What You Need To Know About Land Use And Zoning

Land use, zoning, and development are complex areas of the law. Property owners, real estate developers, and business owners often have to deal with legal issues surrounding zoning and land use. Whether you are involved in a new construction project or you are a business owner who needs legal guidance about how the zoning process works in your municipality, having a basic understanding of zoning and land use in Pennsylvania is vital. Specifics and processes vary by area, so hiring an experienced real estate attorney who is well-versed in local zoning and land use regulations can save you a lot of time, money, and headaches.

What Is Zoning?

The most common type of land use regulation is zoning. Municipalities use zoning regulations and restrictions to control the development of property. In cities and suburbs, zoning is usually based on a comprehensive plan that divides a municipality into residential, commercial and industrial districts. Zoning typically outlines specific requirements such as the size and height of buildings, location of utility lines, how property or land is allowed to be used, and many other specifications.

For example, in areas that are zoned as residential, there may be additional constraints such as whether you’re allowed to build single-family homes, townhouses, or multi-family dwellings. Property or areas with historical or cultural significance may also require that certain buildings or features be preserved. Requesting or changing the zoning of a property or building typically requires going through local planning commissions and zoning hearing boards.

Land Use Regulation is Necessary But Can be Restrictive

Local, regional, and statewide planning can improve communities, preserve the environment and provide comprehensive, uniform regulations that make things simpler. However, zoning and land use regulations also restrict the rights of owners to use their property as they wish, which makes the subject a controversial one. Generally, courts have determined that zoning regulations must be reasonable and not arbitrary, and must present a reasonable and significant relation to the public health, safety, and general welfare. However, the subjective nature of these factors gives rise to disagreements that may lead to litigation. Government agencies are not the only ones who may impose restrictions on properties – developers often incorporate easements and provisions that may limit the use of a property for aesthetic reasons.

Zoning Boards and Appeals

When conflict over zoning and land use arises, many jurisdictions use zoning boards to handle these issues. Zoning boards can conduct hearings that include the presentation of evidence and sworn testimony by witnesses. Contesting a zoning or land use requirement can be difficult to do on your own. If you are dealing with zoning issues in Chester County, having a West Chester real estate attorney assist you with your case can give you a significant advantage. A local lawyer will be familiar with complex zoning law, and may be well-acquainted with members of the board, municipal attorneys, and planning officials. All of these factors can give you a leg up and help you achieve a beneficial outcome. An experienced attorney can also help you appeal zoning board decisions when appropriate.

Do you need assistance with a zoning issue or real estate transaction? Our construction contract lawyers at Carosella & Associates can help you understand your rights and protect your interests.

This blog was originally posted at https://carosella.com/what-you-need-to-know-about-land-use-and-zoning/

Understanding Inheritance Tax

Pennsylvania requires some beneficiaries to pay an inheritance tax on most assets that are transferred when someone dies. Knowing how inheritance tax works in Pennsylvania can help you with estate planning and make things easier if you are the executor or personal representative of someone’s estate. An estate planning lawyer can evaluate your specific situation and advise you on which assets are subject to estate tax and ways to maximize your beneficiaries’ inheritance.

Pennsylvania Inheritance Tax Rates

Inheritance tax rates vary according to the beneficiary’s relationship with the decedent. Inheritance tax rates for Pennsylvania are as follows:

• 0% for  a spouse, a child under the age of 21, or the parent or stepparent of a child under the age of 21 who has an estate
• 4.5% for direct descendants, which include children & stepchildren over the age of 21, grandchildren, and parents
• 12% for siblings
• 15% for other beneficiaries, excluding charitable organizations and institutions or government entities that are exempt from tax

Types of Property Subject to Inheritance Tax

All of a decedent’s real property located in Pennsylvania is subject to inheritance tax. This may include cash, motor vehicles, jewelry, furniture and other tangible items. Intangible property such as stocks, bonds, business interests, retirement accounts, and loans receivable are also taxable, regardless of where they are located. If the decedent owned joint property with someone who was not their spouse, their fractional interest in the joint property is taxable.

