Once the parties have agreed upon the price and entered into a written agreement, the earnest money is typically deposited with the brokerage of the listing agent. The earnest money will be held until the transaction closes. At closing, the earnest money will be applied towards the purchase price of the property. However, if the transaction does not close and one of the parties backs out of the deal, then the parties will need to determine which party will receive the earnest money. Determining which party gets to keep the earnest money will depend largely on the language and provisions included in the purchase agreement.

If you have questions regarding earnest money or purchase agreements, the attorneys at Hartung Schroeder can help.

ABOUT TRAVIS BRENNER

Travis is an associate attorney at Hartung Schroeder. His experience includes real estate and family law, civil litigation, and working with clients to form non-profit organizations and businesses. Travis also holds a Master of Business Administration degree, which allows him to better address the needs of business clients. You can read more about Travis or get in touch with him here.

While most assets (e.g., bank accounts, vehicles, and furniture) can be divided without a court order, retirement plans require a QDRO to be issued in order for the company administering the retirement plan to recognize the right of the alternate payee to receive payments or benefits available under the plan. However, a QDRO cannot require the plan to confer a benefit to the alternate payee that is not already available under the plan.

Typically, the “alternate payee” is the spouse/soon-to-be former spouse of the plan participant. The alternate payee may also be a child or dependent of the plan participant. A QDRO will assign either a specific dollar amount or a percentage of the plan’s benefit to the alternate payee.

Although every QDRO must contain certain information, each QDRO will be different depending on the type of plan and benefits. If you have questions or need assistance with a QDRO, the attorneys at Hartung and Schroeder can help.

ABOUT TRAVIS BRENNER

Travis is an associate attorney at Hartung Schroeder. His experience includes real estate and family law, civil litigation, and working with clients to form non-profit organizations and businesses. Travis also holds a Master of Business Administration degree, which allows him to better address the needs of business clients. You can read more about Travis or get in touch with him here.

If you are starting a business, there are many important decisions you will need to make. Possibly the most important choice will be selecting the type of business entity in which the business will operate. Different business entities will offer different benefits but may also have some drawbacks. Below is a list of the types of business entities and a brief description:

• Sole Proprietorship: A sole proprietorship is run by a single individual. This entity has the greatest flexibility but offers no liability protection for the owner.
• General Partnership: A general partnership requires two or more persons who contribute money, skills, or labor to form a business. The partners will share equally in profits and losses, and will have equal rights in decisions making regarding the business. The partners will be personally liable for the debts the business incurs.
  • Limited Partnership: This type of partnership requires one general partner and one limited partner. The limited partner(s) only contribute capital to the business and do not participate in operational decisions. However, the limited partner is only liable to the extent they contributed money to the partnership. The general partner(s) will function similar to a regular general partnership.
• Limited Liability Company (LLC): An LLC can be formed by one or multiple individuals. Other business entities may also form and participate in an LLC. An LLC is governed by an operating agreement which details how the business will be managed, how profits and losses will be split amongst the members, and the transferability of interests in the LLC. Members of an LLC are shielded from personal liability of the company’s debts. LLC’s must register with the Secretary of State.
• Corporation: A corporation is a legal entity that is separate from the individuals who form it. Ownership of a corporation is in the form of stock and the owners are called shareholders. Shareholders are not personally liable for the debts of the corporation. However, corporations are subject to double taxation (once at the corporate level and once when distributions are made to shareholders). Corporations are organized in a single state by filing Articles of Incorporation with the Secretary of State. It is more costly to form a corporation and requires a greater level of maintenance.

Some issues that people should consider when selecting a business entity include:

• The taxation of the entity
• The industry in which the business will operate
• The number of individuals in the entity
• The limited liability shield
• The cost of forming and maintaining the entity
• The flexibility for the owners

Selecting the proper business entity is crucial to the success of a business. If you have questions or concerns regarding the different business entities or would like assistance in forming your business entity, we can help at Hartung Schroeder.

