Legal Update

House Flippers Beware

By: Christopher Charles

House flippers have been on the rise. Do investors owe warranty obligations to buyers for construction remodel or improvements the investor pays a contractor to perform before selling a property to a buyer? According to Arizona law, not only is the answer possibly yes, but investors could be on the hook for warranty obligations for up to nine years after closing.

Real Estate Purchase Agreements, Options to Purchase, and Right of First Refusal

By: Christopher Charles, Esq.

A real estate purchase agreement is a contract between a buyer and seller to purchase real estate. The real estate subject to the real estate purchase agreement may be residential or commercial. In the agreement, the buyer promises to pay a specific price to purchase the real estate by a particular deadline, either with cash or through financing. Likewise, the seller is making specific promises about the condition of the real estate and its title to the real estate, as well as its promise to deliver ownership of the real estate to the seller upon payment of the purchase price.

Understanding Tax-Exempt Status: Must Churches Follow All IRS Rules if They Do Not Apply for Tax-Exempt Status?

By: Erik Stanley, Esq

Churches enjoy a unique status under the federal tax code. Non-profit organizations generally must apply for tax-exempt status with the Internal Revenue Service (IRS). As long as those organizations fall under one of the exempt categories in 501(c)(3) of the federal tax code, they are tax exempt. However, under 508(c)(1)(A) of the federal tax code, churches automatically receive tax-exempt status without applying for that status.