Backdating mortgage documents, is backdating legal?
The agreement could specify, amongst other things, that costs and revenue would be apportioned by reference to the historic effective date, with adjusting payments being made accordingly. With a bit of thought and investigation, is it often possible to achieve a result which gets close to the desired result and also lets you sleep at night.
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Is backdating legal?
This is not an agreement that could have been made orally. However, he only realizes this in January and so wishes to backdate the document to December. Only proceed if the answer is no. Ascertain if the backdating would violate a law or adversely affect the rights of third parties including government and regulatory bodies. How well does the lawyer know the client?
Rather, it is the use of the backdated documents by the parties or their counsel that may violate the law. Alternatively, is there a way of legally trying to achieve the required objective? You will also need to consider two other things from a legal perspective. The transaction should be ratified by minutes or resolutions of the participating entities. This is never a good idea.
The insurance company may or may not allow backdating depending on the state where the person lives. This is because documents take time to draft, negotiate and execute. Obviously the ideal position is to put in place the legal documents in advance.
The event did not happen during the time period required for the benefit so an attempt is being made to pretend that it did. These are questions he will probably be asked by the judge or regulator if things go wrong and to which he will need convincing answers. So any attempt to rely on the reduction before registration would be ineffective. For example, there may have been a transfer of trade from one group company to another on a particular date. In theory, this would appear on the face of it to be a reasonable request, as it is just a private arrangement between two parties.
The argument is obviously not valid if the transaction is one which is required by law to be in writing such as a transfer of land. Does he need to check to see whether that was actually the case or can he take an ostrich-like position and put his head in the sand and not ask any questions? What confirmation of the earlier agreement did the client or the company for which the client and lawyer works provide? Two parties in a business contract who explicitly agree in writing that an effective date for the contract can be made at a date prior to the current one.
Assess whether the backdating is intended to deceive or harm third parties including government and regulatory bodies. Backdating, in this case, may be useful as the parties, who have already begun acting on the agreement, finish the final details of the written contract. He also has no way of knowing whether the backdating will be scrutinized by a regulatory authority or even a Court. If allowed, florida laws on dating a minor up to six-month backdating would apply as long as the buyer pays for that time period.
For example, if a seller had sold his house in December then the seller could have taken advantage of certain tax benefits. There are some cases where this approach is not possible. So what is possible in this situation? Such relation back or forward contravenes no principle of law and is determined by the intent of the parties as deduced from the instrument itself. This is a fraud on the tax authorities, a criminal offence and is likely to get the lawyer who prepared the document disciplined by his regulator and possibly also charged as a co-conspirator.
Is it legal to comply with the request or must it always be refused outright? These two general areas mean that some legal due diligence should be carried out to identify and address areas for corrective action. In the law of contracts, it is elementary that ordinarily a contract speaks from the day of its date, regardless of when it was executed and delivered.
In this situation, it may be possible to create a document after the event which recites what actually happened, and which records the key terms of the transaction. For example, the selling and buying companies participating in a business transfer may agree between themselves to treat the transaction as if it happened at the previous year end. Group Reorganization Planning Form.
For obvious reasons, any request to backdate a document for these reasons should be flatly turned down. Similarly, a person who wants to buy health insurance and make it effective beginning at a date prior to the current date. The position is then clear to all who subsequently look at the document. Secondly, the transfer may trigger liabilities, such as where the relevant group companies participated in a defined benefit pension scheme. Together, these factors may indicate that the beneficial interest in the relevant assets has passed from a legal point of view.