KEN KIRSCHENBAUM, ESQ ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE You can read all of our articles on our website. Having trouble getting our emails? Change your spam controls and whitelist ken@kirschenbaumesq.com ****************************** Husband wife subscribers buying house in LLC August 20, 2024 ********************* Husband wife subscribers buying house in LLC ********************* Ken We have a husband and wife that is purchasing a single family house in an LLC. They want us to put the contract in their personal names. I asked the husband which name was the insurance in. He said the husband and wife are named insured with the LLC as an additional insured. I read a previous question on your website about someone asking a similar question but which contract to use. As it is residential you said you use the Residential All in One. Is the LLC the subscriber, the husband and wife or all three? Thanks Craig ********************** Response ********************** Pretty good question for a law school exam. If we consider the relationship between you and the customer we can start with two simple questions: who will you sue to enforce the contract and who is likely to sue you on that contract or for the services you provide pursuant to that contract. Whoever the other party is going to be you better have a contract with that party. We know that the husband and wife are going to live in the house, so they will certainly be using and relying on the security and likely fire alarm systems. But the LLC also has an interest because it owns the property, so if the loss is a fire, as opposed to burglary of personal items, the LLC has the loss. We also need to consider subrogation claims, because they make up most of the claims against alarm companies. If there is a loss the carrier will be paying out to either the husband and wife or the LLC, perhaps both, though I think a subrogation claim would be more specific as to who suffered the loss [if the plaintiff’s attorney actually thinks about it]. But I can tell you who will be thinking about a claim, me if I am defending it, and I will be looking at the contractual protection. Who agreed to all the protective provisions in the Kirschenbaum Contract™? If the LLC suffered the loss and its carrier paid it for that loss and is now pursuing subrogation claim, I will be looking for the LLC’s waiver of subrogation. Same analysis for a loss claimed by the husband or wife. The collection issue is a bit easier. Because of the arbitration provision K&K is likely going to pursue all three of them, even if not all of them signed the contract, but the better practice obviously is to get all of them to sign the contract. If the husband and wife say they want the contract in their name that’s fine. At end of contract you have to add “approved, consented and agreed to as Buyer” and have the LLC sign too. You should join the Concierge Program, today. Questions like these come up all the time, likely daily. You are most likely dealing with them by ignoring them, guessing or maybe you have “in-house” counsel you’re paying for. After all, how often can you call Uncle Vinnie before he stops taking your calls [or tells you to call me]? The Concierge Program gets you access to answers, when you need them. If gets you contract advice and negotiation, free half hour each month; it gets you free collection letter each month; it gets you HR employment answers free 15 minutes each month and it gets you discounts on K&K legal fees. You get a lot and it costs just a little. Join now: https://www.kirschenbaumesq.com/page/concierge And, by the way, when getting your contracts signed make sure they are updated contracts; the older contracts simply are not as good and you should be using the best for lots of reason. Don’t be lazy and don’t be penny wise and ….. well, as Bidden says, “you know the rest”. ***************** STANDARD FORMS Alarm / Security / Fire and related Agreements click here: www.alarmcontracts.com *************************** CONCIERGE LAWYER SERVICE PROGRAM FOR THE ALARM INDUSTRY - You can check out the program and sign up here: https://www.kirschenbaumesq.com/page/concierge or contact our Program Coordinator Stacy Spector, Esq at 516 747 6700 x 304. *********************** ALARM ARTICLES: You can always read our Articles on our website at ww.kirschenbaumesq.com/page/alarm-articles updated daily ******************** THE ALARM EXCHANGE - the alarm industries leading classified and business exchange - updated daily ************************* Wondering how much your alarm company is worth? Click here: https://www.kirschenbaumesq.com/page/what-is-my-alarm-company-worth ****************************** Getting on our Email List / Email Articles archived: Many of you are forwarding these emails to friends or asking that others be added to the list. Sign up for our daily newsletter here: Sign Up. You can read articles and order alarm contracts on our web site www.alarmcontracts.com ************************** Ken Kirschenbaum,Esq Kirschenbaum & Kirschenbaum PC Attorneys at Law 200 Garden City Plaza Garden City, NY 11530 516 747 6700 x 301 ken@kirschenbaumesq.com www.KirschenbaumEsq.com
