Archive for the ‘Real Estate Law’ Category

Court to Consider Rental Accessibility Requirements

January 20th, 2012

Americans with disabilitiesA Justice Department case against a Dallas apartment construction firm will go to court, Multifamily Executive reports, rather than being determined through summary judgment.

The federal agency filed the case due to allegations that the firm, JPI Apartment Construction, failed to provide for accessibility in its construction, violating the Fair Housing Act and the Americans With Disabilities Act.

Defending its practices, the firm argued that it met accessibility requirements despite failing to meet the guidelines used by the federal government. As such, it did not discriminate against residents with disabilities but instead accommodated them in a different way.

The DOJ sought summary judgment to avoid court proceedings, but has now failed to secure it. MFE reports the case will go to trial, where the question of what guidelines and standards can be used in construction will be determined.

Property owners and rental agents, among others, may find the outcome impacts the construction of new rental properties significantly. Similarly, renovations or remodeling of existing properties may be affected. If the DOJ wins the case, for example, properties failing to meet HUD guidelines may require alterations to qualify.

The Link Between Politics and Real Estate

May 20th, 2011
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The link between politics and real estate is undeniable. In fact, when Greenspan was working during the Clinton administration in the?1990′s he made mention that the economy was heading for a major fallout. Within that year the stock market slowed down, real estate growth was its lowest since coming out of the recession, and Greenspan was a buzzword. Today is not much different. The events that happen in politics have significant impacts on real estate, not because the housing market is keyed into the government, but because it affects buyer confidence.

A Feel Good Purchase

Feeling good about a home purchase is more than the home. If there are children present, then feeling good could include the nearby schools, the other children that may be present in the neighborhood, and the sustainability for work. In the recent events that Americans have experienced with the Great Recession, confidence is more important than ever. An example of this is with the highly publicized death of Osama bin Laden, which has brought about a sense of confidence, and the real estate market has responded with a slight spike in sales.

Morale: The Possible Cure

The burst of the bubble rattled the American people. The political events that have taken place have prevented people from wanting to dive into a purchase that could destroy them. The morale in the consumer market has been low, and increasing this is the key to forming a solid business structure, because this could be the link between feeling good about the purchase, and being confident about the purchase. With regards to the housing market, this principle is absolutely imperative. The political strategies to bring the housing market back to life have begun to take effect. Morale is boosted with tax credits, lower interest rates, and great pricing on homes.

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7 Strange Laws Owners & Renters Should Know

January 5th, 2011

It’s well established by the American Experience (some 230+ years of it) that rights to private property undergird all other rights. Granted, the British did come up with the idea of a man’s home being “his castle,” so thanks for the Magna Carta, folks.

Unfortunately, the whole world doesn’t see things that way, and even among free and mostly-free nations, there is a lot of meddling in the housing market, from regulating sales and rentals, to determining the extent of ownership. We present for your edification and amusement these seven strange laws about rentals, homes, property management, and more.

1. DO-IT-YOURSELFERS, BEWARE

WHERE: New York, New Jersey, New Mexico, and Hawaii

UNINTENDED CONSEQUENCES: Some people give up, letting homes deteriorate

Think you can do whatever you want with your property? Think again!

Some cities and towns have a real problem with the DIY demographic, and are particularly miffed that people would tend to their homes on a Sunday. This may be a holdover from the days when teetotalers and moralizers pushed through legislation to make people act like proper Christians, even if they’re Zoroastrians.

Never, never on a Sunday, fellas!

In Passaic, New Jersey, the ban is on Sunday house painting. In Schenectady, New York, you can’t fill nail holes with putty, while in Santa Fe, New Mexico, mowing the lawn – a traditional weekend chore – is against the law. And in the paradise of Hawaii, don’t disturb Mother Nature (or anyone else) with a leaf blower when you should be in church!

2. FOREIGN BUYERS COULD BE SPIES OR WORSE!

WHERE: Turkey

UNINTENDED CONSEQUENCES: The Turks are chasing away a lot of foreign investors

The Turks don’t want you near their military bases.

Turkish law is very restrictive about foreign nationals buying real estate, and part of the drawn-out process stems from national security worries. The country’s Act 2565 requires foreign buyers to apply to the Turkish General Staff, or a department appointed by them, to ensure the property that foreigners are interested in is not located in a military zone, nor too close to a sensitive target.

