Mortgage lending

Owner Finance: Prepayment Penalties Under $75,000 Illegal

Posted on

Investors selling property with owner finance should be aware that they’re subject to Ohio’s Consumer Sales Practices Act. This law specifically covers individuals or entities that issue residential mortgages or loans to consumers, and would squarely include investors selling property subject to a private mortgage for the purpose of owner finance. Prepayment penalties are controlled […]

LLCs

Why a Single-Member LLC Needs an Operating Agreement

Posted on

How easy is it to form a single-member LLC? Most investors log onto their Secretary of State’s website, pay their fee and file the state form to create their LLC, and think they’re done. Unfortunately, that’s not the whole story. A limited liability company needs to have rules about operating itself, what happens when it’s dissolved, […]

Veil piercing

Piercing the Veil in Ohio

Posted on

When a corporation or an LLC causes injury to a party, sometimes the company’s assets are not enough to pay the judgment against the company. When that happens, the injured party often tries to get the owners of the company to pay the judgment by piercing the corporate veil. The “corporate veil” is sacrosanct. It is […]

Uncategorized

Deadlock Provisions in Buy-Sell Agreements

Posted on

A standard Buy-Sell Agreement might provide for an appraisal prior to a buyout. These agreements don’t anticipate there being a conflict after the appraisal — what happens if the appraisal comes in lower than the departing member expects, or higher than the remaining member expects? What about situations where appraisal of the company’s value is […]