Legal Question in Real Estate Law in New Jersey

Thank you for your LawGuru question.

Well, first, nothing protects a person/company from lawsuits. For better or worse, virtually anyone can file a lawsuit against someone else. Of course, winning and and collecting is another story.

What you may wish to consider doing is forming an LLC or corporation and pursuing the venture through such an entity. Those structures generally protect owners from personal liability for business debts and obligations. I suggest you visit my website--- www.bgartenberg.com---there are several articles I authored about the topic.

However, selecting the proper entity and understanding the limits of protection (that is, the many exceptions to the liability protection rule) requires legal adivce. Please contact me ASAP so that we may explore your options and protect your legal rights. 973-921-0600. You will also want to speak with a qualified linsurance agent as well.

Kindly note and remember that my response is merely a general comment on the law related to your question, and NOT legal advice or opinion. Also, your question and my response does NOT create an attorney-client relationship between us. You cannot rely upon what I have written, because I do not have all of the information that I need to advise you or render an opinion. Even simple facts you have not shared can completely change my answer. For me to give you legal advice or opinion, you would need to hire me to be your lawyer, and then we would need to discuss this in detail and go over the documents.

With best wishes,

Barry F. Gartenberg, Esq.

Please visit my website!

Owning the property in one of the forms of business that limits liability (such as an LLC) will provide you with some protection. However, you should know that the lender will require personal guarantees in the mortgage loan. Additionally, your insurance should cover you as an additional named insured and, if you are acting as your own general contractor, you will need insurance suitable to that purpose (not the standard homeowner's policy).

Ownership in the form of an LLC will give you an additional way to sell the property but you must be very careful that you get a release from your personal guarantees at the time of the sale. If you do not know exactly what I mean by that or if you do not feel comfortable in handling all aspects of the transation yourself, don't do it yourself - get a lawyer.

My firm handles matters of this type. If I can be of further help to you, call or email.

See also: http://info.corbettlaw.net/lawguru.htm