Regardless of your personal views on Marijuana use, it is here to stay. For the construction industry, it is important to understand the implications. To summarize the 2019 Michigan Regulation and Taxation of Marihuana Act, it is now legal in the State of Michigan (as opposed to under Federal...
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Captive Insurance Update: Limitation on Premium Revenue Increases
On January 1, 2019, the limitation on premium revenue under IRC 831(b) increased from $2.2 million to approximately $2.3 million. This occurred by operation of 26 U.S.C. 831(E), which provides that the $2.2 million limit shall be increased annually by a cost-of-living adjustment rounded up to the next lowest multiple of $50,000.
Commercial Real Estate Purchase Agreement Do’s and Don’ts
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.
AIA-2017—The Oxford Comma Reigns!
Every 10 years, the American Institute of Architects (AIA) releases updated editions of its flagship design and construction agreements, the most recent of which AIA published in 2017. The 2017 revisions were unexceptional. For the most part, commonly negotiated provisions such as indemnity and...
Changes to the Marketable Record Title Act Could Impact Closings
By Benjamin H. Hammond and Jill Kaufman Miller, Esq. Every real estate contract must, unless agreed to otherwise, convey what is known as “marketable title”. The courts have defined marketable title as title that is free from encumbrances and assures the purchaser of quiet and peaceful enjoyment...
Captive Insurance Programs Improve a Contractor’s Bottom Line
By Mark Rysberg, Esq. and Daniel Hatch, Esq. Attorneys Mark A. Rysberg and Daniel J. Hatch of Hilger Hammond recently authored a comprehensive article in CFMA Building Profits magazine regarding captive insurance programs and how they can improve a contractor’s bottom line. The article focuses on...
Repeal of Prevailing Wage Constitutional Challenges Rejected
By Mark Rysberg, Esq. In 2018, the Michigan Legislature repealed Michigan’s prevailing wage statute following a citizen led initiative to repeal the same. A group supporting prevailing wage law, Protect Michigan Jobs, recently challenged the validity of the repealing statute arguing that the...
A Rocky Road Ahead for Design Professionals
An Analysis of the Ric-Man Construction v Neyer, Tiseo & Hindo decision. By Stephen A. Hilger, Esq. For many years under Michigan jurisprudence, design professionals have avoided the high cost of litigation because they were legally insulated from claims from anyone with whom they did not have...
Will There Be Discovery in Arbitration?
By Stephen A. Hilger, Esq. This is Part 9 in a 20-part series of articles dealing with issues of arbitration in the construction industry. One of the most expensive components of litigation is discovery. Discovery in court can go on seemingly interminably with multiple depositions of multiple...
Changes to the 2017 AIA A201 General Conditions: Sections 1.6.1 and 1.6.2 Regarding Notice
By Stephen A. Hilger, Esq. This is part 3 of a 15-part series on the changes to the AIA A201 General Conditions. This part deals with the Notice sections 1.6.1 and 1.6.2. Notice method provisions were formerly in section 13.3 of the General Conditions. Now,...