![]() An offering memorandum is a legal document that states the objectives, risks, and terms of an investment involved with a private placement. This document includes items such as a company’s financial statements, management biographies, a detailed description of the business operations, and more. An offering memorandum serves to provide buyers with information on the offering and to protect the sellers from the liability associated with selling u Understanding an Offering Memorandum An offering memorandum, also known as a private placement memorandum (PPM), is used by business owners of privately held companies to attract a specific group of outside investors. For these select investors, an offering memorandum is a way for them to understand the investment vehicle. Offering memorandums are usually put together by an investment banker on behalf of the business owners. The banker uses the memorandum to conduct an auction among the specific group of investors to generate interest from qualified buyers. An offering memorandum, while used in investment finance, is essentially a thorough business plan. In practice, these documents are a formality used to meet the requirements of securities regulators since most sophisticated investors perform their extensive due diligence. Offering memorandums are similar to prospectuses but are for private placements, while prospectuses are for publicly traded issues. Example of an Offering MemorandumIn many cases, private equity companies want to increase their level of growth without taking on debt or going public. If, for example, a manufacturing company decides to expand the number of plants it owns, it can look to an offering memorandum as a way to finance the expansion. When this happens, the business first decides how much it wants to raise and at what price per share. In this example, the company needs $1 million to fund its growth at $30 per share. The company begins by working with an investment bank or banker to draft an offering memorandum. This memorandum complies with securities laws outlined by the Securities and Exchange Commission (SEC). After compliance is met, the document is circulated among a specific number of interested parties, usually chosen by the company itself. This is in stark contrast to an initial public offering (IPO), where anyone in the public can purchase equity in the company. The offering memorandum tells the potential investors all they need to know about the company: the terms of the investment, the nature of the business, and the potential risk of the investment. The document almost always includes a subscription agreement, which constitutes a legal contract between the issuing company and the investor. Offering Memorandum vs. Summary ProspectusWhile an offering memorandum is used in a private placement, a summary prospectus is the disclosure document provided to investors by mutual fund companies before or at the time of sale to the public. This written document is an abridged version of the final prospectus that allows investors to see pertinent information regarding the fund’s investment objectives and goals, sales charges and expense ratio, focused investment strategy, and data on the fund’s management team. Relevant tax information and broker compensation are also included in the disclosure document. A summary prospectus provides investors the information they need from the final prospectus quickly and in plain English. A private placement memorandum (PPM) is a legal document provided to prospective investors when selling stock or another security in a business. It is sometimes referred to as an offering memorandum or offering document. A PPM is used in “private” transactions when the securities are not registered under applicable federal or state law, but rather sold using one of the exemptions from registration. The PPM describes the company selling the securities, the terms of the offering, and the risks of the investment, amongst other things. The disclosures included in the PPM vary depending on which exemption from registration is being used, the target investors, and the complexity of the terms of the offering. A private placement memorandum (PPM) offers an in-depth look at a business and its operations. Companies who are raising funds from private investors will create such a document. This process is also known as a private placement. It usually involves money from investment or pension funds, banks, or insurance companies, though individual wealthy investors can also be involved. If your business is going this route, you will need to create a private placement memorandum (PPM). How to Secure Private Placement FundsPrivate placement can involve an equity or debt offering. Private placement differs from an initial public offering because the company is remaining private. To seek private placement investment, you’ll likely need a lawyer and have to present a basic business plan. Perhaps the key component of your business plan will be the PPM. It is not designed to be a marketing document. It is thorough, and it’s starkly informational. It is designed to offer everything an investor needs to know before putting money into a company. This document is also referred to as an offering memorandum. In many ways, it serves the same function for private entities as a prospectus issued by public companies serves. There are a number of crucial things outlined in a PPM, including. • Summary of Offering Terms: The nuts and bolts of what the company is asking for. This usually looks like a term sheet and should include details about the overall capitalization of the company both before and after the injection of new capital. It will include the number of shares being sold, the price, and the total expected proceeds. Here’s also where the company should explain what investors may receive in terms of voting rights, as well as their rights if the company were to be liquidated. • Business and Management Section: A more detailed explanation of what the company does and how it earns its revenues. This should also include biographical information about each owner and member of the management team. • Financial Information: From a potential investor’s point of view, this may be the most crucial section. It’s time to provide detailed information on the company’s revenues, expenses, profits, and liabilities. All of the hardcore numbers that any investor wants should be included, and this section should have past financial data and future projections. Skimp on this section and you are likely to see investors bow out. • Use of the Investment: This outlines in details why the company needs the money, and what would happen to the company without this injection of capital. This section shows in nitty-gritty detail how the money will be spent. When possible, there will even be an itemized tabled showing how funds will be allocated. This section also includes the compensation owners and executives will receive. • The Risks: This section is often the largest part of the PPM, as the company must outline anything negative that might impact the ultimate return on the investment. The PPM is important because it provides the investor with all of the prescribed data they will need to make an investment decision and includes the actual documentation to effect the investment transaction. PPMs are designed as a stand-alone document – meaning that there need not be other information presented to the investor for them to make an accurate investment decision. Private Placements or Private Stock Offerings are “private” equity/debt transactions and are considerably less expensive to complete than an initial public offering such as an IPO (for the purpose of raising capital). A private placement memorandum (PPM), also commonly known as an offering memorandum or offering document, is a vitally important legal document that discloses the objectives, risks and terms of a proposed investment in your company. Your PPM will be distributed to potential investors whenever your company sells stock or another type of security in a private placement. Your PPM will provide important facts and figures about your company and its business that are useful to potential investors, including: A PPM is normally created by the Company’s investment bankers, lawyers, accountants and other professionals on behalf of a business owner. Unlike a prospectus, which is produced when stock or other securities are registered under federal securities laws and become available for purchase by anyone, a PPM is not normally made available to the public. Instead, you will distribute your PPM to a limited number of pre-screened investors to solicit offers to purchase stock or other securities, as described in the PPM. Your PPM will normally be distributed along with the Subscription Agreement and Investor Questionnaire that your investors will sign if they agree to the terms of your offering. Why is a Private Placement Memorandum important?Securities laws prohibit a company (“issuer”) from making false or misleading statements to investors when selling its securities, regardless of whether or not public registration of the offering is required. Specifically, Rule 10b-5 of the Federal Securities Exchange Act of 1934 requires that any information provided to investors “must be true and may not omit any material facts necessary to prevent the statements made from being misleading.” A properly-written PPM ensures your company’s compliance with these anti-fraud laws by fully informing prospective investors about your company and the offered investment. Potential investors receiving your PPM will learn about your business and management team, as well as your company’s prior performance, future prospects, the terms of the offered security, the planned use of the funds to be raised, and the risks of the investment. A well written and detailed PPM, thus, protects your company and its management from liability. PPMs typically follow a standard format, and sophisticated investors expect them to be carefully drafted, contain accurate and current information about the company, and provide a balanced, objective description of the potential benefits and risks of the investment. What does a Private Placement Memorandum include?Information provided using a standard PPM format will typically include: Reasons to not use a Private Placement MemorandumNot all offerings require the use of a PPM. Here are a few examples of situations where a PPM is not necessary: • When the cost associated with paying professional fees to lawyers, investment bankers and accountants to ensure legal compliance is prohibitive. For example, PPMs usually include audited financials of the issuer. • When your company is in its very early stages and your potential investors are limited to (1) friends and family or (2) angel investors who are sophisticated enough to conduct their own due diligence and negotiate their own investment deal. • When all of your potential investors are accredited investors. Keep in mind, however, that although securities laws technically do not require a PPM with accredited investors, not using a PPM presents risks. Use of a PPM will likely reduce your liability exposure. A company can be more selective about who buys its shares if it sells them in a private placement. Shares sold in an initial public offering or IPO, are offered to the general public and tend to attract more attention. However, private placement allows a company to raise money without going public and having to disclose financial information. A company can remain private while still gathering shareholder investments. Securities LawyerWhen you need legal help with a PPM in Utah, please call the Securities Lawyers at Ascent Law LLC for your free consultation (801) 676-5506. We want to help you.
