All Forum Posts by: Jonathan Herron

@Abe B. New Jersey handles delinquent taxes on a municipal basis.  The municipal clerk/tax office will maintain a list.  It is possible that they only maintain a list of what hasn't yet been auctioned off.  For past years you should be able to OPRA a list of properties sold at tax auction.

@Ned J. making sure that the LLC is properly set up and run to avoid piercing the corporate veil is extremely important. Typically, education is the most important tool to keep the asset protection.

@Mike S. and @Marc Winter a lot of your discussion may be related to the different states you are located in.  Florida and Pennsylvania likely have different rules regarding how trusts operate and the protection they give.  Some of the protections Marc describes is dependant on the language of the trust itself.  Finally, it is always important to ensure that the trust, as a separate entity, files all necessary tax filings.   Income earned by a trust is taxable by the IRS and the top tax bracket is hit much earlier than for individual income. 

Most of the asset protection in a trust is based on irrevocable trusts.  A revocable trust keeps an ownership interest in the property granted to the trust in the original owner.  i.e. Person A gives a property to a revocable trust.  Both Person A and trust have an ownership interest in the property but Person A has a better interest since they can revoke the interest of trust at any time.

One thing I have learned about representing clients is that the right plan depends on the main goals of each person involved.  For some people, trusts are the best way to achieve their goals and for others LLCs.  The most important thing is to ensure that you are educated on the various options and that whichever option you choose you follow the laws and regulations surrounding them.

@Danielle Scott I am not licensed in Arkansas, or anywhere outside South Jersey, but there are basic common-law principles you should consider.  

1. Did your family give you anything of value for transferring the property to the LLC? If not it likely can be overturned for lack of consideration.
2. Did the attorney representing the LLC inform you that they only represented the LLC? I always inform clients in a deal like this who I represent and who I do not represent. I inform those who I am not representing that they should hire legal counsel of their own if they want an attorney representing them. At the same time, I would not represent people seeking to do what appears to have happened in this situation.
3. Any options you have will likely require the assistance of an attorney.  You should feel free to meet with several until you find one that you are comfortable with.  Make sure that the attorney is licensed in Arkansas as that sounds like the state where the action will need to take place.

@Rafael Campos the answer from @Roland Paicely is spot on.  At closing, all liens will need to be paid off or have a release of the lien for clean title to be given to the buyer.  The one important thing to look at is whether it is a conventional or reverse mortgage.  Reverse mortgages have their own issues to consider.

I have seen clients have success wholesaling preforeclosure properties but typically they find it requires more work on their part.

@Rafael Campos a lot of your options are going to be state specific.  Probate laws and rules are different in almost every state, even if generally they are the same.  If you have general questions about the process in a particular location consulting with an attorney could be a good first step.

@Steve J. depending on timelines you still might have the ability to cancel the contract.  The standard realtor issued contract in NJ will set timelines for such occurrences.  If you are looking for the interpretation of a contract you should speak with an attorney.  

E & O insurance will not typically cover remediating the mold issue.

@Elizabeth Guarnieri I have the name of a great company at the office.  I will send you a pm with the info when I get to the office on Monday.

@John D Forth it should not be a problem.  Your lender may require the submission of the divorce property settlement as that shows that your ex-wife has no claim on the property.  

@David Casas the information from @Antonio Porta is very spot on for leasing to college students.  Section 8 can help give you an idea of fair market housing rates for rentals in the area.  

Whatever your decision in choosing how to rent the property it is important that the lease you have the tenants sign accurately provides all of the terms you wish to have.  It might also be a smart move, if renting to college students, to have their parents co-sign the lease as a way to guarantee payment when the tenant might not have an income.  

@Paulette Midgette I'm very sorry to hear that you had this experience.   From what you describe he might be in violation of the New Jersey Consumer Fraud Act.    I am not licensed in PA but they may/probably have a similar statute.