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Plant closings and mass layoffs are devastating events for workers, families, and entire communities. The sudden loss of income and benefits can create significant financial hardship. This can also be an emotional toll since unemployment can be equally devastating. In the United States, while the right to close a plant or lay off workers generally rests with the employer. However, there are federal and state laws in place aimed at providing some protection and assistance to affected employees. Here at KAASS LAW, we want to explore these laws. The following will aim towards focusing on the key federal legislation for plant closings and layoff laws. The decision to close a plant or lay off employees is a very serious matter. It carries significant consequences for both the company and its workforce. In the United States, a complex web of federal and state laws governs these actions. This aims to protect workers' rights and provide some level of support during difficult transitions. California employees have some certain rights in case their employer closes a facility, conducts a mass layoff, or otherwise cuts a huge number of jobs. Though employees don’t have a legal right to keep their jobs. Nor to be hired into other positions with the company or be considered for rehire, but they have the right to a certain amount of notice before a large-scale layoff or a plant closing. According to the federal Worker Adjustment and Retraining Notification Act (WARN) employees are entitled to damages in this case employer fails to give proper notice. California also has its own version of the WARN Act
According to the Federal WARN Act, companies that employ a certain number of employees are required to provide affected employees, their representatives and specified government officials and agencies with sixty days’ advance, written notice prior to any mass layoffs or plant closings. California’s WARN Act is much broader in scope than the federal law and affects more employers. Accordingly, companies must comply with the requirements of both laws and penalties, including up to sixty days’ back pay per employee, could be assessed for failing to provide required notice.
Federal Worker Adjustment and Retraining Notification Act and California’s WARN Act require employers to give advance notice of mass layoffs or plant closings which will result in a certain percentage of employees losing their jobs.
Under federal WARN Act employers are covered in case they have at least one hundred full-time employees or at least one hundred employees who work a combined 4,000 hours or more per week.
According to California’s WARN Act employers are covered in case they own a commercial or industrial facility, which employs at least seventy-five employees.
Mass layoffs are job cuts at a single work location. This can trigger specific legal requirements:
California law is applicable in the following cases:
Failing to comply with the WARN Act or state layoff laws can have serious consequences, including:
While legal compliance is essential, ethical considerations should also guide your actions. Treat employees with dignity and respect throughout the process. Provide support and resources to help them transition to new opportunities.
Here at KAASS LAW, we strive to best serve our clients with the fullest extent. We also attempt to inform our readers and any potential clients to strive to learn more.
Plant closings and layoffs are complex events with significant legal and human implications. By understanding the applicable laws, seeking expert legal counsel, and prioritizing open communication and ethical treatment of employees, you can navigate this challenging process with greater confidence and minimize potential risks.
Slip and fall accidents are more common than you might think, especially in California. Picture this: you're walking down a grocery store aisle, and suddenly, you find yourself on the floor, nursing a twisted ankle or worse. These incidents, often dismissed as minor mishaps, can lead to serious injuries and significant expenses. If you have an injury due to a slip and fall accident in California, understanding your rights is crucial. Personal injuries that cause slip and fall accidents are under premises liability laws. This allows victims, injured as the result of the negligence of the property owner to recover compensation for their injuries.
According to Civil Jury Instruction 1000, the plaintiff must establish the following four elements to prove a premises liability claim:
Employees who are temporarily out of work due to no fault of their own may be eligible for unemployment benefits. However, eligibility requirements, prior earnings requirements, benefit amounts, and other details differ by state. The following are the basic guidelines for receiving unemployment benefits in California. The Employment Development Department in California is the agency in charge of unemployment benefits (EDD).
The impact of COVID-19 does not require a person to have a layoff in order to receive benefits. Additionally, federal laws have changed in order to include those out of work due to the virus. Now, states can pay benefits in the following situations:
During the COVID-19 epidemic, the Wage and Hour Division is devoted to preserving and improving the welfare of workers. During the epidemic, federal regulations such as the Fair Labor Standards Act and the Family and Medical Leave Act give crucial worker rights.
According to the Family and Medical Leave Act, covered workers can take up to twelve weeks of job-protected, unpaid leave a year due to a medical condition. The Family and Medical Leave Act covers employers who have employed fifty or more workers for twenty or more weeks of the current or preceding year. Employees must have worked for the company for at least twelve months to be able for FMLA leave.