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![]() Hotel employees serve myriad purposes. Their functions include physical and abstract roles. Considerations when calculating the value of a hotel employee include the overall aim of a hotel as a business, actual role of the employee in question and nature of the hospitality industry. Employees prove particularly important to small, independently owned hotels with limited budgets, locations and client bases. Basic FunctionAs with any business, hotel employees serve the basic function of ensuring the business runs smoothly. From part-time front desk employees, laundry room attendants, vendors and porters to the upper echelons of the management structure, each employee serves some role in the continual and perpetual operation of a hotel. Employees generate capital by ensuring the possibility of constant business. Like other businesses, each department or aspect of a hotel depends on many others in doing its job. A breakdown in function of any of these areas disrupts the flow of operations and causes a ripple effect that inhibits the organization’s ability to optimize its business. Job-Specific FunctionsEach employee of a hotel performs a function specifically related to the job that individual holds. For instance, a porter transports luggage of hotel guests from the front entrance or lobby to a room and back in a timely manner. A manager makes and implements decisions for the improvement of the business, while someone in human resources supplies adequate employee coverage within an organization’s budget. In a small hotel, one employee often serves multiple functions. Such organizations may employ one person to run the front desk, serve as porter and handle room service, while employing another person to clean rooms and common spaces and do all the laundry. Hospitality FunctionHotels make up an important part of the hospitality and tourism industry. As such, the actual function of a hotel lies not only in providing a place for people to stay but creating an enjoyable experience for guests and seeing to all their wants and needs. This proves especially true for hotels in high-volume destination areas such as Cancun, New York, London, Paris and Tokyo. Employees try to provide the optimal experience to every guest. Positive experiences increase the likelihood of repeat business The Importance of Employee Function on Small HotelsEmployees serve an essential function to hotels operated as small businesses, particularly when these hotels find themselves in competition with large chains in tourist-heavy areas. Unlike a large hotel or chain, or those with large operating budgets, small hotels often depend completely on customer satisfaction for longevity. While a chain or large institute can absorb potential losses incurred by bad word-of-mouth reviews or publicity, a small hotel may require word-of-mouth reviews to attract new customers. Employees who fail in their function of hospitality may prevent good word-of-mouth reviews and press, thus causing a business to fail. Further, a hotel with a limited number of employees depends exponentially more on each individual than a hotel with thousands of employees. Thus, the failure of one employee in a job-specific or overall function places strain on the business. Things Every Hotel Manager Should Do to Ensure Information Security Your employees are your information security guards – train them as such Think twice before tossingAs daily functions and procedures continue to digitize, physical data security is slowly becoming an afterthought, with 32 percent of hospitality businesses admitting they have no known policy for storing and disposing of confidential paper documents. This is despite the fact that as Europay, MasterCard, Visa (EMV) smart payment chip card processes are increasingly adopted, attackers are targeting hotel reception desks where the concierge will often write down phoned-in reservation information. Not only that, dumpster thieves have long always been able to obtain sensitive information from garbage that has been inappropriately thrown away instead of shredded. Implementing a document management process is a great way to create standard protocol for handling physical data, including how to securely organize documents for storage, retrieval and record-keeping. Additionally, the document management process determines a standard lifespan for physical documents, helping employees efficiently identify which documents should be stored and which need to be securely discarded. Materials that need to be filed should be stored and locked in secure filing cabinets, while all other items should be properly shredded before being discarded. Noncompliance could mean legal consequencesHotels are considered financial institutions when they are collecting and storing customer’s financial information, which means that they have a responsibility to their customers to follow legislative guidelines to protect against unauthorized access to the personal information of their guests. There are a range of rules and regulations that hotels need to be mindful of, including General Data Protection Regulation (GDPR) for those with international guests. It’s helpful to create a security policy handbook that can be used as a reference for employees. In addition to GDPR, the Gramm-Leach Bliley Act, Sarbanes-Oxley Act, Health Insurance Portability and Accountability Act (HIPAA) are just a few privacy laws that apply in this sector, and the employee handbook could serve as a useful resource to house this information. At the end of the day, widespread damage can make or break a business, especially in the hospitality industry when consumers have limitless options to choose from. Hotels must be proactive in addressing the growing consumer concern over data security and privacy, as their livelihood depends on it. The hospitality industry consists of hotels, resorts, private clubs, restaurants and other travel amenities. A lawyer that specializes in hospitality provides advice and legal representation to those in the hospitality industry. Owners, operators, and developers in the hospitality industry use hospitality lawyers from time to time to discuss things such as licensing, branding, resolving disputes, financing, operating and planning. There are many reasons to use a hospitality lawyer and most of them are well-versed in all areas of hospitality law. Benefits of Using a Hospitality LawyerMany issues can arise in the hospitality industry, but hospitality lawyers also help with planning and more. The right hospitality lawyer will focus on offering safety and security solutions when needed, assist in travel and tourism issues along with mitigation incidents and injuries when they occur. When changes occur in the company, for example, if a hotel is going to merge with another hotel, a hospitality lawyer will offer education and advice at the beginning of the process all the way through to the end. Understanding ContractsOf course, contracts are going to pop up from time to time. A hospitality lawyer will walk you through all of the legal contracts that come your way. Most contracts are full of jargon that can be difficult to understand. The expertise of a lawyer who knows all about contracts and the hospitality industry will ensure that all contracts contain the proper information and that all parties involved are on the same page. A hospitality lawyer will also be extremely helpful during contract negotiations. Assist with LicensingMany businesses that look to expand or make additions to their company will require extra licensing. This isn’t always a simple task. A hospitality lawyer will walk you through the entire process to ensure that everything is in order for a smooth and successful process. As a hotel owner or restaurant manager, you might not be aware of all the things that are required for licensing. This is where a lawyer will help to make sure you have all of your ducks in a row. Advice with Human Resources and Employment IssuesThe hospitality industry is responsible for a number of jobs. This makes employment and human resource issues a big deal when they arise, often requiring the best solutions. A hospitality lawyer will be able to offer you these solutions and will also give you the advice you need before any issues arise. The goal is to prevent any of these issues from occurring and a hospitality lawyer will help you with this. A hospitality lawyer can also assist during liability cases. With the hospitality industry being so vast, there is more room for accidents and injuries to occur. If something does happen on your property, a hospitality lawyer will assist you during the legal claim to prevent the issue from escalating. Finances and BankruptcyOne of the most important reasons to use a hospitality lawyer is for financial advice. More than likely, you will have an accountant and finance team to help with the numbers, but a lawyer will help with the legal side of financial issues such as bankruptcy. From land development to investor relations, if there is money and legal aspects involved, a hospitality lawyer will understand and know how to help you through these transitions. Does My Employer Have to Pay Me Even If I’m Illegal?Undocumented workers, however, will not be able to recover back pay for time not actually worked or be reinstated to jobs if they sue for discrimination, unfair labor practices, or under other employment laws. While employers still can’t discriminate based on race, age, sex, etc. the remedies undocumented workers can receive under many employment laws are limited. Even though undocumented workers have legal rights, filing suit or complaining to the Department of Labor can be risky. There have been reported cases of undocumented workers who stood up to thieving employers only to face deportation. Employers who use this strategy put themselves at risk. Homeland Security is cracking down on employers who hire undocumented workers. Employers who break the law face sanctions including jail time. You might point this out to an employer who tries to blackmail you out of your pay. As an undocumented worker, what are my rights under wage and hour laws? • Filing a Wage Claim: If you choose to file a wage claim, you can either file or sue your employer in court. You can also contact the U.S. Department of Labor (DOL). Neither of these agencies should question you about your immigration status, nor report your lack of status if it is somehow revealed. As an undocumented worker, can I receive workers’ compensation benefits? • Filing a Workers’ Compensation Claim: If you choose to file a workers’ compensation claim, you should contact the employer to get and file a claim form. If your employer refuses to give you a claim form, then you should contact the state Workers’ Compensation Appeals Board (WCAB). If your claim is approved, you may be entitled to reasonable medical expenses, disability benefits, and rehabilitation benefits. Hotel LawyerWhen you need a Hotel Lawyer, call Ascent Law LLC for your free consultation (801) 676-5506. We want to help you.
