BIDaWIZ Blog » NEGOTIATION

Homeowners Be Prepared For Property Loss Due To Adverse Possession

The BIDaWIZ Team — Fri, 09 Aug 2013 17:37:27 +0000

Whether you’ve owned a home for years or are a recent buyer, it’s important to know whether or not you have full use of the property you originally purchased. Without a proper land survey, you won’t know if a neighbor may be squatting on your property or vice versa.

How does adverse possession work?
It’s the change of ownership and title of a property from one party to another as a result of it being occupied for a certain period of time. For instance, let’s suppose you have a 1 acre lot of land and there is a small sliver of it that technically occupies your neighbor’s property. If you occupy that piece of land and the neighbor does not resist the occupation over a certain period of time, technically title to the land can revert to you via squatter’s rights. In addition, be mindful that you must openly occupy the property exclusively, keeping out others, and use it as if it were your own.

It is important to note that adverse possession laws are governed by statute. In addition, the amount of time that is required to obtain ownership of the property varies by the statutes of limitation or from 5 to 20 years. For instance, California requires that the squatter occupy the land for at least 5 years for an uninterrupted period and New York requires 10 years. In addition, some states may require that you pay property taxes on that property to claim possession of it.

What should you do if you discover an adverse possession issue?
The best first step is to try to reach a settlement with your neighbor should they contest the fact that you’ve occupied the property or vice versa. You can offer to purchase the piece of land from your neighbor. Try to keep the negotiation as friendly as possible.

Legal battles against adverse possession
If the dispute needs to be taken to the courts, be prepared to provide extensive documentation detailing how long you’ve occupied the land. It’s likely that your neighbor will build a case by providing the court with a survey, deed, and property tax payments. In the end, state statute will likely dictate who wins the legal battle.

More questions? Browse answers or ask your adverse possession questions online.

Negotiating Your Rent in a Tough Market

The BIDaWIZ Team — Fri, 23 Sep 2011 16:00:02 +0000

The recovery in the rental market over the past year has continued to build with increases in both rental prices and occupancy rates in almost all 82 US markets. There also doesn’t appear to be any softening in sight with home ownership levels continuing to fall and more renters in the market. This means your rent is likely to go up when it’s time to renew. But, there are certainly actions you can take to try to negotiate your rent.

Negotiate a Longer-term Lease
If you plan to stay in your apartment for over a year then it may be worthwhile to request a long-term lease which locks-in your current rate and may even get you a lower rate.

Separately, it would be wise to negotiate your lease with a end date that isn’t during peak rental season such as December. This will make it easier for your landlord to fill vacancies and thus provide an incentive for a lower rate.

Timing is Important
Landlords usually make concessions when the negotiation takes place near the end of the lease but not too close to the end as stated by many rental experts. You’ll want the landlord to think you still have other options.

Research the Market
Sometimes it makes sense to research the market and in some cities the neighborhood too (i.e. New York, Boston, Chicago). You can gain an understanding of market conditions by visiting local open houses, calling management companies and comparing prices online through sites such as rentometer.com.

If your rent will rise significantly or more than 10% as compared to a similar apartment in your neighborhood, then bring it to your landlord’s attention. They may concede on price since they all claim that rental price increases are based on market conditions.

Also, don’t forget to research what the neighbors in your own building are paying. It’s quite possible to identify an inconsistency in rental prices within your building that you can use as leverage.

You’re in Good Standing
Landlords are more likely to provide a deal to those tenants that are in good standing and have been in the building for awhile. This means having excellent credit, consistently making rental payments on time, and maintaining the property within the normal wear and tear criteria.

More Finance Questions? Browse Answers or Ask a Finance Professional.

Can My Employer Change My Pay From Salary to Hourly?

The BIDaWIZ Team — Fri, 22 Oct 2010 18:54:02 +0000

The still unstable economy has led many companies to change the employment status of some of their employees. Many salaried employees are now being told that their compensation will be transitioned to hourly & their employment status will legally shift from exempt to non-exempt. It is very important to understand what this change means to employees that have been affected and could be in the future.