An employee will certainly qualify for twelve weeks of job-protected leave in case he has been tested positive for coronavirus. In case a person takes care of a family member with coronavirus, he also qualifies for up to twenty-six weeks of FMLA leave over a twelve-month period.
The COVID-19 pandemic presented unprecedented economic challenges for businesses across the United States. In response, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act in March 2020. A key component of this legislation was the expansion of Small Business Administration (SBA) loan programs, designed to provide crucial financial relief to struggling businesses. While many of the initial CARES Act programs have concluded, understanding the legacy of these programs and their impact remains essential for businesses navigating the post-pandemic economic landscape. This blog post will explore the key SBA loan programs introduced or modified by the CARES Act, focusing on the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program, and discuss their lasting impact. The Coronavirus Aid, Relief, and Economic Security Act includes significant provisions that affect American citizens professionally and personally. Particularly, the CARES Act includes Paycheck Protection Program - a new loan program administered through the SBA, which provides up to $349 billion in loans to eligible entities, with such loans being subject to forgiveness under certain conditions. The hundred percent federally-guaranteed loans are available under a new subsection 36 of Section 7(a) of the Small Business Act.
SBA provided loans can be used for different purposes, such as:
Loss of consortium is the loss of moral support, companionship, or intimacy following an injury to a person’s spouse or registered domestic partner.
In California, a claim of loss of consortium can be brought by the spouse or child of a person who was injured by the negligent conduct of a third party. The cause of action arises when a third party negligently or intentionally injures the plaintiff’s spouse such that the plaintiff no longer enjoys the injured spouse’s conjugal companionship, society, and sexual relations (Rodriguez v. Bethlehem Steel Corp. (1974) 12 Cal.3d 382, 408.)
A spouse of an injured person must be able to establish the following elements to prove a loss of consortium lawsuit:
A state of emergency is an official declaration that suspends regular governmental and constitutional procedures in response to a disease, earthquake, fire, flood, storm, riot, drought, infestation, or other natural or human-made disasters. Generally, the declaration remains effective for thirty days and, if necessary, can be extended for an additional thirty-day period. On March 4, 2020 in response to COVID-19 pandemic, Governor Gavin Newsom declared a California-wide state of emergency.
Price gouging refers to sellers trying to take illegal benefits of consumers during a disaster and emergency by significantly increasing prices for important consumer services and goods. California Penal Code Section 396(a) prohibits “excessive and unjustified increases” on a range of basic goods and services.
An excessive increase is an increase of more than 10 percent above the price charged by the person in question for the same goods or services immediately before the declaration of emergency. The law applies just after the President, the Governor, or city or county executive officer declares a state of emergency. Though, an emergency declaration can cover a specific geographic area, the price gouging law is applicable anywhere in the state of California, where consumer demand increases as a result of that emergency.
All businesses, individuals, and other entities are obliged to comply with the statute. The statute applies to all sellers, including:
Here are some CoronaVirus safety and prevention methods that can be used by you and your loved ones. Now, we do not want to use the term social distancing because, for god's sake, we need people to be as social as much as possible in this time; however, without the physical association. In this day in age of social media and all sorts of applications like Facebook, Twitter, Instagram, LinkedIn, and even TikTok there are many opportunities to be social without being physically exposed. At a time of such a pandemic it may be beneficial to search for government services on Formalu, that may be of help as well. Many are using their physical isolation on the stock market rampaging through, with the help of , , or .
The landscape of debt collection has evolved significantly in recent years, with the rise of a specialized industry: debt buying. Debt buyers purchase delinquent debts from original creditors, often for pennies on the dollar. , and then attempt to collect the full amount, plus interest and fees. This practice, while legal, can be fraught with issues for consumers, including inaccurate debt information, aggressive collection tactics, and the re-emergence of long-forgotten debts. To address these concerns, several states have enacted Fair Debt Buying Practices Acts (FDBPAs). This blog post will delve into the intricacies of FDBPAs, explaining how they protect consumers from potentially abusive debt collection practices by debt buyers and outlining the rights consumers have when facing collection efforts on purchased debt.
The California Fair Debt Buying Practices Act ("FDBPA") came into force on 1 January 2014. The act, which seeks to provide more protection for borrowers whose debt has been sold to a debt buyer, applies only to those debt buyers. It is not available to creditors, collection agencies or payment attorneys.