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How To Fix Real Estate Title Problems In Utah Corporate Lawyer West Jordan Utah Divorce Lawyer and Family Law Attorneys Ascent Law St. George Utah OfficeAscent Law Ogden Utah OfficeThe post Documented Workers For Hotels first appeared on Michael Anderson. via Michael Anderson https://www.ascentlawfirm.com/documented-workers-for-hotels/ ![]() Contract law is the body of law that relates to making and enforcing agreements. A contract is an agreement that a party can turn to a court to enforce. Contract law is the area of law that governs making contracts, carrying them out and fashioning a fair remedy when there’s a breach. Anyone who conducts business uses contract law. Both companies and consumers use contracts when they buy and sell goods, when they license products or activities, for employment agreements, for insurance agreements and more. Contracts make these transactions happen smoothly and without any misunderstandings. They allow parties to conduct their affairs confidently. Contracts help make sure that the parties to a transaction are clear on its terms. How Do You Form A Contract?A valid contract has four parts: How Do The Courts Interpret A Contract?To interpret a contract, a court looks at the clear language of the contract from the viewpoint of an objective and reasonable person. If the contract isn’t clear, the court may consider outside evidence including outside statements and the behavior of the parties. It’s best to put a contract in writing, and the statute of frauds may even invalidate some contracts. Choice Of Law And JurisdictionWhen lawyers create contracts and handle contract disputes, they should be aware of choice of law and jurisdiction issues. Choice of law means the state law that the court uses to interpret the contract. Because most contract law is state law, choosing to litigate a contract dispute with the laws of one state over another can completely change the outcome of the case. Lawyers should carefully consider whether to incorporate a choice of law provision into the contract at the time of drafting. They should also be careful when they choose a jurisdiction to bring a contract dispute. Because the rules vary in each state, these considerations can have a large impact on the outcome of a case. What Is A Breach Of Contract?When there’s a disagreement about the terms of a contract or when there’s a breach of contract, the parties might involve a court to resolve the dispute. The party seeking damages must prove that a valid contract exists. They must also convince the court that there’s an appropriate remedy. What Are The Remedies Available For Breach Of Contract?There are several remedies that a party might ask a court to impose for a breach of contract. The most common is compensatory damages. These are the real, financial losses that a party has because of the breach of contract. If the parties agree in advance about damages if a breach occurs, that’s called liquidated damages. When a breach occurs without any real damages, the aggrieved party can still get a small amount of damages. That’s called nominal damages. In some cases, a party acts very poorly and inexcusably to breach a contract. When that happens, the court may award extra damages called punitive damages. However, this is rare. It’s also rare for a court to order the parties to perform the contract. That might happen in a case where compensatory damages are inadequate like in a contract of sale for a rare item. Emerging Issues In Contract LawContract law grows and changes just like any other body of law. In recent years, the validity of electronic signatures on a contract has become a relevant and disputed issue in contract law. The practice of contract law includes identifying emerging issues and advocating for changes and extensions of law in order to allow the client to conduct business in a convenient and favorable way. Who Practices Contract Law?Lawyers throughout the United States practice contract law. A lawyer might specialize in contract law in private practice, or they might work for a corporation as in-house counsel. Contract lawyers work as solo practitioners, and they work at the largest law firms in the country. They might handle contract law exclusively, or they might handle contracts as part of a diverse practice. Even general practice attorneys who primarily handle unrelated matters are usually called on by a client to look at a contract matter at least a few times in their career. At Ascent Law, we have lawyers who regularly practice in Contract Law and would love to speak with you about your specific situation or your specific case. Lawyers Create ContractsTo practice contract law, lawyers should know how to draft and evaluate contracts. They should know the state law that applies to contracts. They should be aware of issues like choice of law, jurisdiction for enforcement and mandatory arbitration clauses. Practicing contract law means knowing how to draft a contract that’s enforceable and that also has terms that are acceptable and valuable to the client. Lawyers Handle Contract DisputesWhen a contract dispute arises, lawyers work to help their client resolve the matter and advocate for the best possible result. Sometimes that means writing demand letters and contacting the other party in order to work towards a resolution. In other cases, it means litigating the matter in court. Some contract disputes rely on arbitration and mediation. Lawyers who practice contract law might do some or all of these tasks on behalf of their clients. In a contract, words have meaning. Each word is important and even critical. For lawyers who like writing and enjoy the details, contract law is a good choice. When disputes happen, lawyers who enjoy litigation and conflict resolution can help deserving clients navigate these disagreements. Contract lawyers help people and companies conduct business. It’s important work. The work is often ongoing or repeat, so whether you work for yourself, a law firm or as in-house counsel, a focus on contract law is often the cornerstone of a sound career in the law. How a Contract WorksOnce the offer, acceptance and consideration have been determined, the contract describes in detail all the parts. A contract answers the who, what, how, where, how and when of the agreement. It is important that the terms of the agreements be clearly stated. The terms of the contract–the obligations, expectations, and responsibilities of all the parties–must be detailed and without ambiguity. Once all the parties have read and understood the contract, the parties sign and date the contract. The contract is legally binding which means that once signed all parties are legally obligated to do what they have agreed to. Contracts are legally enforceable as well. Breach of contract is when one party does not do what the party agreed to do in the contract. The other party then has the right to go to court to ask the judge to compel or force that party to follow the terms of the contact. This is how a contract is enforceable. Oral contract are much harder to enforce because there is no evidence, such as a written agreement, to show what the parties agreed to or what the consideration was. Additional Information About ContractsNot everyone can sign a contract. There are state laws which decide how old a person can be before she can sign a contract. In many cases a person must be over 18 years old, but 16 years of age is also possible. In other situations a parent must co-sign a contract if a child is a minor. Another requirement is that all parties signing a contract must be competent and sane. While this requirement is open to interpretation, people are expected to have the intellectual capacity to understand what they are signing. Contracts are also not binding if fraud is involved or if one of the parties misrepresents himself. An extreme example is selling a house that you don’t own or don’t have the legal right to sell. If such factors of a contract are uncovered, the contract is void and is unenforceable. Contracts can be one or several hundred pages long. No matter the length, it is your responsibility to understand what you are signing. Having an attorney look over any contract is always a good idea. Express ContractYou’ll likely be a party to contracts in your everyday routine. Everything from eating at a restaurant to buying a home includes some form of a contract. The following are some of the most common contracts that are used. An express contract is the most common contract type. In this type of contract, all elements are specifically stated. This can be written or done orally. Either way, offer, acceptance and consideration must bind the parties together legally. And both parties must clearly understand the terms and conditions each is agreeing to. An oral contract works the same way. In an oral contract, like negotiating the price of a new car, the parties agree on a set price, a monthly payment schedule if applicable and any warranties or guaranties included in the offer. Once acceptance is made and consideration is exchanged, the contract for the vehicle is binding and enforceable. As long as both parties uphold their promise, the car cannot be returned at a later date, nor can the salesman request the car back from the new owner. Implied In-Fact ContractNot every contract is as transparent as an expressed contract. An implied in-fact contract binds parties together through a mutual agreement and intent, but there are no expressed terms of the agreement. The agreement holds mutual intention based on facts and circumstances and a reasonable assumption from the circumstances and relations between the parties. For an implied in-fact contract to be enforceable, there are a few elements that must be present: What Are The Legal Rules As To a Valid Contract?A valid contract is an agreement which is binding, certain and enforceable by law. A valid contract has several essentials like offer, acceptance, lawful object, lawful consideration etc. The legal rules regarding valid contracts are as follows:- • Intention to create legal relationship – The parties to an agreement must have intention to create legal relationship. Agreements of a social or domestic nature do not create legal relations and as such cannot give rise to a contract like A promises his friend B to go along with him to an exhibition but later refuses. Here there was no intention to create legal obligation so this is not a valid contract. In case of commercial agreements it is presumed that parties intend to create legal relations. • Lawful Consent – It is another essential for a valid contract. Consent means that the parties must have agreed upon the same thing in the same sense i.e. meeting of minds of the parties. For a valid contract it is necessary that the consent acquired must be free. For e.g. if A compels B to enter into a contract at gunpoint then it is not a valid contract as the consent of B is not free. • Lawful Object – It is also necessary that agreement should have a lawful object. The object for which the agreement has been entered into must not be fraudulent, illegal, immoral, or opposed to public policy. Every agreement of which the object or consideration is unlawful is illegal and the therefore void. This agreement is illegal as its object is unlawful. • Certainty – “Agreements the meaning of which are not certain or capable of being made certain are void.” i.e. a contract must have specific and certain provisions. • Lawful Consideration – Consideration is “something in return.” It is some benefit to the party. An agreement is enforceable only when both the parties get something and give something. The something given or obtained is the price of the promise and is called consideration. Consideration for one party may be paid by someone else. • Parties must be competent to contract – An agreement is enforceable only if its parties possess contractual capacity i.e. they are neither minor, nor of unsound mind etc. It means that the parties to an agreement must be competent to contract. According to Section 11, in order to be competent to contract the parties must be of the age of majority and of sound mind and must not be disqualified from contracting by any law to which they are subject. • Legal Formalities – According to Contract Act, a contract may be oral or in writing. But in certain cases it is necessary to complete certain formalities in certain contacts such as some contracts require registration, written document etc. Agreement must not be expressly void by law – An agreement must not be one of those, which have been expressly declared to be void by statute. Free Initial Consultation with LawyerIt’s not a matter of if, it’s a matter of when. Legal problems come to everyone. Whether it’s your son who gets in a car wreck, your uncle who loses his job and needs to file for bankruptcy, your sister’s brother who’s getting divorced, or a grandparent that passes away without a will -all of us have legal issues and questions that arise. So when you have a law question, call Ascent Law for your free consultation (801) 676-5506. We want to help you!
