Did you know that a private apartment building owner could require tenants to pass drug tests? Did you know that a broker with an exclusive listing contract was entitled to commission after the seller secretly negotiated a sale?
Those are two findings from legal case studies in the IAR September issue of D.R. Legal News for managing brokers.
Summaries of five other case studies include:
- a broker may not act as a broker and attorney in the same transaction;
- fracking plaintiffs fail to hold up drilling applications under new regulations;
- a condominium purchaser was allowed a remedy after closing because of incomplete disclosure;
- a broker had a statutory obligation to remove a listing after learning the seller was not an authorized agent of the owner; and
- an internet provider was required by the Illinois Supreme Court to release the name of an anonymous commenter who posted defamatory remarks.
In addition, the September D.R. Legal News recaps recent real estate disciplines in Illinois, links to IAR’s list of more than 150 residential property inspection ordinances and reviews the TILA-RESPA Integrated Disclosure rule changes on Oct. 3.
Allowing the commercial use of unmanned aircraft systems (UASs), or drones as they are commonly called, is of growing interest to the real estate industry, said National Association of REALTORS® (NAR) President Chris Polychron in recent testimony before the U.S. House Judiciary Subcommittee on Courts, Intellectual Property and the Internet. Read NAR’s news release on Polychron’s testimony and see an excerpt below:
“Commercial use of unmanned aircraft systems, or UASs, has the potential to create new jobs and businesses specializing in their uses. NAR and its members are excited about these possibilities but also understand the need to balance them with protecting the privacy and safety of citizens and other users of the country’s National Air Space. As end-users of drone technology, Realtors® want clear regulation that permits the commercial application of UASs in a way that is affordable to users and safe for their communities, both on the ground and in the air.” — NAR President Chris Polychron
In other headlines:
Real Estate: New website for Illinois property owners launches – Journal Standard
Over 23% Thinking of Selling. Why the Hesitation? – KCM Blog
As the Oct. 3 effective date for the TILA-RESPA Integrated Disclosure rule gets nearer, IAR Legal Services wants to remind you that a new Loan Estimate form will replace the initial truth-in-lending and Good Faith Estimate forms.
The new form is intended to provide consumers with a more accurate estimation of the true financing and closing costs, says Jeffrey T. Baker, Sorling Northrup Attorneys, IAR Transaction Helpline Attorney. Certain estimates on the Loan Estimate must fall within a prescribed tolerance, he says, or a refund to the consumer from the lender may be necessary.
For more information on TRID, watch this blog or go to IAR’s list of handy resources: http://www.illinoisrealtor.org/respa.
The legalities and concerns surrounding broker payment of compensation, incentives, referral fees, rebates and inducements will be among items discussed during the next IAR Legal Webinar, beginning at 9:30 a.m. Aug. 20. The legal team will also cover some recurring issues that have arisen in the context of the relationship between the brokerage companies and their clients.
The hour-long, members-only webinar, “Back to School, Fall 2015,” will be hosted by IAR Legal Helpline Attorney Jeffrey T. Baker and IAR Legal Hotline Attorney Betsy Urbance. Also on the agenda are updates about drones, TRID and developments with state legislation.
If you have a question you’d like addressed during the webinar, please send it in advance to firstname.lastname@example.org. Although questions will be answered during the webinar, priority will be given to those received in advance.
Since space is limited for webinars, members who aren’t able to log in on Thursday morning will be able to access a recording within 48 hours of its completion.
(l to r) Lawrence Yun, Dan Wagner and Bill Brown
Dan Wagner told REALTOR® association leaders on Monday how important it is for Congress not to repeal Section 1031 like-kind exchanges.
Wagner, president-elect of the Chicago Association of REALTORS® and a member of the IAR board of directors, appeared on a real estate economic update panel with NAR First Vice President Bill Brown and NAR Chief Economist Lawrence Yun. The panel was held at the NAR Leadership Summit for incoming association leaders.
Wagner, who is Senior Vice President Government Relations for the Inland Real Estate Group of Companies, Inc., has been actively involved in pushing for congressional support of the 1031 Exchange legislation.
Wagner said the 1031 exchange is an important tool for commercial property owners. Through 1031 Exchange rules, companies are better able to create jobs by putting money into renovating properties, making them more energy efficient and following green initiatives, Wagner said.
1031 Exchanges are tax code provisions which allow investors to defer capital gains taxes when they sell a property and purchase another similar property. Inland Real Estate Group deals extensively in commercial office and retail properties, and has frequently used the 1031 Exchange rules.
During their discussion, Wagner and Yun touched upon the subject of rising interest rates and their effect on capitalization rates. Wagner noted that while suburban office buildings, unanchored strip centers and interior malls are suffering from vacancies and decreasing rents, other retail establishments and apartment rentals seem to be very profitable.