home value in the United States has increased by $16,000 over the last 12 months, according to data released by Zillow. But home values are not the only items enjoying growth. Title insurance, a $15 billion industry, is also forcasted to continue growing through 2020. It’s clear more homeowners are electing to choose title insurance, and you too should understand the fundamentals and importance of title insurance for your home purchase. What is title insurance? Traditional insurance policies protect insureds against future losses. For example, a car insurance policy will protect the driver from future accidents, and a health insurance policy will protect an insured from future health problems. However, title insurance is different because it protects insureds against claims for past occurrences. Who does title insurance protect? Two different types of title insurance exist. A real estate owner can choose to purchase title insurance and lenders can elect to do so as well. Lenders will require title insurance by mortgagors in order to secure their security interest in the property. Furthermore, a property owner will purchase title insurance to protect their investment in their property. What type of protection does title insurance provide? Title insurance will require an extensive title search of the property. This search will minimize the potential liability to the property owners by discovering any foreseeable title issues. However, once a property owner purchases and takes possession of a property, title insurance will defend against any litigation that challenges the validity and legality of the new property owner. How much does title insurance cost? Unlike traditional insurance companies where monthly payments are required, title insurance only requires a one-time payment. This insurance will vary according to the price on your home and according to the state that you will purchase a home. On average, a title insurance policy for a homeowner costs $834 and for the lender, it will cost $544. Is this expense really necessary? The reality is that title insurance has protected a large number of insureds, but it really hasnt proportionality paid out that many claims. An estimated 4-5% of title insureds have been paid on their policy. However, these problems protected by the claims were unlikely to be detected by an ordinary purchaser. Only title insurance would protect the homeowner purchasers. What specific claims does title insurance cover? These claims include certain errors that were made in inputting information into the public record. A title examiner will assess the title by analyzing the chain of ownership of the house. They will ensure that the property passed either by sale, through a will, or maybe even in a gift to the correct and intended person. Additionally, a title check will ensure there are no current legal claims against the house, including encumbrances such as liens, mortgages or any existence that makes the title not able to be transferred. Read more about specific title insurance claims here. The short end is that a title policy protects that small group that has a problem. Title insurance is a valuable protection for home purchasers since this group really has no way of detecting the problem before it arises. To be safe, it is worth to spend the average cost of $834 for title insurance. HTTPS://KCREALESTATELAWYER.COM

Getting Your Home Back After a Property Tax Sale in Missouri Lost your home to a tax sale in Missouri? You may be able to redeem it. If you’ve lost your home to a tax sale in Missouri, you might be able to reclaim your property by redeeming it. To redeem, you have to catch up on the delinquent taxes plus various other amounts. But if you miss the deadline to redeem, you won’t get another chance to get your home back in this manner. In parts of Missouri, the county collector will sell your home at a public auction to the highest bidder if you become delinquent on your real property taxes. How Long You Have to Reclaim Your Missouri Home After a Tax Sale If you lose your home to this type of tax sale in Missouri, you typically get some time in which to reclaim it, by paying a certain amount. (Mo. Ann. Stat.  140.340). This is called redeeming the home. The time frame during which you can redeem is called a redemption period. If you don’t redeem, the purchaser from the auction can get a deed (title) to your home. (Mo. Ann. Stat. 140.405, 140.420). General right to redeem. In Missouri, you can ordinarily reclaim your home within one year after the tax sale and up until the purchaser gets the deed to your home so long as the home sells on the collector’s first or second sale attempt. (Mo. Ann. Stat. 140.340,140.250). Your right to redeem if the home doesn’t sell at a first or second tax sale. If the home doesn’t sell at a first or second sale, then the collector will attempt to sell it at a third tax sale. When the home sells at a third tax sale, you get 90 days to redeem the home. (Mo. Ann. Stat.  140.250). No right to redeem after a subsequent sale. If no one buys the property at the first, second, or third tax sale, but it does sell at a subsequent offering, there is no redemption period. (Mo. Ann. Stat.  140.250). Some homeowners get additional time to redeem. Minors, people who are incapacitated, and disabled persons may redeem within five years of the date of the last payment of taxes encumbering the real estate by the minor, incapacitated or disabled person, the party’s predecessors in interest, or any representative of such person (Mo. Ann. Stat. 140.350). Notice of Your Right to Redeem After the sale, you’ll receive notice about your right to redeem. When you get notified if a purchaser buys the home at a first or second tax sale. At least 90 days before the date when the purchaser is authorized to acquire the deed, the purchaser must send you a notice by first-class and certified mail about your right to redeem. (Mo. Ann. Stat. 140.405). When you’ll get notified if a purchaser buys the home at a third sale. If the property was sold at a third sale, the purchaser must send the redemption notice within 45 days of the sale. The 90-day redemption period begins when the purchaser mails this notice. (Mo. Ann. Stat. 140.405). How Much You’ll Have to Pay in Order to Redeem You can redeem the home by paying the county collector: the amount of the delinquent taxes the costs of the sale interest, at a rate not to exceed 10% per year (but not on the amount the purchaser paid that exceeds the taxes and costs) all subsequent taxes that the purchaser paid plus interest, at the rate of 8% per year, and certain additional costs. (Mo. Ann. Stat. 140.340). HTTPS://KCREALESTATELAWYER.COM

