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The U.S. Senate and House of Representatives overwhelmingly passed a new $900 billion COVID-19 relief bill this week. The legislation, the Consolidated Appropriations Act, 2021, also ensures tax deductibility for business expenses paid with forgiven Paycheck Protection Program (PPP) loans. The bill also specifies that business expenses paid with forgiven PPP loans are tax-deductible. This supersedes IRS guidance that such expenses could not be deducted and brings the policy in line with what many business associations (as well as Fiffik Law Group) have argued was Congress’s intent when it created the original PPP as part of the $2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act. The COVID-19 relief bill clarifies that “no deduction shall be denied, no tax attribute shall be reduced, and no basis increase shall be denied, by reason of the exclusion from gross income provided” by Section 1106 of the CARES Act (which has been redesignated as Section 7A of the Small Business Act). This provision applies to loans under both the original PPP and subsequent PPP loans. While the CARES Act excluded PPP loan forgiveness from gross income, it did not specifically address whether the expenses used to achieve that loan forgiveness would continue to be deductible, even though they would otherwise be deductible. In April, the IRS issued Notice 2020-32, which stated that no deduction would be allowed under the Internal Revenue Code for an expense that is otherwise deductible if the payment of the expense results in forgiveness of a PPP loan because the income associated with the forgiveness is excluded from gross income for purposes of the Code under the CARES Act. In November, the IRS then expanded on this position by stating that a taxpayer computing taxable income on the basis of a calendar year could not deduct eligible expenses in its 2020 tax year if, at the end of the tax year, the taxpayer had a reasonable expectation of reimbursement in the form of loan forgiveness on the basis of eligible expenses paid or incurred during the covered period. Treasury Secretary Steven Mnuchin also argued against businesses being able to deduct business expenses paid with forgiven, tax-free PPP funds, calling it an unwarranted double benefit for businesses. The net effect of these IRS rulings would reduce the net value of PPP loans about about one-third. The 2021 legislation did away with these IRS rulings and restores the PPP Loan as basically a “grant” to businesses as it was originally understood to be and in fact was intended. Fiffik Law Group had previously suggested that businesses who received a PPP loan wait until 2021 to apply for loan forgiveness. One reason was our hope that Congress would address the IRS rulings. Happily Congress has spoken and we recommend moving forward with loan forgiveness applications in early 2021. Our business attorneys are available to answer your PPP loan questions. #smallbusinesstips #businessattorneypittsburgh #ppploanforgiveness #PPPLoan #smallbusinessattorney #businessattorneypennsylvania #ppploanrules #ppploannews #PPPloan #businessattorney #smallbusinessadvice #smallbusiness

Entering into a business partnership can be a great way to combine the talents and skills needed to build a successful company. But if the partners aren’t able to effectively work together or have different ideas about how to run the business, it can lead to damaged relationships or a failed business. If you’re thinking about entering into a business partnership, here are eight questions you should ask your potential partner before you commit. Do you really want a partner? Does your partner have skills or experience that you lack or that you’ll need only for a short time? Will your business generate enough revenue to support a partner? Would having a partner add more value or stress? Do you work better independently or codependently? Are you able to trust the other person with half the business? Talk about your personal life, including your schedules, relationships, and family. What does your prospective partner’s work/life blend look like? How does it match up to your own? What about your definition of work ethic? What does your average work-day look like? Who in your partner’s life needs to be onboard with this partnership? Is there something in your partner’s life (family or work life) that would make the business a secondary concern? What is your partner’s financial position? Does your partner have the financial resources to contribute to the business? What are your partner’s current financial commitments? Would your partner be able to borrow money to contribute to the business? Does your partner have any assets that could be used as collateral to obtain a loan? What is your partner’s current credit score? Expected commitments How many hours a day does your partner expect to put into the business, and do his expectations meet yours? What are your respective roles and responsibilities for the business? What do you imagine as your functional role in the business? What risks to personal assets are each of you willing to take on? What does Success look like to you? Where do you see this business in 1 year? 5 years? What does your ultimate “I made it” moment look like? What version of “success” makes your stomach turn? Strengths and Weaknesses What do you need from your business partner? How do you handle difficult or upset clients? Have you ever had to dissolve a partnership or working agreement? What is your favorite kind of work? What tasks do you hate doing? What are you best at? Key Issues What will each partner contribute to the business? Will either partner draw a salary or be paid wages over and above profits? What expenses get paid before the partners are paid? How will you allocate profits and losses? Definition of each partner’s authority and decision-making ability How will the business be managed on a daily basis? Procedures for admitting new partners What happens if a partner withdraws or dies How will you resolve disputes? 