Proceeds from life insurance policies are not subject to inheritance tax in Pennsylvania. Some farmland and other property used for agricultural purposes are exempt from inheritance tax as well. Determining what is taxable and what is not can be tricky, as there are certain rules on lifetime gifts that are given or transferred within a year of the decedent’s passing. A lawyer who deals with wills and estate planning can help guide you through the process and assist you with filing an accurate inheritance tax return.

Paying Inheritance Tax

If inheritance tax is paid within 90 days of the death, a 5% discount is given. It becomes delinquent if it is not paid within nine months of the death. The inheritance tax return is a complex document and there are expenses that may be deducted, including certain expenses incurred by the estate and deductions for debts of the decedent. Only one return is required, even if several people owe inheritance tax. The executor or administrator in charge of the estate is responsible for filing the return, but having an experienced probate attorney prepare an inheritance tax return can ensure that it is completed and filed in an accurate and timely manner.

Whether you are interested in estate planning or need assistance as the executor of an estate, our experienced legal team at Carosella & Associates can help.

This blog was originally posted at https://carosella.com/understanding-inheritance-tax/

Does Completing An Accelerated Rehabilitative Disposition (ARD) Program Make You Eligible For Expungement In Pennsylvania?

Having a criminal record can affect your ability to acquire employment, find housing, and affect your life in many other ways. Accelerated Rehabilitative Disposition (ARD) programs offer first-time offenders charged with low-level nonviolent crimes like DUI an opportunity to avoid a permanent stain on their record. Because ARD programs vary from county to county, it is important to consult local criminal lawyers to learn more about your options if you have been charged with a crime.

 Advantages of ARD

Accelerated Rehabilitative Disposition is defined as a pre-adjudicated disposition of the charges you may be facing, which means that there is no conviction if the conditions of the ARD program are met. For crimes like DUI, participating in an ARD program can also reduce the amount of time your license is suspended. In addition, after you complete ARD and your arrest record is expunged, you can answer “no” on any job application that asks if you have ever been convicted of a crime. A defense attorney in West Chester can help you file for expungement of your record within 30 days of completion of the ARD program. However, it is important to keep in mind that although expungement removes the offense and ARD from your record, if you are arrested again for a DUI or another crime, it can be taken into consideration in any subsequent cases.

ARD Requirements for DUI

ARD is most commonly used in cases involving first-time DUI offenses. Requirements and conditions vary by jurisdiction and the specific circumstances of your case. Most ARD programs for DUI require:

Probation – Most counties require a period of probational supervision for 6-12 months. Depending on where you are completing an ARD program, you may have to check in with your probation officer via phone or in person. In addition, you may be required to undergo periodic drug and alcohol testing.

Alcohol Highway Safety School – This state-mandated class involves 12 ½ hours of drug and alcohol education and testing. Depending on the county, you may be able to complete a portion of it online.

PA Driver’s License suspension – Suspension of driving privileges is almost always required in DUI cases. Length of suspension may range from 30 – 90 days, depending on blood alcohol level and the specific DUI charge.

Drug and alcohol treatment – Most counties require DUI offenders to be evaluated for drug and alcohol addiction or abuse. If treatment is recommended, completion of drug and alcohol counseling will be a requirement of completing your ARD program.

ARD fees and costs – Because ARD allows you to avoid conviction there are no fines imposed, but you must pay the costs and fees of an ARD program. This can include the cost of alcohol education classes, supervision, counselling, and other fees for things such as fingerprint processing and blood tests. The average costs and fees involved in completing an ARD program are about $2,500to $3,000.

Community service – Some counties also include community service as a condition of an ARD program. Community service requirements can range from one day to 50-100 hours.