In business, there are numerous instances in which you may want to share confidential information with another party. But the key to doing so safely is making sure that the other party is bound to respect the confidential information you provide them and not use it to your detriment. One common way to protect the secrecy of confidential information given to another party is through the use of a Non-Disclosure Agreement, which is sometimes also referred to as a Confidentiality Agreement or NDA. In this article, I will explain when it makes sense to have a Non-Disclosure Agreement as well as the key terms that agreement must include. When Does a Non-Disclosure Agreement Make Sense? When does it make sense to require another party to sign a Non-Disclosure Agreement? There are probably many instances where it may be appropriate. But the principal situations are those in which you wish to convey something valuable about your business or idea, but still, want to ensure that the other side doesnt steal the information or use it without your approval. Here are some typical situations where you may want to use a Non-Disclosure Agreement: Presenting an invention or business idea to a potential partner, investor, or distributor Sharing financial, marketing, and other information with a prospective buyer of your business Showing a new product or technology to a prospective buyer or licensee Receiving services from a company or individual who may have access to some sensitive information in providing those services Allowing employees access to confidential and proprietary information of your business during the course of their job Non-Disclosure Agreements probably don’t make sense for start-ups trying to raise funding from venture capital investors, as most venture capitalists will refuse to sign such agreements. Mutual vs. Non-Mutual NDAs Non-Disclosure Agreements come in two basic formats: a mutual agreement or a one-sided agreement. The one-sided agreement is when you are contemplating that only one side will be sharing confidential information with the other side. The mutual NDA form is for situations where each side may potentially share confidential information. Although there is always some appeal to using a mutual form of NDA, I really shy away from the mutual form if I?m not planning to receive confidential information from the other side. One way to decide this early on is to let the other side know that you don’t want to receive any of their confidential information, so you don’t see the need for a mutual form if they ask for one. Sample forms of NDAs can be found in the Forms and Agreements section of AllBusiness.com. The Key Elements of Non-Disclosure Agreements Non-Disclosure Agreements don’t have to be long and complicated. In fact, the good ones usually don’t run more than a few pages long. The key elements of Non-Disclosure Agreements: Identification of the parties Definition of what is deemed to be confidential The scope of the confidentiality obligation by the receiving party The exclusions from confidential treatment The term of the agreement The Parties to the Agreement The parties to the agreement are usually a straightforward description set forth at the beginning of the contract. If it’s an agreement where only one side is providing confidential information, then the disclosing party can be referred to as the disclosing party and the recipient of the information can simply be referred to as the recipient. The one tricky part here is to think about whether any other people or companies may also be a party to the agreement. Does the recipient expect to show confidential information to a related or affiliated company? To a partner? To an agent? If so, the NDA should also cover those third parties. What Is Deemed Confidential? This section of the NDA deals with defining what confidential information means. Is it any information? Is it information that is only marked in writing as confidential? Can oral information conveyed be deemed confidential? On one hand, the disclosing party wants this definition of confidential information to be as broad as possible to make sure the other side doesnt find a loophole and start using its valuable secrets. On the other hand, if you are the recipient of the information, you have a legitimate desire to make sure that the information that you are supposed to keep secret is clearly identified so that you know what you can and can’t use. Oral information, in particular, can be tricky to deal with. Some recipients of information insist that only information conveyed in writing need to be kept confidential. And, of course, the party giving oral information may say that that is too narrow. The usual compromise is that oral information can be deemed confidential information, but the disclosing party has to confirm to the other side in writing sometime shortly after it has disclosed so that the receiving party is now on notice as to what oral statements are deemed confidential. Scope of the Confidentiality Obligation The core of the Non-Disclosure Agreement is a two-part obligation on the receiver of the information: to keep the confidential information in fact confidential and not use the confidential information itself. So the first part is that the recipient of the confidential information has to keep it secret. And this usually means that the recipient has to take reasonable steps to not let others have access to it. For example, reasonable steps could include that only a few people within the recipient’s company have access to the information and they are all informed of the nature of the confidentiality restrictions. The second part is also crucial’that recipients can’t use the information themselves. After all, the last thing you want is for them to take your great idea or mailing list and make a bizillion dollars from it. If the scope of the NDA is broad enough, then you can sue for damages or to stop the recipients if they breach either their confidentiality obligations or their non-use agreement. Exclusions from Confidentiality Treatment Every NDA has certain exclusions …

