Legal Question in Real Estate Law in Wisconsin

Gift of Property to Family Member

My husband's brother operates a small business in a building located on property owned by their parents. He pays no rent, has no lease and carries no business insurance. The business is operated as a sole proprietorship. Our concern is that the property owners might be liable for any accidents associated with the operation of this business -- for instance a customer falls on the back step and is injured or the business makes a machine part for a customer, the part breaks and someone is injured. My first question is...are the parents, as the property owners, liable for the types of accidents I described? If that is the case what would be the best way to correct this problem? Could the parents ''gift'' the property to him and thus remove the liabilty from them? If that's a workable option then how should access to the property be handled since there is only one driveway. Access to the building would require use of this driveway. Welcome your thoughts.


Asked on 8/08/04, 10:35 am

1 Answer from Attorneys
Mark Mahoney Cassiani Law Office, Wise Shepherd Law Office

Re: Gift of Property to Family Member

Hello,

Yes, owners could well be liable for injuries on their property. If they cease to own it, then they won't be liable. I do not have enough facts to know what option is best: sale, gift, LLC creation, keeping the status quo, insurance, etc.

If the real estate is transfered to the son, the parents could retain an easement to use the driveway. Best wishes, Mark J. Mahoney 920-984-4529

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Answered on 8/08/04, 11:49 am


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