I have bought a house contract for deed. The lady I am buying it from just typed up a contract and then we both had it notarized. She has in there if I am to move she can take me to court and finish paying what I owe. I was considering moving to a...
A agree this should be reviewed by an attorney, but here's some general ideas to consider that should not be construed as specific legal advice, but general principles of contracts for deed...
A contract for deed (aka "installment land contract") is a seller carry transaction and is considered a "sale" for all intents and purposes (including for federal income taxes). It does not have to be recorded, BUT, to protect yourself as buyer, recording is generally recommended, with a couple of qualifications:
1. If buyer records it and there's an underlying loan on the property, the lender may catch it and call the underlying loan due, which would put the buyer in jeopardy. If you don't record it, then the seller's liabilities may end up attaching to the property and recorded (example - IRS lien or judgment). My personal experience with a lot of CFD's is that the latter is a more likely risk than the former.
2. If the contract contains a clause prohibiting recording, then recording it may be a default of the contract itself.
3. Another option in lieu of recording the contract is to record what's known as a "memorandum" (summary) of contract, which (in most states) can be done with only the buyer's signature. Of course, this memorandum may result in problems described above in #1 and 2 above.See question
An LLC single member (or any number of members) CAN elect to be treated as an S corp under federal tax law by filing IRS form 2553. Or, you can file form 8832 and be a "C" corp. Make sure you have an appropriate operating agreement for either option.See question
From my understanding, how I take title is how my name will show up on the county assessor's web site. Is there any way I can take title (I do not have a trust set up nor the capital to do so) without my name being out in searchable property reports?
A trust (revocable land trust) is the best way to do it, because trust agreements are typically not recorded anywhere public in Colorado. An LLC is another option, but two issues - one, you need to get someone else to file it for you and be registered agent, so as to keep your name off the secretary of state records. And two, your lender will probably not let you take title in an LLC if you are getting a loan. Some lenders will allow a trust. If not, you can quitclaim the property after closing to either an LLC or trust, but there will be a paper trail to follow behind you.See question
in case he tries to sell without my knowledge.
If you are on title, your partner cannot sell the home without you, it requires both signatures.See question
My ex does not want to refinance, and I am willing to let him buy me out by getting a loan from his mother. My concern is what will that do for my credit if I want to buy a house for myself.
I would try and see if your ex can refi or complete assume your responsibility for the loan with the lender, thus removing you from personal liability.
Having the loan still in your name will affect your ability to get another loan because the existing loan shows up as a liability on your credit report. However, many lenders may not count this against you if you can show a divorce or settlement agreement by which the ex agrees to be responsible for the payment. I would visit with a mortgage broker and see what the rules are for FNMA/Freddie Mac or FHA loans in this regard before proceeding.See question
My husband and I are closing on a property and business with a Lodge and Cabins. We are putting in LLC. How should we classify entity? Partnership, Corporation or entity disregarded as separated from owner?
The general rule is that ORDINARY or EARNED income should be in a corporation, and PASSIVE income should be in a partnership or disregarded format. The issue is whether the income you are earning from the lodge and cabin is ORDINARY or PASSIVE, which you may want to review with your CPA. It's possible you may have both types of income in the same business (i.e., food and services are ordinary and the rentals are passive).
One thing you may want to consider for both liability limitation and tax benefit is to have an LLC (either as partnership or disregarded) own the property, and lease it to another LLC taxed as Corporation to run the lodge business.
Finally two other issues you need to tackle:
1. If you choose corporation election, whether you go "C" or "S" corp. Generally, businesses that are small start S corp and sometimes convert to C in the future when the net income is more substantial.
2. For passive income activities, you can go either partnership or disregarded. Disregarded is slightly easier because you report the income and expenses on your personal return, as opposed to on a partnership return (form 1065) and receive a form K-1 with the net profit or less. The partnership return will cost you several hundred dollars every year to a CPA. Anecdotally, my colleagues and I have observed that reporting on a partnership return leads to a lower risk of audit than reporting on your personal return.See question
What legal paperwork needs to be done or is only the final divorce decree needed? Does a k-1 reflect ownership prorated to date of divorce?
Without getting into the tax or divorce issues, the paperwork is simple. You should have stock certificates from when you formed the corporation in a corporate record book somewhere. Simply turn the certificate over and there should be assignment language on the back of the certificate. Just fill that out and assign the stock. If you only formed the corp online and never did by laws, minutes, stock certificates, etc, then you're going to have to get a lawyer to re-construct all of the paperwork that should have been done in the beginning.See question
Im carrying the note on a home in colorado....the buying party has defaulted on several areas of our contract including acquiring said financing within a specified time. they continue to ignore my request...i would prefer to either reposses or re...
You will need to hire an attorney to foreclose the property. You cannot get the property "repossessed" with going through the foreclosure process, assuming you gave title to the buyer and took back a note and deed of trust as collateral. Try offering the buyer "cash for keys", which means doing a deed in LIEU of foreclosure. Sometimes cheaper and easier. You'll likely need an attorney to draw that up as well.See question
My divorce was final 10/14. I am keeping the house in our divorce. I am on the title, but not on the loan. The mortgage company says I can assume the loan, but he has to sign documents. He is refusing. Am I able to do this with his signature, if ...
I am not sure why you would WANT to assume the loan, be personally liable for it, and have it report on your credit? Leave it in his name, and make it his primary responsibility. You can still deduct the mortgage interest if you own the house and make the payments, even though your name is not on the mortgage loan.See question
I have standard form Colorado residential purchase contract and seller refuses to close.
The standard Colorado Real Estate Commission contract requires first that you go to mediation. So your first step is to demand mediation. If that doesn't resolve it you can sue, but you will have to file in District Court, which isn't like small claims - lots of rules that will require an attorney. As a matter of strategy, get the seller to admit in writing why he won't close (bait him in an email). That way, you can use it against him later.See question