Yours is in there somewhere – in Turkish.

Foreign buyers are trying to get around the requirement, and the six-month wait, through notarized agreements with third parties who take ownership while the buyer awaits the military’s permission. The problem is that, since they are not official deeds, these notary agreements do not guarantee ownership to the buyer and occupy a legal gray area that can encourage scammers.

3. LEGAL SEPARATION OF BUILDINGS FROM ROADS AND PROPERTY

WHERE: Poland

UNINTENDED CONSEQUENCES: Accelerating down the road to serfdom

Who really owns the property?

Poland gained a great deal of freedom when Lech Walesa and his Solidarity union motivated the populace to throw off the Communist Party in the 1980s. Unfortunately, some of the nation’s laws, as well as a wide range of local and regional regulations, date from the era of state ownership (of everything), making it hard for Poles, not to mention foreign buyers, to figure out who owns what and what.

Dropping a few of these on the ground might help.

In Warsaw, you can own a property, but it doesn’t include the ground. That belongs to the city governing council, which can force you to move or even demolish your house. In the Polish countryside, farm owners sharing a common access road all have to agree on upgrades or repairs to any part of it, but they can change their minds at any time, essentially stalling progress in its tracks.

4. SOMETHING BOTHERS EVERYBODY, SO NOTHING SHOULD BOTHER ANYONE

WHERE: England

UNINTENDED CONSEQUENCES: People use regulations to bug their neighbors

Kathleen Edward’s neighbor sent death threats and parked a hearse in her front yard.

The English, historically, have been far less enamored (and supportive) of individual liberties than we Colonials. In recent years the Queen’s subjects have learned how to game the Anti-Social Behavior Order (ASBO) process to get bothersome neighbors back for incidents or slights, major and minor. In the case of terminally ill American Kathleen Edwards, the law was on the side of her bipolar neighbor who sent Kathy death threats and harassed her daily.

When the Mods and Rockers clashed in the 1960s, they dressed up first. Stylish!

The Town Police Clauses Act of 1847, still in force though mostly ignored, gives police wide latitude in controlling people’s actions, whether on private or public property. In addition to banning profane singing, the Act prohibits shaking or beating rugs, cleaning doormats at certain times of the day, and having a bonfire on your lawn.

5. TAKING ALL THE RISK OUT OF RENTING

WHERE: Japan

UNINTENDED CONSEQUENCES: Hard for Japanese, nearly impossible for foreigners

New places in Japan break traditions of dark, dreary, apartments.

Following World War II, the new Japanese government intervened (forcefully) in the housing market to help struggling workers establish stable residences. The government requires landlords to get its permission to issue a series of warnings to non-paying tenants, leading to eviction – after about six months. Property owners have to choose renters carefully.

Late on your rent? Meet the collection agents.

Since tenants have the weight of the government on their side, landlords do the only thing they can do to protect their interests, namely, reduce the risk as much as possible. Renters in Japan go through a more intrusive and detailed credit and background check than buyers do in the U.S., and foreigners will need help from a well-connected Japanese friend with good English skills.

6. SILLY MEDDLING IN THE “SHOW ME” STATE

WHERE: Missouri

UNINTENDED CONSEQUENCES: Dumb laws make people lose respect for all laws

We’ll be mailing your summons.

Missouri, like every other state, has weird and antiquated laws still on the books. Many concerned with what you can and cannot do in your own home, whether you own or rent. For example, if you are under 21 and take out the garbage with even a single beer can or booze bottle in it, you are guilty of illegal possession of alcohol; even if your dad yelled to take it out.

Hey, you can’t do that, live in the same apartment, that is.

It’s not much better at the local level. In a number of Missouri towns, it is illegal for four women to rent an apartment together, and some cities still use the state’s Brothel Law to prohibit four or more unrelated people from living in the same place, too. If you’re fed up in Ballwin, Missouri, go home before you cuss – it’s the only spot where you’re allowed to do that. Good to know.

7. IT’S HARD TO BREAK OLD POPULIST HABITS

WHERE: Portugal

UNINTENDED CONSEQUENCES: Pandering to progressives stalls economic recovery

Portugal is beautiful, but stuck in a time warp.