ARD for Other Offenses

An ARD program may be available for crimes such as shoplifting, drug possession, vandalism, traffic violations, and other minor non-violent offenses. To ensure your rights are protected and you understand all your options, it is critical to seek legal representation from an experienced criminal defense attorney.

If you are facing criminal charges in Pennsylvania, our attorneys at Carosella & Associates can help.

This blog was originally posted at https://carosella.com/does-completing-an-ard-program-make-you-eligible-for-expungement-in-pennsylvania/

Types of Real Estate Deeds

A deed is a legal document that is used to transfer ownership of real property from an owner (grantor) to a buyer (grantee). Most real estate transactions use one of four types of deeds to convey title. There are distinct differences between them, and each type serves its own purpose. Each type of deed includes certain promises, or warrants, that a grantor makes to the Grantee to defend against claims by third parties. If you are involved in a real estate transaction and have questions about a deed or title, an experienced Pennsylvania real estate lawyer can help you understand which type of deed applies in your case and ensure your interests are protected.

General Warranty Deed

This type of deed provides a high degree of protection for the grantor because it contains the broadest range of warrants on behalf of the grantor. A general warranty deed promises that the Grantor owns and/or has a legal right to sell the property, and that it is free and clear of any debts, liens, or encumbrances. In a general warranty deed, the grantor promises to defend against claims against the property “generally.” This means that the seller will defend against a claim of superior rights from anyone and everyone, even if the person or entity claims that their rights supersede the grantor’s.

Special Warranty Deed

This type of deed does not offer as much protection for the buyer. There are only two promises in a special warranty deed – that the seller holds title to the property, and that the property was not encumbered during the seller’s period of ownership. However, a special warranty deed does not guarantee that the property was unencumbered before the seller took ownership. Special warranty deeds are common in cases involving the transfer of property by a trust of estate and in commercial real estate transactions. All real estate deeds must be in writing and are usually prepared by the seller’s real estate attorneys.

Bargain and Sale Deed

With a bargain and sale deed, a buyer gets no protection from encumbrances. It simply states that the owner holds title to the property. If title issues arise at a later date, the buyer would have no legal recourse because a bargain and sale deed does not guarantee good title general warranty and special warranty deeds do. This type of deed is often used in foreclosure actions or tax sales when the history of a property is unknown. Because the grantor is typically a lender or taxing authority in these types of situations, they may not know whether the property ever had encumbrances, liens, or debts against it.

Quitclaim Deed

The uses of a quitclaim deed are very limited, as it does not provide any protection to the grantee or guarantee that the grantor has any interest to convey. It simply transfers ownership from the buyer to the seller. Quitclaim deeds are often used when property is transferred from one spouse to another in a divorce. Presumably, a married couple would acquire the property by general warranty deed so they would already know everything that has happened with it since then. If you are facing a battle over property, your divorce lawyer can advise you on whether a quitclaim deed would be applicable in your case.

Do you need assistance with a property deed or title? Our West Chester real estate attorneys can ensure your rights are protected and all your legal bases are covered.

This blog was originally posted at https://carosella.com/types-of-real-estate-deeds/

Is Buying An Investment Property Worth It?

Investing in real estate is often a winning proposition that can bring in extra income and help you build wealth. However, before you start buying property, it is important to make sure that you are financially ready and willing to put in the work that is often involved in being a landlord. If you are considering purchasing an investment property, it is a good idea to seek the counsel of a real estate transaction lawyer who can help you vet the property and assess whether it is a viable option for supplemental income.

How to Make Investing in Real Estate Worth Your While

Purchase with Cash if You Can

Ideally, if you have cash on hand, using it to buy an investment property makes more sense than financing it. If you decide to take out a commercial loan or mortgage, you must make sure you will be able to afford the payments, even with no rental income. Although rent is a great source of income, it is not always steady. There can be high turnover with renters and unexpected events can lead to having no renters at all.

