BUSINESS FORMATION ARTICLES
Documentation Necessary if Building Home with Next-Door Neighbor
Question: My next-door neighbor has a construction background. I can get construction financing. We want to buy an old home in downtown Glendale, and do a “scrape and build,” i.e., tear the old home down and build a new home. My next-door neighbor is fine with a “handshake” deal. In other words, everything would be in my name to get the construction financing and we would split the profits after we sell the new home. What are your thoughts? Answer: Not good thoughts! In every business relationship, and especially in a business relationship with a neighbor or a family member,…
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Employee of LLC needs real estate license
Employee of LLC needs real estate license Question: Our family’s limited liability company (“LLC”) owns several manufacturing companies, but also owns three small office buildings in Glendale. My wife and I are the only members of this LLC. One of our employees is primarily in sales for one of our manufacturing companies, but he also handles the rental of these three small office buildings, including occasional showings to prospective tenants and making arrangements for repairs/maintenance. Is this employee required to have a real estate license, even though his primary job is manufacturing sales, and he gets very little compensation…
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Recent Ruling Leaves Agent-Broker Liability Questions
Recent Ruling Leaves Agent-Broker Liability Questions Question: In real estate school we were taught that under Arizona law a real estate agent was an employee of the broker. The reason was that the broker was required to reasonably supervise all real estate agents under the license of the broker. Therefore, the broker as the employer was liable for all wrongful acts of the real estate agent. An Arizona court recently ruled, however, that a real estate agent is legally an independent contractor, and not an employee. Therefore, the broker has no liability for the acts of the real estate agent.…
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