50/50 owners always end up in a tie. Worst Case Scenarios What happens if a partner is not meeting expectations? If the business revenue is insufficient to pay bills, how are the bills paid? What happens if one partner wants to take a temporary break from the business? Need help with forming a new business? Call 412.391.1014 or click here to be connected to one of our business attorneys. #smallbusinesstips #partnership #businessstartup #smallbusinessattorney #questionstoaskpartner #smallbusinessadvice #smallbusiness

A car accident killed 28-year-old mother of three on Route 8 in Allegheny County, PA in December 2019. Allegheny County Police said a 1992 Honda Civic in which the victim was a passenger sped northbound on Route 8 when the driver lost control of the vehicle. The Honda then crossed the median into opposing traffic and crashed with two other vehicles. First responders declared the victim dead at the scene. No one else sustained injuries in the accident. County police charged the driver of the Honda with a number of offenses including vehicular homicide and driving under the influence.  Fiffik Law Group attorneys Matthew Bole and Michael E. Fiffik represented the victim and thus far have recovered in excess of $1,000,000 in damages.  The proceeds will be used to support the victim’s children until they reach the age of majority. #autoaccidentattorney #autoaccidentattorneyphiladelphia #accidentcaraccidentcarpersonalinjurycarcrashinjurytowtowlifeaccidentspersonalinjurylawyerroadsideassistanceautocollisionaccidente #autoinsurance #autoaccidentattorneypittsburgh #autoaccident

What are my general rights on Election Day? If the polls close while you’re still in line, stay in line – you have the right to vote. If you make a mistake on your ballot, ask for a new one. If the machines are down at your polling place, ask for a paper ballot. If you run into any problems or have questions on Election Day, call your us. I’m not sure what to bring to the polls You don’t need to bring anything unless it’s your first time voting at a new polling place.  If it’s your first time, you much bring one of the approved forms of identification on this list.  Your ID doesn’t need to be a photo ID; there are many forms of non-photo ID that are acceptable.  Learn what materials you’ll need to bring with you to the polling place on Election Day. What’s a Poll Watcher? To be a poll watcher, a person must be a qualified registered elector of the county in which the election district for which the watcher is to be appointed is located. Poll watchers must be identified and must receive official county credentials in advance and must be assigned to specific precincts. Individuals may not serve as poll watchers except as specifically described above. Each candidate may appoint two poll watchers for each election district in which he or she appears on the ballot. Each political party and political body which has nominated candidates on the ballot may appoint three poll watchers for each election district at any general, municipal or special election in which the candidates of such party or body are on the ballot. However, only one poll watcher may be present in the polling place at one time for each candidate at primaries or for each candidate, party, or political body during general, municipal or special elections, from the time election officers meet prior to the opening of the polls until the time that the counting of votes is complete. It is also important to note that all poll watchers must remain outside the enclosed space. What poll watchers CAN do at the polling place Watchers may make good faith challenges to a voter’s identity, continued residence in the election district, or qualifications as an eligible voter. Poll watchers should direct permitted challenges directly to the Judge of Elections. Read more about challenges below. What watchers CANNOT do at the polling place Poll watchers must remain a safe and respectful distance away from the space where voting is occurring. Poll watchers may not engage, attempt to influence, or intimidate voters or otherwise interfere with or impinge on the orderly process of voting. Social distancing measures should be maintained to ensure a safe polling place for voters and poll workers. Voter intimidation and threatening conduct are illegal under federal and Pennsylvania law. Any activity by a poll watcher that threatens, harasses, or intimidates voters, including any activity that is intended to, or has the effect of, interfering with any voter’s right to vote, whether it occurs outside the polling place or inside the polling place, is illegal. Examples of voter intimidation include, but are not limited to: Photographing or videotaping voters Disseminating false or misleading election information to voters Blocking the entrance to a polling place Confronting, hovering, or directly speaking to or questioning voters Any threatening behavior Asking voters for documentation Poll watchers are also NOT allowed to engage in electioneering