Property rentals in Portugal have been regulated for several hundred years. Many laws and regulations were born of the dramatic political changes the nation experienced in the last 150 years. In 1966, the Portuguese Codigo Civil (Civil Code) brought all rental laws together in a comprehensive manner, including the 1948 law prohibiting rent increases in Lisbon and Oporto, the country’s major cities.

Portugal is worse than Japan – evictions take a year!

The socialist revolution of 1974, and political agitation of the 1980s, resulted in a strongly pro-tenant regime, with drastic restrictions on evictions and rent increases. To return competition to the rental market, and simplify recovery of owner property, the New Urban Lease Act took effect in June 2006. Results are hard to gauge, as various factions continue to fight over the Act in courts, parliament, the media, and even the streets.

CONCLUSION

Strange rental and ownership laws have created conflicts around the world. From separated couples in New York City taping off apartments and cohabiting, to the one-year eviction process of Portugal’s rental properties, there are a lot of ways for owners and renters to get burned. These are just a few of the strangest laws around, but before you buy or rent, make sure you investigate for yourself!

Dividing Property in a Breakup

January 28th, 2010

Counselling session
If you and your non marital partner have decided to go your separate ways there are a lot of issues to consider, the good news is that it should be easier because you are not legally bound by marriage.

If you own property together there are several different ways in which that can be divided. If only one of you has their name on the deed or title then the property is legally theirs, but the other party may have some legal right to it as they have probably contributed to the expenses of maintenance and any upgrades. These disputes can be handled in a court, through arbitration or through your own agreements if you can amicably come to an agreement.

If the two of you owned the property together then it can get more complicated. You can just come to an agreement on your own between the two of you and one can file a quit claim deed which gives the other entire possession of the real estate. But if it’s not that easy then you may need to again see arbitration or a legal judgment that will determine how to divide the property. If both sides have a considerable amount invested in real estate it’s not uncommon to have to sell the property so both parties get their fair share.?Creative Commons License photo credit:?alancleaver_2000

Quit Claim Deed

January 21st, 2010

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A Quit Claim Deed or quitclaim deed is a document in which one person gives up all interest and ownership of real estate to another person. Quit Claims are sometime times used between families when the property is given as a gift, the property is transferred into a family business, to clear up confusion on titles and other situations.

But most of the time a Quit Claim Deed comes into play when there is a divorce and one person gives up their stake in a home to the other person. Typically if children are involved the primary custodian is allowed to keep the home but this isn’t always the case, just a common situation.

When you file a Quit Claim Deed you’re stating that you no longer wish to have any responsibilities or benefits that are tied to the property. This means that once the transaction is completed you will no longer have any say in what happens to the property and you cannot be expected to be responsible for anything that occurs to the home or on the property.

Read the fine print on a Quit Claim Deed before signing it, although they’re all basically the same, some people go into the process without really understanding that they’re giving up their current and future rights to the real estate.?Creative Commons License photo credit:?woodleywonderworks

Avoid Responsibility for Crime on your Property

December 8th, 2009

Orlando Police FL
Landlords risk the possibility of being held responsible for criminal acts that occur on their property. Limit the chance of being liable in this situation by taking preemptive steps and then reacting appropriately if something does occur.

Security Laws

It’s important that landlords start with an awareness of state and local laws regarding tenant safety and then follow those laws to the T, installing proper locks, lighting and other safety precautions.

Tenant Education

Provide tenants with an information sheet that gives them tips to help prevent crime, you may even want to incorporate this information into regular newsletters, common area bulletin postings, and tenant meetings. Keep tenants vigilant and cautious as well.

Listen

Listen to tenants, professional contacts, local governmental officials, police officers or anyone who talks about crime in the area. Learn about the most common types and frequency of crime in your area and take steps to prevent it. Follow up on tenant security issues as promptly as possible.

Handle Tenants

If you have tenants engaging in illegal activities it’s important to take steps to immediately remedy the situation. Even if a tenant is paying rent on time and doesn’t require a lot of attention, if they’re committing crimes on your property and you know about it you can be held responsible. They’re also inviting an unknown quantity onto your property which could be catastrophic.

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Shelter in Place

December 7th, 2009

It’s something you see on the news more frequently, toxic spills that force a sort of quarantine where people are instructed to stay in their homes in rooms with very little ventilation. This is called shelter in place and for landlords and property managers it’s an interesting situation.

