In a series of short blog posts we will explore some things about our work here at Bergmann Law that many of our clients were surprised to learn. Maybe you’ll be pleasantly surprised as well.
So… did you know…hiring a good real estate attorney means you might not have to attend closing?
Closings can be tough. Often scheduled in the middle of the day, it can take a lot of time on a day when things are already hectic and stressful. Perhaps it’s also moving day and your furniture, new house or storage unit are all that’s on your mind. Maybe you are moving in and just want to get your keys already!
This isn’t possible for all clients, especially buyers whose lenders often require attendance at closing, but in the event of a smooth transaction and a cooperative team of real estate professionals, the number of clients we have been able to close through the mail is on the rise.
We can often have closing documents sorted and in the hands of the title company in advance, meaning you don’t have to sit at the closing table drinking bad coffee, eating stale cookies and making painful small talk.
So, are you closing on a property and want to find out how we can make the process as painless as possible? Give us a call.
It takes a unique person to strike out on their own and no small amount of risk to dive head first into a new endeavour. Helping new business owners is one of the best parts of what we do here at Bergmann Law because starting your business out on the right foot is so important.
Thanks to the internet, it has never been easier or faster to get your business up and running. The IRS and many state governments have online portals allowing you can register your new company with the state and federal governments and eliminating eliminates many of the old delays in formation like long processing times, postage fees, and delays as old copy files were shuffled from desk to desk.
Unfortunately, these new electronic filing systems make it easier than ever to make a mistake. A mistake that can be costly to unwind and cost you precious lost time.
Since the registrations have come online, an increasing number of clients reach out after attempting to set up their new business online and instead are left with a partially formed company. Clients who believe the new entity is registered, when it is not or worse, not reserving the intended name only to find out it is not available after paying a web developer for a website. Clients who were once hesitant to spend the money for help with initial set up always spend much more to undo, redo, or fix incorrectly filed paperwork.
For example, a client came to us with a registered EIN, the federal employer identification number, but no business formation documents. It turned out the name was not available in New Jersey meaning the business formation could not be completed. Instead we started over with a new name and EIN as well as work with the IRS to retire the unusable EIN.
Another client created an LLC in New Jersey, but did not register for an EIN and did not register with the state for tax purposes. To complete the process, phone calls to the state to confirm what part of the process was complete and what wasn’t had to be made and the filed forms had to be updated to include proper information that the client missed.
Save yourself both time and money. Give us a call to help you set up your business quickly and painlessly- just as it should be!
If you are in the hunt for a house, or likewise selling your own, the topic of dual agency will (or should) come up for discussion with your agent. Most people give consent for their agent to act as a dual agent if the opportunity arises, but do you really know what that consent means?
Under New Jersey law a disclosed dual agent works for both the Buyer and Seller. To work as a dual agent, a brokerage firm must first obtain the informed written consent of their client. It is not necessary that the agent representing both Buyer and Seller be the same person, rather dual agency runs to the brokerage firm. This means if your agent is with one of the handful of large brokerage firms in the area, it is more likely that your transaction will be one in which dual agency applies.
The agent affiliated with a brokerage working as a disclosed dual agent must carefully explain to each party that, in addition to working as their agent, the brokerage firm will also work as the agent for the other party. The agent must also explain what effect working as a disclosed dual agent will have on the fiduciary duties their brokerage firm owes to both the Buyer and Seller.
Dual agency gets tricky in a transaction when the agent is aware of confidential information that would benefit one party and negatively impact the other. A brokerage firm must have the express written permission prior to disclosing confidential information of one client, to the other.
Examples of confidential information includes the highest price a Buyer can afford to pay and the lowest price a Seller will accept. It also includes either party’s motivation to buy or sell. Remember, a brokerage firm acting as a disclosed dual agent will not be able to place one party’s interests ahead of those of the other party and cannot advise or counsel either party on how to gain an advantage at the expense of the other party because of such confidential information.
So why should you care? Well, it’s not likely you’ll be able to avoid a dual agency relationship, and you should not necessarily try to do so. If your agent is a dual agent, it means perhaps it was internal advertising that brought a Buyer to you for your home; but, it does mean you should strongly consider being represented by an attorney in a dual agency transaction. It is the only way to ensure you have an advocate protecting your interests up to and at the time of settlement.
Questions? Feel free to give us a call.