Forced to Accept Section 8? What? One Real Estate Lawyer's Finger to the Local Government

Hello Followers!  News just in to me.... I heard today that the Cook County (Illinois) Human Rights Ordinance is possibly going to be amended to force property owners to accept Section 8 Tenants, citing long-standing issues and the fight against "income discrimination."  I'm in SHOCK!!!  People who know me have heard me rant from time to time about Section 8 and the ridiculousness with which the program STILL exists.  In this possible ongoing installment, I'd like to comment on why property owners should not accept Section 8 vouchers, and they should be extremely wary of those people who have them.  In my lawyer's experience doing evictions and landlord/tenant work, voucher-holders, are simply not in touch with reality and thus, in too many instances, not good tenants to work with.

The Cook County Amendment basically creates a new classification of discrimination (i.e. "income") against which the ordinance prohibits conduct against individuals.  It creates a new protected class of persons, and thus widens the group of people who can make a claim of housing discrimination.  The existing prohibitions relating to fair housing and real estate are race, religion, sex, age, disability, among some others.  By adding a new group, those who are "income challenged" the Cook County Board has decided, that property owners may not choose specifically to refuse rent to someone on the basis of their income.

THAT IS RIDICULOUS!   First, I say this because that is the entire basis of the world order in this country.  Poor people can't afford mansions for a reason:  they are poor.  If a person cannot afford a swanky three bedroom condominium in the heart of the downtown area, then by golly, they should go and find something that they can work with.  If they can't find anything, then PERHAPS, they should re-evaluate their jobs, lives, cars, religion, friends, or whatever is holding them back from education, work and creating a realistic goal in regards to income.  It is, as a real estate attorney, manifestly unfair to a property owner to force them to consider the source of income only for the positive, and not be able to consider it as a negative.  If such rules are passed, then landlords may be forced to consider illegally obtained funds as well, say from prostitution, drug sales, and such crazy things as online gambling.  Why shouldn't the source of money count?  It counts to the IRS.  It counts in divorce court.  It counts when one applies for health insurance or medical care.  It counts when people ask for food stamps.  I am super excited for a reason that actually changes my mind about section 8 - I have YET to see it.

Second, what is often unknown about the Section 8 program is that a property owner is required to accept the vouchers through participation in a program and an actual contract with the housing authority.  As the result of that, the landlord has two contracts - the lease with the tenant which has its own set of provisions, and yet another contract - one with the housing authority, that prohibits how and when the landlord can evict, when the tenant can move.  Although some landlords don't mind this setup, it creates a forced business arrangement and shoves down the landlord's proverbial throat, a partnership that may not be welcome.  That to me, is unconstitutional.  

Third, has anyone ever really examined the amount of rent that the tenant pays in a housing voucher program? It's so low that a high schooler could afford it. So then, what that does is teach the recipient that they do NOT have to work hard, get an education, or work to reach a level where they can afford more.  It teaches, by implication and example, that the costs associated with a productive life do not have to be paid, because "there's a coupon for that."  It creates a situation where the voucher-holder/tenant starts to think that $1000 a month is crazy-expensive and improper, when the majority of us tax-paying, hard-working, educated-ourselves-to-make-a-better-life have to pay "market rent" or higher, to live where we want to live.   If a person begins to think that the correct price for housing is $100-400 a month, then they are never put in a position to work for more, thus keeping themselves in the vortex of poverty that they supposedly want to get out of.   Let's teach a man to fish here, people.  

Now, I could go on and on about how I feel about this.  But what is important here is the fact that in Cook County, Illinois where I practice, this could really create a fuss.  I'm 100% positive this will be challenged in court and to some degree, and I'm very excited for this prospect.  I think that our government, even at the local level, in this instance, is playing Big Brother, and poorly at that.  If people on the Cook County Board care so much about low-income residents, then perhaps they should be spending time educating people on what life really costs, and encouraging people in Chicago to stay in school, stop selling drugs and shooting each other, and to aim and reach higher than the CHA Section 8 Program.  The rest of us, working our tails off to pay our market rent and mortgage costs, whose taxes pay the Cook County Board's salary and whose tax dollars and consumer dollars have to subsidize these foolish and lazy entitlement seekers, will thank you for your time well spent. 

If you get the chance and are in Chicago and agree:  Let your Alderman know your thoughts.  As a real estate attorney, I would recommend that all property owners fight against this.  You can't be forced to do business with any entity that you do not want to do business with.  You may not be able to de-select people because of race, religion, age, or protected status.  However, income is NOT a valuable or fair protected class status in my opinion.   If you can't afford it, that is just too bad.  It happens to the rich and middle class, and the poor should not be put on a pedestal to get that which they have not earned, all the while forcing a landlord to rent to them when he or she would not otherwise qualify them based upon income.  

For rants, raves, facts and news you can use, always feel free to check us out, like our Facebook page, or just leave a note.   

2013 LANDLORD TENANT SEMINAR by LEVIN LAW LTD.

Hello All in the Blogosphere!  

We are just sending out a quick announcement that for Landlords, Tenants and anyone interested in real estate, there will be a FREE LANDLORD SEMINAR sponsored by NTN Online (a fantastic tenant screening service), tonight at the Oak Brook Illinois Public Library.  It starts at 6pm!  

COME JOIN US!  Levin Law's own, Alisa Levin, the resident know-it-all about all things real estate law related, will be speaking!  

You Want to Quit Claim What?  How Being a Quitter can Hurt...

Hi All in the Blogosphere!  Good to be with you.  As some of you may know, I am a once-a-week law professor at DePaul University College of Law, where as an adjunct, I teach real estate drafting.  Today from one of my students, I got some questions about quit claim deeds in real estate.  It got me to thinking... what does the "average person" know about quit claims?  Not that much it turns out.  So, in my style of styles, I decided to pop in for a quickie-post, and to say a thing or two about Quit-Claim Deeds.  They are not that great for all involved.

First, a quick history lesson:  Back in the old days, when the kings or knights would bestow a land grant upon a lesser serf, they would transfer a "clod" of dirt and say some special words to transfer the land.  As Roman law became more the norm and it became accepted practice to draft documents, it was decided by someone (probably some kind of medieval lawyer of sorts) that there should be a uniform way of recording these types of transactions.  Gone was the dirt, and in came the deed, shiny and new and pleasantly uniform for all the kings, knights and lesser beings to have and to hold.  As time went on, there was a need to differentiate between the kinds of promises that one would be granting with the conveyance, so different kinds of deeds were born.  

Without going into every kind of deed, let it be simply said that a "warranty deed" carries with it a full warranty that the owner has good title and that he absolutely owned the property free and clear of all claims and had the authority to convey it.  The opposite of a warranty deed became known as a "quit claim" deed, which by its  nature carries no warranty of anything and does not protect the  buyer if there is at title claim - like a warranty deed would.  A quit claim deed transfers only what the transferor/seller has, and that may not be much.  

