If myself and2 other family members want to purchase and live on a common 5 acres parcel, what is the best way to go about this?
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If myself and2 other family members want to purchase and live on a common 5 acres parcel, what is the best way to go about this?
There are 3 family members looking to purchase and co-habitat on same 5 acres with future plans of building additional house. This is not a question about zoning laws. This is a question about creating a single protected entity the 3 involved would be under.
Asked on July 11, 2011 under Real Estate Law, California
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
In many States in this country parties create a corporation, a limited liability company (similar to a corporation, but different) or a family trust to hold title to real estate where there are several owners holding varying degrees of ownership in the property.
A foreseeable problem with too many owners in a piece of property is a dispute as to its use, development, sale, occupation, maintenance, and expenses where each owner may have different ideas on a presented issue leading to ownership problems.
Creating a corporation as a vehilce to hold title to the desired property is probably the best course to take in that if the corporation has adequate assets and you keep personal business separate from corporate business you would protect yourself from personal liability in the event someone gets injured on the property held in the corporate name. Liabilty insurance is a must on the property purchased in the event someone gets hurt on it.
Consulting with an attorney on the proper vehicle/entity to hold title to the desired property would be a good idea.
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