Friday, January 27th, 2012California courts have recently been considering lawsuits brought by borrowers who claim their lenders wrongfully foreclosed on their homes. Join us on Monday, February 6, from 1 to 2 p.m., for a free, interactive Legal Live webinar to discuss these recent foreclosure cases. C.A.R. veteran attorneys, Stella Ling and Sanjay Wagle, will go over [...]
|
||||||
|
Los Angeles authorities have asked C.A.R. to communicate this warning to REALTORS® who hire unmanned aircraft operators to take aerial photographs for marketing high-end properties. Using these devices (also known as drones) for flight in the air with no onboard pilot may violate, among other things, the Federal Aviation Administration’s (FAA) policy on unmanned [...] Let’s kick off the New Year with a Legal Live webinar on the new laws for 2011. California REALTORS® are invited to attend this free webinar on January 10, 2011 from 1 to 2 p.m. C.A.R. attorney Stella Ling will address 2011 laws, including the prohibition against short sale deficiencies, new disclosure requirements, and [...] You are invited to join us for a Legal Live webinar on the ins and outs of small claims court. C.A.R. attorney Stella Ling will conduct this one-hour session on Monday, December 6, 2010, starting at 1 p.m. During this webinar, Ms. Ling will show you how understanding small claims court gives you a [...]  Starting January 1, 2011, the Real Estate Transfer Disclosure Statement (TDS) will be amended to streamline the disclosure of home safety devices. First, the TDS will include a new disclosure of whether the seller has a carbon monoxide detector. This disclosure addresses a new law requiring California homeowners to install or plug in a carbon monoxide device in an existing single-family residence by July 1, 2011 (next year), and other existing dwelling units by January 1, 2013. The new TDS will specifically state that installation of a carbon monoxide detector, among other appliances and devices, is not a precondition of sale or transfer of the dwelling. Second, the TDS will be amended to incorporate a seller’s certification that, by close of escrow, the seller will be in compliance with existing requirements for smoke detector and water heater bracing. Effective January 1, 2011, the new TDS will eliminate the need for a separate standard form Water Heater and Smoke Detector Statement of Compliance (C.A.R. Form WHSD) for applicable transactions. The new requirement to install or plug in a carbon monoxide detector will apply to dwelling units with a fossil fuel burning heater or appliance, fireplace, or attached garage. “Fossil fuel” means fuel gases, wood, oil, coal, kerosene, or other petroleum or hydrocarbon products that emit carbon monoxide as a combustion byproduct. Special rules apply to residential landlords. Starting today, renovations that disturb lead-based paint in older residential dwellings and child-occupied facilities must generally comply with the Lead-Based Paint Renovation Rule of the Environmental Protection Agency (EPA). REALTORS® acting as listing agents or property managers who advise their clients to perform renovations, repairs, or painting projects for such properties may, as a matter of prudence, also want to inform them about these lead renovation requirements. One common example is when a listing agent recommends that a seller has a home painted to improve its marketability. Under the newly implemented rule, renovators of target housing built before 1978 must now be trained and EPA-certified to perform safe work practices to prevent lead contamination. Additionally, renovators must deliver EPA’s lead renovation pamphlet to an occupant within 60 days before a project begins (and, if mailed, at least seven days before a project begins). Renovators must also obtain the occupant’s signed acknowledgment of receipt or substitute documentation as specified. The EPA issued this rule in 2008, but delayed implementation until now. The rule generally applies to building contractors, handymen, residential landlords, property managers, and anyone else who is paid to perform renovations or to direct workers to perform renovations as specified. The lead renovation rule does not apply to homeowners renovating the homes they live in. However, sellers of target housing must, among other things, disclose to their buyers any known lead-based paint and lead-based paint hazards (C.A.R. Form FLD). The $100 million allocated for California’s first-time homebuyer tax credits may be depleted in about 10 to 20 days or sooner, according to C.A.R.’s Economics team. California’s Franchise Tax Board (FTB) plans to begin accepting applications on May 1, 2010 for tax credits up to $10,000 for first-time homebuyers and for homes that have never been previously occupied. However, the total tax credit allocation for all taxpayers is $100 million for first-time homebuyers and $100 million for new homes, both on a first-come, first-served basis. C.A.R.’s forecast of 10 to 20 days to deplete the $100 million allocation for first-time home buyers is based on estimated May sales figures and other parameters. It does not take into account the possibility that buyers scheduled to close escrow in April may delay closing until May to take advantage of the tax credit. If a shift in closings from April to May occurs, the first-time homebuyer tax credits may be depleted even more quickly than indicated above. Applications for the California tax credit must be faxed to the FTB after escrow closes. The FTB will update its website when the 2010 application form and other information become available. Continue reading: California’s Tax Credit Monies May Go Fast A real estate broker’s commission may be determined using a percentage of the sales price, a flat fee, or a combination of both, according to a recent letter from HUD’s General Counsel Helen Kanovsky. The February 26th, 2010 | Tags: Helen Kanovsky, HUD, HUD-1, RESPA | Category: Press Release | Leave a comment An agreement for a “nonrefundable” escrow deposit is invalid and unenforceable, according to the recent California case of Kuish v. Smith (2010 WL 373225). This case serves as a good reminder for REALTORS® that inserting a “nonrefundable deposit” provision into a real property purchase contract may be legally ineffective. The Kuish case involved a $620,000 escrow deposit for the purchase of a $14 million oceanfront home in Laguna Beach. Instead of using a liquidated damages provision, the buyer and sellers merely agreed in the purchase contract that the deposit would be “nonrefundable.” According to the trial court, both parties were “big boys,” meaning that they were “sophisticated business people [who] understood all the ramifications of their actions in freely negotiating to make the [deposit] non-refundable.” The buyer eventually cancelled the agreement. The sellers refused to return the deposit to the buyer, even though they sold the property to someone else for $1 million more. The buyer sued to recover the $620,000 deposit, and won on appeal. The court stated that “any provision by which money or property would be forfeited without regard to actual damage suffered would be an unenforceable penalty. To construe the term ‘nonrefundable’ to establish [the sellers'] entitlement to the full deposit without regard to actual damages would essentially create a liquidated damages provision.” Yet, the parties in this case did not separately sign or initial a liquidated damages provision. C.A.R.’s Legal Department is proud to offer three new and improved legal services for REALTORS®. To meet our members’ high demand for legal advice, we are rolling out a new legal webinar, legal blog, and automated legal hotline system. Plus you can still reach us by calling our Legal Hotline or visiting Legal online at www.car.org. From keeping you updated on new laws to addressing your day-to-day legal issues, our Legal Department is committed to helping you stay at the top of your game. You can now tap into our legal knowledge and prowess in the following ways:
C.A.R. Member Legal also provides REALTORS® with many legal articles covering a wide range of topics of interest. Two of our new legal articles available at http://qa.car.org/ are as follows: |
Register | Login | |||||
|
Copyright © 2012 Sacramento Association of REALTORS® Web Log - All Rights Reserved |
||||||
Recent Comments