All Forum Posts by: Bret Allen

@Daniel J. -- My best advice is to get moving.  I see to many people get bogged down with the entity formation and it paralyzes them from taking the first step.  There are several ways to move forward.  I agree with @Ronald Rohde and others here -- use the "or its assigns" language, get it under contract now, create your entity or trust, assign it over, and then close it.  

Good luck!

Disclosure: Bret Allen is an attorney licensed in Texas and California but he is not your attorney. The information shared here is for general education purposes only and does not create an attorney client relationship. You should seek the advice of your own attorney before making any decisions from information found here.

TREC contracts and TREC addendums are not required unless you are using licensed real estate agent. Even then, an agent can use a non-TREC form or clause if the client insists or if it is drafted by an attorney. Title companies like the TREC contracts because they cover the basics needed to close the transaction i.e., sales price, responsibility for certain fees, timelines to cancel, responsibility for default, earnest money/option disputes, etc.

I think the TREC contracts are a good start -- but that should not stop you from being creative or adding investor friendly clauses/addendum to the contract. Again, unless you are a real estate agent, you can use any form you like to make an offer.

Disclosure: Bret Allen is an attorney licensed in Texas and California but he is not your attorney. The information shared here is for general education purposes only and does not create an attorney client relationship. You should seek the advice of your own attorney before making any decisions from information found here.

@Ronald Rohde -- The Foreign nonprofit corporation fee is $750 in Texas.  Here is a list of the entity filing fees!  Enjoy.  https://direct.sos.state.tx.us/help/help-corp.asp?....

Disclosure: Bret Allen is an attorney licensed in Texas and California but he is not your attorney. The information shared here is for general education purposes only and does not create an attorney client relationship. You should seek the advice of your own attorney before making any decisions from information found here.

Here are my 2 cents!

If you want a basic single-member LLC, and you can read and follow directions, do it yourself.

If you have a partner, use an attorney.  

If you are going to raise money in the company (equity or debt), use an attorney.  

If you have special provisions/terms, use an attorney.  

If you want any sort of anonymity with your company, use an attorney.  

There are probably other reasons also . . . 

NOTE: Bret is an attorney but is not your attorney. You should not rely on advice in a forum but should contact a competent attorney to review your individual circumstances. Nothing in this post creates an attorney-client relationship! 

The short answers is that the transfer is a legal event of default.  I have represented banks for several years performing foreclosures.  Out of thousands of foreclosures, I have only used the due on sale breach as my primary declaration of default on one occasion -- and that case was very particular.   In this economy, as a practical matter,  it is not used much.   But it is still an event of default.  To enforce the default, a lender would likely need to send a default letter with a 30 day cure period.  A borrower that previously transferred can likely cure by transferring back. . . 

 In my opinion,  commercial property lenders and high end residential lenders are more likely to enforce based on due on sale violation than small residential properties.  I have used the default as a secondary default item in Default Letters when the borrower is already in default for missing payments.  

As a general rule, I would advocate against hiding or disguising the transfer through the use of trusts. Under most loan docs, the borrower can transfer to a revocable trust that the borrower is using for tax/estate planning.  I'm not sure what you have to gain by transferring to a revocable trust and naming a new beneficiary -- liability still attaches to the trust same as it did when the borrower was an individual.  If you transfer to irrevocable trust then it is a true transfer and the due on sale applies. 

Good luck everyone!

NOTE:  Bret is an attorney but is not your attorney.  You should not rely on advice in a forum but should contact a competent attorney.  Nothing in this post creates an attorney-client relationship! 

Bret Allen is an attorney with a focus on business, real estate, and creditor's rights.  Contact Bret if you need legal advice related your real estate transactions, potential litigation strategies, starting a new business, etc.  Most services can be quoted on a flat fee basis.  

214-347-9006

[email protected]

www.theallenlawfirm.com

I agree with @Greg H.  In Texas, most deals don't need an attorney as the title company handles the paperwork, insurance policies, and closing.  I am usually only engaged on the one-off deals that fall outside the normal closing.  

JP courts don't set precedent and every JP court decision can be immediately appealed to the County Court with little effort.  Interesting sounding case . . . I would be interested to hear the outcome if you can dig it up and share here.

NOTE:  Bret is an attorney but is not your attorney.  Any comments are for general purposes only and the thoughts shared here should not be relied and do not create an attorney client relationship with anyone in the forum.  

@Account Closed Bankruptcy law is a federal law and very similar in all states.  As a general rule, a person can file bankruptcy 3 times in a year.  A creditor can ask for "in rem" relief if they get stuck in a cycle like you describe above.  In rem means against the property.  If the judge grants you in rem relief then it won't matter if she continues filing bankruptcy as the property will no longer be subject to bankruptcy protection.  You should find a good bankruptcy attorney with experience representing secured creditors in bankruptcy.  

You can check out this website for a little more information -- https://www.theallenlawfirm.com/bankruptcy/

**Please note that I am an attorney but I am not your attorney.  This post is intended to be used for general education purposes.  You should seek the advice of licensed attorney in the proper jurisdiction before acting on the advice of anyone or any advice in a forum!

Good luck!

Welcome to BP Ryan.  Good luck with everything.