Take All Expenses Into Account

The cost of owning a home or investment property involves a lot more than a mortgage payment. When looking at a rental property, it is critical to consider the cost of repairs, maintenance, taxes, liability insurance, and utilities. If you are buying a property out of state or are considering using a property management company, add the cost of that in, too. Remember that unexpected expenses can arise at any time, so it is important to sock some money away for emergencies. After you look at the total cost of your expenses, it will be easier to determine how much rent you will need to charge to ensure that you are fully covered each month.

Do Your Research

Whether you are purchasing residential property, a commercial space, or land, it is essential to research the deed and title thoroughly.

A West Chester real estate attorney can do a title search and find out if there are any existing liens or other problems with the property. Another thing you will want to review are comparables in the neighborhood and how much the average cost of rent is in the area. It is also a good idea to look at crime statistics and find out if it may be an up-and-coming community, which can help to maximize your investment if you find a property at a low price. There are other external factors that can affect property values, but it is important to keep in mind that most investments involve a degree of risk.

Start Small

If you want to invest in property but do not have a lot of cash, a good way to start is to purchase a duplex or mixed-use building with a unit you can live in while you rent out the other spaces. That way you are only paying one mortgage, which can allow you to live comfortably and avoid spreading yourself too thin financially. If you decide to purchase a property with renters, a contract lawyer can help you draft leases that ensure your interests are protected and that the rules you put in place are compliant with local and state law.

Are you ready to get started with investing in real estate? Our Pennsylvania real estate lawyers can help.

This blog was originally posted at https://carosella.com/is-buying-an-investment-property-worth-it/

Asset Protection Planning: What is it and why do you need it?

From shielding your property from lawsuits to using trusts as an estate planning tool, there are many different aspects to asset protection planning. Unexpected events can happen to anyone, so being proactive about protecting what you have worked hard for is vital. An experienced business liability lawyer or estate planning attorney can evaluate your specific situation and provide valuable advice on how to best protect your assets.

Why Asset Protection Planning is Important

There are various financial and legal arrangements that can keep your assets safe from creditors, lawsuits, divorce, and in other circumstances. It is important to have an asset protection plan in place before something like a lawsuit happens. If someone has already started an action or there is a judgment against you, moving assets around to avoid paying it may be considered fraudulent.  The same goes for long-term care planning, which is a type of asset protection planning in which you put certain property and assets in trust to keep them from being taken to pay for nursing home care should you need it. Having an asset protection plan in place well before these types of events happen can safeguard your property and financial interests.

Common Types of Asset Protection Planning

Trusts – Placing assets in a trust legally separates you as the owner of the assets, even if you maintain an ownership interest in them. Trusts are often used in estate planning to shield assets from certain types of taxes, to avoid creditors, and when doing Medicaid planning for nursing home care. There are many different types of trusts that serve different purposes. A skilled wills and trusts attorney can determine which will best meet your needs.

Business entities – The legal formation of a business entity can protect some of your assets as well. For example, setting up a Limited Liability Corporation (LLC) can protect your personal assets in most cases.

Tenancy by entirety – If you are married and own property, placing property in a tenancy by entirety means that only one spouse fully owns the property. If there is a judgment against you, the property cannot be touched if it is in tenancy by entirety of the other spouse. It is important to note that this can complicate things in the event of a divorce.

Insurance – Sometimes, asset protection can be as simple as buying the right type and amount of insurance. However, insurance does not completely shield you from liability. For example, a physician may have malpractice insurance and operate their business as an LLC, which provides extra protection for personal assets.

There are other financial and legal tools that can be used for asset protection planning as well. Asset protection planning is not one-size-fits-all – each person’s situation is different, and there is no one course of action that can be applied to all circumstances.

At Carosella & Associates, our experienced legal team works collaboratively to help you develop an asset protection plan that is tailored to meet your individual needs.

This blog was originally posted at https://carosella.com/asset-protection-planning-what-is-it-and-why-do-you-need-it/

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/