True for all deeds, in order to be truly effective, they need to be recorded in the county or parish or government sector where the real estate is located, so that there is a written record to all who look as to who (or what) claims ownership or any interest.   When banks began to make loans way back in the dark ages, the interest became known as a lien and the lien-holders can use their interest to force a sale of the real estate to protect their positions.  

If a person owns property and has purchased through a title company, then likely they have been issued a warranty deed or a special warranty deed.  If someone acquires property in a private transaction without recordation or title company involvement, then they may have received a quit-claim deed.  What differentiates these transactions is that with a warranty deed there is full assurances and legal requirement of the person giving the deed that they fully own their interest and can dispose of it.  In a quit-claim situation, there is no such promise.  That is, you get "whatever they have to give, which may not be much". 

So what does that mean?  I say!  I say!  My advice to all who read this:  Beware of quit claim deeds.  They are to be used only for transactions where you KNOW the person from whom you are getting the property.  I would not recommend ever dealing with a third party whom  you do not know personally, intimately, or at least have done business with before.  Why?  Because if someone wants to do a quit claim deed, then chances are they do not want to offer title insurance, they do not want to go through the proper lawyer or title company closing requirements, and they do not want to pay for the legitimate closing services that are usually performed in a legitimate situation.  No warranty can mean big fraud.  Now, I'm not saying that every Aunt Sally who deeded to her grandkids was bad.  I am saying that Aunt Sally isn't doing anyone any favors by giving a quit claim without a proper closing and assurances to her kids that she has the authority to do it and that her house is not subject to some other claims she didn't want to tell you about.  That's all.  Just because they be family, don't mean they are nice!  Eh?

What is the bottom line, news you can use?  For all legitimate closing transactions for the conveyance, purchase or sale of real estate, you should be going through a title company.  Hire a lawyer to look things over.  Do it right, on the level and be sure you are protected... on either side of the dividing line.  Getting a quit claim can mean that you got nothin!  And we all know that getting nothing just ain't fair sometimes!

Have a great day!  Enjoy the springtime!

The Cost of Default: Tips for Avoiding Buying the Other Lawyer a Mansion

Hi All... Happy Saturday.  I've been working on assisting a client in a lawsuit, who is currently facing a Fee Petition based upon a default in a mortgage.  Now, without getting into the particulars about the client, the case or the firms involved, let's just say that the petition alone is nearly 4 inches thick with listing and journal entries of legal fees and costs, that are being claimed by the other side.  My job in this matter, is to assist in getting as much time as possible as well as reducing my client's costs.  It's quite a task.  I'd like to share some News You Can Use, on avoiding paying legal fees, and in contracting so that in the event of a lawsuit, you can skip altogether, having to face a petition like this - as they can be daunting (not to mention, they can double the damages, easily).

First, in most states, the "general rule" is that each side pays their own costs for lawyers.  However there is a HUGE general exception to that rule, which is that where there is a contract provision that covers fees, or a statute/law in place that mentions fees, then one party can recover legal costs from the other.  That can translate into humongoid / ginormous fees, if such a petition is won.  As such, it's hugely important that in any industry, and when contracting over ANYTHING, that parties understand (and when I say "parties" what I mean is YOU!!) that every contract should mention fees, but it needs to shift them away from you in the event of a loss.  For example, if you are a landlord in a lease (it doesn't matter if it's commercial or residential), then the tenant should bear costs of enforcement or legal action.   That way, recovery does not depend on whether the eviction is successful, and "enforcement" and "legal action" can be broadly defined.  Likewise, if you have two construction companies, say, like one general contractor suing a subcontractor for work (or even the other way around), each company should be examining how, in the event of a legal issue like a disagreement about payment or performance under the contract(s), how can the wording be tweaked to shift the fees to the other side.  Usually the best way to do this is to have a "prevailing party" provision, so that each side bears the risk of losing the case, and the winner gets to recover his fees paid.  This provision could be limited further by using language such as "prevailing in establishing a contractual breach of this contract" or "prevailing in any cause of action except negligence" or "prevailing to be defined as a judicial determination that one party is more than 50% responsible...".

What I'm trying to say is... the parties to any kind of contract should really review the language and try to find not only common ground, but a mechanism to evaluate risk up front, and to deal with the heavy costs associated.  It does not have to be long, but the language should cover the risk and apportion it.

Next, when I talk about fees, another important thing to understand, is that large law firms, and indeed, even small firms, charge ALOT.  In my particular case, the lawyers at "Big Law" are charging $570 an hour in some cases, and they are charging $.18 for each piece of paper printed.  Their paralegals are being billed out at $285 an hour, and that has translated into a claim for fees of nearly $1M.  Those are big numbers.  While every state has its own method of dealing with claims like these, let me tell you that where the contract in court has a provision that allows fees, where the petition is done correctly, the judge awards them.  Thus, in big cases, or even small cases that take a really long time, the money is big.  We don't want lawyers to be getting mansions on your dime now do we?  (Well... mansions are nice, but I like mine earned fairly).  Here, what John Q. Public needs to understand is that you can't control the cost of the other side's lawyer in a dispute.  As such, if you as an individual or through your company hire counsel and try to be cost conscious, that's great, but it may not help you if you are sued or suing and the other side wins.  Then, you John Q. Individual or John Q. Company, Inc., may be paying up BIG-TIME if a judge rules against you.

That is exactly why in contracting, whether over hiring a carpet cleaning company, construction, leasing, and hiring/employment contexts, among others (and anything, really), the parties to contracts should carefully read the contract and be sure of what it says.  Hiring counsel to review is also a great idea, and it doesn't cost that much.  A good lawyer will charge for an hour or two of time just to read and comment.  It would be more to negotiate, but certainly counsel can be hired to peruse, comment and suggest - all things that help at the contracting stage.  It helps if you have a lawyer on hand, but relationships can be groomed at nearly any stage.

Your Tip:  Be Savvy and Proactive.  It helps.  It keeps costs down.  It reduces risk (or keeps you in the KNOW about your risk if it cannot be shifted).

All in all, read people.  READ!!  

Have a great weekend and look for more as usual.

Cash is King... Except for When Paying Rent... Yo!

Hello All.... Happy 2013 to all of my loyal.. and soon to be loyal subscribers.  I have received a few calls this month about paying in cash, and I thought that I would pop in to say hello and to send you a few good tips from the real estate lawyer trenches on the subject of "greenbacks."  Sure it is convenient to just fork over your rent payment after you've been to the Currency Exchange to cash your paycheck. It is definitely nice to have your landlord just pop on by for a cash payment on the 1st when he wants some money.  However, as I am known to do from time to time, I have some strong feelings on this topic that I'd like to share with you.  So here it is:  news you can use on cash-ola!

For Tenants:  NEVER NEVER NEVER Pay Your Rent in Cash, UNLESS You Get a Receipt!  

Time after time I get calls from people who ask me to assist them in defending against an eviction.  They promise me and swear up and down they have paid the rent.  However, when I ask for proof of those payments, the response is usually something like "uh... I paid cash... I ain't got nothin' to show about it... but I paid!!"  Well, yes, you probably did pay something.  However, if you can't prove that to your Granny, then you can't prove in a court of law!  I don't care how loud you yell... if you don't have a receipt, then sorry buddy, but you ain't got nothin'!!  Rent and mortgage are the most important payments you make all month.  Be sure to track and retain receipts.  If your landlady doesn't give you a receipt, then make one!  It's easy.  Just do it.  I said so.

