On July 1st, 2021, Ben Hammond assumed the role of President for the Grand Rapids Bar Association. The association is committed to promoting justice, professional excellence and respect for the law, fostering the dignity and integrity of the profession, providing...
Whether you are purchasing commercial property as an investment or to address the needs of your business, there are at least 5 “do’s” and 5 “don’ts” you are going to want to consider when negotiating the Purchase Agreement. The Purchase Agreement in many cases can follow a letter of intent, but letters of intent are most times non-binding. Careful attention must be paid to the terms and conditions of the Purchase Agreement as the details can greatly impact your risks and liability in the transaction.
Do #1: Make sure the property is properly described.
While this sounds obvious, many times errors are made by using tax property descriptions or old legal descriptions that don’t actually reflect the property being sold. This can lead to boundary disputes, zoning problems or worse when you go to sell the property.
Do #2: Allow for enough time for due diligence.
In today’s world of national and international investors and 1031 exchanges the timelines for “clean” deals can be extremely short. Twenty-one days may not be a sufficient amount of time to review the title work, obtain a Phase I environmental assessment, physically inspect the site, review any applicable tenant lease and understand the local zoning ordinances.
By: Benjamin H. Hammond, Attorney Andy Hilger, Law Clerk Retainage is often thought of as a necessary evil in the construction industry. General contractors and owners see it as a guarantee on a subcontractor’s work in the event of non-performance....
Let’s face it, billboards are just about everywhere and it seems more and more are going up or converting to digital billboards with computer-controlled electronic displays every day. With the uptick in the economy and an expansion of urban areas, billboard companies are seeking to expand their footprint as well, largely along the major highways and roads.
If you are the owner of land along a highway or major road, you may be approached by a billboard company with an offer to lease a portion of your land. Billboard lease agreements come in various shapes, forms and lengths and are typically used by the billboard companies in many different states and jurisdictions. Each one should be carefully reviewed to make sure that the terms match your particular situation.
From time to time I get asked this question from small business owners. My response is typically a question along these lines, “How attached are you to your boat?”
This might sound like a strange response, and it certainly does not apply in all circumstances, but the point is that the failure to follow corporate formalities could result in losing the corporate shield of liability – resulting in personal liability for a claim – and thus a sudden decrease in ownership of personal toys, or worse.
Generally speaking, shareholders are not liable for corporate obligations. MCL 450.1317(4). Over time the phrase “piercing the corporate veil” has evolved to mean that this corporate shield from liability can be erased.