…the shareholder’s right to receive dividends and distribution of remaining assets upon the liquidation of the corporation. 7. What is an example of different classes of stock? The best example of different classes of stock is common stock and preferred stock. Generally, ownership of a share of preferred stock grants the shareholder the right to receive distributions of dividends prior to any distribution of dividends to common shareholders, and upon…
Do you have customers who, but for a mistaken entry on their credit report, would otherwise qualify for a mortgage? Recognizing the importance of the credit reporting system, and its potential for error, Congress, in 1970, enacted the Fair Credit Reporting Act (Title 15, United States Code, Section 1681 et seq). Among its purposes was to require credit reporting agencies to adopt procedures to meet the needs of commerce…
…is transferred. In addition to compliance with the time periods specified above, the other key to properly completing a deferred exchange is for the taxpayer to avoid actual or constructive receipt of money (which is non-like kind property) prior to receipt of replacement like-kind real property. In the typical situation, the taxpayer has disposed of one property and wants to use the net cash proceeds from that disposition to acquire…
…big blowup dispute between owner and licensee When a multifamily or commercial property owner engages a broker to list a property for sale or lease, the owner and broker have several options for reducing their agreement to writing. They may use the Colorado Real Estate Commission (CREC) approved forms. Institutional property owners often have their own forms There are no Real Estate Commission approved forms for property management. This leaves…
…case. While common practice was simply to quitclaim to “John Doe, Trustee of the Doe Family Trust,” there were further recording requirements lurking in the statute which were designed to provide proper notice of John Doe’s trustee relationship. Failure to satisfy these recording requirements resulted in John Doe taking title as an individual, not trustee. This meant that John Doe could create a renegade, legitimate chain of title superior to…
…property. The net sales proceeds will generally be the sales price less expenses actually incurred and paid by the taxpayer as part of selling the house, such as broker’s commissions, closing costs, and certain expenses for fixing the house up to sell it. Generally, the taxpayer’s basis in the house will be the original price that the taxpayer paid for the house, plus the cost of any major improvements that…
…trademark passes preliminary screening, you may be ready for a more comprehensive search. These searches are conducted by companies who specialize in trademark searches. These companies are somewhat analogous to title companies. They are critical for a federal trademark registration, but are of less importance for an entrepreneur seeking to establish a Colorado real estate company. Once you have completed your trademark search and have decided upon a distinctive trademark,…
…generally be the sales price less expenses actually incurred and paid by the taxpayer as part of selling the house, such as broker’s commissions, closing costs, and certain expenses for fixing the house up to sell it. Generally, the taxpayer’s basis in the house will be the original price that the taxpayer paid for the house, plus the cost of any major improvements that the taxpayer made to the house,…
…disclaim her obligation to search all listings or make a reasonable effort to search all listings, including those not in the MLS. In short, Sarah probably breached her fiduciary duty to her buyers and could be liable to the buyers, at least to the extent of the selling commission – the whole selling commission, not just the portion paid to her. She decided it was probably in her best interest…
Co-Author: Patricia A. Leighton, Esq. Quit Claims & The $500K Exclusion Part II In the May issue of the Colorado REALTOR, I posed the following scenario, a parent allowed her adult son to live in her second house for the last 2 1/2 years. The parent now wants to sell the house. Can the parent quit claim the house to her son so that he can benefit from the $250,000…