Relocation expenses are sometimes paid by employers. If they are, does a departing employee (that is, one who is quitting or resigning) have to repay them? The answer is, it depends on whether there was a written employment contract or relocation agreement requiring their repayment and, if so, what the contract or agreement says. If there was no contractual agreement to repay, you would not have to reimburse the employer for the relocation costs. Only if you contractually agreed to repay these expenses would you be required to (This is a very slight oversimplification: if it can be shown that the employee never intended to work for the employer but only took the job and/or transfer as the way to get them to pay for a move, then the employee may have committed fraud and may be liable to repay, even without a written agreement. But this is a very rare circumstance, and would require compelling evidence, such as employee quitting almost right away after the move was made.) If there was a contract requiring reimbursement of relocation expense, such an agreement is valid and enforceable. They have been repeatedly upheld by courts. Like any other contract, it is governed by its plain terms; so, if an employee agreed to repay if he or she left employment before, say, one year, then if the employee does leave employment before one year, he or she will have to repay. If he or she gave notice at one year and one week, he or she would not. Whatever the contract says, goes. Some people believe that if they have a good reason for quitting?a medical issue, a family emergency, quality of life, a job that turned out other than what they thought or were told it would be, work stress (even stress to the point of causing health issues)’then they can resign early without repaying. However, that is not the case. First, under contract law, you can only terminate or get out of an agreement for fraud or if the other side breaches or violates the agreement in some material, or important, way. (Again, a slight oversimplification, but this will cover 99%+ of situations.) You cannot use your own concerns or issues to get out of an agreement since if you could, no contract would ever be binding. Anyone could get out of a contract at will by citing whatever personal, health, financial, family, etc. reasons exist that make the contract a bad idea for them. Since allowing someone to escape a contract due to their own issues or problems would make contracts unenforceable, the law does not allow this. Your own issues are your issues or concerns, not the other party’s (i.e., not your employer’s) and will not let you out of your repayment obligations. Second, under ?employment at will??which is the law of the land in regards to employment’there is no right to a job. Your employer does not have to employ you or make your job a reasonable or worthwhile one. Rather, they can treat you however they like, and the job can be excessively stressful and destructive of your quality of life, and that is perfectly legal. Since it is legal, it is not a basis or ground to get out of the relocation agreement. Therefore, the stated reasons?work stress and quality of life?have no bearing on the repayment obligation(s). If you have a relocation expenses repayment agreement, all you can do is stick it out until you can safely resign or quit. HTTPS://KCREALESTATELAWYER.COM

As a real estate professional, you are constantly being challenged. You need to make decisions that ultimately affect your buyers and sellers and, of course, your business. These choices can lead you down one of two paths: success or failure. Mistakes are inevitable, as with any venture, but your response to those mistakes can mean the difference between a successful business and an early exit from the industry. 1. Understand Your Investment Personality Gaining a deep understanding of your style of investing is crucial with real estate. Some like to be adventurous and flip for profit, others like a steady cash flow. Whichever you choose, make sure it’s something you see yourself doing day in and day out. Otherwise, you’ll wake up in 10 years having created a job for yourself and not the dream you wanted. 2. Hire A Professional Home Inspector Spend the time and money to hire a professional home inspector. Even for smaller deals that might be all cash, an inspector can help you negotiate a better price or avoid a money pit altogether. 3. Don’t Always Listen To Building Inspectors Knowing the political and local landscape with inspectors is critical as you choose where to develop property. In the process of developing our ocean properties, a building inspector advised us to move in a certain direction to save us time and money. We took his advice and are still paying for it. The inspector was fired for multiple issues; the town was not responsible for his lack of judgment ?4. Trust, But Verify Relying on representation about a property’s condition when investing may not always work out favorably. Having independent reviews by licensed professionals can allow you to validate any representations about a property’s condition. For example, an inspection report or an appraisal before buying a property can provide an independent opinion on the potential risks that need to be addressed. 5. Don’t Be In A Rush As the old saying goes, “bulls make money, bears make money, pigs get slaughtered.” The real estate market is cyclical. If you have the wherewithal to hold an asset long term, you should not be in a rush to sell over market speculation. However, if you are looking to offload an asset quickly, ask yourself if it is really worth that extra percentage point or two by holding out for a specific price.? 6. Keep Your Cash And Make Huge Profits I grew up learning that you pay cash for everything, including your house. Living debt-free is a great way to live. However, real estate investing is a different breed. Spend a fraction of your liquid cash to purchase 10 homes instead of one. Have the renters pay off your mortgage in 10 years, and now you have 10 homes providing cash flow instead of one. Let renters pay off loans and you profit.? 