Many residents of the Tampa area may be privileged to have family members or friends who have the means to help them start a business or purchase real estate.
There is certainly nothing wrong with taking advantage of this opportunity. Often, deals where family or friends lend money or provide investment capital are financially beneficial for all sides. They also can be ways of showing mutual love and support.
It can be tempting for those involved in these sorts of real estate deals or business transactions to skip the formalities of considering their legal rights and options and drawing up legal documents.
Some may see it an insult to a family member or friend should they insist on legal formalities.
Before passing over such formalities though, Florida residents should consider the following:
- As hard as it is to admit, there’s never a guarantee that friends will stay friends or family members will always get along and look out for each other’s best interests.
- It is not just family members or friends that are involved in these sorts of deals. One also must think about their relative’s creditors, including an ex-spouse. One also must know what happens to any family deal if the person involved dies.
- Business transactions between friends and relatives must be official for tax reasons and also because of other accounting considerations. The parties are free to offer generous terms to each other, but business deals that seem more like gifts or, worse, shelters from tax or other liability get viewed with suspicion.
- When the terms of a family loan or mortgage or other transaction do not get spelled out, Florida law may apply to such transactions in unexpected ways.
We can handle family and friend transactions efficiently and effectively
A person involved in a business or real estate deal within the family should strongly consider handling the matter with the same legal formalities as they would a deal with an unrelated third party.
The good news, though, is that family members and friends who are already on the same page about a business deal will not have to negotiate a lot.
A person in this situation can invest a little time into understanding their legal options and come out with assurance that their transaction has been handled correctly.