Whenever a person stops making payments on a credit account, a creditor can "bill" the account and sell it for less than what the debtor owes to a "debt buyer." So what exactly is a buyer of the debt and how are? Under the FDBPA, a "debt buyer" is defined as "a person or entity regularly engaged in the purchase of charged consumer debt for collection purposes, if it collects the debt itself, hires a third party for collection, or hires an attorney-at-law for collection litigation"(See section1788.50(a)(1) of the Civil Code of California). The term "charged-off consumer debt" implies "a consumer debt removed as an asset from the books of a creditor and treated as a loss or expense." (Section 1788.50(a)(2)).
If you're a homeowner struggling with debt, you might come across something called a "home equity sales contract." While it may sound like a quick fix to get some cash, it’s important to understand exactly how it works. The real estate market is speculating to recover, and property prices are continuing to rise. But for many borrowers, rising prices do not mean an increase in their ability to make loans payable. Though many may decide to sell their houses and move on, others may not do anything until they face foreclosure. The California legislature has been worried that those homeowners whose residences are in hang-out are at risk of fraud, deception and unfair dealing by buyers seeking to get control of the equity for little or no compensation. To hopefully avoid this, the Legislature passed the Home Equity Sales Contract Act (California Civil Code Section 1695). This has since been a source to resolve a considerable amount of confusion and litigation.
So, California law also generally requires special sales transaction management in order to protect homeowners in foreclosure. In addition, the Home Equity Sales Contract Act refers to transactions that satisfy all four conditions:
California law operates on the principle of "premises liability." This means property owners and occupiers have a legal duty to maintain safe conditions for visitors. This includes customers in stores, guests in homes, and even trespassers in certain situations. When someone is injured because of a dangerous condition on another person’s property, he can sue either the owner, occupier or possessor of that property. This may include homeowners, landlords, businesses, and other property owners.
According to California Civil Jury Instruction 1003 defendant was negligent in the use or maintenance of the property in case:
If you have an injury due to a slip and fall, taking the following steps can help protect your rights and strengthen your potential claim:
According to California Code of Civil Procedure section 335.1 a victim has a two-year period for the filing of "an action for his injury to, or for the death of, an individual caused by the wrongful act or neglect of another." According to California Code of Civil Procedure section 338 there is a separate three-year deadline for filing a lawsuit over the repair or replacement of personal property was damaged in the slip and fall.
In case your slip and fall injury was caused by the negligence of a government employee then the claim you file must follow a special set of rules. You will be required to provide notice of your claim within a six-month period and give the municipal or state government a chance to respond to your allegations.
According to this rule, any damages award the plaintiff receives will reduce according to the percentage of his fault. A property owner can make different arguments to attempt to pin the blame on the plaintiff. Here are some examples of arguments:
In case the plaintiff’s California slip and fall case makes it to court, regardless of the argument the property owner makes, the state’s "pure comparative negligence rule" will determine how much compensation the plaintiff can get from the property owner. [embed]https://www.youtube.com/watch?v=7o0HMbXd0Vw[/embed]
If you sustained an injury due to a slip and fall accident in California, don't hesitate to seek legal help. Understanding your rights and taking the right steps after an accident can make a significant difference in your ability to recover compensation and get back on your feet. Are you in need to services for a slip and fall accident? Our Los Angeles slip and fall lawyers at KAASS Law would be happy to help you out in every way we can. Get in touch with us now at (310) 943-1171 for assistance!
In order to receive unemployment insurance benefits, you must meet state income and time worked requirements over a set period of time known as the "base period." In most states, your base period is a one-year period that includes the last four of the last five calendar quarters worked prior to filing your claim. When determining eligibility, your unemployment agency will most likely use a base period of these four full calendar quarters. If you file an unemployment claim between January and March, your base period is January to September of the previous year, as well as October to December of the year before. The base period for claims filed in April through June is January through December of the previous year. For July through September clams, a base period of April through December of the previous year and January through March of the current year is used. Finally, claims filed from October to December have a base period of the previous year's July to December and the current year's January to June.
Employees whose hours have been limited may be eligible for partial unemployment benefits, which are typically a portion of the pay they would have did receive if they were fully unemployed. Employees who quit due to a significant reduction in hours or pay may be eligible for unemployment benefits as well. According to the Employment Development Department, the first $25 or 25 percent of employee’s wages, whichever is the greater amount, is not wages earned and won’t be reduced from his UI weekly benefit amount.
The required information can be found here: https://www.edd.ca.gov/. Select “File & Manage a Claim” to apply for unemployment benefits. Through this link, a person can also learn about the appeals process, find current benefit amounts, eligibility requirements and more.
