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LawTalk
LawTalk, Attorney
Category: Real Estate Law
Satisfied Customers: 35309
Experience:  I have 30 years legal experience. Additionally, in CA I held a Real Estate Broker's license.
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I have three properties. One personal residents, two

Customer Question

I have three properties. One personal residents, two rentals. One rental I own with a partner. How do I keep my personal residents safe from "lawsuits" that may happen at one of my rentals?
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  LawTalk replied 1 year ago.

Good afternoon,

I'm Doug, and I'm sorry to hear of the confusion. My goal is to provide you with excellent service today.

Perhaps the easiest way to avoid personal liability for debts arising out of the operation of your rental properties would be to place each property into an LLC (Limited Liability Company). With the one rental you own by yourself you would place it in one LLC in which you are the sole owner, and the jointly owned property would be placed in an LLC that each of you have half ownership in. That would eliminate your personal responsibility for any suits that are filed against the new property owner---the LLC's. The limitation on liability would be no more than the value of the property in the respective LLC.

And liability against the jointly owned property would not pass on to your other property in a different LLC or to your personal assets either.

You may reply back to me using the Reply link and I will be happy to continue to assist you until I am able to address your concerns, to your satisfaction.

Please remember to rate my service to you so that I can be compensated for helping you. Thank you in advance.

I wish you and yours the best in 2015,

Doug

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