while inside the polling place or within 10 feet of the entrance to the polling place. Though watchers are representatives of candidates or political parties and political bodies, they are not entitled to electioneer on behalf of their candidate, political party, or political body while inside the polling place. Electioneering includes soliciting votes, posting or displaying written or printed campaign materials, and handing out pamphlets or other campaign paraphernalia. Read more about Poll Watchers and Myths About Poll Watching Can My Right to Vote be Challenged at the Polling Place? Your right to vote can only be challenged if a poll worker, poll watcher, or another voter says you do not live in the precinct or are not who you say you are. ​Your right to vote can only be challenged on the basis that you are falsifying your identity or are not a resident of the precinct. Challenges must be submitted directly to the Judge of Elections. Poll watchers should not address the person they are challenging. If the Judge of Elections is satisfied with your identity or residence, you vote as normal. If they cannot determine your eligibility, you can still vote in-person if another voter from the precinct signs an affidavit vouching for your identity or residence. If not, you can still vote using a provisional ballot. The poll worker says my name is not on the list of registered voters. Voters are entitled to a provisional ballot, even if they aren’t in the poll book. After Election Day, election officials must investigate whether you are qualified to vote and registered. If you are qualified and registered, they will count your provisional ballot. What to do Ask the poll worker to double check for your name on the list of registered voters. Make sure to spell your name out for the poll worker. If your name is not on the list, ask if there is a supplemental list of voters. If the poll worker still cannot find your name, confirm that you are at the correct polling place: Request that the poll workers check a statewide system (if one is available) to see if you are registered to vote at a different polling place. If the poll worker does not have access to a statewide system, ask them to call the main election office. If you are registered at a different location, in most instances you will have to travel to that location to cast a regular ballot. If the poll worker still cannot find your name or if you cannot travel to the correct polling place, ask for a provisional ballot. I speak English less than “very well” Under federal law, voters who have difficulty reading or writing English may receive in-person assistance at the polls from the person of their choice. This person cannot be the voter’s employer, an agent of the voter’s employer, or an agent or officer of the voter’s union. Counties covered by Section 203 of the Voting Rights Act are required to provide bilingual assistance to voters in specific languages. This means that they must provide poll workers who speak certain languages and make all election materials and election-related information available in those languages. Check whether your county is required to provide bilingual election assistance in a language you speak. What to do You can bring a family member, friend, or other person of your choice to assist you at the polls. Do not bring your employer, or an agent of your employer or union. If you live in a county that’s required to provide bilingual voting assistance for a language you speak, you can request oral assistance from a bilingual poll worker and ask for voting materials, such as a ballot, in that language. If you have trouble voting due to lack of English fluency, call one of these hotlines: Spanish: 1-888-VE-Y-VOTA / 1-888-839-8682 Someone is Interfering with my Right to Vote Examples of voter intimidation Aggressively questioning voters about their citizenship, criminal record, or other qualifications to vote. Falsely representing oneself as an elections official. Displaying false or misleading signs about voter fraud and related criminal penalties. Other forms of harassment, particularly harassment targeting non-English speakers and voters of color. Spreading false information about voter requirements. You do not need to speak English to vote, in any state. You do not need to pass a test to vote, in any state. Some states do not require voters to present photo identification. Your rights It’s illegal to intimidate voters and a federal crime to “intimidate, threaten, [or] coerce … any other person for the purpose of interfering with the right of [that] other person to vote or to vote as he may choose.” What to do if you experience voter intimidation In many states, you can give a sworn statement to the poll worker that you satisfy the qualifications to vote in your state, and then proceed to cast a ballot. Report intimidation to your local election officials. Their offices will be open on Election Day. Can I Take A Ballot Selfie and Post It on Social Media? Yes, but you should be careful not to disclose any other voter’s ballot and it is recommended that you wait until after you leave the polling place to post photos of your ballot selfie. Can I Bring a Gun to Vote? Yes, but is that really necessary? It probably isn’t but if you insist on bringing a gun to the polling place, there are several restrictions of which you should be aware. First, you must be permitted to open-carry firearms. These rules are subject to change, including during public emergencies. Second, you may not bring a firearm if your polling place is in a school, courthouse, place where PA law prohibits firearms, or inside a private property that forbids them. Lastly, it is illegal to display your firearm in a way that intimidates other voters. The law balances your right to carry a gun with the effect that carrying a weapon may have on other voters. #electionrights #electionpennsylvania #electionpa #votingrights #election2020 #election2020pennsylvania

