I am aware of the legal concept that if an agent breaches his fiduciary duty to a client, the agent may forfeit his right to a commission, regardless of whether that breach of duty caused damage to the client. Does that same concept apply to transaction brokers? No. In the recent decision of Hoff … Continue Reading
Can officers and directors of a corporation be held personally liable for delinquent payroll taxes? Yes, they can. If you currently are or are considering becoming a corporate officer or director, you should be aware of the possibility of personal liability for unpaid employee withholding taxes. Under the tax laws of this country (i.e., the … Continue Reading
To maximize protection of your personal assets from liabilities associated with your business properties and operations, ALWAYS observe the following basic formalities. (This is not meant as an exhaustive list; corporations and other specific types of business organizations have additional requirements that are beyond the scope of this simple checklist). Have proper company formation … Continue Reading
Choosing the Best Form for Your Colorado Business Entity In recent years, the number of business entity forms available under Colorado law has doubled, adding limited liability companies (“LLC’s”), limited liability partnerships (“LLP’s”) and limited liability limited partnerships (“LLLP’s”), to the basic group consisting of general partnerships, limited partnerships and corporations. The factors which have … Continue Reading
I am aware that Colorado’s Designated Brokerage legislation requires all brokerage firms, even one person offices, to have a brokerage relationship policy. What are the issues which should be addressed in such a policy? General Theme The drafting of an agency policy requires the balancing of a variety of considerations. The policy should create predictability … Continue Reading
Reprinted from REALTOR® Magazine( www.realtor.org/realtormag) by permission of the NATIONAL ASSOCIATION OF REALTORS®. Copyright 2002. All rights reserved. Oxymoron: Words used together that have opposite meanings – jumbo shrimp, for example. A seeming oxymoron is nonrefundable earnest money, a euphemism that some sellers use for a deposit that they intend to keep whether or … Continue Reading
I am a broker helping buyers purchase their first home with FHA financing. The buyers knew that they needed to bring 3% of the purchase price to closing. They have had an unexpected setback and have asked me to loan them $500 to complete their 3% down payment. I know these kids are good for … Continue Reading
In Colorado, liens for unpaid real property taxes have priority over all other liens, including deeds of trust. Many of our clients know this and maintain tax escrows on loans they hold which are secured by real estate. Yet not all loans require tax escrows. Lenders with second deeds of trust rarely maintain tax … Continue Reading
This article educates readers about how to avoid inadvertently committing loan fraud. Another article on our website, “How to Commit More Loan Fraud,” intends to further help real estate professionals and sellers from inadvertently becoming caught up in such a scheme. Question: I have brokered a transaction in which the seller is willing to give … Continue Reading
Buyer and seller are under contract. After the contract is formed and before the contract closes, the market value of the property increases dramatically. Before a due diligence contingency of the deal expires, the buyer seeks an extension of the contingency. Does a transaction-broker have a duty to disclose to the seller that the … Continue Reading
