In a recent Washington Post article titled “Don’t be confused when it comes to condo insurance,” Robert Diamond of Reed Smith’s Tyson office offered his observations on the complexities of condominium insurance coverage. In some jurisdictions, when a unit owner is found to be negligent — such as when a bathtub overflows or there is a kitchen … Continue Reading
On September 18, 2014 Congress amended the Interstate Land Sales Full Disclosure Act (“ILSA”) to exempt condominiums from the filing and registration requirements. Originally intended to protect consumers against fraudulent land sales practices such as selling lots that were underwater or unable to obtain utility services, the federal courts and the Department of Housing and … Continue Reading
Despite the recent low interest rate environment, some projects just will not support market rate construction loans. What then is the developer to do? Over the last few years developers have begun to turn to the purchaser to finance construction of a project. This technique can be used for both residential and commercial development. Many … Continue Reading
On September 13, 2012, FHA issued Mortgagee Letter 2012-18, putting in place a few temporary condominium project approval guideline changes, effective through August 31, 2014. Among the guidelines affected is the maximum percentage of non-residential space permitted in the project to qualify for FHA financing. Under the previous guideline, no more than 25 percent of … Continue Reading