For Landlords:  Be Wary of People Who Pay Rent in Cash

If you were a landlord... would it matter to you if your tenant had a bank account?  NO?  Well, it should.  Why?  Because people who have bank accounts, usually do not bounce checks.  Good old Bank of America or Chase will close the account of anyone who writes too many NSF checks, so if a person has a bank account, then chances are they have a job (or had one) and they probably can prove that they have decent credit.  On the other hand, if someone does not have a bank account and pays only in cash, then while they might be wonderful God-Fearing people with an 800 credit score, more likely than not, they have some issues that might prevent them from being a good tenant.  It is best to consider, as a rule, that people who do not have a bank account or only pay rent in cash or money orders, have some issues that might need to be explored.  Just saying...... paper trails are good and when people do not want one, you may wonder.

As a note on the eviction process.... a court will consider examining receipts for money orders or hand-written receipts.  HOwever, since those can easily be forged, the best policy to protect both landlords and tenants is for the landlord to require and the tenant to write, a check every month for the rent.  Why?  Just do it!  I said so.  It's good for you.    When I conduct landlord-tenant seminars for NTN-Chicago (check my website for dates), I always tell landlords who attend that they should make it a policy to require that their tenants pay them with an established checking account. Why?  It's good for them.  I said so.  When people balk at this and ask me why any landlord would not want cash... I simply remind them that yes, cash is king.  However, when dealing with people who choose not to be on the "radar" then one must wonder why.  What you might find would likely surprise you. 

So, rather than look under the radar... best to just make a few simple rules about renting and paying - that everyone can live with.

For additional tips, questions and suggestions, feel free to comment, Like our Facebook Page (Levin Law, Ltd) or just drop a line!  

Tell Me How You Know Me! Guides and Tips For Building Relationships

Hi All!  Time again for a bit of news you can use, and something that helps me to help you in the process!  We all have likely had times where someone we know recommended something to us.  Or, we've seen a sign or advertisement that intrigues us and so we make that call.  Often I receive referrals from colleagues, or former clients, or people see my fabulous "bus bench" located on the corner of Chicago Avenue and Western (Chicago IL) and they see my smiling face and decide to call me for legal services.

What I want to know though... when you call me... is HOW did you learn about me?  Sometimes people who call me are so eager to get to the meat and potatoes of why they are calling, or so fascinated by the words of wisdom that I have imparted, that we wholly forget some of the basics, such as: how you found me!  I decided to write this small piece because when I got the bus-bench, I thought that I would be inundated with calls.  I wanted to know how many people saw the ad, and would it be worth it for me to keep it up, or to possibly focus on some other more profitable advertising.  Sometimes I want to know how you found me because I would want to thank the person who gave you may name.  Others still, I may want to know because I write articles like this one, and I have a web presence, I want to know how that is performing.

All small businesses like to know that their efforts to be relevant, current and in your face would appreciate knowing how you found them.  If you are calling any kind of professional, it's always great if you offer how you located them among their competition, so they can evaluate their advertising, market presence, and reach in this ever-changing global, Facebooking community!  It's a great way to build immediate rapport with me, and definitely helps me.  I usually forget to ask, and so I thought I would put a "shout out" to the world, that I do want to know how you find me.  I want to know if you think I should be saying something specific, or writing on something - and I want to say that all of this feedback is important.

Do let me know!  You can see our Facebook page "Levin Law Ltd." and be sure to LIKE us! Or check out www.levinlawltd.com

Best to you and yours in the New Year and look for plenty of News You Can Use in 2013!

Let the Buyer BEWARE: How Internet-Based Real Estate Auctions May Leave You Wanting More... (in not such a good way)

Hello my friends... it's been a while since I popped in to tell you about life in the real estate trenches and provided you news you can use.  Well, I've got another doozy of a file and story to share, which can possibly save you some greenbacks when searching online for the impossible mecca of real estate finds: the online auction.  These days, with banks having more inventory than they can use or desire to have, they are finding new and creative ways to dispose of real estate.  This climate may be a buyer's dream - availing you of opportunities to buy prime and distressed properties at a premium - saving you time, money and expenses.

HOWEVER, there are many risks of purchasing property in online auctions, E-Bay Style, and I'm here today to share with you some risks that you MUST be aware of, if you are to engage in the game of online bidding.  A breakdown for you, my friends, of the top 5 Risks in Auction Real Estate:

1. READ THE FINE PRINT.  You may think that the online buying format is very simple, quick and to the point. What you may not realize, is that the fine print takes away whatever the BOLD print gives you.  Case in point:  I have a client who found a distressed/foreclosure apartment building for $150,000 in Chicago.  Seemed like a great deal, until he got past the contract and into addendum's to the contract which took away everything that the contract had given.  He was prevented from inspecting, obtaining any information whatsoever, and was required to close all without the benefit of having information necessary to close.  This is a bad idea.  Be sure to read very carefully and understand what you can and cannot do in such a situation.
2. DEMAND INSPECTION RIGHTS AT CONTRACTING AND BEFORE CLOSING.  Regardless of what any contract may provide, do not agree to buy property in any condition, from any source (online or otherwise, realtor or not) without having the right to inspect fully (with a licensed inspector) at least once.  Any selling party who prevents inspection, invites lawsuits.  DO NOT CLOSE WITHOUT AN INSPECTION.  PERIOD.  END OF STORY.
3. DEMAND MARKETABLE AND MERCHANTABLE TITLE.  In a foreclosure situation, you may be getting whatever bad title the seller has to sell you.  That is unacceptable.  You should never purchase from a party you don't know and accept a Quit Claim Deed at closing.  As an incoming purchaser, especially in an online/bidding-auction type real estate transaction, you must be sure that the title you obtain in the purchase/sale, is good title, subject to the guaranties of the seller and their assurances of good title.  Marketable title means there are no encumbrances, liens, issues which could come up to impede your title or cloud it.  A title company must sign off on this and a Quit Claim Deed does not provide the warranty of title that is so important in real estate - EXPECT AND DEMAND IT.
4. PROCURE TITLE INSURANCE YOURSELF IF SELLER WON'T PROVIDE IT.  You cannot be forced to close on any property without title insurance.  It matters whether or not a title company will insure a property, so it makes sense that you should test this by taking the transaction and closing it at a reputable title company which is licensed in your state.  If the seller refuses, you have a really good reason to cancel the transaction.  A buyer has the right to protect himself, and if you don't, you may be sorry.
5. WALK AWAY IF YOU HAVE TO.  There is nothing wrong with canceling or terminating a deal because you feel unsure.  Usually the contract provides for such a right, but just because there is nothing spelled out in the contract does not mean you cannot cancel.  Unless the seller is prepared to take you to court to force you to buy the property, the most you usually can lose is your earnest money and even then, that is not necessarily up for grabs in every transaction.  It's recommended you seek the advice of a reputable and competent real estate lawyer who can review the situation and work with you to terminate officially, peacefully and for a full refund of your earnest money.  