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What Is The Difference Between A Prospectus And An Offering Memorandum? Are Divorce Settlements Taxable? Auditor Charged With Insider Trading Ascent Law St. George Utah OfficeAscent Law Ogden Utah OfficeThe post Contract Law first appeared on Michael Anderson. via Michael Anderson https://www.ascentlawfirm.com/contract-law/ ![]() While seat belts are designed to save lives, defective belts can lead to severe harm, even death. While seat belts are designed and marketed as a necessary line of defense for vehicle passengers, defective seat belts can make serious car accidents even worse, leading to severe injuries, pain and suffering. Seat Belt Risks & Car Crash InjuriesSeat belt manufacturers and auto companies have a legal duty to design and manufacture seat belts that operate correctly in the event of a crash. Seat belts, in short, should be “crash worthy,” able to survive the significant rigors of an accident while fulfilling their intended purpose. Unfortunately, manufacturers do not always recall defective seat belts when they should. Some defective seat belts remain on the market for years, even though their manufacturers understand their risks, putting drivers and passengers at risk. Generally, seat belts have two functions. Seat belts prevent passengers from being ejected from the automobile during the accident. At the same time, seat belts reduce the risk that a passenger or driver will collide with objects inside the car, which can cause injuries secondary to the primary impact of the accident. Types of Seat Belt FailureWhile seat belt manufacturers have converged on a standard design for their products, there are still a myriad of designs out there, some of which work better than others. Accident experts have identified a wide range of potential seat belt failure mechanisms: • Inertial Unlatching: In simple terms, inertial unlatching occurs when the seat belt mechanism releases during an accident. The latch plate, which fits into the buckle, detaches, disconnecting the belt and leaving a passenger or driver unprotected. Seat belts without a locking latch plate are more prone to this form of failure than newer designs. Accident engineers, theorize that inertial unlatching occurs when the forces created by an accident resonate inside the buckle’s spring mechanism, thus unlatching the seat belt. • False Latching: This occurs when the latch appears to be buckled, but is not. This can occur due to user error, or due to internal friction inside the locking mechanism itself. False latching can also happen when there is an additional slot for the latch to enter, adjacent to the actual locking mechanism. When a passenger is falsely latched, rather than properly latched, they are at risk of being ejected from the vehicle in the event of a crash. • Accidental Release: Some seat belt mechanisms are easier to unlatch than others. In the event of a crash, seat belts can come unlatched when jostled by the passenger’s elbow or hip. Accidental release can be a sign of poor seat belt design. • Webbing Failure: The seat belts webbing, the strap that extends from the shoulder to the hip or across the lap, must be strong and free of defects to work properly. Manufacturing defects can leave seat belt webbing vulnerable to tears or breaks, which can become fatal in the event of an accident. Dynamic forces can make the problem worse. If the seat belt has not retracted correctly, and slack remains in the line, the force of an occupant moving forward can snap the belt’s webbing, leading to a seat belt failure. • Retractor Failure: For seat belts to work as intended, the webbing strap must pull taut against an occupant’s body during a crash. Most cars now feature an automatic retractor, which pulls the seat belt taut against the body when an impact occurs. As we’ve seen, slack in the seat belt can lead to a webbing failure, which occurs when the seat belts webbing snaps under the force of a moving body. It can also leave the driver or passenger vulnerable to secondary impact injuries, as the body is thrown against features inside the car’s interior. How to Detect Seat Belt FailureDetecting seat belt failure isn’t always a straightforward matter. The effectiveness of your vehicle’s seat belts should be evaluated based on the facts of your particular accident and injuries. Based on past cases and experience, here are just a few signs that may indicate a seat belt problem: Who is Responsible for Seat Belt Failure?If you’re injured because of seat belt failure in a vehicle, both the manufacturer of the product and the vehicle could be at fault. Designers of seat belts work to create a system that will protect vehicle occupants in some of the most extreme conditions, but they don’t always work as planned. Seat belts are tested by both the product creator and the vehicle manufacturer, to make sure that they adhere to certain safety standards. Even if the tests are passed, standards can change, or defects in manufacturing can arise that make the products less effective. Automakers may also be slow to adopt new seat belt technology in the vehicles, which could lead to modern cars having antiquated systems. Seat Belt Injuries and Potential DamagesSeat belt failure may be difficult to detect, but the related injuries are often quite serious. If you’re involved in an accident with a seat belt failure, the proper investigation may be able to identify the design or manufacturing defect that was the likely cause of your injuries. Victims who have been harmed by defective seatbelts might receive compensation that consists of compensatory and/or punitive damages. Compensatory damages will reimburse you for such things as medical care, lost wages, disability, and even suffering from the seat belt-related injuries. Punitive damages are sometimes awarded to victims as a means of punishing companies for wrongdoing. These damages can be significant, and they discourage manufacturers from releasing defective products or forgoing important safety testing in the future. If You’ve Been Injured Due to Seat Belt FailureIf you or a loved one has been injured due to seat belt failure, you have the right to claim financial compensation for those injuries with a defective product lawsuit. Most law enforcement officers who investigate these accidents miss a potential defective seat belt and it may take hiring an expert with accident reconstruction experience to uncover the truth. Using Seatbelt EffectivelyIn order to secure a passenger, a seat belt must: Seatbelt Defects LawSeatbelts are supposed to keep you tightly strapped in to prevent impact and ejection injuries. However, if the belt fails when you need it most, the consequences can be serious for you and everyone else involved. Without the belt to restrain you, you could be thrown around inside the car from the force of an impact. Or, perhaps even worse, you could be ejected from the vehicle altogether. Who’s to Blame for a Faulty Safety BeltIf you were involved in a collision and were injured because of a defective seat belt, you might be eligible to receive compensation for your injuries from the vehicle’s manufacturer or seller. Seat Belt Injuries in a Car AccidentHow seat belt injuries occur, how they can be prevented, and legal issues that can be raised around these kinds of injuries. Statistically, it has been proven that wearing a seat belt while traveling in any kind of motor vehicle saves lives. Of course, wearing a seat belt alone does not ensure the safety of drivers and passengers involved in a car accident. And at rare times, the seat belt itself may cause further injury. While the majority of seat belt injuries are minor and even expected especially in serious, high-impact crashes some car accident injuries caused by seat belts can be serious. How Seat Belt Injuries OccurIn many traffic accident scenarios, an automobile comes to a sudden stop, requiring a seat belt to restrain a still-moving driver or passenger. While a seat belt may indeed prevent severe injury when it is worn properly and functions as intended, it is entirely possible that the seat belt itself can cause injury to a driver or passenger, due to a variety of factors, including: The most severe injuries that can be caused by (or exacerbated by) seat belts include: • The shoulder belt should be placed across the middle of your chest and away from your neck Personal Injury LawyerWhen you need legal help with seat belt defects in Utah, please call Ascent Law LLC for your free consultation (801) 676-5506. We want to help you.
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
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Difference Between Real And Personal Property Biggest Challenges Of Real Estate What Is The Difference Between A Prospectus And An Offering Memorandum? Ascent Law St. George Utah OfficeAscent Law Ogden Utah OfficeThe post Defective Seat Belts first appeared on Michael Anderson. via Michael Anderson https://www.ascentlawfirm.com/defective-seat-belts/ ![]() Worried about representing yourself in court? Many parents wonder how to get custody of a child without a lawyer, either because of the cost of hiring one or for other reasons. Yet, custody proceedings aren’t necessarily the easiest first-introduction to the legal system. If you plan to head into court solo, here’s what you need to know: In legal terms, filing for child custody “pro se” means filing on behalf of yourself. In other words, without the help of a lawyer. For many single parents who want to file for child custody, but who cannot afford a lawyer, filing for child custody pro se is a viable alternative. Plus, even if you do end up working with a lawyer later, teaching yourself how to go through the process pro se can equip you to be your own best advocate. • Contact the court clerk: The very first thing you need to do is contact your local family court and ask the clerk how you can obtain the papers you will need in order to file for child custody without a lawyer. In some states, these forms can be printed right from your computer. In other states, you will need to physically go to the courthouse to obtain the paperwork you’ll need to file for child custody pro se. • Research child custody laws in your state: Make sure you have a solid understanding of the details, legal hoops, and fine print that could impact your case. This is tedious, time-consuming work, but understanding the child custody laws in your state will have a huge impact on your ability to represent yourself well. • Consider all of your child custody options: Don’t just automatically file for sole physical custody because you don’t want to live apart from your kids, or because you find your ex difficult to work with. Give consideration to every child custody option that is available to you, and carefully consider what would really be best for your children. • Maintain clear, detailed child custody documentation: Keep a record of each and every visit, phone call, email, and contact between you and your ex, and between your children and your ex. As best as you can, stick to the facts and refrain from using negative or derogatory language. • Pay close attention to all of the deadlines and dates related to your case: Many of the papers you will need to file will require follow-up activities within a given time period, such as 30 days. Do not miss a single deadline. In addition, keep all of your papers and materials organized. This will help you stay on top of the details of your case. • Consider whether you feel confident that you can get custody without a lawyer: Before you go to court, consider whether you feel 100% confident in representing yourself. If you do not, consider contacting Legal Aid to find out whether there are any nearby legal clinics where a paralegal or law student could review your case thus far and give you further direction before going to court. • In court, be polite and respectful at all times: Do not allow the judge to see your anger and frustration. Instead, focus on being pleasant and attentive, and stick to the facts of your case. • Do not give up: Getting custody without a lawyer is difficult, and you’re probably going to face some setbacks along the way. Stays focused on your mission and remember that what you are doing is 100% for your kids. This will come through in all you do as you work toward securing custody of your children. How to Get Sole CustodyGetting full custody is often what parents want to achieve in their custody case, but, many times, parents don’t know what it means or how to get sole custody. Understanding how sole custody works is crucial because you want to be sure that getting sole custody, also known as full custody, is what you really want. In addition, judges like to see both parents involved in raising your child. Getting full custody means you’ll have to show the judge why you’re the only parent who deserves custody. Sole Custody vs. Joint CustodyHow to gain full custody involves a certain strategy, but before you can get full custody, it’s important to know what sole custody is: How to Obtain Full CustodyFiling for full custody is the first step in the process of getting sole custody. The best case scenario is if your spouse agrees to your having full custody. This prevents fighting for full custody, is less expensive for everyone, and is also less stressful than a full-blown trial. You can file for custody even if you’ve never been married, so long as you have a child in common. Filing for custody if you’ve never been married to the other parent is similar to how to get full custody in a divorce, except there is no marriage. The requirements in cases with or without a marriage are the same, so long as the father has established paternity if the parties were never married. How Do You Get Full Custody of Your Son or Daughter?Whether or not you’ll get sole custody depends on several factors in addition to best interests and the inability to co-parent. Some scenarios that give you a better chance of getting sole custody are if:
Is There a Preference of Full Custody for Mothers?Most states used to award custody to mothers more often than to fathers. Now, almost every state has laws allowing both parents to get custody. As many fathers know, however, some judges still believe the mother should be the custodial parent. Some states are better than others in allowing either you or your spouse to have an equal chance of getting full custody. If you’re seeking sole custody, you should hire an experienced family lawyer. Custody is too important to handle by yourself. Dos and Don’ts for Winning Child CustodyThese dos and don’ts will help you present yourself to the courts in the best light and help you win your child custody case: • Don’t invent negative stories in an attempt to win custody: Never come up with unfounded allegations of abuse or exaggerate your ex’s shortcomings in order to win custody. Any lies you present will come back and be used against you in court. To get this transfer done right and to protect yourself in the future, you’ll need to draw up an agreement between you and the child’s mother. You can do this without a lawyer, but you’ll need to present this agreement to the local court for a judge’s approval. If you try to skip the court altogether, you put yourself at risk. More often than you’d imagine, the parent giving up custody changes his or her mind after a while and then denies there ever was any agreement. In that case, the parent accepting custody can get stuck with paying back support even though the child has been living with him or her during the whole time period. Make sure the agreement says that each of you intends that your son’s legal and physical custody be transferred from his mother to you and that all child support will cease as of a specific date (which you’ll choose and include). The agreement doesn’t have to be in fancy legal language, it just needs to make the important points in writing and include both your full names and that of your son. Then be sure you both sign the agreement in front of a notary public. Forward the agreement to the court that handled your divorce and include a letter asking a judge to adopt it as a court order. Also ask the judge to make an order canceling the deductions from your paycheck. A sympathetic judge will give you what you need to take to the payroll office and cancel the child support. An unsympathetic judge may tell you that you need to hire a lawyer for the job. But in truth, it is a very simple procedure and you should be able to get the court to do the necessary paperwork. Free Initial Consultation with LawyerIt’s not a matter of if, it’s a matter of when. Legal problems come to everyone. Whether it’s your son who gets in a car wreck, your uncle who loses his job and needs to file for bankruptcy, your sister’s brother who’s getting divorced, or a grandparent that passes away without a will -all of us have legal issues and questions that arise. So when you have a law question, call Ascent Law for your free consultation (801) 676-5506. We want to help you!