7. Make Yourself Scalable Early in my real estate investing career, I tired of self-property management. But seasoned landlords told me, “No one cares about your property as much as you. Keep self-managing.” I soon found that it’s not worth self-managing for the last 2% of perfection. By outsourcing management, I quickly grew from eight to 20 units and freed up my time. Don’t self-manage for too long. It’s not scalable.? 8. Stick To Your Criteria You know that sickness we all get from time to time, called “dealitis?” When you just need ONE more deal or feel excitement around a property so you loosen up your buying criteria? The side effects can be lost money, lost time, frustration, sleepless nights and general malaise. Leave yourself open for better deals. Stick to your guns; an ounce of prevention is the only cure.? ?9. Make Sure You Hire The Right Contractors Contractors will make or destroy a beautiful, rehabbed house and investment. They can break the bank or work with it! Find a good and reliable contractor when doing rehabs. This is the best advice that I can give from my experience.? 10. Don’t Hold On For The Turnaround I bought my first home at the top of the real estate market in Los Angeles in 1989. Then it crashed. I had over-improved the house. All the money I sank into it, gone in a snap. All that sweat equity? Vanished overnight. Instead of killing myself to get out from under it, if I had found a way to hold on to it, I would have made a killing instead of losing $50,000. I took the wrong way out.? 11. Stop Overthinking One of the biggest mistakes I ever made was overthinking and letting the six inches in between my ears get in the way. Also, being overly optimistic on timelines and costs associated with the purchase (always prepare for the worst-case scenario) and not thinking big enough on my investment decisions ? I should have gone for more units. The effort and work are the same, the rewards are just greater! HTTPS://KCREALESTATELAWYER.COM

A restraint on alienation, in the law of real property, is a clause used in the conveyance of real property that seeks to prohibit the recipient from selling or otherwise transferring his interest in the property. Under the common law such restraints are void as against the public policy of allowing landowners to freely dispose of their property. Perhaps the ultimate restraint on alienation was the fee tail, a form of ownership which required that property be passed down in the same family from generation to generation, which has also been widely abolished.[1] However, certain reasonable restraints will be given effect in most jurisdictions. These traditionally include: A prohibition against partition of property for a limited time. The right of first refusal ? for example, if Joey sells property to Rachel, he may require that if Rachel later decides to sell the property, she must first give Joey the opportunity to buy it back. The establishment of public parks and gardens, as was the case for The Royal Parks of London in the UK. These public spaces were created under such terms by the Crown Estate; which meant that these parks were held in perpetuity for the public to use. Some specific restraints on alienation in the United States include: Disabling restraints To be effective the grantor must sue the grantee for enforcement. The effectiveness of the lawsuit could prevent the transfer from being made. In addition, if the disabling restraint is found to be unconstitutional the restraint will not be effective. Promissory restraints If the promissory note is breached by the grantee, the grantor may sue for damages. Unlike disabling restraints, the effectiveness of the lawsuit does not prevent the transfer from being made. However, the Supreme Court says promissory restraints are not permissible. The promissory note discourages the person getting ready to sell the property which is the same effect as the disabling restraint. Forfeiture restraints In the event of a breach the property returns to the grantor or the grantor’s heirs. The return happens automatically, hence the argument can be made that there is no state actions. However, according to a constitutional argument the mere fact that the state recognizes the validity of an automatic transfer makes it a state action. To be effective the restraint must be reasonable and the restraint must be the same as a real covenant or equitable servitude. There are six factors to determine if a restraint on alienation is reasonable: Type of price (fixed or not fixed; courts prefer non-fixed) Purpose: Is it a legitimate purpose, or not? (courts prefer legitimate) Equal bargaining power of the parties Duration (a time limit to the restraint is preferred) Limit to the number of persons to which transfer is prohibited A restraint that increases the value of property is more reasonable. There are five basic conditions that must be met in order for there to be an effective real covenant and equitable servitude: It must be enforceable. To be enforceable it must not be too vague, it must not violate a statute or the constitution, it must not violate public policy, and it must meet the requirements under the statute of frauds. It must touch and concern the land. It must be intended to run. There must be privity between the successive occupants. There must be notice of the existence of a real covenant/equitable servitude. HTTPS://KCREALESTATELAWYER.COM

What do Real Estate Attorneys do? So you’ve decided to take the big step of buying a home. It’s probably the biggest purchase and most expensive investment you’ll ever make. But it’s not a simple process. There are a lot of laws that are specific to real estate, with which most people aren’t acquainted. Just like hiring a real estate agent to deal with the sale, you may want to consider hiring a real estate lawyer to guide you through the legal process in the real estate industry. Read on to learn more about what a real estate lawyers and real estate law, all the responsibilities that come with practicing real estate law, what their qualifications are, and when you should consider hiring one. Real Estate Lawyers: An Overview Real estate attorneys are professionals who specialize in and apply their legal skills to matters related to property, from everyday transactions to disputes between parties. Although they are not required at every transaction, a homebuyer may benefit