What Is A Partition Action?

When unmarried co-owners of property in Pennsylvania disagree on the sale or control of a property, any owner may request that the property be divided. The partition process can be complex, time-consuming, and costly. If you are dealing with a property dispute in Pennsylvania, having a West Chester real estate lawyer represent your interests and negotiate on your behalf can help you reach an agreement without court intervention.  Avoiding a partition lawsuit is the best way to save money, maximize your portion of the proceeds from a sale, and resolve the matter in a timely manner.

Understanding Partition Actions

A partition action is a lawsuit in which a court determines whether a property with two or more owners is to be partitioned or sold. To begin the process, a partition complaint must be filed in the Court of Common Pleas in the county where the property is located. Although you can file for a partition action on your own, it is risky if you do not have an understanding of Pennsylvania real estate law. Hiring an experienced real estate lawyer can save a lot of time, expense, and headaches in the long run.

What Is Involved In A Partition Action?

After the partition complaint is filed and served, there will be a preliminary conference in which each owner can present their position and attempt to reach an agreement. If an amenable agreement cannot be reached, the judge will continue on or appoint a partition master to oversee the case. The partition master is usually a local attorney who is experienced in real estate law.

How is Property Divided?

The judge or partition master will evaluate whether or not the property can actually be divided into sections. Often, this is not possible with smaller properties or homes, so the court will order it to be sold instead of physically divided. When a case involves a large piece of land, they may order the property to be divided so all parcels are equal in value. If it is not feasible to divide the land so that each owner gets an equal share, the court may order the owner who obtains the more valuable portion to pay the co-owner the difference in value. If this is not a reasonable solution, the court will order the property to be sold.

Common Situations that May Lead to a Partition Action

There are countless scenarios in which conflict can arise, but partition actions often involve unmarried couples, siblings who inherit a home, and co-owners who purchase investment properties together. If you own a property you plan to leave to your children, it is a good idea to speak with an estate planning attorney about the best way to distribute your assets to avoid family conflict after your passing. If you are buying a home with a romantic partner or fiancé, it is best to consult a family law attorney before you purchase it to hash out the details of how ownership will be handled should you split up before you are married.

Do you need assistance with legal matters surrounding real estate? Our experienced team at Carosella & Associates can help.

This blog was originally posted at https://carosella.com/what-is-a-partition-action/

Can You Be Held Personally Liable for Business Debts?

All businesses have their ups and downs. Choosing the right type of business entity can help shield your personal interests and finances should business debt become an issue. Whether you’re a longtime business owner or just starting out, a corporate business attorney can help you understand your rights and advise you on the best course of action to protect yourself.

Business Entity Formation

Choosing an entity that best fits your business and personal needs can help protect your personal assets. That is why it is critical to get the input of a lawyer who has vast knowledge of different business entities and the benefits and drawbacks of each type. Sole proprietors and partners in a partnership are more likely to be held personally liable for business debt, while those who have ownership interests in entities such as corporations and limited liability partnerships enjoy certain protections against personal liability.

Business Succession Planning

A business succession planning lawyer can also assist you with creating an exit plan for your business that ensures your personal interests are protected should your business have to close, you become incapacitated, or decide to retire with outstanding debt.

Business Debt Liability Exceptions

There are exceptions to the protections of these business entities. For example, particular tax debts must be paid by interest holders if a business does not fulfill its duties. Creditors may be able to seek payment from interest holders if fraud occurs. If a business keeps poor records or does not follow required corporate formalities, shareholders may be personally liable for certain types of debt.

Personal Guarantees

Signing a personal guarantee can also expose you to personal liability for business debts. When a lender or lessor knows that a small business does not have many assets, they may ask for a personal guarantee, which gives them the right to pursue an owner’s or shareholder’s personal assets if they default on a loan. Some common types of loans that require a personal guarantee include:

• Loans for purchasing real estate
• Leases for retail or office space
• Financed or leased equipment
• Supplies or materials purchased on specific terms of credit

Dealing with Personal Business Liability

It is not uncommon for someone who is personally liable for a business debt to eliminate it by filing Chapter 7 Bankruptcy. However, you must meet certain income requirements and your consumer debt will also be taken into consideration. In addition, filing bankruptcy affects your personal credit score and can impede your ability to obtain a loan or credit for years. Before filing any type of personal or business bankruptcy, it is vital to have a local bankruptcy attorney evaluate your financial circumstances and help you determine whether it is your best option to avoid personal liability.

If you need help forming a business entity that can protect you from personal liability or dealing with unmanageable debt, our experienced team at Carosella & Associates can help.

This blog was originally posted at https://carosella.com/can-you-be-held-personally-liable-for-business-debts/

Title Issues: How a Real Estate Attorney Can Help

Whether you are a seasoned investor or a first-time buyer, title issues can arise in any real estate transaction. Legal issues surrounding the title of a property can put up roadblocks to closing a transaction, and may even arise after a property has been purchased. Seeking the legal advice of an experienced real estate attorney can help you get them sorted out and ensure your rights and interests are protected.

Common Property Title Issues

There are several common problems that can derail a closing and lead to further legal issues that may require litigation. That is why mortgage lenders usually require title insurance for any real estate transaction. Common title issues include:

Unknown liens – Unpaid property taxes, bills, or loans can lead to a lien being placed on a property. If these liens are not settled before closing, they may become your responsibility.

Errors in public records – Clerical and filing errors, omissions, and mistakes in deed recording such as misspellings, an incorrect or insufficient legal description, or an unrecorded deed can lead to costly legal problems that can stall a transaction.

Missing heirs – When a seller dies, the ownership of a property may pass to their heirs or someone named in a will. If the heir is unknown at the time of death or a family member contests a will, they may step forward and try to claim the property, even after a real estate transaction has been completed.

Boundary disputes – Even if you have a survey of your property, another survey or verbal agreement with different boundaries may exist. This can lead to serious disputes that take you by surprise down the road.

Easements – Discovering easements before purchasing a property is critical, as they can put certain restrictions on how a property is used or give others access to specific parts of the property.

Illegal deeds – When a prior deed is made by a minor, undocumented immigrant, someone of unsound mind, or a person who claimed they were single but were really married, it can affect the validity of current ownership.

Forged documents – Unfortunately, forgeries in deeds and titles are not uncommon. When a forged document is recorded in the public record, it can obscure and jeopardize ownership.

How A Real Estate Attorney Can Help   

A Pennsylvania real estate lawyer can help you identify and resolve these problems at any stage in a transaction, or even after you have purchased a property. They can help you find title insurance, do a thorough search and examination of the title, and negotiate issues like easements, property line disputes, and judgment liens. For commercial property transactions that involve zoning, building, and easement issues, construction contract lawyers or business liability lawyers can ensure any land property you may be purchasing is suitable for its intended use and handle any disputes or negotiations that could hold up your transaction.

At Carosella & Associates, our attorneys handle all types of title and deed issues. We act as your staunch advocate and guide you through any legal pitfalls that may come your way.

This blog was originally posted at https://carosella.com/title-issues-how-a-real-estate-attorney-can-help/