It was strange for me to threaten to put my "dead body" over the closing table - but I had no other way to convince my client that $150,000 was not that great of a deal when he didn't get any guaranties that the seller even had the right to sell the property, that he didn't know who lived there and might never know, and that the seller wouldn't even let him inside to look around before buying.  My client finally agreed and we terminated the deal - even though the contract never said anything about the buyer canceling.  Because I was very strong in my language the seller knew that if they did not return the earnest money, their contract may be tested in court, so my client was able to cancel.  

Now, I can't promise a clean exit in every situation, but I can say that it was the best thing for us to cancel this deal - because it was simply too good to be true and we knew that moving forward was too much of a bad risk to take on.  Our bottom line:   Risk is good, but it must equal reward to be good enough.  

Your Use You Can Use?  Be Careful and be Selective!  Real Estate can be very tricky and the consequences of a bad deal can last for many years.  Be CareFul and proceed with caution, every deal, every time.  

Happy Bidding and Happy Holidays, from The Law Office of Alisa Levin - Your Chicago Law Source!

Paying Mortgage Every Two Weeks Could Save You Tons

Good morning Blogosphere... It's been while since our last post.  We welcomed a new addition to the ChicagoLawSource family, and that has been keeping us VERY busy.  However, now that we are back to work mostly full-time (give or take a dirty diaper day), we thought we'd share with you a new and interesting and possibly hidden secret in mortgage lending that can save you THOUSANDS (yes, thousands).  Curious?  We were too.

Ok, here goes.  You know when you have a mortgage payment and that payment is due every month, say, around the first?  Well, what if you could set up bi-weekly payments (i.e. paying every two weeks), and that would take 5-7 years off of a traditional 30-year mortgage?  If it sounds too good to be true, think again.  Here's some pertinent information and news I found online to share with you:  *

How Bi-Weekly Payments Work

The magic of the bi-weekly payment comes from the fact that there are 52 weeks in a year, thus you’d have 26 payments. If you were to simply make two payments a month that would be just 24 payments in a year, so actually the bi-weekly method has you making two extra payments each year, which is the same as making one extra monthly payment.

Here’s an example. Let’s say your current monthly mortgage payment is $1,000. Over the course of a year you will spend $12,000 on twelve payments. If you decided to make bi-weekly payments you can then make a $500 payment every two weeks. Seems like the same thing, right? Well, if you take $500 and multiply it by 26 payments you have $13,000 in total payments. And guess what? That extra $1,000 was applied directly to your principal, thus reducing how much you’ll spend on interest and will pay your mortgage off faster.

To better understand the true savings, on a $100,000 30-year mortgage at 6.5%, you'll pay $127,544 in interest, plus the $100,000 principal, for a total of $227,544. Paying one-half of your regular monthly mortgage payment every two weeks will result in interest of $97,215, a savings of $30,329. Obviously, the larger your mortgage and higher your interest rate, the greater the savings.

How to Make Bi-Weekly Payments

So, switching to a bi-weekly payment is as simple as splitting your monthly payment in half and making a payment every two weeks, right? Well, not so fast. While that is the general idea, you do want to check with your lender first. For one, you might already have an established automatic payment and you’d want to make sure you could stop that. Otherwise you might find yourself paying even more.

Also, make sure that your lender will accept bi-weekly payments. While most lenders should, there are cases where they will not, or if they do, might not automatically apply the extra to the principal. You must have a lender that will immediately credit each half monthly payment upon receipt. If your lender waits until the second payment has been received before crediting your loan, you'll never see the benefits.

Finally, make sure there isn’t a penalty for prepaying your mortgage. Most mortgages these days do not have a prepayment penalty, but there are still some out there that will penalize you for trying to pay off you mortgage early. It’s sad, but true. So just be sure that you won’t be doing more harm than good by trying to make extra payments.

Things to Watch Out For

Making bi-weekly payments is a very useful tool, but be careful of scams or special programs that claim they can do this for you. I’ve seen some companies offer to convert your monthly mortgage payment into bi-weekly payments for a one-time fee of about $400. Run away from these offers. It shouldn’t cost you anything to make extra payments on your own loan. Even if your lender won’t accept bi-weekly payments you can still achieve the same results by making a single extra monthly payment once each year.

If you have questions about all of this - contact me at www.alisalevin.com, or contact me via email at : alisalevin@yahoo.com and I will do my best to cater to your every question.  Happy payments and it's great to be back!

* Some information used from www.about.com.

Hold Your Horses (and Control Your Client!): Tips for Being the Client

It's the commencement of Fall and nicer weather is upon us.  It's time for the reverse of spring cleaning, where we examine our to-do lists and determine if anything, what can we do to make our lives easier, and stress-free. I've decided to explore an oft-ignored concept in law, which is how to best be a client, so that your attorney can actually help you. I've got some doozies from the trenches, which can hopefully help you, with news you can use.

First, I must acknowledge that without clients, us lawyers don't have much more than our diplomas and student loan bills.  We need you.  But perhaps more importantly, you need us.  That's why, to have a symbiotic relationship, we partners in the law (us attorneys and you clients) need to learn how to co-exist, manage the case and get the results you need.  These are but a few suggestions in this "Round I" for accomplishing those goals, listed in no particular order (as they are all important!).  Be on the lookout for additional tips in later rounds!