by hiring one to help make sure there are no hiccups through the process. Some states even require buyers to hire a real estate attorney, so it’s best to verify with your realtor if you need one. After all, it is an added expense that you have to cover. Most realtors who specialize in real estate law charge by the hour for their services, while others get paid a flat fee based on the transaction. Keep in mind that having someone who is experienced with the law on your side may help you avoid any legal problems that can cause delays to your closing, and save you money in the long run. KEY TAKEAWAYS Real estate attorneys are professionals who specialize in and apply their legal skills to matters related to real property. A real estate lawyer prepares and reviews purchase agreements, mortgage documents, title documents, and transfer documents. Some states require buyers to have a real estate lawyer present at every transaction. Real Estate Law Real estate law oversees the purchase and sale of real property’that is, of land and anything attached to it such as buildings or other structures. It also includes anything that comes with a property such as appliances or fixtures. This type of law has nothing to do with personal property or someone’s personal possessions, and only with real property. This branch of the legal system, therefore, ensures the proper procedures surrounding the acquisition of property, as well as what people can do with that property. Real estate law also factors in things like deeds, property taxes, estate planning, zoning, and titles. Real estate law varies by state, making it state law. So attorneys must be licensed to practice in their state and must be up to date on any of the changes that affect transactions that happen locally or in their state. Real estate law varies by state, so it’s also considered state law. Responsibilities A real estate attorney is equipped to prepare and review documents relating to real estate such as purchase agreements, mortgage documents, title documents, and transfer documents. Real estate attorneys also often handle closings?when an individual or entity purchases a piece of real property from someone else. In most cases, the real estate attorney provides legal guidance for individuals relating to the purchase or sale of real property. He or she ensures the transfer is legal, binding, and in the best interest of his or her client. During the purchase of a property, the real estate attorney and staff often prepare all closing documents, write title insurance policies, complete title searches on the property, and handle the transfer of funds for the purchase. The attorney, or his or her team, also prepares forms such as the HUD-1 Form and related transfer of funds documentation for the buyer’s lender if the purchase is being financed. In the case of a real estate dispute, such as chain of title, lot line problems, or other issues involving contracts, an attorney works to resolve the problems. He may work for either side and provide legal representation for the parties in a courtroom setting. The real estate attorney obtains facts from both sides of the dispute and tries to come to a resolution that works for everyone involved. This may mean hiring a surveyor or title company to work through some of the details. Qualifications Becoming a real estate lawyer requires a lot of education and experience. An attorney must first earn an undergraduate degree, then pass the Law School Admissions Test (LSAT) before being considered for acceptance to a law school. Prospective lawyers must earn a law degree, which typically takes three years if done full-time. During the first year, student learn the basics of the law profession. During the following years, they take electives like real estate law and do internships to gain practical experience. Once a student completes law school, he or she must pass the bar exam in order to begin practicing. Some lawyers choose to study further, perhaps working toward the successful completion of a graduate degree, professional designation, or other certificates that cater specifically to real estate law. When to Hire a Real Estate Attorney As noted above, some states require the presence of a real estate attorney during any real estate transaction. If you live in Alabama, Connecticut, Delaware, D.C., Florida, Georgia, Kansas, Kentucky, Maine, Maryland, Massachusetts, Mississippi, New Hampshire, New Jersey, New York, North Dakota, Pennsylvania, Rhode Island, South Carolina, Vermont, Virginia, and West Virginia, you must hire a lawyer to oversee the deal. These states are generally called attorney states. If you don’t live in any of these states, it’s up to you whether you want to hire an attorney. Although it’s an additional cost, it may be a good idea to hire a lawyer who specializes in real estate law. Their services can be invaluable, helping to navigate you through the murky process and resolving tough situations like a foreclosure or even a short sale. They are also helpful …

What is a Series LLC? A series LLC is a unique form of limited liability company (“LLC”) in which the articles of formation specifically allow for unlimited segregation of membership interests, assets, and operations into independent series. Each series operates like a separate entity with a unique name, bank account, and separate books and records. A series LLC may have different members and managers in each series. The rights and obligations of these members and managers differ from series to series. Each series may enter into contracts, sue or be sued, and hold title to real and personal property. The most important characteristic of a series LLC is the liability protection that is available to each series. Assets owned by one series are shielded from the risk of liability of other series within the same series LLC. A series LLC is similar in concept to a corporation with several subsidiaries. However, the series LLC concept is designed to segregate risk within separate entities without the cost of setting up new entities. States Permitting Series LLC The series LLC is a creation of the state. Only in certain states are series LLCs allowed to be formed. Delaware was the first state to enact legislation authorizing the creation of series LLCs. Several states have followed suit including