This month’s Business Bytes highlights warranties and representations, attorney client privilege, and 1031 exchange.
Warranties and Representations. The devil’s details in most commercial transactions are often found in the warranties and representations provisions, enforced by the indemnities section. These promises and conditions are often overlooked as boilerplate, but a party’s reliance on any not kept can allow it to disavow or change the transaction after closing at your expense. Be sure to understand what you are warranting and representing in any transaction. READ MORE.
Attorney Client Privilege in a Business Divorce. When business owners decide to end their relationship, it can become a messy business divorce. The attorney/client privilege between the business and its attorney may not protect the managers’ communications with the company’s attorney or its advice. With this in mind, each faction should retain its own counsel, avoiding having the business’ attorney choose a side. READ MORE.
1031 Exchange. The IRS allows taxpayers to defer the capital gain on the sale of commercial property if the seller reinvests the gain into another commercial property. The rules are complex but there can be substantial tax-deferral if done right and with experienced partners. READ MORE.