Dollar General is bringing its new “DGX” concept to downtown Pittsburgh. FLG represented a downtown building owner in lease negotiations for the new DGX concept store in the Liberty/Wood Street corridor. Specially designed to meet the unique needs of customers living, working and visiting vibrant metropolitan city centers, DGX provides positive benefits to the areas it serves by providing an affordable retail option in a modern retail format. DGX stores offer a smaller retail footprint with a curated assortment of grab-and-go salads and sandwiches, home cleaning supplies, an expanded selection of health and beauty products, home décor, electronics, seasonal products, pet supplies, candies and snacks, paper products and more—all at everyday low prices that Dollar General is known for. FLG Lawyers Involved: Michael E. Fiffik (Managing Member); Lacey Gordon (Associate). Fiffik Law Group advises commercial property owners throughout Pennsylvania concerning acquisition, financing, lease negotiations and joint ventures. #realestateclosing #realestatepittsburgh #realestate #commercialrealestate #realestatebusiness #realestatepennsylvania #commercialleasing

A local restauranteur recently acquired the 5,300-square-foot building on a one-acre plot in front of Warrendale Village that formerly housed the Calavera Tap + Taco restaurant.  The new owner plans to reopen the restaurant in November 2020 with a new concept.  MAXX . . . food . . drink . .  sports will redefine the sports bar atmosphere for the Pittsburgh market.  It will offer a wide variety of food offerings with an emphasis towards women and families. The menu will reflect healthy eating options, great salad bowls, interesting tapas, dishes to be shared, unique sandwiches, and gourmet burgers cooked on a hardwood grill. In addition, a very well designed dinner menu will offer great quality steaks along with organic chicken dishes. The property is located in an area with a number of thriving restaurants such as Il Pizzaiolo, Off the Hook and House of 1,000 Beers. Fiffik Law Group attorneys Michael E. Fiffik and Lacey Gordon represented the new owner throughout the transaction. FLG represents clients in commercial real estate transactions, large and small, with a focus on complex joint ventures, corporate real estate, finance and leasing.  We help our clients acquire, finance, sell and refinance all classes of commercial real estate.  On the business law side, we advise clients on real estate investment, including drafting and negotiating joint venture documents, limited liability company and partnership agreements among other documents governing our clients’ business relationships and protecting their investments. We pride ourselves on providing our valued clients big firm experience at small firm cost.

You can file a claim on your business insurance to recover your losses. Key financial lifeline for #restaurants #salon owners #retailers #medical offices. #smallbusinesstips #businessinsurance #smallbusinessattorney #covidrestaurant #covid #smallbusiness

If you own or plan to own rental property, it’s a great idea to own it with a limited liability company (“LLC”). The tax status that you elect for your LLC can cost or save you taxes. You have a variety of tax statuses to chose from with an LLC. An LLC can be treated as a sole proprietorship (if single member), a partnership (if multi-member), or you can elect to treat your LLC as an S-Corp or C-Corp. If you elect S-Corp, you might run into a level of unnecessary taxation. Here’s why: rental properties are considered passive income even if you actively participate in the rental activity. Passive income, by definition, is not subjected to self-employment tax. However, if you elect to have your LLC be treated as an S-Corp for taxation purposes you could potentially have to pay yourself a reasonable wage for the management of the LLC which in turn is subjected to FICA and Medicare taxes (15.3%). This is the same as paying self-employment tax. To avoid this grief and headache, have your rental property LLCs be regular LLCs (that is choose the default status) and your business LLCs be LLCs with the S-Corp election. Need help with forming an LLC or electing the right tax status for your LLC?  Call 412.391.1014 or click here to be connected to one of our business attorneys. #smallbusinesstips #smallbusinessattorney #realestate #realestateinvesting #realestateflipping #realestatebusiness #smallbusinessadvice #realestatebusinessplan