ABOUT TRAVIS BRENNER

Travis has been a law clerk at Hartung Schroeder for the past year and will join the firm as an associate attorney upon completing his JD and MBA at Drake University. Some of his experience includes assisting clients with forming nonprofit organizations and other business entities as a student attorney in the Drake Legal Clinic. In the future, he hopes to develop a real estate practice that will complement the firm’s diverse areas of practice.

Are you considering renting a property? As either the landlord or the tenant, it is important to understand the key provisions of your lease agreement. Below is a list of some key provisions to pay attention to when entering into a lease agreement.

1. The Security Deposit – Be cognizant of the deposit amount. Generally, one month’s rent is the standard amount for a security deposit. However, in certain situations a landlord may require a larger deposit. Also, be aware of when the deposit should be returned and what conditions need to be met to avoid a dispute over the rental deposit.

2. Termination and Early Termination – Know the length of your lease and what happens when it expires. The lease could auto-renew or transition into a month-to-month lease. If you wish to terminate your lease early, it is essential to understand what notice must be given to the landlord and the process to follow.

3. Subletting – If you need to move, will the lease allow you to sublet to another renter? What are the requirements and procedures for subletting? Does the landlord need to approve of the new renter? No one plans to sublet their new place when signing a lease. However, it is a common issue that arises. People’s lives change.

Some other important things to be aware of: guest policy, pet policy, condition of the property prior to moving in, how/when the landlord may enter the property, and how maintenance issues will be handled. Please note that this is not an exhaustive list of lease provisions and you should carefully read through the entire lease agreement before signing it. If you need help understanding, drafting, or revising a lease, an experienced real estate attorney can help.

ABOUT TRAVIS BRENNER

Travis has been a law clerk at Hartung Schroeder for the past year and will join the firm as an associate attorney upon completing his JD and MBA at Drake University. Some of his experience includes assisting clients with forming nonprofit organizations and other business entities as a student attorney in the Drake Legal Clinic. In the future, he hopes to develop a real estate practice that will complement the firm’s diverse areas of practice.

By : Travis Brenner

Are you thinking about selling your home? If so, Iowa law requires sellers to make certain disclosures about the condition of the property. Failing to make the required disclosures may subject sellers to unwanted litigation and legal liability.

Iowa Code chapter 558a covers the required real estate disclosures when selling a home. Under this chapter, a person selling or transferring real property shall deliver a written disclosure statement to the person interested in purchasing the home. This statement is commonly referred to as the “seller disclosure form.” This disclosure form should be provided to any potential buyers prior to the buyers making a form purchase offer. The goal of the form is provide potential buyers with information regarding any issues or problems the seller has had with the home. It would be a good practice to fill out the disclosure form when you list your home for sale.

The required disclosures should include information relating to the condition and important characteristics of the property and house, including any structural defects. The disclosures may also need to include zoning information, the condition of the plumbing, heating, and electrical systems, or the presence of pests. Other types of information that should be disclosed include:

• Infestations of pests (mice, bats, snakes, spiders, roaches, etc.)
• Water problems in the basement
• Lead paint, radon levels, asbestos
• Easements and covenants
• Health hazards to occupants

As a seller, it is better error on the side of caution and disclose the information. There are pre-drafted seller disclosure forms available online that can assist you in making the requisite disclosures. However, if you have questions or concerns on what needs to be disclosed when selling your home, we have experienced real estate attorneys that can help.

Please note that these disclosure requirements only apply to the transfer of residential real estate (1-4 dwelling units) and not manufactured/mobile homes that are considered personal property.

ABOUT TRAVIS BRENNER

Travis has been a law clerk at Hartung Schroeder for the past year and will join the firm as an associate attorney upon completing his JD and MBA at Drake University. Some of his experience includes assisting clients with forming nonprofit organizations and other business entities as a student attorney in the Drake Legal Clinic. In the future, he hopes to develop a real estate practice that will complement the firm’s diverse areas of practice.