Illinois, Iowa, Nevada, Oklahoma, Tennessee, Texas, Utah and Puerto Rico. Some states, like California, do not allow for series LLCs to be formed under state law but series LLCs formed in other states can register with the state and do business in the state. Forming a Series LLC The series LLC is formed in much the same way as a regular LLC. You will need to file articles of formation with the appropriate governmental entity in a state where series LLCs are permitted. To be distinguished from a regular LLC, most states require that the articles of formation specifically state that the LLC is authorized to form series. Next, you will need an operating agreement for the master LLC and one for each series you plan to form. A series LLC can create additional series whenever one is needed. The master LLC operating agreement generally provides rules for the overall operations of the series LLC. Likewise, operating agreements for each series provide customized rules for operations. One of the benefits of a series LLC is that you only have to file articles of formation once. After forming the initial master LLC, each additional series is formed through internal mechanisms spelled out in the operating agreements. Typically this is done by amending the master LLC operating agreement and adding an additional series. Using a Series LLC As a business entity, series LLCs are very flexible and simple to use. The series LLC can be used by real estate investors who own multiple properties. Each series isolates and protects its properties from the liabilities of the properties in other series. Companies with different profit centers can use series LLCs to segregate and shield each business operation. To maintain the liability protection of each series it is important to treat each series as a separate company. This includes having a separate bank account, maintaining separate books and records, signing contracts using the name of the series, documenting all transactions, and keeping adequate amounts of capital on hand for business purposes. Tax Issues There are some unresolved tax issues regarding series LLCs, primarily regarding whether each series is a separate entity for tax purposes. The California Franchise Tax Board has taken the position that each series in a series LLC is a separate entity and therefore must file its own tax return and pay its own LLC annual tax and fee if it is registered to do business in California. HTTPS://KCREALESTATELAWYER.COM

1. Multi-family work better with the changing U.S housing market. High rents and the need for yields have created even more competition for single family homes. This has depleted inventory and hurt affordability. Demand from retail buyers, funds, and new real estate investors has increased competition, often inciting bidding wars. For some, this is creating better opportunities in the multifamily space than among residential homes. 2. Multi-family offers management efficiency. There are many efficiencies of scale afforded to multifamily property investors. Management consolidated in one location, for more units, means lower management costs and fewer time demands. This can pay off in many ways, from maintaining occupancy to working more efficiently with contractors and improving maintenance. Every penny and labor hour saved in management means more directly added to the bottom line. As single family investors experience these pain points and learn about the advantages of multifamily, they typically choose to step up to this asset class to scale their portfolios more efficiently. 3. Multi-family allows investors to save time. It takes a lot less work and time to acquire a 46-unit apartment building than 46 single family homes?and I?m speaking from experience. Jumping into a multifamily deal may sound like a lot at first, but it is actually far faster and less time-intensive to acquire these properties. They require one set of paperwork, one set of loan docs, and one set of contractors. That leaves a lot more free time to be enjoyed or spent pursuing more deals. 4. Multi-family supports a higher ROI. Renovations and improvements are some of the most challenging parts of investing in real estate. Flipping houses can be fun and profitable. Still, it can be risky. In multifamily property investing, improvements to individual units or community space can actually lift the appeal and value of the asset, because you can generally demand higher rent. That elevates the ROI. Multifamily investors can also more easily reposition and control the value of their own properties. These buildings can be positioned to appeal to affordable tenants, affluent tech workers, and others. 5. Multi-family gives more direct control. The value is not as reliant on comps as it is on your ability to increase the value through increasing the NOI. For single family homes, the value of your property is directly tied to surrounding comparables. In contrast, multifamilies allow for the investor to have even more control over the property value. HTTPS://KCREALESTATELAWYER.COM

While selling a Kansas City or St. Louis house with a tenant isn’t always the ideal situation. Consider how it will affect them before making any bold decisions. If you need to sell your house with a tenant, it can be done when handled properly. Below, we share some tips on how to sell your house with a tenant in Kansas City or St. Louis. Wait Until The Lease Is Up Take a look at how much longer your tenant has on their lease. If it is a relatively short time, and you can wait a couple of months before selling, it might be in your best interest to do so. Once the lease is up, you can let them know of your plans and take it from there. If they are accommodating to the sale process, you can even let them rent month to month while the property is being shown. If you have the forethought to do so, you can make this part easier by including an early termination clause in the lease, allowing you to terminate the lease if certain conditions exist. Anticipate Their Reaction Do you think they will be willing to help you or do you think they will be upset about the impending sale? If you believe they won’t be agreeable with your listing, it might be in your best interest to wait until the lease is up or work with a direct buyer in order to sell without drawing attention to the