PPP Loan Forgiveness Guidance Recipients of Paycheck Protection Program (PPP) loans of $50,000 or less will be able to apply for forgiveness using a simplified one-page application that was released Thursday by Treasury and the U.S. Small Business Administration (SBA). The vast majority of PPP loans were below this threshold. In addition, these borrowers can ignore some of the calculations required of other borrowers. A new interim final rule (IFR) provides new guidance concerning forgiveness and loan review processes for PPP loans of $50,000 or less. PPP borrowers of $50,000 or less are exempted from any reductions in forgiveness based on: Reductions in full-time-equivalent (FTE) employees; and Reductions in employee salary or wages. The new application form, SBA Form 3508S, can be used by PPP borrowers applying for forgiveness on PPP loans with a total loan amount of $50,000 or less, unless those borrowers together with their affiliates received loans totaling $2 million or more. There are several forms with 3508 (Form 3508, 3508EZ and 3508S). Make sure you’re using the one that applies to your loan and business. Click here to view the simpler loan forgiveness application. Click here to view the instructions for completing the simpler loan forgiveness application. Borrowers will have to make some certifications and provide documentation to the lender for payroll and nonpayroll costs. The borrower is responsible for providing an accurate calculation of the loan forgiveness amount. Borrowers will have to make some certifications and provide documentation to the lender for payroll and nonpayroll costs. Businesses must attest to the accuracy of the reported information and calculations on the loan forgiveness application. Lenders are permitted to rely on borrower representations, according to the IFR. There remains significant uncertainty concerning many aspects of the PPP Loan program and forgiveness rules. The SBA continues to issue additional and new guidance. As a result, we are suggesting that borrowers wait until early 2021 to apply for loan forgiveness. Click here for a free PPP loan forgiveness estimator. FLG Attorneys provide assistance to small business owners, including help with Paycheck Protection Plan loans. Call 412.391.1014 or click here for assistance. #smallbusinesstips #ppploanforgiveness #PPPLoan #smallbusinessattorney #ppploanrules #ppploannews #covid #smallbusinessadvice #smallbusiness

With more people than ever expected to vote by mail in November, making sure your vote is counted in Pennsylvania may come down to an envelope. Here’s everything you need to know about voting by mail in Pennsylvania for the Nov. 3 general election. What are mail ballots? In Pennsylvania, you now have two options for mail ballots. You may either choose a mail-in ballot or an absentee ballot to request, complete, and return to your county election office. Mail-in ballot – Any qualified voter may apply for a mail-in ballot. You may simply request this ballot without a reason. Absentee ballot – If you plan to be out of the municipality on election day or if you have a disability or illness, you should request this ballot type, which still requires you to list a reason for your ballot. In order to request either ballot type, you must be registered to vote. Please visit Check Your Registration Status to review your registration information Which ballot should I use? All registered voters can use the mail-in ballot so to avoid any uncertainly, we recommend using it. Absentee ballots are limited to voters with certain circumstances. Learn more here. How do I get my mail-in ballot? Registered voters can go online to www.votespa.com/applymailballot. You can provide your email address if you want to receive an email confirming when your request has been processed. You will receive your ballot in the mail. You can also obtain a physical application form and return it (either by mail or in person) to your county election office, in one of the following ways: You can download the mail-in ballot application, fill it out and print it here. Go to votespa.com, download the mail-in ballot application and print it. Contact the Department of State by emailing ra-voterreg@pa.gov or by calling 877-VOTESPA. Visit your county’s election office and request the application form. What’s the deadline to request a ballot? For now, voters have until Oct. 27 to request a mail-in ballot for the general election. There have been efforts to set an earlier deadline, but these have not passed into law, and Gov. Tom Wolf has vowed to veto such the legislation if it’s passed. Already applied for a mail-in ballot? Votes can see the status of their mail-in or absentee ballot online. Track your ballot’s progress from when your county receives your application to when they receive your completed ballot. When will mail in ballots start to arrive? Most counties have begun sending ballots. This summer, the U.S. Postal Service warned Pennsylvania and other states that cuts to its service mean that mail will take longer to arrive, potentially complicating the delivery of mail-in and absentee ballots. Given this uncertainty, it’s not clear when voters will get their hands on the absentee or mail-in ballots they requested. Voters who want to vote by mail but haven’t requested a ballot yet should do so immediately for the best chance of it arriving in time. What’s the correct way to complete and sign my ballot? There are four easy steps: Warning: Before you write on any portion of the ballot or envelopes, be aware that the secrecy envelope and ballot must not be marked with any personal identifying information on it, or it will be voided. Complete select your candidate by filling in the circle next to the candidate’s name. Once you complete your ballot, you must put it in the secrecy envelope. This is a white envelope that reads “Official Election Ballot.” The secrecy envelope then must go into a larger mailing envelope that is already addressed to their local elections office. This outer envelope already has postage and does not need a stamp. The outer envelope has a declaration on the back that must be signed and dated by the