The real estate industry is experiencing a situation due to new rules relating to buyers’ brokers in residential real estate transactions. Earlier this year, facing a $1.8 Billion verdict, the National Association of Realtors...more
The Fair Housing Act Applies to Residential Real Estate Appraisals -
The Fair Housing Act (FHA) was passed in 1968 to prohibit housing discrimination based on race, color, religion, and national origin. Since then, the...more
7/23/2024
/ Appraisal ,
Appraisers ,
Consumer Financial Protection Bureau (CFPB) ,
Department of Justice (DOJ) ,
Fair Housing Act (FHA) ,
Fair Market Value ,
HUD ,
Mortgage Lenders ,
Mortgages ,
Race Discrimination ,
Real Estate Transactions
Suppose we compare how orchestra violinists are paid to how residential real estate agents are paid. In contrast to violinists, who must spend a fixed amount of time in rehearsals and concerts, real estate agents receive the...more
When reviewing legal documents, it’s easy to become so focused on a particular area that and forget about “everything else.” Each “everything else” item might seem minor, but collectively, “everything else” can make a serious...more
On March 1, 2024 a United States District Court in Alabama held in National Small Business United dba National Small Business Association v. Yellen (NSBA Case) that the Corporate Transparency Act (CTA) is unconstitutional. ...more
3/25/2024
/ Anti-Money Laundering ,
Appeals ,
Beneficial Owner ,
Commerce Clause ,
Compliance ,
Constitutional Challenges ,
Corporate Transparency Act ,
Department of Justice (DOJ) ,
FinCEN ,
IRS ,
Mortgage Lenders ,
Real Estate Investments ,
Real Estate Transactions ,
Reporting Requirements ,
SBA ,
Small Business ,
SPEs ,
Tax Evasion ,
Tribal Corporations
Contracts, real estate leases, and other legal documents also often include provisions that are mandatory (like obligatos) and/or are optional (like ossias). Terms such as "shall," "must," "will," "may," and "should” each...more
Like violin pedagogy, real estate brokerage commissions for home sales have followed a set practice for decades, even though it might not be the best arrangement for all involved. Sellers listed their homes with a real estate...more
The real estate industry – and much of our economy – is at a point where we must shift. With the pace of inflation and interest rate increases, some of those shifts will be large. And those large shifts may challenge the...more
1/3/2023
/ Commercial Real Estate Market ,
Coronavirus/COVID-19 ,
Investors ,
IRS ,
Limited Liability Company (LLC) ,
Mortgage Lenders ,
Multi-Family Development ,
Pass-Through Entities ,
Real Estate Investments ,
Real Estate Transactions ,
Recessions ,
Residential Real Estate Market ,
Strategic Planning ,
Tax Planning ,
Underwriting
One of my mantras when preparing contracts and company policies is “to be careful what you incentivize. This article discusses the "cobra effect" and why it's critical when preparing legal documents to consider what behavior...more
As I discussed in Identifying Suspicious Activity in Real Estate Transactions, the Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) has long had its eye on the real estate industry. As with Hatto’s...more
Unfortunately, real estate is too frequently a vehicle for money laundering. This article discusses red flags that real estate investors and real estate professionals and market participants should look for so they can avoid...more
This article is part of a series discussing how the American Families Plan might affect real estate investments. Previous articles discussed how the American Families Plan proposes eliminating the stepped-up basis for many...more
6/1/2021
/ Biden Administration ,
Commercial Real Estate Market ,
Estate Planning ,
Estate Tax ,
Estate-Tax Exemption ,
Farms ,
Gift Tax ,
Gift-Tax Exemption ,
Proposed Legislation ,
Real Estate Transactions ,
Safe Harbors ,
Section 1031 Exchange ,
Small Business ,
Step-Up Basis ,
Tax Planning
Because attorneys and real estate mortgage lenders and title companies have telecommuting capability, most commercial real estate closings can proceed–even where non-essential businesses must close. However, COVID-19 still...more
