Location, Location, Location

Location

ACC/543

The client hired the accounting firm to assist in selecting a suitable location for a river rafting business. In this regard, this paper will assess the legal aspects involved in the acquisition, maintenance and disposal of real and personal property. Since the acquisition of property involved many risks, this paper will also address the type of insurance coverage that will be most beneficial to a river rafting business. The final choice of location is down to three candidates, namely, in Arizona, Colorado and Utah. After a thorough evaluation of all legal considerations, including pertinent environmental issues, a final recommendation will be given.

Legal Aspects of Real Property

Real property is defined as any property attached directly to land, as well as the land itself. It not only includes buildings and other structures, but also rights and interests (Murray, n.d.). Real property can be acquired in different ways. It can be purchased directly with cash or through a loan. It can be donated, inherited, or leased for a period.

There are three ways of joint ownership of real property purchased by two or more individuals or legal entities. Joint tenancy provides for property to be owned in equal and undivided shares by two or more individuals. Tenants by entirety provides for joint ownership with rights of survivorship, which is usually the case between married couples. The last is tenancy in common, which provides for joint ownership of property by two or more individuals, but in equal or unequal shares (Gruber, n.d.).

Once acquired, holding on to real property entails paying taxes on the property, loan or rental payments, and insurance payments. These payments can be made monthly, annually, or in a pre-arranged schedule. In the event that an owner wishes to dispose of real property, the owner can choose to sell, rent, donate, trade, or bequeath the property. It should be taken into...