voter. County election offices will reject any ballot that does not have a valid signature or date. This standard has been in place for years and was reaffirmed in a recent Pennsylvania Supreme Court ruling. The outer envelope is the only part of the package getting mailed back that should bear a signature. Ballots that are returned without a secrecy envelope, referred to as “naked ballots,” will also be voided. Don’t go naked! You can find a short video explaining how to complete your ballot here. How do I turn in my completed ballot? Voters have several options on turning in their ballot: Mail them to the county election office. Election officials are warning voters not to wait to mail their completed ballots. Delays with the post officecould prevent ballots from arriving in time to be counted. For the primary, voters were advised to mail their ballots by the Friday before the election. With the delays, voters will want to mail their ballots at least 10 days before the election. Present them to the county election office. The ballots can also be turned in to the county election office. The person who completed the ballot must be the one to present the ballot. When applying for a mail-in ballot in person at your county’s election office, and that county has already printed the mail-in ballots, you have the option to pick up the ballot, fill it out and return it all during the same visit. This is known as “on-demand voting.” Turn them in at a ballot drop box. Some counties are also offering additional drop boxes for mail-in ballots. Check here for drop boxes near you. What’s the deadline for turning in my ballot? Under state law, ballots must be at their local county election office by 8PM on Election Day, November 3. To meet this deadline and the post office’s advice, ballots should be in the mail no later than Oct. 27. What if I request a mail-in ballot but decide to vote in person on Election Day Voters can bring their absentee or mail-in ballot — complete with both envelopes — to their polling place on Election Day. A poll worker can then void the ballot and let the voter cast a regular ballot. A voter who never received their ballot, forgot to mail it in time, are uncertain if it was mailed in time or misplaced it can go to their polling place on Election Day and request a provisional ballot. These ballots are not counted until the county confirms it did not receive your mail-in or absentee ballot. However, voters cannot simply drop off their mail-in ballots at their polling place. I received a mail-in ballot application in the mail but never requested one. What should I do? Pennsylvania does not send out unsolicited mail-in ballots or ballot applications to voters.  However, some organizations such as political parties, political campaigns and voter advocacy groups have mailed application forms to people listed on their contact lists. This is legal.  Voters who are already signed up for a mail-in ballot or do not want one can simply tear up any applications they receive in the mail and throw them away. #pennsylvaniavoting #mailinballots #votepennsylvania #vote #votebymail #mailin #vote2020 #nakedballot #nakedballots

Every county in Pennsylvania conducts periodic sheriff’s sales of real estate.  Real estate is sold to satisfy tax liens, judgments, defaulted mortgages and other liens.  The sales are conducted in an auction format with open bidding.  Real estate investors are tempted by the prospect of acquiring a property at below-market prices that can be later flipped for a big profit.  While there are many opportunities, there are also big risks.  We recently talked with a client who experienced the risks of bidding on properties at sheriff’s sales and lost big. Our client purchased a property at an upset tax sale. She conducted what she referred to as a “quick title search” prior to the sale and found no liens. She paid over $20,000 to satisfy the delinquent taxes. Shortly after the upset sale, a lender filed a mortgage foreclosure action involving the property. Judgment was entered on the foreclosure action and the lender bought the property at the subsequent foreclosure sale and received a deed to the property. After the foreclosure sale, that lender again sold the property. How could this happen? What are her rights to the property? Can she get the $20,000 that she paid back? This client has the nightmare scenario after buying property at a sheriff’s sale. To minimize the risks, we have a few helpful tips. Know What Kind of Sale Is Taking Place There are many different types of Sheriff Sales and each of them have rules and rights that have an impact on the value of the property. There are mortgage foreclosure and judgment sales. There are no less than four different kinds of tax sales: upset sales, judicial sales, sales arising from writs of Scire Facias, treasurers’ sales in Philadelphia and Allegheny counties. There are even IRS lien sales. Each of these sales has its own set of procedural rules. Some of them, such as an upset sale, result in title to the winning bidder that is subject to all other liens of record. That’s what happened to our client in the above situation. Others have a right of redemption – meaning that the taxpayer has the right to match the amount paid by the winning bidder and get the property back. The right of redemption, in some cases, can last for nine months after the sale. To know what you’re buying; you must know the type of sale that’s taking place. Order a Title Search and Examination Before the sale takes place, have the public