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
4.9 stars – based on 67 reviews
Commercial Property Foreclosure Difference Between Real And Personal Property Do Divorce Papers Have To Be Served In Person? How To Prevent Discrimination At Work What Is The Difference Between A Prospectus And An Offering Memorandum? Ascent Law St. George Utah OfficeAscent Law Ogden Utah OfficeThe post Custody Lawyers Utah first appeared on Michael Anderson. via Michael Anderson https://www.ascentlawfirm.com/custody-lawyers-utah/ ![]() An Offering Memorandum is also known as a private placement memorandum. It is used as a tool to attract external investors, either specifically targeting a known group or just soliciting willing investors in general. The document enables the investor to understand in detail the investment, so as to help them assess their interest in participating in the deal. An investment banker often prepares an offering memorandum on behalf of the business owners. In investment finance, an offering memorandum is a kind of a detailed business plan that highlights information required by an investor to understand the business. It provides details on the terms of engagement, potential risks associated with the business, and a detailed description of the operations of the business. The document also often includes a subscription agreement that acts as a contract between the two parties, i.e., the investor and the issuing company. Investments formally follow these guidelines and are mostly required by securities regulators. A prospectus is similar to an offering memorandum, but the former is for publicly-traded issues while the latter is for private placements. Business growth requires an injection of capital that is obtained from investors. The offering memorandum is part of the investment process. For instance, a company may decide to increase the number of its offices, which will require a significant amount of funds. The process begins with the firm deciding how much they need for the expansion. Then, an investment banker drafts the offering memorandum, which must comply with existing procedures and securities laws and regulations. The company then chooses who to issue the document with, depending on their targeted investors. It is much like the process of doing an IPO, but an offering memorandum is aimed at a private placement investment rather than the company seeking funds going public. What Are The Contents of the Offering Memorandum?An offering memorandum comprises key information on the company’s future growth strategy, upcoming opportunities in the market, strategy for achieving future projections, and details on competition in the marketplace. How the current management team plans on dealing with weaknesses, operations scalability, etc., are detailed in the document. The investment banker, financial advisors, and the like, should provide valuable information but the offering memorandum should also contain information directly from the company. Every clause should be scrutinized and vetted to ensure it’s free from errors or omissions. The document is meant to give the company an opportunity to convince targeted investors, and it should be flawless for this purpose. Example Offering Memorandum Table of Contents: What Is The Importance of Issuing an Offering Memorandum?The document is legally binding, and its importance goes beyond being a necessary document in the process of investment for both sellers and investors. The document protocol helps the investor understand the opportunities being presented in the investment, imminent risks, potential returns, the operations involved, and the general capital structure. The offering memorandum also provides protection for the investor and for issuers of securities. The issuer is required to follow to the letter all regulations outlined by the SEC (Securities and Exchange Commission). The SEC promotes fairness in the investment industry by shielding investors in the securities industry from falsified information and by aiding the investor in making informed decisions in the process of committing huge amounts of funds. The offering memorandum also presents a professional touch to the seller. Investors cannot commit their money to businesses that don’t look organized or professional in their area of operation. Presenting a memorandum shows seriousness and professionalism in the business. Who prepares the Offering Memorandum?When any company goes through a sale process, it hires an investment banker. The first step of the banker is to understand the company and gather as much information as possible from top management to come up with a profile the company. The banker prepares the CIM and uses it as a marketing document, which is intended to make the company look attractive as the objective is “not just to sell, but to sell for maximum value.” The reason an investment banker tries to sell a company at the maximum value is because they represent the best interest of their client (the seller), and that their commission is based on the sale price. Offering Memorandum Vs ProspectusA prospectus offering document can bring added protection to your business and is often required to raise either debt or equity capital in the public and private markets. A well written prospectus will tell the story of the company, from the minute details of the types of securities being offered, e.g. stock versus bonds, to the management team, the market, the risk factors and the overall prospectus model of the company, among many other features. The final part of the prospectus is reserved for the subscription agreement, which is an essential component of any prospectus as the subscription agreement is the contract between the issuer and the person buying the debt or equity securities. Although the prospectus is first and foremost a document used to raise capital, the structure and presentation of the prospectus can add value to a company’s products and services and team by portraying them in a well-polished format. A prospectus shows an investor that one is serious and has gone the extra length to ensure regulatory compliance and good business practices. Without a formal document that outlines the company’s prospectus and securities structure it is often difficult to raise capital from any serious investor. A prospectus is used for public markets while an offering memorandum is used for private markets. The offering memorandum document can also be referred to as an “offering circular” if it requires registration with the stock exchange commission. The offering memorandum and the prospectus share many attributes, ranging from the types of disclosures and amounts required to terms and conditions. Both documents describe the terms of the offer, such as the minimum amount to invest and the qualifications of an investor. The investor is also briefed on imminent risks such as tax issues, vulnerabilities, transferability issues, and potential returns. Both documents are basically a detailed business plan, with in-depth information on management structure, strengths and weaknesses, capital structure, asset values, share values, amount of shares available, and financial projections. Offering MemorandumAn offering memorandum is a legal document that states the objectives, risks, and terms of an investment involved with a private placement. This document includes items such as a company’s financial statements, management biographies, a detailed description of the business operations, and more.An offering memorandum serves to provide buyers with information on the offering and to protect the sellers from the liability associated with selling unregistered securities. Understanding an Offering MemorandumAn offering memorandum, also known as a private placement memorandum (PPM), is used by business owners of privately held companies to attract a specific group of outside investors. For these select investors, an offering memorandum is a way for them to understand the investment vehicle. Example of an Offering MemorandumIn many cases, private equity companies want to increase their level of growth without taking on debt or going public. If, for example, a manufacturing company decides to expand the number of plants it owns, it can look to an offering memorandum as a way to finance the expansion. When this happens, the business first decides how much it wants to raise and at what price per share. In this example, the company needs $1 million to fund its growth at $30 per share. The company begins by working with an investment bank or banker to draft an offering memorandum. This memorandum complies with securities laws outlined by the Securities and Exchange Commission (SEC). After compliance is met, the document is circulated among a specific number of interested parties, usually chosen by the company itself. This is in stark contrast to an initial public offering (IPO), where anyone in the public can purchase equity in the company. The offering memorandum tells the potential investors all they need to know about the company: the terms of the investment, the nature of the business, and the potential risk of the investment. The document almost always includes a subscription agreement, which constitutes a legal contract between the issuing company and the investor. Offering Memorandum vs. Summary ProspectusWhile an offering memorandum is used in a private placement, a summary prospectus is the disclosure document provided to investors by mutual fund companies before or at the time of sale to the public.This written document is an abridged version of the final prospectus that allows investors to see pertinent information regarding the fund’s investment objectives and goals, sales charges and expense ratio, focused investment strategy, and data on the fund’s management team. Relevant tax information and broker compensation are also included in the disclosure document. A summary prospectus provides investors the information they need from the final prospectus quickly and in plain English. What is an Offering Circular?An offering circular is a prospectus for a new security listing. It is delivered to individuals and brokerage houses who are interested in potentially purchasing the newly issued mutual fund or stock. It may be slightly abbreviated from the final, long-form prospectus, but is still required to contain specific information. Offering circulars are required to contain certain pieces of information that are meant to be helpful to a prospective investor in deciding whether or not the investment is suitable for their interests. This information includes items such as the issuer of the security, the objective of the mutual fund or the purpose of the stock issue, the terms of the issue, and any additional information that could be helpful to a prospective buyer. An offering circular should not be confused with a red herring or preliminary prospectus. The preliminary prospectus, or red herring, is issued during the IPO process and is intended to generate interest in the new issue. It lacks many of the specifics regarding the new issue. The offering circular is a more complete document and should be viewed before making a final decision about an investment. Information About An Offering CircularAn offering circular allows investors to access information regarding a new issue. It provides them with very important information about the security such as financial information about the issuer, the objective of the fund or purpose of the funds being raised, and other terms of the security issuance. The offering circular is a legal document and is a requirement for many, but not all, new issues. It is important to distinguish it from the red herring, or preliminary prospectus, which lacks significant details about the new issue. The red herring is a promotional item passed out to potential investors early on in the IPO process to solicit indications of interest and does not include the crucial information that an investor should review before purchasing a security. However, this important information is included in the offering circular. Securities LawyerWhen you need legal help from a Securities Lawyer, please call Ascent Law LLC for your free consultation (801) 676-5506. We want to help you.
