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Category: NAR Settlement

Buying or Selling a House in New Jersey? Well Read On….

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Bergmann & Good believes a lawyer by your side through the process of buying or selling property is always in your best interest. Having an attorney present at the closing table helps the process go faster and smoother and offers you protection and assistance if something goes wrong. Your real estate agent may be the best in the business, but a Realtor cannot offer legal advice, interpret contract provisions or offer the legal implications of any exception a title company may reserve in your title policy.  Only a lawyer can do that. But if you are still not convinced, read on…

In October, some major changes at both the state and federal level have been implemented.  The Consumer Financial Protection Bureau (CFPB) has taken over administration of the Real Estate Settlement Procedures Act (RESPA) from the Department of Housing and Urban Development (HUD). Not only does this mean new forms, contracts but it also means new rules and regulations surrounding waiting times and mandatory legal review periods.

And if that is not enough, the New Jersey standard contract has also been overhauled.  While the intent may have been to make things easier, that is not always the outcome.  For instance, if you are a Seller, the new contract may leave you open to lots of repair requests or as some Buyers like to say “a second bite at the apple” in negotiating purchase price.  If you have a buyer and think you are susceptible to them “taking a second bite” talk with us.  Maybe the standard form contract is not in your best interest, and having an attorney draft your agreement will save you time and hassle on your way to the closing table.

While it will take time for everyone to get comfortable with the new processes, rule and forms, now more than ever it is important to consider having strong representation with you at closing. It’s a brave new world in real estate- give Bergmann & Good a call before you start your journey!

Has Your Tenant Demanded that You Allow Her Pet Llama to Move in as Well?

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Being a landlord in New Jersey is fraught with both risk and reward.  The ADA laws are vast and can confound even the most experienced landlord, but what if you are threatened with a lawsuit for denying a Tenant’s pet llama?

For starters you should know the difference between The Fair Housing Amendments Act of 1988 (“FHA”) and the Americans with Disabilities Act (“ADA). The FHA created a right for disabled persons to live in the housing of their choice.  Recently, emotional support animals have been included in the reasonable living standards guaranteed under FHA.  Emotional support animals are not to be confused with service animals protected under the Americans with Disabilities Act (“ADA”).  Service animals are much more protected than emotional support animals.  Even asking too many questions to a person with a service animal can result in large fines.  The two questions a landlord can ask a tenant with a service animal under the ADA are:

1) Is the animal required because of a disability?

2) What work or task has the animal been trained to perform

Beyond those questions your inquiry about the disability and reason for the service animal is off-limits.  However, do not confuse a service animal with an emotional support animal because the protections are not nearly as sweeping.

A tenant, or proposed tenant, with an emotional support animal will probably flash a letter or a certification from either a doctor or support group asking the tenant be allowed to have his or her emotional support animal with them in places you would not suspect, such as a llama in the grocery store, or a turtle at the movies.  After asking the two questions above and hearing that the animal is an emotional support animal, business owners have the discretion to either allow the emotional support animal on premises, or deny admission.

There are two areas where emotional support animals have been specifically allowed: specifically pursuant to the FHA and the Air Carrier Access Act (“ACA”).  Both a landlord and an airline have to allow persons with disabilities to have their emotional support animals with them.  But outside the FHA and ACA, no matter how much a person needs their cuddly pet squirrel in the restaurant, the owner can legally deny them access.  Public concerns, as well as the rights of the business owners trump in the case of the emotional support animals.

So keep in mind the rights afforded to owners with service animals are close to absolute, while a business owner’s rights trump those of the owner of an emotional support animal. If you are a landlord or business owner faced with a tenant or customer with that llama on a leash, Bergmann & Good is uniquely qualified to help you sort out the “do’s and dont’s.”  Give us a call.

My Business Partner and I Are Both Successful and Friends – Why Ruin it With an Agreement?

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If you are starting a business with your friend surely a written agreement defining your business relationship is unnecessary. After all he has watched your children, stood next to you at your wedding, sat up late with you through college finals, so what could possibly go wrong?

Not so fast.

Even though a partnership agreement, if that is the legal entity you decide to form, is not necessary to start a business, it is good advice to write down the parameters of your business relationship, even if that partner is your best friend.

Partnership agreements deal with numerous decisions upfront and help you and your new partner both think about and deal head on with the issues of a business relationship that may not have occurred to either of you as friends. You can decide, in writing, how all allocation of profits and losses will occur, how the partnership will make decisions, divide up management duties, discuss the possibility of admitting new partners in the future and lay out terms to wind up business if things do not go so well.

By deciding these issues before-hand, both members of a new venture will be fully aware of exactly what to expect, and how to handle the wide variety of issues that come at you every day in a new business. Having these decisions in writing also avoids the possibility of future disputes.

Agreements do not have to be complex, or expensive to craft.  It can be simple and clearly worded and include as much or as the little as you and your business partner want to address.  It is, of course, malleable and should be revised as both your circumstances and business opportunities change.

But partnership agreements and other business agreements not only preempt the possibility of litigation when disputes arise among business owners. In the sad event your partner dies, a pre-determined buyout or succession plan ensures the business will continue after your partner is gone. Not having to deal with these big decisions because you addressed them in advance will not only keep your doors open, but perhaps make dealing with the loss of your friend a bit easier.

So just because you trust your new partner- and trust them you must – and have a long and affectionate past with him doesn’t mean that a business agreement between you is frivolous. Quite to the contrary – it should be part of your business plan as you begin any new venture – rather than a negative or unpleasant conversation. In fact a written agreement between friends, now business partners, could end up saving not only your friendship, but keep the business alive for future generations!

Bergmann & Good is well positioned to both counsel you on the necessary terms for the form of entity best suited for you.  Call us if you would like to learn more.  It’s much less expensive to be structured correctly as you start your venture than calling because your former friend and partner has sued you and suddenly you need a lawyer.