1. Be Honest. If you are lying about your case, or that you have a document when you really don't, or whatever it is that you are withholding, I'll find out about it.  It will probably be when I'm supposed to deliver that "thing" to the other side of our dispute, and you'll have to admit you lied, and you don't actually have it.  That's never good.  Or, it can be at trial, when I ask you the all-important question, and you, being struck by the conscience, decide that what you've been saying all along isn't that plausible, so you change your story.  Whatever it is, just tell me up front.  I can't help you if you blindside me.  Plus, if you make me look bad, I make you look bad.  The difference is, I have to go before that judge sometime in the future, and you inadvertently make my future other clients look bad, because I get a reputation for lying.  So.... what can you do?  Save my future clients, and your current case.  Just be honest.  It's easier, and I promise you - cheaper.
2. Do Not Call Other Attorneys to Check My Work.  If you have a problem with me, don't understand something, or think that someone else can do it for less, then you need to come in and see me face to face.  You would not believe what a small community we lawyers live in, and we sometimes (and often times) know each other.  I have found out my clients were shopping around, and the "shopped" attorneys have called me to tell me my client called them.  That's awful, and hurtful to boot.  I don't call your neighbors, boss or friends to see if you are lying to me, so you should not call my competitors to see if they can beat my price.   Maybe they charge less.  But maybe they do a worse job.  If you are concerned about a particular aspect of your case - let's talk about it.  I don't get my legal ideas out of thin air.  Usually there's a legal principle of law that I can show you to support where I'm coming from.  If you don't trust me, there's a reason.  Let's get to the bottom of it - but calling others undermines everything - and I'll quit as your lawyer if I think you are not loyal.  We can work together, but I need your trust.
3. Please Don't Try to Haggle With the Price.  I am not a car dealer.  My rates and those of most attorneys, are not negotiable.  What we can work out, is how those rates are paid, but the rates reflect an attorney's skill, market for the services, and are a function of expenses and costs to represent you as the client.  If you want to pay $75 an hour for legal services, then you will get that quality of work.  This is a hint to you that $75 an hour for an attorney implies that you will NOT get good quality work from an experienced lawyer.  If a few lawyers charge more than $150+ an hour, that's probably the going rate.  As such, you should be asking questions about the lawyer's rate, but be advised that just like at the doctor's office, the price is not something that is up for that much discussion.  
4. Please Don't Try to Limit What I Can Do or Work On.  As your lawyer, I need to be able to do my job.  I have clients who try to restrict my work, telling what I can and cannot look at, and how much time I can spend on something.  This kind of dialogue just interjects stress into the relationship and almost forces me to do a worse job than I could do if just given the reigns to do what I need to.  When a client micromanages the lawyer, resentment builds and ultimately the work gets done anyway, but usually at the last minute.  What can you do to avoid this?  Just speak clearly about what you want up front.  If you as the client need to approve this and that, then you should tell your lawyer up front.  If my client had done that, it would have given me the right to tell him that I cannot work like that, and that maybe another lawyer would be better for that kind of arrangement.  By being honest, as above, you engage in a better starting point for the attorney-client relationship, and the money is better spent on actual legal work, rather than fighting over the legal work.  Good communication helps everyone in the game.

All in all, I always advocate just talking with your lawyer about your concerns.  This works for credit card companies, neighbors, and even family.  When people hold things inside and are not candid, resentments build and things can escalate in sometimes unintended ways. 

For more news you can use, and tips about law and other magical topics, don't forget to check out www.alisalevin.com, or contact Alisa for assistance with your Illinois legal needs.

Condominium Boards and Dynamite: How Being Neighborly Can Result in Disaster on the Homefront

So, you've just closed on that fantastic new loft or condo - and you can't contain your excitement about your new granite countertops and stainless steel appliances.  The summer is just around the corner and the BBQ is going to be ablaze, just ripe for your new friendly neighbors to join in.  As time goes on, you begin to realize a pecking order, and that board membership may have some benefits as far as voicing your opinion, getting much needed repairs done, and being a respected part of your community.  That may be true, and most I've spoken with would agree... in part.

However, and there's a "but" just around the corner.... what most people don't say or talk that much about, is what happens when people don't see eye to eye.  What becomes of your newfound friendships when people take sides on issues, problems or solutions?  People get very emotional, fights can break out, and things can go at any time, from bad to worse.  Take the case of a medium sized condominium building, in say, Chicago.  Great potential for a building and a community, but there are problems with the building.  Finances are more than just "tight" ...they are on a shoe-string.  There is not enough money to repair everything that needs fixing.  How does this building prioritize, when some people want to go in one direction and others desire different outcomes?  What about when the lines get blurry between friendship and finances and the safety of the investment into the real estate?  Is it fair to vote by board majority, or building majority?  How do buildings operate when the board principals feel guilty leaving everyone out, so they give them a vote?  Should boards run everything when the unit-owners as whole can be affected?  How should these things be policed?  What about when some officers refuse to work with others?  Dissention among the ranks can make for lots of problems.

Many people forget to analyze, when buying into common interest communities, that they are opening a Pandora's box of problems - because finances are intertwined, as are emotional and rational positions.  People are very sensitive about their hard-earned green-backs, and when are you supposed do care more about your neighbor's future than you do your own?  Is it fair to say that when another neighbor's roof is leaking, we should always put ourselves in their shoes, if our roof is not?  Should we as unit owners agree to pay a portion of our funds for another's problem?  Is it because we know that when the problem is "ours" that the neighbors will then have a corresponding obligation to pay for "our" problem?  Who knows?  What are the rules - and are they followed at all times?  Sometimes yes and sometimes no.

Being on the condo board has even more implications - as I've written about before - because board members have certain obligations.  That said, does anyone at the closing table ever think about the what-ifs of everyone in the building deciding they don't like you because your dog goes to the bathroom in undesirable places, or because you don't shovel snow as often as you should?  Sometimes board members can't be impartial.  Those situations create problems as well.  What about the scenario when people begin to dislike the treasurer of the condo association because they are too financially conservative, and they refuse to agree to "normal" expenditures?  What about when not everyone in a unit participates and helps with work to be done or decisions to be made?  What about when you have members of the community who don't contribute to building maintenance, cleaning or yardwork?  Resentments can brew out of nowhere (just like mushrooms) and when you purchase a condominium, especially in Illinois, it makes sense to do your homework and speak with condo-owning-know-it-alls, so that you get the best of the best, in terms of information.  Knowledge is power, and I always encourage friends and clients alike, to arm themselves.

So what is the beef today?  The issue today, is minding how your "neighborliness" can be swayed to and fro, based upon issues with board voting, participation in the community and financial matters within condominium associations.  When people buy condos, they usually don't ask their lawyers to find out about who lives there, and what they are like.  We leave these exercises for later - assuming that no matter what, we'll soon learn.  That may be true.  However what is important to remember, is that you must evaluate YOU - and what you desire to tolerate, have known about you, what level of involvement you can handle and what you anticipate will be expected of you. Living in a condominium is a lot more like living in a dormitory than most of us "condo people" ever imagined.  Hall passes excepted, there are mini-pseudo-government controls on how much gets allocated to this or that - and regardless of how many of those neighbors you can get to be your Facebook friend - the very MINUTE that things go awry, which they often do, everyone "de-friends" each other, and what was an open-door policy of community gets bifurcated into something, well, less so.

My reminder for February, while condo prices in Chicago and surrounding areas are still painfully low, before you enter into what you think will be a promising investment, do please think long and hard about living in glorified apartments with shiny granite.... Often you get far more than you bargained for.

For more information on Chicago Condominium and Real Estate issues, contact me at email: alisa@chicagolawsource.net.

News, Reviews and Honors

Announcing!  Chicago Attorney Alisa Levin (yep, that's me!) was just listed in Chicago Lawyer's Magazine - Super Lawyer's Edition, as a 2011 Rising Star in Illinois.  Less than 2.5% of all attorneys under 40 years of age in Illinois are nominated for this honor.  Thanks to all who support the continued existence of the Law Office of Alisa Levin.  I am thankful for your trust.

SO, on to my post..... Today's short piece is about reviews and online information. You may know that there are many options available when you want to complain about, or praise someone you've worked with.  Online sites like Yelp, Avvo, Better Business Bureau, Merchant Circle, Angie's List, and others, exist to allow not only negative feedback about a business, but allow for positive feedback as well.  When you like your tailor, your carwasher-person, or your dog walker, (or yes, even your attorney), you should sing their praises!  We are an online community, and when we help you with your need, your positive ratings online really do wonders to help us attract new businesses.