If you or a loved one are temporarily out of work due to no fault of their own, then you may be able to get compensation. If that is the case, contact our Glendale personal injury lawyer today for a consultation and case review. Please feel free to give our office a call at 310.943.1171.
Fair Labor Standards Act is a federal law which sets overtime rules and minimum wage. In some cases, different rules apply depending on whether a person is an exempt or non-exempt employee. Most salaried workers are exempt from the Fair Labor Standards Act while many hourly workers are non-exempt. In case the employer decides to close due to the coronavirus outbreak, exempt employees can get their regular pay. On the other hand, according to this law, non-exempt workers, who are usually hourly employees, can't get the pay.
Generally, workers' compensation is available for those employees who suffer occupational illness or injury at work. Under workers' compensation law ordinary diseases such as cold and flu aren't compensable, even if the employee caught them from a colleague. Although, in case there is something unique to a person’s profession which makes it more likely for him/her to get a disease than any other typical employee. Then he/she might get workers' compensation. The list of such workers can include:
As the COVID-19 outbreak is very unprecedented it is uncertain under what circumstances an employee can qualify for workers' comp benefits. That’s why it is very important to consult an employment lawyer to get more about available options.
In this case, an employee can file a claim for Unemployment Insurance benefits with the California Employment Development Department. Employees must achieve certain minimal requirements in order to be eligible for benefits. Having an immigrant status that allows him or her to work, as well as sufficient previous earnings. The California Department of Employment Development did not approve the claim, employee can earn anywhere from $40 to $450 each week. In the event that an employee is temporarily let go and wishes to return to the same company. If receiving UI benefits, he does not have to meet the ordinary requirement of looking for work. However, if the individual is not attached to a specific business with a job to return to, he or she is required to look for work while receiving UI payments.
Contact our Glendale attorney today for a consultation and case review. Please feel free to give our office a call at 310.943.1171.
Though the loan can’t be used for:
Eligible entities are the ones that generally have fewer than 500 employees, including the following:
Moreover, the loan can also be available to other entities in certain industries that otherwise fall under the definition of “small business concern” mentioned in the Small Business Administration Act. In some instances, those businesses can have up to 1,500 employees and still be considered a small business concern.
Loans can be provided for up to a ten-year term at 4 % interest, from 6 months and up to 1-year deferral of principal and interest payments. Loans are available with:
Loan borrowers must show that it is necessary due to the uncertainty of current economic conditions; that they are not getting duplicative funds for the same uses and that the loan will be used to maintain payroll, retain workers, or make lease, utility or mortgage payments.
The maximum loan amount is the lesser of $10 million or two-and-a-half months’ payroll (salaries, leave, insurance, taxes, etc.), calculated by the business’s average total monthly payments for payroll costs incurred during the previous one-year period.
Loan borrowers will be eligible for loan forgiveness for eight weeks commencing from the origination date of the loan of payroll costs and utility, rent or mortgage interest payments. The eligible payroll cost doesn’t include yearly compensation of more than $100,000 for individual employees.
A borrower must submit to the lender an application with the required information after which the lender will have 60 days to issue a decision. A borrower must provide the following information:
The CARES Act SBA loan programs, particularly the PPP and EIDL programs, played a vital role in mitigating the economic impact of the COVID-19 pandemic. While these specific programs have concluded, their legacy continues to shape the business landscape. Businesses should be aware of the ongoing SBA loan programs available to them and consult with financial and legal professionals to determine the best options for their specific needs. Here at KAASS, we help our clients as best as possible to navigate any potential relief from the government.
[video width="1280" height="720" mp4="https://kaass.com/wp-content/uploads/2020/03/output_HD720-1-3.mp4"][/video] Are you in need of Coronavirus legal help in California? Our attorneys at KAASS Law are ready and willing to provide you with the services that you need!
The plaintiff must prove that the defendant committed a wrongful act against his spouse or domestic partner. Such acts can include:
Generally, the judge or a jury will determine how much value to give a plaintiff for a claim for loss of consortium. Factors considered in loss of consortium claims include loss of:
Loss of consortium falls under the category of non-economic damages, this means that the loss is intangible, and can’t be proven through documentation. Because of the nature of the injury, spouses in loss of consortium cases will be asked about their marriages before the injury. While determining the amount of compensation the courts can consider the stability of the marriage, each spouse’s life expectancy, and the degree to which the benefits of the marriage were lost.