Financing arrangements are like the themes and tonality in a musical composition. Different aspects of the financing process occur at different points in the real estate transaction. Yet, most real estate buyers depend...more
10/28/2019
/ Closing Documents ,
Commercial Real Estate Contracts ,
Debt Financing ,
Deed of Trust ,
Equity Financing ,
Escrow Instructions ,
Fannie Mae ,
Financing ,
Freddie Mac ,
Government-Guaranteed Loans ,
HUD ,
Inspections ,
Loan Documentation ,
Mortgages ,
Purchase Agreement ,
Real Estate Investments ,
Real Estate Transactions ,
Residential Real Estate Contracts ,
Title Insurance ,
UCC Financing Statements ,
Uniform Commercial Code (UCC) ,
Veterans Administration
This article about real estate closings is the fifth in a series of articles about the Anatomy of a Real Estate Transaction. In previous articles, I compared a real estate transaction to the sonata-allegro form used in many...more
This is the fourth in a series of articles about the Anatomy of a Real Estate Transaction. In previous articles, I compared the exposition to the Pre-Contract part of a real estate transaction, when the parties agree upon the...more
Merriam-Webster defines “development” as setting forth or making clear by degrees or in detail. In music, the development is elaboration of “a musical idea by working out of rhythmic and harmonic changes in the theme.”...more
9/30/2019
/ Americans with Disabilities Act (ADA) ,
Buyers ,
Commercial Real Estate Contracts ,
Contract Terms ,
Due Diligence ,
Environmental Assessments ,
Inspections ,
Permits ,
Property Insurance ,
Purchase Agreement ,
Real Estate Transactions ,
Sellers ,
Title Insurance ,
Zoning Laws
Like musical compositions, most real estate transactions share a common pattern. This is the second in a series of articles about the Anatomy of a Real Estate Transaction. This article discusses what happens before the...more
Real estate transactions are similar to musical forms. Most follow a similar pattern, but like real estate, each transaction is as different as each parcel of real estate, itself.
This is the first in a series of articles...more
Real Estate Wire Fraud is Increasing -
Just as the stolen Huberman was hidden in plain sight, fraud in real estate transactions has moved out of the shadows and into plain view. Today’s real estate fraudsters pose as...more
To real estate buyers, title insurance options may seem as confusing as the violin rental options do to parents. Title insurance policies can be standard or extended coverage. They also have both exclusions and...more
Today, Wachet Auf is possibly Bach’s best known cantata. It has been frequently used in movies and television, ranging from Mr. Holland’s Opus to Mad Men (in the episode Three Sundays) to Win Ben Stein’s Money.
In real...more
6/25/2019
/ Breach of Contract ,
Commercial Property Owners ,
Commercial Real Estate Contracts ,
Liens ,
Lis Pendens ,
Mortgages ,
Property Owners ,
Purchase Agreement ,
Real Estate Transactions ,
Real Estate Transfers ,
Representations and Warranties ,
Third-Party ,
Title Reports
The Cleveland Quartet musicians had the luxury of selecting the time when they wanted to disband. They also likely didn’t have to think about tax consequences when they disbanded.
However, for individuals who jointly...more
6/17/2019
/ Broker-Dealer ,
Capital Gains ,
Change in Ownership ,
Commercial Real Estate Contracts ,
Income Taxes ,
Limited Liability Company (LLC) ,
Mortgage REITS ,
Partnerships ,
Real Estate Investments ,
Real Estate Transactions ,
Refinancing ,
REIT ,
Section 1031 Exchange ,
Tax Basis ,
Tenants in Common
The distinctions between the dealer’s representations, warranties, and covenants, seem obvious in a violin purchase. Yet, many parties and even attorneys mix them up when writing real estate contracts. This article discusses...more
How do Contracts End? -
Although Mahler symphonies might seem to go on forever, they do eventually end when the orchestra plays the last note in the last movement. Contracts end, also. However, the end of a contract isn’t...more