Property owners are expected to cooperate with public officials by letting people take shelter in place on their property. For landlords who own businesses this may be more challenging as the accommodations are not as homey as they would be in an apartment building. But even in an apartment situation the property owners are expected to take in all visitors, employees and others who happen to be on the premises.

Once you get a notice of shelter in place you should inform everyone and ask that they stay, although you cannot force them to stay. Lead them to the predefined safe places and bring any disaster supplies. Plastic sheeting, tape and garbage bags are extremely useful as they can block air leaks and prevent toxic fumes from entering the space.

Shelter in place orders rarely last for more than a few hours. If a chemical spill is especially large or toxic government officials will evacuate an area so shelter in place is really only for smaller contaminants.

Is the Landlord Liable

December 4th, 2009

Even if a landlord has insurance it doesn’t necessarily mean that they’re responsible for all injuries or accidents that occur on their property. Insurance also doesn’t mean that a landlord or property manager doesn’t have certain obligations to their tenants. In situations of actual injury or damage the landlord is liable in the following situations.

If a repair wasn’t attended to in a timely fashion and an injury occurred then the landlord will be liable for injuries and damage.

If the repair was attended to on the property but it was done in an improper way so that injuries could still occur or the repair would only be temporary.

If a serious injury was foreseeable if a repair wasn’t made. Not all repairs can lead to injuries but some are obvious hazards and should be taken care of as soon as possible. This also includes environmental hazards that could affect the health of tenants.

When a landlord or property manager is found liable for injuries and damage that occur on their property the insurance typically handles the claim but there are situations where the insurance may balk. Make sure you know your insurance plan inside and out and are aware what your responsibilities are.

If a Tenant Leaves Stuff Behind

November 12th, 2009

Quiggins photocopier
During your tenure as a landlord you may run across a tenant who leaves some of their belongings behind after they vacate a unit. Each state has slightly different laws about how to deal with discarded property so you should check with your local and state ordinances to get the proper procedure for your area but there are some general rules that apply everywhere.

Tenancy Must be Terminated

Obviously you cannot take something from a tenant while they?re living in your unit, that?s obvious theft, but what if they?re gone? Even if the tenant is gone you can?t take their property until the lease has officially been terminated, this may require written notice, verbal notice, an eviction proceeding or a certain period of time.

Wait for Abandonment

Also, if a tenant vacates their place and leaves something behind you have to wait a predefined period of time to officially declare it abandoned.

Notification of Property

One would think that the tenants know they left stuff behind but the landlord is still required to send written notice to the now ex-tenant that they have left property behind. This notice also informs them of their legal rights and the predefined waiting periods for your region. You also can inform them (or bill them) for any storage fees while you hold their property.

Storage

Yes, it is the landlord?s responsibility to store property safely throughout the entire waiting period. But as mentioned above, you can recoup any losses for this or you can charge a reasonable storage fee of your own.

Disposal

Finally when you?ve completed all steps of notification and proper storage and the property is still abandoned after the waiting period it is your responsibility to dispose of it. You can sell or donate the property or you can throw it away.

It?s essential that you research your local and state laws for abandoned tenant property because if you handle the situation you can actually be held accountable and sued by the tenant for the value of their property.

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Eviction: Notice to Quit

September 24th, 2009

home
If your landlord or property manager just sent you a notice to quit you can basically think of this as your last chance before eviction. The notice to quit is not a court document so you do not have to move out by the date but the landlord will then start the legal process of having you removed.

Typically a notice to quit is asking you to cease doing something that is a violation of the lease or the law. If you wish to resolve the situation and stay in your current home then you will have to ?quit? and inform the landlord or property manager that you will resolve the situation and expect to stay in your home.

If there is any legal or medical reason you cannot quit an activity, then you should probably contact a lawyer or a tenant?s rights advocate to help you plead your case. I know of a case where a woman?s medical condition caused her to scream at night while sleeping. Because this is a medical condition then she could not be evicted for routinely disturbing the peace. Also if you are handicapped and have a pet trained to help you, you obviously would not be subject to lease rules regarding no pets. So there are situations where you do not have to quit an activity even if you have received a notice to quit.

If you wish to stay and you have not ceased the activity which caused the notice to quit and you have not found representation to defend yourself then you will receive a summons and complaint from the court requiring you to make a court appearance. This means that official eviction proceedings have begun and you will most likely be asked to leave your residence.

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