According to CACI 3920, the spouse of the injured person can recover damages to reasonably compensate for the past and future loss of the injured person’s companionship and services.
Damages that are not recoverable in loss of consortium claims include:
A loss of consortium recovery will be correspondingly reduced in case the injured spouse was contributorily negligent. This means that in case the injured spouse’s negligence was partially caused the injury, then the other spouse’s compensation for loss of consortium will be reduced correspondingly.
If you believe you may have a loss of consortium claim we invite you to contact our personal injury attorneys today at (310) 943-1171 for a free consultation.
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California Penal Code Section 396(h)(4) regulates transportation, freight, and storage services, including towing; and repairs or reconstruction to residential or commercial property. According to California Penal Code Section 396(c) for 180 days following a declaration, a contractor cannot offer or sell any reconstruction, repair or emergency cleanup services for a price greater than 10% above the price charged by that person for those services immediately before the declaration of emergency. According to California Business and Professions Code Section 17568.5, hotel and motel room rates can’t exceed 10% above the regular rates advertised immediately before the declaration of emergency.
Items specifically listed in the law are the following:
Price gouging statute doesn’t cover cars and motorhomes requiring DMV registration. In some cases, if the seller can prove the price increase is a direct result of higher costs for materials, labor, or purchasing the goods from a supplier, the increase of more than 10% will be allowed.
Violation of Penal Code Section 396 is a misdemeanor with the following penalties:
Have you been affected by the Coronavirus pandemic? KAASS Law is offering our services for those who are in need of Coronavirus legal help. Get in touch with us now by phone at (310) 943-1171 or by filling out the form below. [contact-form-7 id="5673" title="KAASS LAW Contact Form"]
There are various reasons why physical distancing or self isolation can be a highly beneficial safety and prevention method for the CoronaVirus. For layman terms, you cannot catch what you cannot touch, thus distance is by far the best prevention. Think of it as a greater degree of physical abstinence than we have learned. Right now its not AIDS but COVID-19, which is said to be an airborne virus--scary term coupled with the realization that it is what we are currently going through. Yup, just like the movies, although now it's not the movies, but sure feels like it, until we see the chips falling in cough around us. From the smoke it feels like the health system in the most strained link in this story. With the Federal Reserve on steroids and the Government following suit will this be enough. Perhaps one for the The World Almanac. For those who are not infected with the virus, self isolation is beneficial because it will help prevent you from coming in contact with the virus. If you are already infected with the CoronaVirus, self isolation may be even more of beneficial safety and prevention method because it will prevent you from spreading the virus to others. But of course, contact your health providers asap if you are feeling any of its known symptoms--ask your doctor about those. Health care is getting innovative. For example, Harmony Health in Glendale, CA has been providing drive through CoronaVirus tests. Many specialist are continuing to perform vital non CoronaVirus related medical conditions throughout this Pandemic. Thus, at this time of high danger of exposure and infection, physical isolation is one of the biggest things we can do as a community to help.
Keeping your hands as clean as possible throughout the day can be a major factor of Coronavirus safety and prevention. There are various ways of keeping your hands clean throughout the day. One great way is to wash your hands with soap and scrub them thoroughly as many times as possible throughout the day. Another great way of keeping your hands clean is by disinfecting them with hand sanitizer as many times as possible throughout the day.
One safety measure you should pursue is to not shake hands during greetings. Instead, you can greet people in ways that do not involve physical touch, such as a wave, nod, or a bow. This will help you from additional potential exposure to the virus and it will also help those around you in case you have already been exposed.
Wearing a respirator mask with a regulated filtration capability such as "N95" can be a major factor of preventing yourself being infected by the Coronavirus when being outside of your home or around other people. Medical professionals suggest not to mistake the average surgical mask for an N95 approved respirator because there is definitely a difference. A properly fitting N95 approved respirator can prevent you from breathing in any airborne germs from the breath of those around you, while a surgical mask will not. Although a surgical mask does not provide the same benefits as an N95 respirator, it can still have its own benefits. A surgical mask can help prevent those who are already infected with the Coronavirus from spreading it. This is due to the fact that surgical masks are actually meant for preventing germs of doctors or medical professionals from going on to patients, not the other way around. Therefore, a surgical mask will not necessarily protect the wearer, but it will protect the people around the wearer from being exposed to the wearers gems. If you have already been infected by the Coronavirus, wearing a surgical mask will still be a great choice for you to wear instead of not wearing a mask at all, because it will help prevent you from spreading the virus to those around you. If you have not already been infected with the Coronavirus and would like to prevent being infected, medical professionals have highly suggested to make sure to wear an N95 approved respirator that fits air tight on your face and to not a regular surgical mask, in order to prevent being infected through the air by those around you.
