Among the recent high-profile solicitors’ negligence cases is King Lofts Toronto I Ltd. v. Emmons, an Ontario Court of Appeal decision that followed another notable ruling in Outaouais Synergest Inc. v. Lang Michener LLP.While King Lofts was more recently before the appeal court, it was the trial decision of Superior Court Justice Paul Perell that was the more compelling read since the appellate reasons were brief and essentially upheld all of the motion results for essentially all of the reasons set forth by the lower court.In King Lofts, the title search disclosed a laneway that cut through the property. The city, which wasn’t the vendor, owned the laneway. The solicitor duly found the laneway and told the client about it but unfortunately did so in such a way that suggested it was a minor issue they could address in a number of ways: conversion into land titles after closing for a few thousand dollars; asking the city to pass a bylaw to convey the lands to the purchaser; … [Read more...] about The Dirt: King Lofts shows growing perils, provides lessons for real estate lawyers
New real estate law
Two New York lawyers have been charged with bilking owners and lenders of $1 million in a short-sale scheme they allegedly operated while working at the a Long Island real estate firm.However, an attorney representing one of the defendants, Kenneth Schwartz, says his 64-year-old client wasn’t aware of the scheme at the time it was ongoing. The attorney says Schwartz fired the other defendant, Helene Stetch, in 2010 when irregularities (including forged checks) came to his attention, reports Newsday.“This is a case where a rather prominent lawyer has a quite extensive real estate law practice, and hired a lawyer who, unbeknownst to him, was manufacturing sham real estate transactions,” said defense attorney Richard Rehbock, who represents Schwartz.In fact, Rehbock said, “It was Mr. Schwartz who went to the police when he uncovered this problem.”The newspaper said it tried without success to reach Stetch’s lawyer on Friday.Both Schwartz and Stetch, 50, … [Read more...] about Real estate firm chief and ex-associate charged in $1M ‘short sale’ mortgage-fraud scheme
There’s a new foreclosure in the United States every 13 seconds. So, doing the math, during the 90-minute program “Foreclosing on the American Dream” at the ABA Midyear Meeting in Boston, some 400 foreclosures were initiated nationwide.And while there’s a sense of urgency to address the problem and develop effective strategies, the response by policymakers and lawyers practicing in the field is a work in progress, according to speakers at the program, which was sponsored by the ABA Commission on Homelessness and Poverty.Meanwhile, the mounting numbers of foreclosures around the country are having a domino effect on other issues. In Massachusetts, for instance, foreclosures on condominiums outnumber those on single-family houses, which triggers problems for owners of nearby units and condo associations, said Kurt James, director of Rackemann, Sawyer & Brewster in Boston. Foreclosures also are threatening more tenants of rental properties, said Jeremy Rosen, … [Read more...] about Lawyers Face High Learning Curve During Real Estate Crisis
HB 2213 – GPLET LeasesArizona’s GPLET statute (enacted in 1996 as an economic development tool) in general allows a city, town, county or county stadium district (called a “Government Lessor”) to acquire title to land and improvements in a redevelopment area and/or a central business district of a city or town. The land and improvements are exempt from property taxes while the Government Lessor owns them, and the Government Lessor then leases them back to the developer (called a “Prime Lessee”), which then pays a significantly reduced “Government Property Lease Excise Tax” instead of paying ad valorem real property taxes. The property would typically qualify for an eight-year tax abatement, followed by a reduced or abated tax obligation (which could extend up to a total 25 years under pre-HB 2213 law). Many of the high-rise buildings in downtown Phoenix (including the one in which my office is located) are or have been … [Read more...] about 2017 Arizona Legislative Amendments Affecting Commercial Real Estate and Lending
Inverse condemnation is a far more complex subject than it may seem at the outset. While condemnation proceedings are initiated by the government to acquire property and pay the owner just compensation, the general rule regarding inverse condemnation is that the owner of the property, and not a government entity, seeks to recover damages for a loss in value of the property as a result of governmental action. There are several avenues from which this type of action can arise, as there are multiple ways property can be affected by government activity. Rather than there being a cut and dried standard for what inverse condemnation looks like, each case involving it arises is based on a set of unique factual circumstances.Inverse condemnation cases generally are initiated when a property owner sues a governmental entity because some action taken by that entity causes a profoundly negative impact on the property. For instance, a governmental restriction on certain types of development can … [Read more...] about Inverse Condemnation in Kentucky: Real Estate Law