Is it Legal?
It depends on the specific circumstances & varies by state but generally speaking IT IS legal for all “at-will” employment states which is virtually every state to some degree.

What Does it Mean?
Generally speaking, when your employment status changes from exempt to non-exempt, your employer is basically stating that you are not performing managerial or professional tasks & your salary is generally well below $100,000 (source: Fair Labor Standards Act). Many employees may argue that the change is unfair since neither the scope of their work nor their performance has changed. That may be true, but unless there are specific employment laws in your state that indicate otherwise, the change is completely legal.

Are There Any Benefits to Being Paid Hourly?
It depends on how you look at your employment situation & your time horizon for working at the company. The benefit to being classified as non-exempt is that you will be compensated for overtime hours whereas exempt employees are not. But, you better believe that your employer will be monitoring your hours going forward since overtime pay is one an half times your normal hourly rate.

What Are the Tax Consequences?
It is completely irrelevant to the state and federal government whether you earn income on a salary or hourly basis. The amount of taxes an employee is subject to is purely a function of total income. However, withholding taxes for an hourly employee would likely fluctuate as the amount of hours & income earned on a biweekly basis will vary as opposed to a salaried employee.

Internal Growth Opportunities & Benefits Fade
Salary employees generally are given more robust benefit plans & opportunities to move up within an organization than an hourly employee. In addition, it is generally easier for a salaried employee to negotiate a larger increase in pay than if they were paid hourly. Remember, a salaried employee is paid a pre-determined amount no matter how many hours they work. An hourly employee on the other hand would likely be told to work more hours if they want to earn more income before their rate increases. Finally, companies generally view salaried employees as long-term assets to a company whereas hourly is literally by the hour.

More Employment Finance & Tax Questions?

Negotiating Salary With Companies Focused on the Economy

The BIDaWIZ Team — Wed, 28 Jul 2010 21:09:36 +0000

Believe it or not the current unemployment rate of 7.9% is also impacting new hires. Why? Many large companies are using the uncertain economic outlook and particularly the unemployment rate as a way to undercut salary levels for new hires. Some of it may be justified, but in most cases, the company is trying to take advantage of the “recession,” which supposedly ended. So what should you do as a potential new hire? It starts with strategic salary negotiation.

Hold Your Ground
You may hear, “How can you ask for more money when we are in a recession & people can’t get jobs.” That may provoke your guilty conscious but that’s what your employer wants to happen. The “recession” & what already happened in the 2008 financial disaster is not a good reason for you to earn less than what you deserve. So, politely respond explaining the additional responsibilities of this job vs. your prior job, your experience level, & ways in which you will help the firm grow. Try as much as possible to focus on how the firm benefits by having you on board.

“But, It’s For the Experience”
You also may hear, “Working at this company will be the best experience you have even if it is for less pay than what other firms are offering.” Don’t drink the Kool-Aid. That’s simply not an objective statement since the person making the claim likely never worked at any of the other firms. So, politely respond by agreeing that the firm is a great place to work but there are opportunities in the marketplace that offer other great experiences.

Don’t Be the First to Negotiate
This depends on how much leverage you have but generally speaking don’t be the first to negotiate. If you are in the situation in which you are highly sought after and the potential employer knows it, then definitely use that to your advantage. For instance, if you are looking to earn $90,000 & the employer is offering $75,000 & you know the employer really would like to hire you, then don’t be the first to negotiate. Rather, state that you are really interested in the opportunity, but you would like to think about it as you have other opportunities. They may respond by asking if there is any chance you would take less than $90,000. At that point, you would want to respond by saying that it really depends on the terms of the whole package. See what they offer & go from there.

Anyone Else Have Salary Advice to Share?
So that’s our general advice for salary negotiation in a “recession.” But, if anyone else wants to share their story or provide advice below, feel free to post a comment.

More Negotiation Questions?
If so, our seasoned Finance & Accounting Career Experts are happy to help answer all of your negotiation questions.