Author: Benjamin Boyhan
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Why won’t a lender offer a mortgage to your LLC or corporation?
Lenders are generally reluctant to lend to entities, such as limited liability companies (“LLCs”) and corporations because it is more risky than lending to an individual. The primary reason is because the liability of the LLC or corporation is limited to the assets owned by the LLC or corporation. Thus, if the LLC or corporation…
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Revocable versus Irrevocable Trusts
There are important differences between revocable and irrevocable trusts. Knowing the differences will help in deciding the type of trust that works best for your situation. Some of the most important differences between revocable and irrevocable trusts are as follows: • Revocable trust o Ownership of assets – Settlor retains ownership of trust assets in…
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Do you really need a trust?
It is very common for attorneys, financial gurus, and others to recommend a trust to everyone. Trusts are often recommended as a one-size fits all way to pass property to beneficiaries while avoiding probate. A revocable living trust is the most commonly recommended trust and it is genuinely a good instrument to pass property to…
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What is a prepayment penalty in a mortgage?
A prepayment penalty is a fee that some lenders charge if you pay off all or part of your mortgage early. Borrowers may think it is bizarre to be penalized for paying off a mortgage early, but lenders include prepayment penalties in mortgages to ensure they make money. If a lender goes to the trouble…
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How does the property appraiser determine the value of your property for property taxes?
Each county has its own property appraiser. The property appraiser in the county where your property is located will determine your property’s value for tax purposes as of January 1 of the tax year. The factors considered in determining the value of your property for tax purposes include the following factors identified in Florida Statute…
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When can you use a Scrivener’s Affidavit to correct a defective deed?
If a deed has a typo or some other error that has no effect on the vesting of title, then a Scrivener’s Affidavit can be used to clarify the error without the grantor needing to sign a new deed or corrective deed. A Scrivener’s Affidavit is a sworn statement by the person who drafted the…
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How do you fix a defective deed?
There are several ways to fix a defective deed. The fix you choose will depend on the nature of the defect. Here three common ways to fix a defective deed: There are certain mistakes that might be considered “harmless” and may require no action. For instance, defects around witnesses and notary acknowledgements might cure themselves…
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What are consequential damages in a Florida real estate transaction?
Consequential damages (also known as special damages) in a Florida real estate transaction are damages that do not result directly from an action, but instead are a consequence of an action. For example, if a buyer breached a real estate contract and caused the transaction to cancel, consequential damages could include fees the seller had…
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When is a liquidated damages provision in a real estate contract considered a penalty and unenforceable?
In Lefemine v. Baron, 573 So. 2d 326 (Fla. 1991), Daniel Lefemine and Catherine Lefemine (the “Lefemines”) entered a real estate contract to purchase a property from Judith Baron (“Baron”) for $385,000 and put up a $38,500 escrow deposit. The Lefemines were unable to obtain financing and sued Baron for a return of their escrow…
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When are liquidated damages provisions not enforceable in a real estate contract?
Liquidated damages are an agreed-upon amount of damages or an agreed-upon way of calculating damages that will be used if there is a breach of contract. Typically, the liquidated damages available to a seller in a real estate transaction is the buyer’s escrow deposit. Liquidated damages provisions may not be enforceable if any of the…