By wearing gloves, you can prevent yourself from coming into direct contact with anything that may have been exposed to the Coronavirus. Always remember that you may still be able to contaminate yourself even if you are wearing gloves. During this time, it would be wise not to touch your face, hair, skin, eyes, nose, and even clothes, in order to prevent any germs that were potentially exposed to your gloves from spreading. This step is not meant to be used as a substitute for keeping hands clean by washing and/or using hand santizer. Even if you use gloves, it is suggested by medical professionals to still wash your hands and/or use hand sanitizer throughout the day as well.
KAASS Law is providing many different types of legal assistance for individuals and businesses who have been negatively impacted by the virus. Get more information on our Coronavirus legal help page now!
When the debt buyer decides to write to a consumer, the debt buyer must at the time of writing "possess". Such information can not take collection action against you unless it has the following account details:
Currently, several states have enacted FDBPAs, including but not limited to:
Two senate bills from California will impact the consumer debt collection process providing relief to debtors in judgment. SB-501 (2015-2016) amends CCP § 706.050 and changes the formula for calculating the percentage of disposable income subject to a wage garnishment. As a result, this gives a slight amount of relief to low income judgment debtors. SB-641 (2015-2016) amends the Fair Debt Buying Practices Act (FDBPA) covering consumer debts sold or resold after January 1, 2014 and adds a new provision, Provision 1788.61 of the Civil Code. A judgment debtor may, by current law, file a notice of motion and motion to set aside a default or default judgment and for leave to contest a debt-related action up to 2 years after a default judgment has been entered. The provision would make a judgment debtor of a consumer debt sold or re-sold up to 6 years after that date, or 180 days after the actual notice of the case. victims of identity theft are given a special provision. The judgment debtor who files the motion should also include "an affidavit stating under oath that the person's lack of actual notice in time to defend the action is not caused by his or her avoidance of service or inexcusable neglect." Moreover, "either party may submit evidence in support of his or her motion or opposition, including evidence relating to the proceedings, and the court may consider such evidence.
Fair Debt Buying Practices Acts provide crucial protections for consumers facing collection efforts from debt buyers. Understanding your rights under these laws is essential for navigating the complex world of debt buying and protecting yourself from potentially abusive collection practices. If contacted by a debt buyer, it is important to take prompt action, request debt validation, and seek legal advice. Here at KAASS, we understand and can help guide our clients with their debt problems. Do not stop yourself or feel like this will hinder you for the rest of your life. Take action right away.
Do you have any questions related to your specific situation? Get in touch with our attorneys at KAASS Law for more information now!
The Act does not apply if any of those four provisions are not met. For instance, if a seller owns a property in foreclosure but the buyer occupies the property as his or her personal residence, the rule on home equity transactions does not apply. Nevertheless, if all four conditions are met, the purchaser must use a sales contract for home equity. One example is the C.A.R. standard form "Notice of Default Purchase Agreement" and annexes which include the many provisions of the Act including:
Considerably, the Act provides that until the time has elapsed for the Seller to cancel the Contract, neither the Buyer nor anyone who works for him may ask the seller to sign any deed or other document. Since this right of rescission doesn't begin to run until the buyer issues the notice, the seller cancel any time. And if the Buyer never delivers the Notice, even after the Buyer has registered their Deed, the Seller can rescind. Additionally, the legal penalty for infringing this right is three times the equity plus lawyer's fees and court costs. Even worse, for each violation, equity buyers who violate the home equity sales law may be convicted of a crime punishable by a one-year jail term plus a $25,000 fine. What about real estate agents, the law requires that an authorized security insurer contract a buyer's agent, but there were no insurers willing to bid the bond. The bonding provision extends to the agent or dual agents of a seller but not exclusively to a listing agent.
If you're thinking about entering into a home equity sales contract, here are a few things you can do to protect yourself:
A home equity sales contract can offer a way out if you're facing financial hardship, but it's important to fully understand what you're agreeing to before moving forward. It’s a good idea to consult a professional, like an attorney, who can guide you through the process and help you make an informed decision. By doing your research and making sure the terms are fair, you can avoid unexpected surprises. For any further questions and or need legal assistance, please contact us right away! Strive to better secure your house and your future!