I am listed on Yelp, Merchant Circle, LinkedIn, Avvo, Rocket Lawyer, and others.  If I have served you or someone you know, and you would take the time to comment, I would appreciate it!  Similarly, other businesses really love feedback.  We need you, our customers and clients.  Without you, we don't exist.  So, be sure to let all of us know how we are doing.

If you need me, just call.  You have the number!

Lawyer as the Client - News You Can Use about Hiring Lawyers

What me? Hire a lawyer? Yes, folks... From time to time, I too need advice and guidance from my fellow club members. After having a very recent and very terrible experience with an attorney - and one who actually was a guest at my wedding - I would like to offer a few good tips for hiring professional legal counsel (other than the obvious, that if you came to my wedding and I later hire you to do something, you can be SURE I will scrutinize every move you make and you had better do your job correctly, if that were not an obvious).

So, here goes! News and Tips you can use to make better relationships and experiences with your lawyer, in no particular order:

• Outline what you want
• Be sure on exactly what the lawyer is or is not going to do. You can really be disappointed when you hear about what all the "other" lawyers do for their clients and yours is lazy, and refuses to do "this or that". I mean, really bummed.
• Be sure to compare and contrast what others are charging. What may be offered as a "discount" or a favor may be high or low, depending on what you need. I don't personally think that less than a few hours of the lawyer's time and one or two hours of the secretary's time justifies a $1000 fee, since there is no way that the secretary costs the lawyer as much as the lawyer costs me. In most cases, if there is a flat fee, it's still based upon the amount of time a task takes, based upon a typical "hourly rate".
• Ask who will be doing most of the work. While there is nothing wrong with having an assistant - I don't hire the secretary or law clerk as my lawyer, and you shouldn't either! If I wanted a law clerk to do all the work, then I refuse to pay the lawyer's rates, so there needs to be some justification when the lawyer is charging me for what his secretary or paralegal did. Ask. Find out!
• Before the document is filed or the paper drafted (or whatever you are working on) be sure that the lawyer has read it and can confirm that it's complete. It's really embarrassing when you are at a hearing before an important official and you are by yourself because your lawyer stupidly told you that it was a bad idea for him to be there (especially when everyone else had their lawyers present) and the hearing officer discovers your lawyer's mistake. Rolling your eyes helps, but just the same, your matter can be seriously screwed up when your "attorney" doesn't do his job correctly. Be sure. Double check. Every thing must be perfect.
• Ask your lawyer if they have malpractice coverage, or look up their status online. You can find information about Illinois attorneys and whether or not they carry malpractice coverage. Mistakes cost money, and you don't really want to use a lawyer that doesn't care enough about himself to have insurance. Would you really want to drive with someone who didn't have car insurance? I don't think so. Check. Be careful.
• Lastly, don't be afraid to get a few consultations. I made the mistake of hiring this "friend" without really shopping around. This yokel came to my wedding, ate the cake and talked with my mother, so I certainly didn't hesitate to hire him. Now, I am reminded that just because someone can dress up and look nice, it doesn't mean that they do a good job at their job. Take the time to meet a few lawyers before selecting one. Anyone who would be offended that you are "shopping around" is no one you want to hire. Now keep in mind that if it's me you are consulting with, I won't let you waste too much of my time before I need to be hired and compensated, but that is not the same thing as being careful about who you hire. Getting 3 consultations (even those you have to pay for) is good investigation into how your situation can and should be addressed, and you will be able to make a much better decision. Time spent learning is not time or money wasted.

All in all - while going with your initial gut is usually a good idea, I remind you that even us lawyers do have to live and learn sometimes. None of us have crystal balls, and we all need some advice from time to time. If you are careful, patient, and do your homework, you are more likely to find a lawyer that is themselves careful, patient and competent.

As always, for additional information, email me at: alisalevin@yahoo.com.

Home Repair and Remodeling Act - New News in Illinois Courts May Impact Lien Cases

As you have seen from my prior posts, I do enjoy a good mechanic's lien case. In my blogging searches, I recently found out about the case of Universal Structures v. Buchman, which may serve to turn some prior law on its head. The gist of the opinion cited below, is that if a lien claimant files a claim under the Mechanic's lien act, even if there is a violation of some other Illinois law or statute, the law of contracts will come in and save the lien claimant from any defenses to payment that the opponent may have. Hmmmm... interesting. Here's more:

On June 30, 2010, the First District Appellate Court of Illinois reversed the decision of the trial court and remanded the case of Universal Structures, Ltd. v. Dr. Alan Buchman, et al. The trial court had dismissed the plaintiff general contractor’s mechanic’s lien foreclosure action claiming that the general contractor had failed to procedurally comply with the Home Repair and Remodeling Act (815 ILCS 513/20) by not obtaining the homeowners’ signatures on work orders and failing to furnish the homeowners with a Consumer Rights brochure. The First District reversed the finding of the trial court finding that the general contractor was not precluded from asserting mechanic’s lien rights upon the homeowners’ property even though it had failed to comply with Sections 20 and 30 of the Act. Relying predominantly on Fandel v. Alan, 398 Ill.App.3d 177, 188-189 (3d Dist. 2010), the First District found that the general contractor’s procedural errors in not securing the homeowners’ signatures on work orders prior to beginning construction and failing to provide the homeowners with the Consumer Rights brochure, even though unlawful violations under the Act, did not invalidate an otherwise enforceable agreement.

The Court held that “Nothing in the Act provides that a contractor who fails to get a signature on a written work order or provide the homeowner with a Consumer Rights brochure cannot collect for his or her work and that the homeowner is entitled to receive a valuable benefit without paying for it. . . . Merely because a contract may violate some law or some regulation does not necessarily make that contract unenforceable. Rather, contracts are unenforceable when the subject matter of the contract where the purpose of the contract violated the law, " citing Federal Land Bank of St. Louis v. Walker, 212 Ill.App.3d 420, 422 (1991). The Appellate Court found that the underlying agreement between the parties was valid and that the general contractor’s procedural violation under the Act did not bar it from asserting a mechanic’s lien or breach of contract claim. This opinion also references the amendment to language in Section 30 of the Act as support for its decision in this case. The First District notes in a footnote that it believes that Artesan Design, Behl and Fandel are better reasoned than the Third District’s opinion in Roberts v. Atkins, 397 Ill.App.3d 858 (3d Dist. 2010). It also distinguishes the Roberts case based on the fact that the plaintiff in that case never provided a written contract or work order to the defendant.

Why is this important to you, the property owner? Because the latest decision Universal Structures strengthens the long line of cases which focus on the law of contracts and a contractor’s right to recover pursuant to contract theories despite the fact that the contractor has failed to comply with procedural aspects of the Home Repair and Remodeling Act, which might have otherwise provided a defense. WHat is our bottom line, then? The Mechanic's Lien Act just got more teeth. Property owners attention please! Get lien waivers, and be sure to closely monitor all construction activity. Get contractor sworn statements, lien releases and everything in writing! Don't pussyfoot around the necessary paperwork! Otherwise, you'll be calling me to chase your money.

