All Forum Posts by: Erik Sklar

Mark,

As you mentioned, that sounds like agency, and in my experience exclusivity agreements aren't particularly uncommonthough they aren't universal. You could negotiate the terms of the contract, and ask him to strike the exclusivity agreement, or limit its scope. It may be that he is looking for some security in the agreement between you two, or it may be that he is required to obtain exclusivity for whatever group he works in. If you'd like, as a professional courtesy I would be happy to look at the agreement for you and let you know how it compares to others I have seen in the past.

In your experience, what are some common legal needs that you encounter?

Recently I have seen a high influx of LLC and Partnership agreements related to redevelopment projects and Opportunity Zone Funds; and I am looking to broaden my research and product development related to other needs that investors may have down the road.

Mark,

What are the terms of the relationship that you are hoping to set up with the agent? Are you trying to find someone to act on your behalf, or are you just looking for properties that they have inventoried?

Craig,

It sounds to me like you have a variety of options here, but for the sake of contributing to your line of thought, I will focus my reply on options 2 and 3.

In regards to your second point: Joint ownership, depening on the law of your state in regards to tennancy, can provide you with options that by default control profits from the property (rent) and passing of the property to your son (and potentially his heris). It would allow you to retain some control over the property, but it would also enable your son to drive those decisions as well (sale, use, and improvements). Furthermore, joint ownership could impact how your ability to pass the property to your son in entirety if the laws of Oregon provide for your ownership interests to pass to your spouse.

As to point three: An LLC can afford you the ability to control the property, while potentially forgoing some of the complications that Intestacy and Estate Laws can create. It might enable you some tax benefits in relation to use and improvement of the property, in addition to controlling how profits from the property are distributed and used, as well as potentially affording you more conclusive control over leveraging options that may be presently (or later become) available to you.

If I may ask, are you opposed to setting up a Trust with your son as a beneficiary?

Carlos,

I can't speak to FLorida law specifically as I am not licensed there, but what I can tell you generally relates to Trusts and Corporate Law. LLCs and Land Trusts are excellent avenues to limit you and your companys liabilities, however neither of them provide complete protections to removing those assets from the grasps of courts or creditors in situations where they may be attached--meaning that even with the limits of liability that legal structures may provide you, how you us the properties and attach their ownership in relation to your business activities, can still make them accessible in certain situations.

I would offer that the best thing you can do is speak with a legal professional about the intricacies of your business plans, family plans, and wealth strategies. Identifying exactly the type of asset protections you are hoping to achieve will help them answer your questions. Some of the protections you may be interested in can vary between you as the individual, to those that relate to your heirs or loved ones. For example, as you may know, some provisions of a Trust can protect the Trust's Beneficiaries from creditors, while an LLC may not necessarily be able to accomplish similar functions. An LLC can provide you with limits of personal liability to corporate actions, while still enabling you to maintain leveraging or partnership options on the property; options that may not be available to us in a Trust if you are hoping to continue using the land for business purposes.

Hopefully this gives you some things to consider, and in the mean time while you wait to speak with your attorney about your options, you might consider reading "Understanding Property Law" by John Sprankling. The "Understanding" series covers a wide breadth of legal subjects that are excellent introductions to more comprehensive aspects of the the law that most people have limited understandings of. At the very least it may help tie together some of your questions to relevant case law in your jurisdiction and better facilitate future discussions on the matter.

Cheers.

What are you hoping to accomplish with establishing a Land Trust?