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What Is a Breach of Contract in Real Estate?

What Is a Breach of Contract in Real Estate?Contracts govern a wide variety of situations involving real estate. You must sign a real estate contract when you buy or sell a property. In addition, a rental or lease of property is a contractual relationship between a landlord and a tenant. Like other types of contracts, it is possible to breach a real estate contract. A breach of contract occurs when a party fails to abide by its contractual obligations. In real estate, a breach of contract can be a serious issue, potentially resulting in the termination of a transaction. Whether engaging in a buyer/seller or landlord/tenant agreement, you should understand what constitutes a real estate contract breach. By doing so, you will know how to enforce your contractual rights and prevent yourself from accidentally breaching the contract. When Does a Breach of Contract in Real Estate Occur? When a party breaches a real estate contract depends on whether…

How Do You Resolve a Partnership Dispute?

How Do You Resolve a Partnership Dispute?How do you resolve a partnership dispute? This question is one many partners face at one point or another during the life of their partnership. Disputes are inevitable, but they do not have to mean the dissolution of the partnership. There are things you can do to resolve a partnership dispute. Of course, much of this depends on the partners and the context and extent of the dispute. To resolve a partnership dispute in Maryland or any other state in which your partnership is registered, there are two basic approaches: the proactive and the reactive. By being proactive, you can avoid many common disputes. When disputes are unavoidable, you can address them in a few different ways, each of which may render different results––the latter is critical to keep in mind, because it is also key to choosing the right way to resolve the partnership dispute. How Do You Prevent…

Can an LLC Hire an Independent Contractor?

Can an LLC Hire an Independent Contractor?Startup businesses and small firms frequently find themselves needing more people in the early stages of operations. For limited liability companies (LLCs) with low cash flows and few benefits to offer yet, hiring independent contractors can seem like a good compromise. Before you do so, you should consider the benefits and detriments of hiring a contractor. LLC Employee vs. Contractor There are no rules that dictate whether an LLC can or cannot hire an independent contractor. What is important for the LLC owner to remember is the differences between an LLC employee versus a contractor. A small business has more at stake if they misclassify an employee as a contractor and are caught by the state or IRS. A contractor is not covered by employment law Under Maryland wage and employment law, an independent contractor is not granted the same protections and rights as an LLC employee. However, merely hiring…

Should Your Business Have an Attorney on Retainer?

hould Your Business Have an Attorney on Retainer?Owning a business comes with a lot of responsibility. Not only do you have to ensure that the day-to-day operations run smoothly, but you also have to deal with employees, clients, customers, and more. Because of all the issues that may arise, it’s smart to hire an attorney and keep them on retainer. Some business owners choose to hire a lawyer on an ad-hoc basis and use their services only when needed. While this may be more affordable in the early days of your business, having one on retainer offers multiple benefits. For example, what would happen if an emergency or urgent issue occurred? If you have an attorney on retainer, you have someone to deal with the problem right away. You don't have to search for the right legal professional or spend time getting them "up to speed" with your business. The attorney you have on retainer will know…

What Is an Action for Partition?

What Is an Action for Partition?An action for partition is a lawsuit brought by a party (or parties) against another to force the division or sale of real estate. These actions can arise when two or more people co-own property and are in dispute over what to do with it. Sometimes co-owners of homes where one of the parties has moved out may not agree on what to do with the home. The person who has stayed in the house may want to keep it but doesn’t have the funds to buy out the other owner. Sometimes children inherit property from parents and one wants to sell while the other wants to keep the property. If these disagreements can’t be resolved between the parties themselves, it can lead to a partition lawsuit in the courts. Partition actions can be brought over residential or commercial property or even undeveloped acreage. Partitioning essentially means dividing. However, it…

Sole Proprietorship vs. an LLC in Maryland

Sole Proprietorship vs. an LLC in MarylandWhether you’re starting a business or thinking about changing the legal entity owning it, you may want to know the costs and benefits of a sole proprietorship vs. an LLC in Maryland. Is it better to have an LLC or a sole proprietorship? That depends on your priorities. The attorneys at Lusk Law, LLC will be happy to discuss your options and do the work necessary to make it happen. What Legal Entities Can Own a Business? You Have Many Options. One Will Be a Better Fit Than the Others. The four most popular business structures are: Sole proprietorship General partnership Limited liability company (LLC) Corporation More than one person or entity owns a general partnership. Instead of one owner, as in a sole proprietorship, multiple parties (or partners) own it. They all own its assets and can share in its income, but they’re also potentially personally responsible for the…

Changes to Maryland Landlord/Tenant Law Announced

Maryland has announced significant changes to the state’s Landlord/Tenant law, and all landlords need to become familiar with these modifications.  As of October 1, 2021, changes will be implemented that impact the Landlord Tenant eviction process and termination of leases for residential properties. Landlords who wish to repossess their residential rentals under a Failure to Pay Rent (FTPR) filing will be required to provide to the tenant a ten-day notice saying the tenant has a right to pay the amount owed and/or seek the advice of legal counsel, which will now be provided to certain individuals. The notice must be sent first class, certified mailing and affixed to the door; or if approved by tenant, sent electronic via email, text or tenant portal. The new amendment to Maryland Real Property Code, Section 8-401 allows tenants who make 50% less than the median household income for the State of Maryland [1] to be eligible to receive counsel.  It is…

How to Establish a Corporate Veil

Corporate VeilHow to establish a corporate veil is an essential issue if you own a business, by yourself or with others. If you own your business as a sole proprietor or partnership, you could be held personally liable for your company’s actions. If it is done correctly and the entity owning your business is a corporation or limited liability company (LLC), you may avoid this issue by protecting yourself with a corporate veil. Lusk Law, LLC, can help your business choose the right way to structure its ownership. There are costs and benefits to every legal entity, so we’ll advise you which one we think would best meet your needs. We also can defend your business in litigation or protect its interests by pursuing legal action on your behalf. Learn more about how a business attorney can help you by calling us at (443) 535-9715. What is a Corporate Veil? While you…

Protect Yourself from Unfair Contracts

Maryland Business Contract LawyerOur Maryland business lawyer can help protect you against unfair contracts. As a business owner, you will enter into a number of contracts – leases, supplier agreements, employment contracts, and more. A contract legally entered into is supposed to protect all parties from unfair practices, serve as a guideline as to what is expected in terms and conditions and performance, and specify what the parties are to gain from the transaction. You want to ensure that any contract you sign is fair and offers you some legal recourse should a contract dispute arise, but it’s equally important to make sure you don’t inadvertently create unfair or illegal contracts. Unfortunately, problems often arise with contracts, and when a contract dispute arises, it may turn into a lawsuit for breach of contract and become a matter for the court to resolve. The result can be expensive litigation and loss of business and…

What to Know Before Hiring a Contractor

ContractorWhat to know before hiring a contractor can be the difference between conducting business as usual or finding yourself in legal trouble. Contractors have rarely been more numerous or available than they are right now. In addition to traditional contractors, you can hire someone to create a website for your business, assemble your office furniture, or deliver your lunch. If you need help getting something done, hiring an employee or finding an independent contractor may be the right choice. It depends on your wants, needs, and applicable laws. However, you need to know the rules governing your business relationship with contractors. A person you think is your contractor may actually be an employee, with all the taxes, laws, and regulations that accompany them. Maryland business lawyer Rebekah Lusk appreciates the practical and legal challenges involved in hiring a contractor. We will work with you to review the facts of your…

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