records are searched and examined to determine ownership, limitations to that ownership, encumbrances, and any adverse matters affecting title to the property. These records are searched by examining the official courthouse records, where all recorded documents, judgments, liens, tax assessments (such as street or sewer), special taxes, and other matters, such as divorce and bankruptcy, are filed. A title examination can identify problems with the title that could impact your ability to resell the property or use it as collateral for a loan. These problems could include: someone else owns an interest in the title; a document is not properly signed, sealed, acknowledged, or delivered; defective recording of any document; lack of legal right of access to and from the land; there are restrictive covenants limiting the use of the land; there is a lien on the title because of a mortgage, deed of trust, judgment, tax or special assessment; others have rights arising out of leases, contracts, or options; someone else has an easement on the land. Inspect the Property The successful bidder buys the property “as is”, no disclosures about problems with the property, no advance inspections and no contingencies. You can drive by and at least look at the property to assess whether it’s going to need costly renovations. A visual inspection may also allow you to determine if someone is residing in the property. Prior owners or tenants may not leave voluntarily, necessitating a costly and possibly protracted eviction proceeding. Contact the Foreclosing Creditor Contact the attorney for the foreclosing creditor or owner of the property regarding the creditor’s minimum bid since the creditor can credit bid its judgment. The creditor doesn’t really want the property because they must sell it to get paid the money they are owed. They’ll have to pay the carrying costs of the property, including taxes, maintenance, insurance, etc. until its sold. There’s no guarantee that they’ll be able to sell the property for enough to satisfy the underlying security interest plus all those additional costs. The creditor may be willing to sell it to you for less than you could get the property at the sale or you can work out a deal in advance and allow the property to go through the sale process to clear it of unwanted liens. Talking to the foreclosing creditor may also give you a better idea of whether the sale will take place. Get Your Money Together You must have ten percent (10%) of your bid in cash or certified check at the time of the sale. If you’re the successful bidder, you’ll have to pay the balance of the bid price within a short period of time (in Allegheny County, its within the same week). There are no mortgage or financing contingencies allowed. You must have your cash together and available. Following these basic steps will help you avoid disaster situations like that of our client. Her pre-sale homework was not thorough, or she was not savvy enough to know the implications of an upset sale. She’s left with a handful of bad options. She can negotiate with the current owner to purchase the property and get credit for the taxes that she paid and that the current owner would have had to pay but for her mistake. Maybe there was a defect in the original upset sale and she could work with the original owner to challenge the sale and have it set aside, possibly resulting in a refund of the tax money that she paid. None of these are great options. All of them involve additional expense in legal fees and costs without any guarantee of a positive outcome. Please keep in mind that this list does not identify all potential risks.  The first and best tip is that you should contact a Fiffik Law Group real estate attorney.  They’ll discuss the particular property you’re interested in and can give you specific advice relating to that property. Want a consult on a real estate matter? Contact a member of our real estate team today. #sherrifsale #realestateclosing #foreclosuresale #judicialsale #realestate #realestateinvesting #realestateflipping #foreclosure #realestatebusiness #taxsale

Our LegalShield member worked for a temp employment agency and was released from an assignment during the COVID pandemic. She filed an application for unemployment comp. Our member was shocked when the application was denied because the temp agency failed to report her wages. This was a huge problem for the member and her family at a time of crisis. She tried to work it out directly with the agency to no avail. Fortunately, she used her #LegalShield membership and related to Attorney Barbara Weiss. Attorney Weiss reviewed documents and wrote a letter on the member’s behalf of the agency demanding 1) that they quickly and properly report the member’s wages to the PA Unemployment Compensation Bureau and 2) pay the member for the time period during which she was ineligible for benefits.  Once the agency got Attorney Weiss’ letter, they changed their tune and quickly moved to get the member a contact within PA Unemployment Compensation to work with her on the claim and to update records so that she was approved and received unemployment compensation.  The agency also agreed to compensation the member for the mistake. All told, between the back-due unemployment benefits and compensation paid by the agency, the member received over $8,000.  The cost in legal fees to the member?  $0. Your Will is one of the most important documents that you can prepare to protect your family. Get yours started today. #legalshield #successstorny