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
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Top Asset Division Divorce Attorney Difference Between A Felony And A Misdemeanor In Utah Can A Spouse Refuse To Sign A Divorce Paper? Commercial Property Foreclosure Difference Between Real And Personal Property Ascent Law St. George Utah OfficeAscent Law Ogden Utah OfficeThe post What Is The Difference Between A Prospectus And An Offering Memorandum? first appeared on Michael Anderson. via Michael Anderson https://www.ascentlawfirm.com/what-is-the-difference-between-a-prospectus-and-an-offering-memorandum/ ![]() There are two types of property. In legal terms, all property will be classified as either personal property or real property. This distinction between types of property comes from English common law, but our modern laws continue to distinguish between the two. Each type of property is treated differently under the law. There are many different types of laws that specifically pertain to personal property, and many other types of laws that pertain specifically to real property. Normally, a piece of property can be easily classified as either personal property or real property. The difference between the two is usually fairly straightforward. However, sometimes it’s a little harder to categorize property. Let’s say that I buy lumber and other building supplies, such as a saw, a hammer, and some nails. These supplies are personal property. They’re moveable and they belong to me. Next, I use these items to build a shed on my land. Is this shed personal property? No. The shed is real property because it’s attached to, and now part of, my land. Any leftover building supplies are still personal property, like my saw and hammer. But anything that’s actually part of the shed is now real property. Personal PropertyLet’s take a closer look at why this is. Let’s look at the types of items that are classified as personal property. Personal property includes possessions, of really any kind, as long as those possessions are movable and owned by someone. Personal property isn’t affixed to or associated with land. These moveable items are sometimes known as chattels. The law regarding chattels includes those laws covering possession, gifts, lost property, abandoned property, and stolen property. Personal property, therefore, includes belongings of any kind, as long as they are movable and are owned by someone. Personal property is usually viewed as assets and can be used in defining the net worth of a person. Some examples of personal property include bank accounts, insurance policies, furniture and fixtures in the homes, stocks, vehicles, boats, collectibles, antiques, books and pensions. Adding on the example about farm structures above, farm animals would be personal and not real property. They can be moved from one place or farm to another. It’s helpful to note that personal property includes both tangible and intangible items. A tangible item is an item that can be felt or touched. For a business, tangible personal property includes items the business owns such as: Personal property: ChattelsThe term chattel sometimes refers to all kinds of personal property, but often it refers only to tangible personal property (such as nose flutes and toenail clippers) as opposed to intangible property. A chattel, such as a furnace, can be affixed to land and become part of the real property. Such chattels are called fixtures. However, fixtures may retain their quality as separate personal property for certain purposes. For example, at the end of a lease term, the tenant generally has the right to remove fixtures she installed even though she doesn’t have any more right to the real property when the lease ends. Another example let us say that a person buys lumber and other building supplies including a hammer, saw, and some nails. These materials are personal property. They are chattels since they are tangible and are moveable. In a business setting, chattels or tangible personal property can include business equipment, office furniture, business vehicles, business goods and more. Extending this example, let us also say that this same person uses these tangible items to construct a shed on their land. Can we say that the shed personal property? No. The shed is real property. Because it is attached to and is now part this person’s land. Well, what about the building materials saw, hammer and leftover nails? Those are tangible personal property – they are movable, unlike the shed. Personal property: IntangiblesIntangibles are all kinds of personal property that aren’t tangible, that can’t be seen or touched. So, you can say this kind of property doesn’t involve a “thing” at all; it involves only a legal right. The mere existence of such a category of property is a reminder that, in the law, property most accurately refers to legal rights, not to things. Property rights: Things that can’t be ownedSome things can’t be owned at all and therefore can’t be private property. Some of these things, such as light, air, and the high seas, can’t be owned because they naturally seem communal. Other things, such as rivers and coastal waters, can’t be owned because they belong to the public. And some things can’t be owned because they’re illegal, like heroin. Real property: Land and buildingsReal property describes land and things that are attached to the land, which is why land is sometimes called real estate or realty. Even though wood, steel, and other building materials aren’t land themselves, when they’re built into structures attached to the land, they become real property, too. Trees and other plants naturally growing on the land are also part of the real property. But plants that require regular human cultivation and labor, such as grains and vegetables, sometimes aren’t treated as part of the real property. Real property is immovable property. It describes land and things, such as buildings, that are attached to that land, which is the reason why land is sometimes called real estate. Although steel, wood and other building materials are not land in themselves, when constructed into structures attached to land, they become real property. Trees, as well as other plants that are naturally growing on the land in question, are also part of the real property. However, plants requiring consistent human labor such as vegetables and grains are not treated as part of the real property. Differences between Personal and Real PropertyNow that we have understood the two types of properties, the next thing is to outline the differences between them. Although in trying to explain the meanings of the two types of property many differences have come up, we are going to outline those differences below. How many have you picked from the discussion above? Here are the major differences between personal and real property. 1. Real property is immovable and is permanently attached to the land including a house, walls, blinds, windows, fixtures, doors, and more. On the other hand, personal property can be moved or taken from a home or business including furniture, artwork, light fixtures and more. It is not affixed in any way. Real Property LawyerReal property is not only what is on your land, but it also consists of what is below and above it. If you have oil in your backyard, by all means you have the right to dig and acquire that oil. Personal property deals primarily with movable things, even if they weigh a ton, as long as they are not attached to the land. You might ask yourself, what’s the purpose behind these two classifications? Well, the classifications enable the law to draw a line between the two. Property can be categorized as real or personal.Real property comprises of anything that is attached permanently to land such a home, a garage, shed or even a rose flower. Conversely, if it were movable, then it would be personal property. A rose bush is a real property unless if it is pulled out of its garden, which would make it personal property. That said anything that is movable represents personal property, while the immovable is real property. Real Estate LawyerWhen you need legal help with real property law or personal property law, please call Ascent Law for your free consultation (801) 676-5506. We want to help you.
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
4.9 stars – based on 67 reviews
Residential Property Foreclosure Top Asset Division Divorce Attorney What Is The Difference Between Real Property And Personal Property? What Property Can Go Into A Living Trust? Commercial Property Foreclosure Ascent Law St. George Utah OfficeAscent Law Ogden Utah OfficeThe post Difference Between Real And Personal Property first appeared on Michael Anderson. via Michael Anderson https://www.ascentlawfirm.com/difference-between-real-and-personal-property/ ![]() Commercial foreclosures are, in most cases, very similar to residential foreclosures. The foreclosure may be non-judicial or judicial depending on the state where the property is located and what the loan documents dictate. With both non-judicial and judicial commercial foreclosures, the process starts when the borrower defaults on the mortgage. A default occurs when the borrower falls behind in payments or fails to do something that the loan documents require, such as maintaining hazard insurance on the property. After the default, the lender may accelerate, or call due, the outstanding balance on the loan. Typically, the lender must first send a breach letter to the borrower that outlines the reason for default and gives a time frame during which the borrower may cure the default and avoid acceleration. Usually, the amount of time given to cure a default is thirty days, but this can vary depending on the terms of the mortgage. Once the time period expires, if the borrower has not cured the default, then the lender may commence foreclosure proceedings. Non-judicial Commercial ForeclosuresA non-judicial foreclosure, or power of sale foreclosure, is an out-of-court process. With a commercial foreclosure, just like a residential foreclosure, the lender may proceed non-judicially if the loan documents contain a power of sale clause and if allowed by state foreclosure law. The power of sale clause is located in the deed of trust or mortgage and empowers a trustee sell the property without court supervision. This process typically involves recording a notice of default (or similar document) in the county records, mailing a copy of that notice to the borrower and other interested parties, as well as publishing the notice of default or notice of sale, though non-judicial procedures vary from state to state. Judicial Commercial ForeclosuresJudicial foreclosures are processed through the court system and are initiated when the lender files a lawsuit usually in the form of a complaint for foreclosure or petition for foreclosure against the borrower seeking a judgment of foreclosure and order for sale. First, a title report will be ordered so that the lender’s attorney can determine all interested parties that must be named as defendants in the lawsuit. The defendants might include lien holders (like junior mortgage holders) or the U.S. Internal Revenue Service, if there is a federal tax lien on the property. The attorney will also receive copies of all underlying commercial mortgage documents, including the mortgage, the security agreement, the assignment of leases (if any), the assignment of rents (if any), any UCC filings, and any guaranties. Because commercial loans are often taken out in the name of the business, in many cases the business owner will have provided a personal guaranty pledging payment of the loan. The business owner as guarantor will also be included as a defendant in the foreclosure suit, along with the business itself. Each defendant must be served with a copy of the complaint for foreclosure, either personally or by publication if a particular defendant can’t be found. Defendants are given a certain amount of time, often 20 or 30 days, to file an answer to the complaint. In an uncontested foreclosure, the lender’s attorney will file a motion to obtain a judgment. In a contested case, the matter will typically proceed to trial. Once the judgment and order of sale have been entered, notice of the sale date will be given to the defendants and might be published, depending on state requirements. The foreclosure sale will be held, and the property will be deeded to the new owner after any applicable redemption period has expired. Potential Defenses in a Commercial ForeclosureIn a commercial foreclosure, just like with residential foreclosures, many potential defenses are available to a property owner to fight the action. Possible defenses include: Tenants’ Rights Following a Commercial ForeclosureThe rights of any tenants in a foreclosed commercial property will depend on the terms of the lease and the date on which the lease was signed. The tenant’s interest could potentially be terminated by a foreclosure due to the legal concept referred