Fore more information on Mechanic's Liens, construction or real estate law, as always, call Alisa Levin at 312-720-0082 for your greater Chicago Law Source.

Help! My Landlord is in Foreclosure! Do I Have to Move?

So you say you just found out your landlord is not paying his mortgage? Not good, I say. But do you have to move? Maybe. There are some questions on the street about the Obama law relating to tenants and foreclosures, known as the Protecting Tenants from Foreclosure Act. While it may be viewed as a welcome relief for many people living in apartments, houses and townhomes, just because there is a law meant for your protection, does not mean that tenants whose landlords are in foreclosure are home free. Here are some answers to popular questions about the Act:

Is it true that the fundamental provision of the bill requires that most foreclosure purchasers of properties with active leases must give tenants at least 90 days notice before servicing eviction notices and filing for eviction in rent court?

Yes. The Act provides that any immediate successor in interest (meaning the person who owns it after your landlord – the bank or another buyer) must deliver a notice to vacate to any tenant giving 90 days’ notice. The new owner can terminate a lease, or honor it, but if they terminate the lease then they must provide the 90-day notice.

When the lease agreement is signed before the foreclosing loan was originated, i.e. when the loan is younger than the lease, is it true that the lease survives the foreclosure and the foreclosure purchaser must honor the lease until the end of the term?

Not necessarily. The Act does not differentiate between leases that existed before the loan originated and after. The Act provides that the preexisting tenant’s lease must be honored until the end of the term, UNLESS the new owner plans to occupy the property as his/her primary residence, then in that case, the new owner must provide the 90-day notice and the tenant can be ousted. The catch-point in the Act appears to be whether the next owner is a bank or another party intending to use the property as a primary residence. This implies that a tenant in an eviction proceeding MIGHT have a defense, if it can be proven that the successor-in-interest to the mortgagor (landlord) is not a purchaser occupying the property as a primary residence.

Whether you’re a landlord or a tenant, what key aspects should landlords be aware of?

Landlords should be aware of the main 90-day notice requirement. If the successor owner is not going to use the property as a primary residence, then the tenant’s lease must be honored. If a landlord is in a short-sale or foreclosure situation and their tenant asks them questions, it’s important not to promise that the tenant can definitely live out their lease term. The landlord should decline to answer those questions specifically and should state that there may be a situation where the tenant has to leave, but in no case will the tenant be asked to leave without notice.

Does the new eviction notice requirements under the Act exclude certain rental situations?

Yes, it appears to exclude situations where the landlord/tenant relationship is between family members or relatives or where the rent is substantially lower than market value for the property (which is likely evaluated on a case-by-case basis).

What can you do if this sounds like your situation? Be clear, and talk to your landlord. If you receive a notice from a bank or a party indicating they own your house, try to get clarity on the situation by talking to them or an attorney. For more information, you can always call your trusted Chicago Law Source, Alisa Levin at 312-720-0082.

Law Office of Alisa Levin is Moving

Attention! Attention! Alisa Levin Law is moving offices from Bucktown back to Ukrainian Village! For all your litigation, construction and real estate needs, look no further! Our new office address (effective May 1, 2010) is:

Law Office of Alisa M. Levin
2319 W. Chicago Avenue
Chicago, Illinois 60622
T: 312-720-0082
F: 773-830-1708
Email: alisalevin@yahoo.com
Web: alisalevin@yahoo.com

For a full case listing or evaluation, contact me at the number above.

Your Tenant Put a Meth Lab In Your House? Tenant Screening is a Must-Do!

Looking for that next great tenant for your investment property or home while you are away? Bought that house so someone else can pay your mortgage? Great idea! Now, in order to make the most of your investment, you need to be sure that whomever lives in your place, is really who they say they are. My most interesting case in point just made CBS and WGN News because my client's tenant was running a meth lab and counterfeit money operation out of the house.

You think that is the worst part? Possibly not! My client lived next door to his rental property, so danger was very close by! The tenancy started simply enough, with a man and a woman responding to an ad for a house in Chicago. They paid the rent and the deposit and signed a lease. They provided id and social security numbers. When they stopped paying rent a few months later, some digging around revealed that everything they provided was a lie. In fact, the man had a complete other identity and landed in jail for impersonating a police officer. Later, after securing an order of possession, my client discovered tools for making a meth lab, counterfeit currency, and a very large cache of condoms (suggesting some other kind of activity as well!). Luckily, this individual was apprehended during the actual sheriff's eviction and it all happened here in Chicago yesterday. I was face to face with this person a few times (and the woman later turned out to be a man named Laura). Fantastic story for the books.

How can this be avoided? Tenant screening is a must. I work extensively with NTN Chicago and its principal, Mark Madorin. Their office is in Oak Brook, and for a mere $20-30 per application, you can obtain rental history, criminal background checks, credit reporting and other information. You can determine rental history and prior evictions. You can find alias names and prior addresses to call prior landlords. You can avoid renting to a man named Laura, and you can prevent someone from operating a meth lab out of your house! If you think it can't happen, it can! Spending a few dollars on tenant screening services can save you thousands in Legal fees, court costs, and prevent you from having to evict a convicted felon from your place.

For more interesting stories from real estate law trenches in Chicago, call Alisa Levin at 312-720-0082.

Your Neighbor Did WHAT?? Interesting Notes from the Condo Trenches

Welcome to condominium life. Aren't those hardwood floors nice looking? Think stainless steel appliances are all the rage? Well, you too can get fancy-schmancy looking refrigerators, all for the convenient price of a large single family house in the burbs. However, before you ask for the fine print, remember that living amongst the living involves a bit of patience, when being so close - to those "others" called neighbors. When condo shopping, remembering these tips may save you!

First, you have to remember that condos are JUST like apartments, except with granite countertops and an extra fee called an assessment. This does not get you free HBO, and you really are lucky if it covers heat or snow removal. In a condo, you will hear your neighbors. You will know when they come or go, whether they have a kid or a dog, and you will receive their junk mail. You may know when they water their plants, because your deck may get wet, and you may know when they are in a relationship (read: creaky bed) or when they are in financial distress (read: foreclosure notices on the front door). As an association, the group necessarily becomes acquainted with finances of its individual members, and your privacy may go out the window in a condominium!

Living in a condo means that you are living in a communal space. Not everyone wants to navigate around a bike in the hallway, or to look at someone else's Christmas decorations on their doors. On a different note, what happens if a bird bores a hole into your neighbor's wall and starts a little pigeon family in their closet? Is that YOUR problem? Maybe. Who has to pay for bird removal? That unit owner, or the association? Good question. What about if the parking gate breaks mid-day and someone in your building has to get to a meeting and wants help? Guess who has to field those phone calls to find a bird-rescue or a gate repairman? Possibly you. Not worried about birds or parking gates? Well what about a slime that suddenly forms on your patio because your upstairs neighbor lets their dog urinate on their porch instead of walking it? It could be you staring that that slime - and yes, pee does still smell when it's frozen. Who has to clean it up? Who pays for this? It's not always an association problem.

