Tag Archives: Real Estate Investment

Can Public Agencies and Private Developers Work Together to Help Fix Pennsylvania’s Transportation Infrastructure? The Promise of P3 Legislation

Pennsylvania’s transportation infrastructure needs far surpass the Commonwealth’s ability to fund them. According to a 2010 study by the State Transportation Advisory Committee, an additional $3.5 billion a year is needed to fully meet those needs. To close the funding gap and facilitate the development of new transportation facilities throughout the Commonwealth, Pennsylvania, on July … Continue Reading

New Developments in Real Estate Construction Loans in Pennsylvania

This posting was also written by Curt Heffler. Construction Ahead: In a recent Pennsylvania Superior Court case (Commerce Bank v. Kessler), the court held that an open-end mortgage recorded after commencement of construction on the mortgaged property does not have statutory priority over a subsequently recorded mechanic’s lien unless all of the proceeds of the loan … Continue Reading

Bankruptcy Court Decision In Illinois Holds That Mortgage Can Be Avoided Because of Failure To Include Loan Terms In Mortgage Document

In In re Crane, the Bankruptcy Court for the Central District of Illinois recently held that a mortgage can be avoided in bankruptcy if it fails to include the maturity date and the interest rate of the underlying debt within the mortgage document. The court found that failing to include these loan terms on the … Continue Reading

Michigan Court Denies Transfer Tax Exemption to Fannie Mae & Freddie Mac: A Sweet Result for Michigan That Could Cost the Feds Millions

While those with a sweet tooth may think of Fannie May as the Chicago-based chocolate company, Fannie Mae has only brought heartburn to Michigan as Fannie and Freddie Mac claimed a federal exemption from the Michigan real estate transfer tax as to the sale of foreclosed properties – costing Michigan millions of dollars in lost … Continue Reading

Chicago Wins the Latest Round: In a Longstanding Battle, Court Upholds Chicago Landmarks Ordinance Against Constitutional-Vagueness Challenge by Property Owners

The City of Chicago has prevailed in the latest round of a "no holds barred" battle with local property owners over the constitutionality of The Chicago Landmarks Ordinance. In a decision dated May 2, 2012 by the Circuit Court of Cook County, the property owners' claims that the Landmarks Ordinance was unconstitutionally vague and violated due process were rejected, and the court upheld the Ordinance. Hanna and Mrowka v. City of Chicago. No. 06 CH 19422. The landowners had previously won a highly favorable ruling at the appellate court level (in 2009), which raised the prospect of the invalidation of the Ordinance (as reported in a previous Reed Smith Client Alert) - a result that would have sent shockwaves through the historic preservation community nationwide. With the case remanded to it for decision, the trial court considered the due process vagueness issue in detail, including as to the clarity of the Ordinance's criteria for landmark status; but it was not persuaded by the property owners' arguments, and found that they did not meet their burden of rebutting the presumption of the constitutionality of the legislation, thus upholding the Ordinance.… Continue Reading

The Non-Recourse CMBS Loan: Apparently Not All It’s Carved Out To Be

In the world of securitized commercial mortgages, non-recourse carveout guaranties have long been a matter of standard practice. For CMBS lenders, they offer a critical backstop against fiscal mischief by borrowers, and for responsible borrowers they provide access to real estate financing without fear of personal ruin. Nevertheless, two recent court decisions have thrown the … Continue Reading

Financing Contingencies and Earnest Money Deposits: If I Can’t Get My Loan, I Get My Deposit Back, Right?

Real estate purchasers whose contract permits the return of the earnest money deposit if financing cannot be obtained must be extremely careful in how this contingency is worded in the purchase contract, or a purchaser may get an unwelcome surprise, and be forced to forfeit the earnest money when financing cannot be obtained. Typically, when … Continue Reading

Chicago’s Vacant Building Ordinance Addresses Some Serious Problems – and Creates Some of Its Own, Too

Chicago's Vacant Building Ordinance, which imposes substantial and unprecedented duties on mortgagees of residential real estate located in the city of Chicago, continues to generate controversy - and lawsuits.… Continue Reading

SEC Targets Key Mortgage REITs Exemption

SEC Action Threatens Already Shaky Housing Market Mortgage real estate investment trusts (“MREITs”), which provide much needed liquidity to a capital starved real estate market, are at risk of losing a key exemption under the Investment Company Act of 1940 (the “Act”). MREITs are currently exempt from the Act and its limits of the amount of … Continue Reading

Non-domiciles – tax-free investments in UK commercial property

This post was also written by Annette Beresford. Next year could bring some interesting changes for non-UK domiciled developers and investors in UK property. Businesses that undertake the development of commercial or residential property or the letting of commercial property may gain the tax-free use of offshore income and gains in the UK. The Government is consulting … Continue Reading

News on Guarantees

This post was also written by Jon Pike and Richard Perkins. Last spring we posted on the difficulties facing landlords and tenants as a result of the High Court decision in Good Harvest.  Yesterday we had some good news as the Court of Appeal has reconsidered the point and introduced some commercial common sense into the law.… Continue Reading

Property Fund Managers – Are You Ready For The New Regulations?

Property investors have been happy working with minimal regulatory control for property investments using limited partnerships, unit trusts and companies and both onshore and offshore entities but all that is about to change. The E.U.’s Alternative Investment Fund Managers Directive (AIFMD) has been staggering through the E.U. regulatory process and is expected to be published a … Continue Reading

Residential service charge – a regulatory minefield?

Increasing numbers of property developments contain a residential element sold off on long leases and a commercial element let on market rent terms. Those used to managing commercial leases may not realise how highly regulated the collection of residential rent and service charge is – Recent regulations have now revised the form of demand to be … Continue Reading

Real Competition Law in Real Estate

This post was also written by Marjorie Holmes. We have seen our first court ruling on competition law issues in a lease renewal case and this is news given the uncertainties the real estate world is facing from 6 April 2011 when competition law starts to apply in full to all real estate transactions. The … Continue Reading

Bribery Act Update

This post was also written by George Brown Looking back at our original blog and subsequent update on the Bribery Bill, you may be forgiven for wondering when on earth the promised guidance from the Government will be published. The Ministry of Justice consulted on the draft guidance between September and 8 November last year. … Continue Reading

Competition Law and Land Agreements!

This post was also written by Philip Olmer and Marjorie Holmes. From the time the UK joined the EEC, sections of UK industry have had to grapple with European competition law requirements on anti competitive and monopolistic behaviour. In terms of real estate, competition law had really only affected public sector procurement projects and certain monopolistic businesses … Continue Reading
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