to as “first in time, first in right,” which allows the purchaser of a foreclosed property to void a lease if the mortgage was executed before the execution of the lease. (See our article on The First in Time, First in Right Rule.) Many commercial leases contain a subordination, non-disturbance, and attornment agreement, or SNDA. Under the terms of an SNDA, the tenant agrees to subordinate, or make junior, its interest in the lease to any lender making a loan secured by the commercial property; the tenant agrees to attorn to, or recognize, any new owner of the commercial property as its landlord; and any new owner of the commercial property agrees not to disturb the tenant’s possession of the property as long as the tenant pays rent and complies with the terms of the lease. For tenants, an SNDA provides some assurance that their rights to their premises will be preserved even if the property is foreclosed. Forbearance AttorneyOne workout option for commercial loans as well as residential loans is forbearance. Forbearance is when the lender agrees to reduce or suspend mortgage payments for a certain period of time and not to initiate a foreclosure during the forbearance period. Sometimes the lender will also agree to waive or modify a mortgage requirement that the borrower is unable to meet. In a forbearance, the lender retains the right to resume the foreclosure once the forbearance period expires if the agreed-upon conditions are not met. Lawyer For A Loan ModificationA commercial loan workout could also consist of a loan restructuring by means of a loan modification. With a modification, the lender might agree to: Short Sale LawyerAnother possible commercial loan workout option is a short sale. In a commercial short sale, as with a residential short sale, the borrower sells the property for a price that is less than the total debt. The lender agrees to release its lien on the property and to accept the proceeds of the sale in full or partial satisfaction of the outstanding indebtedness. Depending on the terms of the short sale agreement, the lender might be able to get a deficiency judgment by filing a lawsuit following the short sale. Lenders are, in general, more likely to seek a deficiency judgment after the short sale of a commercial property than a residential property. Attorney for Deed in Lieu of ForeclosureA deed in lieu of foreclosure is also sometimes an option for commercial borrowers who are facing foreclosure. A deed in lieu of foreclosure is a transaction in which the borrower voluntarily transfers title to the commercial property to the lender in exchange for the lender releasing the mortgage lien in full or partial satisfaction of the outstanding indebtedness. Borrowers are commonly given a release of all liability with deeds in lieu of foreclosure. But if the property is severely underwater (where the value of the property is significantly less than the total debt), the lender might require an additional payment or insist it retain the right to seek a deficiency judgment. A key benefit to a commercial deed in lieu of foreclosure transaction is that it generally provides a smoother transition of the commercial property than a foreclosure. Usually, there is a mutual cooperation clause in the agreement so that files, leases, and other records are easily transferred, and other issues that might come up are addressed. For this reason, lenders are sometimes more willing to consider a deed in lieu of foreclosure as an alternative to foreclosure for commercial properties than they are for residential properties. Difference between Commercial and Residential WorkoutsWorkouts that are available for commercial properties are generally very similar to those that are available for residential properties. But one significant difference in the process of negotiating a workout involves the pre-negotiation letter. Whether a commercial property owner is seeking forbearance, loan modification, short sale, or deed in lieu of foreclosure, the commercial workout process often starts with the pre-negotiation letter, which provides an outline for the preliminary discussions about the workout. The purpose of the pre-negotiation letter is to avoid any misunderstandings during the workout negotiations. The letter will set the ground rules for the workout discussions, preserve the lender’s rights regarding the existing default, and might eliminate the ability of the borrower to later claim that the lender made verbal promises or otherwise acted improperly regarding the workout. The letter will typically require the borrower to acknowledge that a workout agreement is not binding until and unless it is formalized in writing and has been signed by all parties. Commercial Real Estate ForeclosuresWhen considering investing in real estate, do not overlook the opportunities in income producing properties. Commercial real estate investment is an industry that offers one of the surest ways to gain wealth with the lowest barriers to entry. Real estate markets have ups and downs, with values fluctuating due to market conditions in certain localities primarily driven by overbuilding and high interest rates. Commercial real estate typically does not react to those outside factors in such broad swings. Values on commercial real estate tend to follow a steady upward path. The fact that a property is available through a real estate agent specializing in foreclosures, or on the foreclosure.com website, does not mean there is something wrong with it. Properties in this category are more likely to be in foreclosure or bankruptcy on an account of problems of the owner/developer than from forces directly related to the property. Prime properties and excellent opportunities abound in the commercial real estate space. Banks can be a good source of distressed commercial properties. They exist to attract accounts and make loans. Managing real estate is outside their area of expertise. Creditors end up owning properties they never intended to own, and are stuck with REO (Real Estate Owned), a particularly unwelcome item on their balance sheets. From an accounting standpoint, while real estate for owner/investors is an asset on its books, it is the opposite in terms of banking bookkeeping. Real estate on a bank’s balance sheet appears on the liability side of the leger. It is a liability that drags down their net worth and causes their auditors and regulators to restrict their lending activities. Thus the banks are highly motivated to move properties off their books, and often decide to cut their losses by discounting the sales price for a quick sale. One thing that banks are particularly bad at owns real estate, so any real estate on the books of a lender is an opportunity for an investor. The pathway to success in commercial real estate can be shortened by researching the commercial foreclosure and business foreclosure markets. Foreclosure Rules Vary from State to StateFirst of all, as with most real estate laws, foreclosure rights and procedures are different in each state. These differences can be minor variations in things such as how many times a lender must publish notice of a foreclosure sale, or the number of days a borrower has to respond to a lawsuit. They can also, however, vary significantly in terms of borrower and lender rights. For example, a borrower may or may not have the right of redemption, which is the ability to recover their property following a foreclosure sale by paying the sale price, interest and other costs to the winning bidder or if the redemption happens before the sale, by paying the lender its outstanding debt and other costs. Procedural RequirementsBecause foreclosures result in the loss of property, including people’s homes, strict compliance with procedural items, such as the method and form various notices must take, is required. Accordingly, knowing when, where and what form notices must take (as well as all other procedural requirements) is critical to a successful foreclosure. While there may be some similarities, the procedural requirements for a foreclosure can vary widely from state to state. Time to Complete the ProcessDepending on the state, foreclosures can occur as quickly as 30 days, and up to seven months (or longer). Deficiency JudgmentsWhere the proceeds from the foreclosure sale aren’t enough to pay the borrower’s unpaid debt, the lender may be able to obtain a deficiency judgment against the borrower for the difference. Some states permit them, and some do not. Generally such judgments are not available where a deed of trust was used. Again, however, even where a deficiency judgment is permitted, the states can differ on their application, such as the time period in which it must occur and conditions on its availability (e.g., a borrower may be able to avoid a deficiency judgment if it agrees to a sale of the property prior to foreclosure). Commercial Property Foreclosure LawyerWhen you need a Commercial Property Foreclosure Lawyer call Ascent Law LLC for your free consultation (801) 676-5506. We want to help you.
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
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Choosing A Personal Injury Lawyer How Is Alimony Calculated In Salt Lake? Residential Property Foreclosure Top Asset Division Divorce Attorney Ascent Law St. George Utah OfficeAscent Law Ogden Utah OfficeThe post Commercial Property Foreclosure first appeared on Michael Anderson. via Michael Anderson https://www.ascentlawfirm.com/commercial-property-foreclosure/ ![]() When a couple is divorcing or separating, they generally have a variety of assets that will need to be divided between them. Assets might include a home or other real property, a business, bank accounts, or retirement accounts. What Kind Of Assets Are Divided In A Divorce?• Money: You and your spouse likely have some financial assets. These financial assets generally include bank (your checking and savings), investment accounts, stocks and bonds, mutual funds, and cash. Accounts held in your minor children’s names or jointly with another person should also be considered. You may be able to find a list of all money accounts by reviewing the 1099 Forms used to complete your Income Tax Forms. • Debt Repayment: If you or your spouse loaned money to someone, and you are owed repayment of that debt still, that debt is an asset. • Degree or professional license: If and how degrees and licenses are valued as assets varies by state. Consult your divorce attorney to determine if these are an asset in the divorce. What Happens in a Divorce?Although divorce is common throughout the United States, the divorce process varies depending on the couple’s situation. Short-term marriages without children or property typically result in a less complex and time-consuming divorce than long-term marriages with significant property entanglements, marital debt, and minor children. Additionally, divorcing couples who work together to negotiate the terms of the divorce (child custody, child support, property division, debt allocation, and spousal support) will experience a less expensive and less stressful divorce than couples who can’t agree or refuse to work together. Step Two: Asking for Temporary OrdersCourts understand that the waiting period for divorce may not be possible for all couples. For example, if you are a stay-at-home parent that is raising your children and dependent on your spouse for financial support, waiting for 6-months for the judge to finalize your divorce probably seems impossible. When you file for divorce, the court allows you to ask the court for temporary court orders for child custody, child support, and spousal support. If you request a temporary order, the court will hold a hearing and request information from each spouse before deciding how to rule on the application. The judge will usually grant the temporary order quickly, and it will remain valid until the court orders otherwise or until the judge finalizes the divorce. Other temporary orders may include a request for status quo payments or temporary property restraining orders. Status quo orders typically require the breadwinner to continue paying marital debts throughout the divorce process. Temporary property restraining orders protect the marital estate from either spouse selling, giving away, or otherwise disposing of marital property during the divorce process. Restraining orders are usually mutual, meaning both spouses must follow it or risk being penalized by the court. If you need a temporary order but didn’t file your request at the time you filed for divorce, you’ll need to apply for temporary orders as quickly as possible. When you file for divorce, the court allows you to ask the court for temporary court orders for child custody, child support, and spousal support. Step Three: Serve Your Spouse and Wait for a ResponseAfter you file the petition for divorce and request for temporary orders, you need to provide a copy of the paperwork to your spouse and file proof of service with the court. Proof of service