matter. Only you know your relationship with your tenant and how they will possibly react. Make The Showings Worth Their While If you have to sell, and you decide to list and use an agent, make it worth their while to help you out. You can offer reduced rent for the inconvenience or help with their future move. If the tenants are on your side, your much more likely to find a buyer in a timely manner. A great tenant will help keep things clean and be flexible about showings. By continuing to make money while the property is listed, you’ll be able to avoid losing too much on the sale of the home. If on the other hand, they are not happy about having to move, they can end up causing hassles with showings. Disgruntled tenants may leave a messy house when people are coming to see it, quickly making people want to turn the other way. They can also potentially sabotage you by talking to potential buyers. Letting them know about all the bad things they will need to watch out for. If you feel your tenant falls into this category, you need to do better background checks, and it might be in your best interest to sell the property once the tenant has vacated. While ideally, your house will be empty when trying to sell it, if you do have a renter living there, you will want to make them happy and comfortable with the process. Be considerate and accommodating from beginning to end. Nobody wants to feel uncertainty about the place they are living in. Put yourself in their shoes before making the decision to sell while an active lease is in place. Find A Direct Buyer Selling your house to a direct buyer such as OFFER HOUSE can make the process easier on everyone. Make sure that selling in this manner doesn’t violate your lease in any way. You’ll also want to try to find a buyer who isn’t going to have a problem honoring the current lease. Many investors will love having a trustworthy tenant already in place. This ultimately saves them time and money in trying to find and screen tenants on their own. Working with a direct buyer is one of the best ways to sell your home with a tenant in Kansas City or St. Louis. Whenever possible, you will want to try to work with your tenants as best as possible. They can help you sell the house if you decide to list it. Always keep your tenant in the loop as far as when the home will be shown, how much notice you’ll provide, and what condition you expect the property to be in. Who knows, they may even be able to recommend a buyer or maybe they will want to buy the home themselves! Having open and honest communication will help you sell your home with a tenant in Kansas City or St. Louis. HTTPS://KCREALSTATELAWYER.COM

Does a Real Estate Contract Have to Be in Writing? The statute of frauds is a long-standing legal principle which requires certain agreements, including real estate contracts, to be in writing. Real estate contracts are generally enforced in state courts according to varying state laws. And, there are exceptions to state statutes of frauds. Therefore, each case should be independently evaluated. Writing Requirement Oral court testimony can be undependable. People may bend the truth or become confused on witness stands. The statute of frauds helps courts make more accurate determinations in real estate disputes by requiring written agreements. Basic information, such as parties’ names, sales prices, and property addresses, must be embodied in writing. An agreement is usually not invalid because minor details are missing. For example, a judge may determine the location for closing if it is not stated in writing. The statute of frauds is a long-standing legal principle which requires certain agreements, including real estate contracts, to be in writing. Real estate contracts are generally enforced in state courts according to varying state laws. And, there are exceptions to state statutes of frauds. Therefore, each case should be independently evaluated. Signatures Generally, the statute of frauds only requires the party being sued to have signed a real estate contract. For example, Betty reaches a verbal agreement with Bob to sell him her condominium. She types out a short agreement and signs it. The statute of frauds typically would allow Bob to enforce the agreement against Betty because she signed it. Bob, however, generally would not be held to the agreement since his signature is missing. The statute of frauds is a long-standing legal principle which requires certain agreements, including real estate contracts, to be in writing. Real estate contracts are generally enforced in state courts according to varying state laws. And, there are exceptions to state statutes of frauds. Therefore, each case should be independently evaluated. Performance The performance of a verbal real estate contract creates an exception to the statute of frauds. For example, Mike says he will buy Bill’s home. Mike moves into the property and Bill accepts monthly payments toward the sales price. A court typically would not invalidate the parties’ verbal understanding because they are actively carrying out their agreed terms. Acts of performance provide courts and juries with credible evidence to rely on in lieu of written contracts. The statute of frauds is a long-standing legal principle which requires certain agreements, including real estate contracts, to be in writing. Real estate contracts are generally enforced in state courts according to varying state laws. And, there are exceptions to state statutes of frauds. Therefore, each case should be independently evaluated. Verbal Promises The statute of frauds makes exceptions for parties who rely on verbal promises. For example, Frank and Jane reach an agreement over the phone for her to buy his house. Jane relies on his promise to sell his home to her and ships her furniture and terminates her apartment lease. Generally, this is considered the promissory estoppel exception. Namely, Jane changed her position based on Frank’s promise so she may be exempt from the statute of frauds’ writing requirement. HTTPS://KCREALESTATELAWYER.COM