Litigation regarding the status of workers as independent contractors or employees continues to be a hotbed of litigation. This is true even in industries that have long-considered workers as independent contractors, such as real estate agents. Attorneys representing workers, for example, have turned to state statutes addressing independent contractor status to attempt to upset these long-held classifications. The Massachusetts Supreme Judicial Court, however, ruled that the state’s 2004 independent contractor statute cannot be applied to real estate brokers, relying on a longstanding provision of the state’s real estate law authorizing real estate salespersons to operate as contractors. Monell v. Boston Pads, LLC, 2015 Mass. LEXIS 318 (Mass. June 3, 2015).In Monell, licensed real estate salespeople who worked for, and under, the real estate broker’s license of one of the larger real estate offices in Boston, sued in state court alleging they were misclassified … [Read more...] about Massachusetts Supreme Court: Real Estate Brokers Not Covered by 2004 Independent Contractor Law Based On Continued Applicability of Real Estate Statute
Individuals and corporations, but not limited liability companies, may be licensed as real estate brokers under the California Real Estate Law. This is a result of a bargain reached when California’s enacted its first limited liability company law – the Beverly-Killea Act. In order to overcome the objection of the California Trial Lawyers Association, the act proscribed LLCs from providing professional services that may be lawfully rendered only pursuant to a license, certification or registration authorized by the California Business & Professions Code. Over the years, the California legislature has enacted various exceptions to this wholesale proscriptions:Private cemeteries (SB 1225 (Harman), Stats. 2008, ch. 114)Contractors (SB 392 (Flores), Stats. 2009, ch. 698)Alarm companies (SB 1077 (Price), Stats. 2012, ch. 291)Private investigators (AB 1608 (Olson), Stats. 2014, ch. 669)In 2004 and 2006, Assembly Member Nicole Parra introduced bills (AB … [Read more...] about Beverly-Killea Act: Contractors Do It, PIs Do It; Why Not Real Estate Brokers?
Can we all agree that dealing with a power of attorney in North Carolina has long been, at best, a frustrating experience? Well, help is on the way! On July 20, 2017, Governor Cooper signed Senate Bill 569, "An Act to Adopt the Uniform Power of Attorney Act in this State," into law as Session Law 2017-153. It will take effect on January 1, 2018, and if you haven't already done so, you need to read it if you practice real estate law or are called upon to consider powers of attorney!At the 10,000 foot level, the new law repeals or amends many of the existing statutes dealing with powers of attorney and adopts the Uniform Power of Attorney Act as drafted by the National Conference of Commissioners on Uniform State Laws, albeit with a multitude of tweaks and modifications tailored specifically to our needs in North Carolina.The effort to get the legislation introduced and passed was admirably undertaken by the Estate Planning and Fiduciary Law Section of the North … [Read more...] about The North Carolina Uniform Power of Attorney Act: A Practical Introduction for Real Estate Practitioners
The much exulted RERA (Real Estate Regulatory Act) will soon be implemented in Haryana from 1st May, 2017. The residents are expecting a lot from RERA and hoping that the attempt to safeguard the legislation by the Centre remains strong. There has been news about reported watering down attempts of the RERA by the States. However, in January 2017, the Centre had vehemently refuted it and warned against any modifications to the basic guidelines governing the Act.In the recent years, we have witnessed legal battles between consumers and builders over the inconsistencies prevalent in the real estate realm. RERA had instilled the much needed hope amongst the consumers, administrators and real estate players. However, since May 2016 there has been a gradual progress when it comes to its actual applicability. Few States had attempted to dilute it by careful tweaking in favour of the builders, thereby contravening the purpose of ensuring transparency in real estate dealings.Haryana Government … [Read more...] about RERA (Real Estate Regulatory Act) – Will Haryana Implement The Right, Earnest, Rare, Approach?
Gujarat National Law University has invited eligible and qualified candidates at Walk in Interview for the position of Research Associate (Real Estate Laws) on 29th March 2016.Remuneration: Rs. 25,000 per month (fixed) Essential Qualifications Master’s Degree i n Law with at least 55% marks (or an equivalent grade in a point scale wherever grading system is followed) from an Indian University, or an equivalent degree from an accredited foreign university; Good knowledge of latest national and international research trends and developments in the fields of Real Estate Laws; Ability to conceptualize and organize international training workshops and brainstorming online/on-site discussions apart from teaching/Research; Fluency in English language. Desirable Qualifications Experience in teaching/research in premier law universities/colleges/firms in the area of Real Estate Laws; National Eligibility Test (NET) conducted by the UGC, CSIR or similar test accredited … [Read more...] about Walk in Interview for the position of Research Associate (Real Estate Laws) at GNLU