is a document that tells the court that you met the statutory requirements for giving a copy of the petition to your spouse. If you don’t properly serve your spouse, or if you neglect to file a proof of service with the court, the judge will be unable to proceed with your divorce case. Service of process can be easy, especially if your spouse agrees with the divorce and is willing to sign an acknowledgment of service. However, some spouses, especially ones that want to stay married or make the process complicated, can be evasive or try anything to frustrate the process. The easiest way to ensure proper service is for the filing spouse to hire a professional who is licensed and experienced in delivering legal documents to difficult parties. The cost is usually minimal and can help prevent a delay in your case. If your spouse retained an attorney, you could arrange to have the paperwork delivered to the attorney’s office. The party who receives the paperwork (usually titled “defendant” or “respondent”) must file an answer or reply to the divorce petition within a prescribed amount of time. Failure to respond could result in a “default” judgment against the non-responding spouse, which can be complicated and expensive to reverse. The responding party has the option to dispute the grounds for divorce (if a fault divorce), the allegations in the petition, or assert any disagreements as to property, support, custody, or any other divorce-related issues. Step Four: Negotiate a Settlement Marital Property and Separate PropertyIn a divorce, the distribution of property depends on which property belongs to the marriage – marital property – and which property belongs to each of the two spouses – separate property. Generally, marital property is property acquired or earned during the marriage, including earned income. Property used for the benefit of the marriage, even if it started out as separate property, may also be considered marital property. Separate property includes anything that belonged to one spouse before marriage and was kept separate throughout the marriage. It could also include property given only to one spouse during the marriage, like a gift made to the husband alone or an inheritance that the wife received from a member of her family. The most common types of property divided at divorce are real property like the family home, personal property like jewelry and clothing, and intangible financial assets like income, dividends, and benefits. All of the marital property must be divided between the spouses when the marriage ends, and marital debts must also be divided. The spouse who owns separate property gets to keep that property–it can’t be awarded to the other spouse. Equitable Division of PropertyRather than rely on a hard and fast set of rules when splitting property between spouses, judges in Utah have discretion to consider a variety of factors unique to each marriage. Despite the court’s relative freedom to decide what is fair, it should always consider the length of the marriage and how the spouses acquired the marital property. It should also look at the conditions each spouse will face alone after the divorce, such as medical needs, and childcare costs. Each spouse’s level of education and earning potential are also relevant. Judges may divide property unequally after taking these factors, and others, into account. Alimony Determined as Part of Equitable DivisionIn Utah, courts consider alimony as part of the equitable division of marital property. Alimony is a payment from one spouse to the other to help the recipient spouse maintain a lifestyle as close as possible to the standard of living the parties enjoyed during the marriage–and specifically, at the time they separated. If it is more equitable, the court might base alimony on the standard of living at the time of trial. The court also has the option to base alimony on the standard of living at the time of marriage if the marriage was short and there are no children. To determine the amount of alimony due, the court may consider either spouse’s fault in the deterioration of the marriage. The court also evaluates the recipient spouse’s financial resources, earning capacity, and whether that spouse worked in a business owned or operated by the obligated spouse (the one who has to pay). Additionally, the court looks at the obligated spouse’s ability to pay, the length of the marriage, who has custody of the children, and whether the obligated spouse’s earning capacity increased because the recipient spouse contributed to education or training during marriage. If one spouse is at the threshold of a major change in income because of the collective efforts of both spouses, that change also will be a factor in how the court divides the marital property and in the alimony award. Conversely, for a short marriage, the court could attempt to put the spouses back where they started as newlyweds, in terms of financial resources. Generally, alimony payments can last only as long as the number of years the marriage existed. Marital Settlement AgreementsThroughout the process, divorcing spouses have opportunities to agree between themselves on what is a fair division. They can decide to sell certain assets and divide the proceeds, while allowing each spouse to keep certain other assets. Whatever agreements the spouses make, they can submit a marital settlement agreement to the court and a court will generally accept the agreement without further involvement. On the other hand, if the spouses cannot work together, or if there are certain items of property that they cannot agree on, then the court will decide for them. Divorce AttorneyWhen you need a Utah Divorce Attorney, please call Ascent Law LLC for your free consultation (801) 676-5506. We want to help you.
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
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Apartment Building Investor Attorney Divorce Mediation Salt Lake City Residential Property Foreclosure Ascent Law St. George Utah OfficeAscent Law Ogden Utah OfficeThe post Top Asset Division Divorce Attorney first appeared on Michael Anderson. via Michael Anderson https://www.ascentlawfirm.com/top-asset-division-divorce-attorney/ ![]() When mortgage borrowers fail to make their monthly payments as agreed upon, a lender may seize their property and sell it to a new buyer to help recover the mortgage balance. This is called a foreclosure Foreclosures occur due to non-payment, and though the process and timelines vary by state, the end result is the same: The mortgage borrower loses his or her home. Once the lender takes control of the property, it can sell it off to make up for financial losses on the home. Investors and consumers can purchase these homes—often at auctions or directly from the bank or government agency that owns them. Why Foreclosures HappenForeclosures, at their most basic, occur because the homeowner has failed to make agreed-upon payments with their mortgage lender. The reasons behind this non-payment can vary. Sometimes, job or income loss is the culprit; for other borrowers, medical bills or credit card debt made it impossible to stay afloat. In some cases, it may be due to bankruptcy, divorce, disability, or other personal or financial issues. Pros & Cons of Foreclosed PropertyPros That’s about where the perks end, though. Foreclosed properties often come in poor condition and require many repairs—repairs the seller is typically unwilling to make (the majority are sold as-is). Additionally, you may not be able to finance the purchase via a traditional mortgage loan, especially if you buy it at auction. In most cases, property auctions require all-cash bids. Finally, there are concerns regarding the previous homeowners. These include: Stages of ForeclosureThe actual foreclosure process that a lender must go through to seize a property varies by state. In some places, foreclosures must advance through judicial proceedings before the home can be seized. In others, there are non-judicial options. Legally, a foreclosure cannot be initiated until a borrower is at least 120 days behind on their mortgage payments. How to Negotiate With SellersWhen buying a foreclosure, you’re often purchasing from a large financial institution like a bank or private lender. Because of this, offers usually require multiple approvals and may take longer to move through the pipeline. You can generally expect negotiations to be slower and more difficult than they would be with a traditional seller. Additionally, banks are looking to recoup as much of their losses as possible. As such, they’ll usually present a counteroffer during negotiation which, again, must be approved by several people. When purchasing in a traditional home sale, you can include a home inspection contingency and negotiate on repairs and pricing based on the inspection’s findings. When buying a foreclosed property at auction, individual buyer contingencies (and thus the negotiations based on them) are not allowed. Your best bet for negotiating a foreclosure purchase is to engage a real estate agent—ideally one with foreclosure experience. He or she will be able to help you craft a competitive offer based on comparable sales and market conditions. Phases Of A ForeclosurePhase 1: Payment Default Throughout the foreclosure process, many lenders will attempt to make arrangements for the borrower to get caught up on the loan and avoid foreclosure. The obvious problem is that when a borrower cannot meet one payment, it becomes increasingly difficult to catch up on multiple payments. If there is a chance that you can catch up on payments—for instance, you just started a new job following a period of unemployment—it is worth speaking with your lender. If a foreclosure is unavoidable, knowing what to expect throughout the process can help prepare you for the six phases of foreclosure. How Do Foreclosures Work?Foreclosure is generally a slow process. If you make one payment a few days or weeks late, you’re probably not facing eviction. However, you may face late fees in as little as 10 to 15 days. That’s why it’s important to communicate with your lender as early as possible if you’ve fallen on hard times or expect to in the near future—it might not be too late to avoid foreclosure. The foreclosure process itself varies from lender to lender and laws are different in each state; however, the description below is a rough overview of what you might experience. The entire process could take several months at a minimum. You will generally start to receive communications as soon as you miss one payment, and those communications might include a notice of intent to move forward with the foreclosure process. In general, lenders initiate foreclosure proceedings three to six months after you miss your first mortgage payment. Once you’ve missed payments for three months, you may be given a “Demand Letter” or “Notice to Accelerate” requesting payment within 30 days. If, by the end of the fourth month of missed payments, you still have not made the payment, many lenders will consider your loan to be in default and will refer you to the lender’s attorney. This is when things get critical. Consequences of a ForeclosureThe main outcome of going through foreclosure is, of course, the forced sale and eviction from your home. You’ll need to find another place to live, and the process could be extremely stressful for you and your family. How foreclosures work also makes them expensive. As you stop making payments, your lender may charge late fees, and you might pay legal fees out of pocket to fight foreclosure.9 Any fees added to your account will increase your debt to the lender, and you might still owe money after your home is taken and sold if the sales proceeds are not sufficient (known as a “deficiency”). A foreclosure will also hurt your credit scores. Your credit reports will show the foreclosure starting a month or two after the lender initiates foreclosure proceedings, and it will stay on the report for seven years. You’ll have a hard time borrowing to buy another home (although you might be able to get certain government loans within one to two years), and you’ll also have difficulty getting affordable loans of any kind. Your credit scores can also affect other areas of your life, such as (in limited cases) your ability to get a job. How to Avoid a Foreclosure?The act of taking back your home is the last resort for lenders who have given up hope of being paid. The process is time-consuming and expensive for them (although they can try to pass along some of those fees to you), and it is extremely unpleasant for borrowers. Fortunately, you can follow some tips to prevent foreclosure: Foreclosure AttorneyWhen you need a Residential Property Foreclosure Attorney, please call Ascent Law LLC for your free consultation (801) 676-5506. We want to help you.
Ascent Law LLC
8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
Ascent Law LLC
4.9 stars – based on 67 reviews
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