BERYS LAW | Business, Real Estate, Wills/Trusts

Running a business comes with many challenges, but one of the biggest mistakes entrepreneurs make is operating without business insurance. While skipping insurance may seem like a way to cut costs, it exposes your business to significant legal and financial risks. Without adequate coverage, a single lawsuit or accident could result in devastating losses that threaten the survival of your company. Below, we explore the legal risks of operating without business insurance and how to mitigate them.

Legal Risks of Not Having Business Insurance

1. Lawsuits and Legal Claims

Businesses are frequently at risk of being sued. Whether it's a customer slipping and falling in your store, an employee claiming workplace harassment, or a client accusing you of breach of contract, legal claims can arise unexpectedly. Without liability insurance, your business must cover legal fees, court costs, and potential settlements out of pocket, which can be financially crippling.

2. Property Damage

If your b...

A real estate closing is the final step in the property transaction process, where ownership officially transfers from the seller to the buyer. This stage involves various legal, financial, and administrative tasks that require careful attention to detail. An attorney plays a crucial role in ensuring that the closing process is legally sound and that the interests of their client—whether buyer or seller—are well protected.

Reviewing and Preparing Legal Documents

One of the primary responsibilities of a real estate attorney is to review and prepare the legal documents involved in the closing process. These documents may include the purchase agreement, deed, mortgage documents, title insurance policies, and closing disclosures. An attorney ensures that all terms and conditions are clearly defined and legally enforceable, reducing the risk of future disputes.

Conducting Title Search and Resolving Issues

A critical aspect of real estate transactions is verifying the title to ensure tha...

When dealing with commercial real estate, understanding the key legal terms in property contracts is crucial for protecting your interests and ensuring a smooth transaction. Whether you are a landlord, tenant, buyer, or seller, being familiar with these terms can help you avoid costly legal disputes and make informed decisions. Here are some essential legal terms and strategies to safeguard your commercial property investments.

Key Legal Terms in Commercial Property Contracts

Lease Agreement

A lease agreement is a legally binding contract between a landlord and a tenant that outlines the terms and conditions of the rental arrangement. Key elements include lease duration, rental amount, renewal options, and responsibilities for property maintenance.

Rent Escalation Clause

This clause specifies how and when rent will increase over the lease term. Rent escalations can be fixed (e.g., a set percentage increase annually) or tied to economic indicators like the Consumer Price Index (C...

Running a business requires not only strong leadership and financial acumen but also a solid understanding of legal terminology. Business owners must familiarize themselves with key legal terms to protect their interests and ensure compliance with the law. Here are ten essential legal terms every business owner should know:

Liability

Liability refers to a business’s legal responsibilities, particularly in terms of debts and obligations. Understanding liability is crucial in determining how personal and business assets are protected in the event of legal action.

Incorporation

Incorporation is the legal process of forming a corporation, which creates a separate legal entity distinct from its owners. Incorporating can protect owners from personal liability and provide tax benefits, making it a critical decision for business owners.

Intellectual Property (IP)

Intellectual property includes copyrights, trademarks, patents, and trade secrets. Protecting a company’s intellectual prope...

In the fast-paced world of business, verbal agreements may seem like a quick and convenient way to seal a deal. While verbal contracts can be legally binding in certain circumstances, they come with significant risks that can lead to misunderstandings, disputes, and even costly legal battles. Businesses that rely on verbal agreements often find themselves in vulnerable positions due to the lack of clarity, documentation, and enforceability.

1. Lack of Clear Terms

One of the primary risks of verbal agreements is the lack of well-defined terms. In business transactions, the details of an agreement—such as payment schedules, deliverables, deadlines, and responsibilities—need to be precise. Verbal agreements are prone to miscommunication, as the parties involved may interpret the terms differently. Without a written record to refer to, resolving discrepancies becomes challenging and may lead to conflicts.

2. Difficulty in Proving the Agreement

Even when both parties have the best inten...