When thinking about a condo, you must be prepared to figure out who shovels the snow, and who mops the floors in the hallway - and to talk about it with others from time to time. You have to be ok with looking at other people's shoes in the hallway on the way up to your apartment, and you have to stop allowing your neighbor's creaky floors from driving you crazy (after all, they are allowed to walk up there). Someone in the building likes patchouli incense? Be prepared to like it too - because that may not be something the group is prepared to take on as a problem. What if your neighbor paints their windowsill with oil-based paint and you develop a sore throat from it? Is that a community issue or a private one? It's hard to tell, and regardless of the size of the building, these issues are NOT black and white.

All in all, condo living has many advantages. Also though, it's always a good idea to remember the other side of it. There are other things than bad property developers or mortgage brokers to contend with. The more you think of the possibilities, the better you can decide if it's for you. Remember to sound it out, and ask questions. Home ownership is fantastic - but there can be pitfalls. For more information about condo living, the law, and your rights - feel free to email me or call me for assistance.

Who is Craig and what about his lists? Good Classified Tools You Can Use!

Have you heard about Craig or his list? I, like many of you, am always searching for new online tools to use for finding things I need, finding people to connect with, and for advertising purposes. A few years ago, this mysterious Craig guy was a mere unknown, seamlessly training the Internet without detection. Now, he's in every city and country on the map! Lucky for us, this Internet exposure has provided a myriad of opportunities for communication, connections and information. For you, now you can get a list of classified sites to help you market, sell, connect, interact, and even date!

Here is a list of my favorites:

• www.craigslist.com
• www.yelp.com
• www.merchantcircle.com
• www.kijiji.com
• www.backpage.com
• www.blurbpage.com
• www.freeified.com
• www.infozeal.com
• www.oddbark.com
• www.instantfinder.com
• www.dontlookanyfurther.com
• www.workpost.com
• www.chelios.net

While we all know that google is just about King in most web searches, it pays to know about other good sites. This is especially true when you are looking to hire professionals for services such as attorneys, accountants, contractors, etc. I use Craigslist and Yelp and Merchantcircle, and have my information posted on other sites as well. As always, read each site completely, and look for signs of security, including "https" and don't give too much personal information on the web - as you may never know who is on the other end. All in all, you can easily find online classifieds in your city, state, or country, and if Craig and his list is any indication of the popularity of these sites, there will be more additions to my list very soon!

The Contractor Did What?? What you should know about Mechanic's Liens

Have you ever hired a contractor to perform work upon your property, only to find out later that one of their suppliers or another contractor put a lien on your house? Or have you hired a general contractor to do work and learned that although you paid the contractor he didn't pay his downstream contractors or suppliers? You should know that in Illinois (and similarly in other states) that mechanic's liens can be recorded against property in order to protect the contractor or supplier's right to be paid for work or materials incorporated into real estate. What does it mean to be incorporated? It means "attached" or "utilized within" real estate, such that it is or is intended to be a permanent part of the property. If the work is not lienable, then a lien (even if filed) is no good to the party filing it, and it has no impact upon the person's real estate to which it attaches. However if a lien is correctly and timely filed, it can be a vehicle to force a sale of real estate in order to obtain payment on the amount owed. That's right - if you have a lien upon the property, the real estate can be sold to satisfy the amounts owed on the lien. Moreover, in certain circumstances the lien claimant can jump ahead of the mortgage lender and get paid before they do. While certain requirements must be met - it's possible. Each case is different, so you must have your case evaluated by a competent attorney before proceeding.

In Illinois, the mechanic's lien laws give a number of rights to the contractor or supplier and the rules are different depending on the contractor's role in the work being done (i.e. general contractor, subcontractor, supplier, etc.). Even more is that architects, property managers, demolition contractors, landscape companies and hardware suppliers may have lien rights as well. Basically, lien rights arise once work has been done upon the property and it may relate back to the date of the contract. A contractor or supplier has very strict timelines to record a lien, and as an owner, you may have rights if the lien is not timely recorded. Likewise if you are a contractor, you must follow the time limits in order to protect your lien rights. After a lien is recorded, there are certain rules to follow for an owner in order to force the contractor to "call his bluff" on the lien and you can force him to file suit on it for a court to decide the lien. You should work with a trusted attorney to help you on filing a lien, responding to one that has been filed against your property, or to determine what kind of work or materials are lienable - since not everything is.

If you are a contractor or supplier needing a lien or a property owner who needs information, please contact me for a free consultation on Illinois law. I can be reached at 312-720-0082 or via email at: alisalevin@yahoo.com.

Don't Judge the Judgement - What Does it Really Mean?

Have you ever found your own justice, filing an action against someone on your own, or with the help of an attorney, and received a judgment?  Have you ever had a judgment taken against you or your business?  If so, then you should know about collecting on judgments.  If you owe someone money and you are worried about how you will pay or be forced to deal with it, then this article will help!  As usual, I offer tips on the who, what, where and why of the law!

Our starting point is the receipt of a judgment, so that means if you are the creditor, then you won!  And if you are the debtor, then you lost!  Step number two is the collection process.  After all, a judgment is just a piece of paper unless and until the creditor acts on it!  If you are the creditor, your next steps are called "supplementary proceedings" and you can take the debtor into court and make him/her answer questions under oath (and under the threat of contempt) to tell you about his assets, bank accounts, vehicles, personal and real property (called a Citation to Discover Assets).  You can even find out about the Rolex he is wearing!  This way, the creditor can find out about your job, your house, your income, your living expenses and the like - all in order to determine if you can pay the judgment, or if you own something that can be sold to satisfy the judgment.  

If there are insufficient assets, then the creditor can garnish your bank account (often called a non-wage garnishment).  This is how accounts get "frozen".  If the creditor finds out about your bank account by the citation interview (above), then he can send a citation (third-party) to the bank and the bank must freeze one and a half times the amount of the judgment to preserve it for the creditor.  The bank must comply with this by law.  Regardless of whether the creditor finds out about property, money or wages, the creditor can ask the bank or the party holding it to turn it over, or they can apply to the court for a "turnover order."  Like any court order, the party holding the money or property must turn it over to the creditor or risk fines and penalties.  

Another method is to garnish wages (often called a wage-deduction) and take money from your paycheck in order to satisfy the judgment.  While there are limits on this, the employer is required by law to abide by it. Finally, other methods of collecting on judgments include liens and actions against real estate.  Once a judgment is entered in a court, that judgment becomes a lien on real estate, and the creditor can force a sale of the real estate in order to satisfy the debt owed.  While there are certain rules and exemptions, the creditor can get paid after the mortgage and other lienholders are paid, barring some exceptions.  

The bottom line, is that if you have a judgment against an individual or an entity as a creditor, or you are a debtor with a judgment against you or your company, there are various methods that parties can utilize in order to turn the judgment order into dollars and cents.  So that you have the right information in order to proceed as a creditor or debtor, you should always consult with a trusted attorney.  For more information, please email me at: alisalevin@yahoo.com, or see my website at: www.alisalevin.com.