This month’s Business Bytes highlights ex-spouse business partners, commercial restrictive covenants, and broker’s commissions.
Ex-Spouse Business Partner. If you and your spouse are joint owners or business partners, there may be tax and other reasons to remain business partners following a divorce. But there are many pitfalls, so clearly drawn business agreements outlining obligations, expectations, and exit strategies become even more important. READ MORE
Commercial Restrictive Covenants. While now rarely used for residential properties, commercial property sellers and landlords still use restrictive covenants on titles to real estate and in commercial leases to limit or restrict the commercial use of property sold or leased; for example, limiting the number or types of restaurants. Be sure the language of any restrictive covenant is clear and understandable. Recently, an Indiana Court enforcing a commercial restrictive covenant had to determine whether a taco was a sandwich. READ MORE.
Who’s Your Broker. The real estate world changed when standard commission splitting among brokers ended. Buyers may now be asked to agree to pay their broker’s commission if a purchase is consummated and sometimes even if it is not. Be sure to understand your risks and obligations when working with a real estate broker and have all offers include the seller paying your broker’s commission. READ MORE.