Employee termination is a challenging and sensitive process that employers may face at some point. While it’s sometimes necessary for the well-being of a business, handling termination improperly can lead to legal liabilities and damage to the organization's reputation. By approaching the process legally and ethically, employers can ensure fairness, minimize risk, and uphold the dignity of the employee.

1. Understand Legal Obligations

Before proceeding with termination, employers must understand the relevant labor laws and regulations in their jurisdiction. These include:

• At-will employment laws: In many jurisdictions, employers can terminate employees at will, but not for illegal reasons such as discrimination or retaliation.
• Contractual obligations: Review the employee’s contract to identify any clauses related to termination, notice periods, or severance pay.
• Anti-discrimination laws: Ensure that the termination decision is not based on factors like race, gender, religion, ag...

When purchasing a home within a community governed by a homeowners' association (HOA), reviewing the HOA documents is a critical step. These documents outline the rules, regulations, and financial health of the community. However, many homebuyers make mistakes during this review process, leading to unexpected challenges after closing the deal. Understanding these common pitfalls can help buyers make more informed decisions.

1. Failing to Read the Documents Thoroughly

One of the most common mistakes is not reading the HOA documents in their entirety. These documents include covenants, conditions, and restrictions (CC&Rs), bylaws, and rules and regulations, which dictate what homeowners can and cannot do. For example, restrictions on exterior modifications, parking rules, or pet policies may affect your lifestyle. Skipping over these details can lead to conflicts with the HOA or dissatisfaction with the community rules.

Read more: Common Pitfalls in HOA Documents: What to Watch Out Fo...

Eviction is a complex process that landlords must approach carefully to ensure compliance with the law and maintain professionalism. Serving an eviction notice is a critical step in the process, and landlords must follow specific legal requirements while adopting best practices to protect their interests and the rights of tenants.

Legal Requirements

1. Understand Local Laws
   Landlord-tenant laws vary significantly by state, county, and city. Landlords must familiarize themselves with the regulations in their jurisdiction, including the types of eviction notices required, allowable grounds for eviction, and the timelines involved.
2. Valid Grounds for Eviction
   Legal grounds for eviction typically include nonpayment of rent, lease violations, illegal activities on the premises, or the expiration of a lease term without renewal. Landlords cannot evict tenants for discriminatory reasons or in retaliation for complaints about property conditions or other protected activities.
3. Proper Notice Typ...

Estate planning is not a one-and-done process. Life circumstances, legal changes, and evolving financial goals often necessitate revisiting and revising your estate plan. An outdated plan can lead to unintended consequences, such as disputes among heirs, unnecessary taxes, or your wishes not being honored. Below are ten key reasons to update your estate plan to ensure it remains relevant and effective.

1. Major Life Events

Life events like marriage, divorce, the birth or adoption of a child, or the death of a loved one can significantly impact your estate plan. For instance, a new marriage may require adding your spouse as a beneficiary or updating your will to include children from a previous marriage.

2. Changes in Assets

A significant increase or decrease in your wealth, acquiring new assets like a home or business, or selling valuable property necessitates an estate plan review. Ensuring that your new or existing assets are distributed according to your wishes is critical.

3...

A Spousal Lifetime Access Trust (SLAT) is an advanced estate planning tool designed to reduce estate taxes, provide asset protection, and allow for wealth transfer while retaining indirect access to trust assets. This trust is particularly appealing for high-net-worth individuals who want to take advantage of the lifetime gift tax exemption while maintaining some level of control over the gifted assets.

Key Features of a SLAT

Irrevocable Trust

A SLAT is an irrevocable trust, meaning once it is established, the grantor (the person creating the trust) relinquishes control over the assets transferred to it. This characteristic ensures that the trust assets are excluded from the grantor's taxable estate.

Beneficiary Spouse

The grantor's spouse is named as the primary beneficiary of the SLAT. This allows the spouse to access trust distributions for their needs, indirectly benefiting the grantor during the spouse's lifetime.

Wealth Transfer

While the trust benefits the spouse, it is o...