What Is Special Use Real Estate Valuation? Real estate is normally valued at an amount that reflects its ?highest and best use? for reasons concerning the federal estate tax. In fact, the general rule is that a property’s fair market value (FMV) upon the owner’s date of death is the value that reflects its highest and best use. However, such valuation can yield results that are unfair. An example of an unjust outcome is where a family farm is situated next to commercial real estate that is considered to be more valuable. In response to these unfair results, the Internal Revenue Code allows certain real estate to be appraised at its ?actual use? instead of its ?highest and best use.? This type of appraisal applies specifically to the owners of farms and small businesses, provided that certain requirements are met. What Are the Requirements of Special Use Valuation? There are three requirements of special-use valuation of property: The business property’s net value must be a minimum of 50 percent of the gross estate of the decedent, and the business real estate’s net value must be a minimum of 25 percent of the adjusted gross estate of the decedent. This is the gross estate, less certain debts, expenses, claims, and losses that are deductible. The decedent must have conveyed the business to an heir or heirs who are qualified; this means that the heirs must be close family relatives. The business must have been under the ownership and operation of the decedent or a close relative of the family for five of the last eight years prior to the decedent’s demise, disability, or retirement. What Is the 10-Year Rule? The ?10 year rule? is that your heirs may be unable to benefit from the special use valuation if, within 10 years of your demise, they sell or get rid of the property in some other way by transferring it to people who are not considered to be close family members. This rule also applies if your heirs start using the property for a different purpose within 10 years after you die. HTTPS://KCREALESTATELAWYER.COM

Forgery may be thought of as a variety of fraud, but the law does not treat a forged deed like a fraudulent deed that is not forged. A recent case from New York illustrates the difference. Percy Gogins and Dorothy Lewis, brother and sister, inherited a house in Brooklyn from their mother; each owned a one-half interest. In May 2000, Lewis conveyed by quitclaim deed her half-interest in the property to her daughter Tonya Lewis. In February 2001, Tonya recorded a deed claiming to correct the prior deed from Lewis. The corrected deed was signed with the name of Percy Gogins and appeared on its face to transfer Gogins’s half-interest in the real property to Tonya, giving Tonya a full fee interest in the property. Gogins died in March, 2001. Gogins daughter, Dorothy Faison, believed that her fathers signature on the corrected deed was a forgery. In 2002, she filed suit to have the forged deed declared invalid, but the suit was dismissed because Faison did not have standing to bring the suit because she was not administrator of the estate her mother was. Her mothers lawyer apparently assured Faison and her mother that he had obtained a judgment invalidating the deed. But nothing of the sort had happened: the lawyer, now disbarred, had lied. Tonya Lewis had fee simple title to the property, according to the property records. In 2009, Bank of America issued Lewis a mortgage loan of over $250,000, secured by a mortgage on the property In 2010, Dorothy Faison was appointed administrator of her fathers estate, and learned that nothing had ever been done about the deed to Lewis that Faison believed was forged. As administrator of the estate, Faison now had standing to sue to seek to have the forged deed declared invalid, and so she sued once again. Few rules of law are as black-and-white as the rule that a forged deed is invalid. The law treats a forged deed as if the deed never existed. The rule applies even to forged deeds to innocent purchasers who buy property at market price in arms-length transactions: courts will not allow such innocent purchasers to keep title to property under a forged deed, because the innocent purchaser never had title in the first place under the forged deed. It follows, then, that a lender who takes a mortgage to a property subject to a forged deed is in the deepest of deep trouble: the mortgagor simply doesnt have anything to mortgage, so the lenders mortgage is invalid as well. So, if Faison proved to the courts satisfaction that her fathers signature on the 2001 deed was forged, the outcome for the bank would seem to be clear: their mortgage would be wiped out. Here, Bank of America had one last argument, however: that Faison (or, more precisely, her mother) was required to have brought the forgery claim within the six-year statute of limitations for fraud, and had failed to do so. To be sure, Faison and perhaps others had been aware of the alleged forgery for far longer than six years when she filed suit in 2010. But the New York Court of Appeals New York’s highest court rejected Bank of Americas statute of limitations argument. Unlike fraudulent documents that are not forged which are voidable at the option of a defrauded party, and therefore valid if the defrauded parties do not choose that option a forged deed is void from the start, and cannot ever be revived, the Court ruled. Faison will now get a chance to prove that the deed is forged, and if she can prove it, the deed is void, and Bank of America’s mortgage is void as well (although perhaps there will be another battle whether the mortgage should be effective as to Lewis’s 1/2 interest she obtained from her own mother). Of course, in the real world, every courthouse likely has forged deeds on the record that have effectively conveyed interests. Where any witnesses who could prove a forgery are long gone, a forgery is safe from detection and the forged deed effectively becomes a good one. Marketable title acts also may possibly extinguish forgery claims beyond the marketable title period: the Uniform Marketable Title Act frees the holder of marketable record title from adverse claims antedating his root of title, even if the root of title is a forgery. And finally, there are some rare instances where the only person who can contest the forged deed had a hand in the forgery, and courts will not allow that person to contest the forged deed under doctrines of estoppel or unclean hands. So sometimes, nothing can turn into something, and a forged deed can eventually become a good deed. HTTPS://KCREALESTATELAWYER.COM