Richard Lang, Guest Author
The time for protest is ripe. Each year the Cook County Assessor reassesses one-third of the nearly 1.8 million parcels in Cook County. Starting in January, 2012, the Assessor will reassess all properties located within the boundaries of the City of Chicago with taxes payable in 2013.
This post will discuss three of the important clauses business people should understand in a lease of already built space. If the building or space has not been built, the risks are exponential.
In Illinois, a married couple can hold title to their primary residence as “tenants by the entirety.” Tenancy by the entirety is similar to joint tenancy because at the death of a spouse, the property automatically passes to the surviving spouse. However, tenancy by the entirety is distinguished from joint tenancy because (1) tenancy by the entirety can only be used for the principal residence of a married couple, (2) the property cannot be conveyed or encumbered by one spouse without the written consent of the other, and (3) the property cannot be subject to a sale to satisfy a judgment against only one spouse (the exception to this rule would be the forced sale to satisfy a tax obligation).
Generally, each real estate investment should be owned by a separate entity. If multiple properties are owned in one entity, a financial problem for one property—such as judgments by vendors or by trip-and-fall plaintiffs—will affect all properties. Think of this strategy as not putting all your eggs in one basket. If each property is in a separate entity, only the troubled property will be at risk and only its owner will be liable. Furthermore, many lenders will require that the borrowing entity own only the property which secures the loan.