A recent New Jersey decision addressed how a condemnation award should be calculated in the event of a partial property taking.
In Borough of Harvey Cedars v. Harvey Karan and Phyllis Karan, 2013 WL 3368225 (N.J.), the Supreme Court of New Jersey analyzed this issue in the context of a partial taking for an easement for sand dunes part of which was over a portion of the defendants’ property. It is easy to see that there would be some diminution in the value of an oceanfront property resulting from an obstruction of the view because of the sand dunes. The harder question, and the one the Court addressed, is whether any increase in the value of the home resulting from a reduced risk of storm damage, should also be factored in the calculation. To read more, go to http://blog.madisoncres.com/.
Tags: 2013 WL 3368225 (N.J.), Borough of Harvey Cedars v. Harvey Karan and Phyllis Karan, condemnation, easement, eminent domain, general benefit, New Jersey Supreme Court, oceanfront property, sand dunes, special benefit, storm damage
By Pat Anarumo
Flood insurance has been a hot topic lately in the wake of Hurricane Sandy. Most people aren’t aware – or weren’t until after the storm — that their homeowner’s insurance policy does not cover flooding. Flood insurance is a separate policy issued by the government through the National Flood Insurance Program (NFIP). A flood insurance policy is required by lenders if the property lies within a flood zone as determined by maps drawn up by the Army Corps of Engineers.
A standard issue flood insurance policy is a ‘one peril policy’ that pays for physical damage to the insured property up to the replacement cost or actual cash value of the damages or the policy limit, whichever is less. There are two types of coverage: Building Coverage and Contents Coverage. Contents Coverage must be purchased separately. The amount of coverage varies by type of property. Here are some basics on flood insurance coverage limits for residential and commercial property and a brief breakdown of what is and isn’t typically covered. Continue reading
By Esther Rozsansky, Certified Exchange Specialist
As expected, the IRS extended the 45-day identification period and 180-day exchange period on active IRC 1031 like kind exchanges for victims of Hurricane Sandy. This tax relief is granted on a county-by-county basis. It is possible, but unlikely, that the IRS may add additional counties to its current list. Click here to learn which area are covered and the criteria that must be met to qualify for the extension. Continue reading
By Debra Smith, Esq.
Associate Commercial Counsel
A recent case in the Second Department in New York has expanded the long-standing position held on the issue of equitable subrogation. Before delving into the details of the specific case, it may help to explain the concept. Equitable subrogation is a doctrine recognized in most states and a common issue in the world of real estate and lending. This doctrine enables a lender that pays off an existing loan to stand in the shoes of the lien holder it paid off for priority purposes. This is an equitable remedy that allows, in certain circumstances, for the lien holder (lender) to change its priority position to the extent of the lien paid.
How does equitable subrogation work? And how does the recent NY case expand the application of equitable subrogation in the Second Department?
Tags: 2012 WL 1860734, 470 B.R, 715 (2012), 86 F.3d 890 (1991), actual notice, Arbor Commercial Mortgage, constructive notice, equitable remedy, equitable subrogation, et al., In re Ricchi, junior position, lien, lien holder, LLC, LLC v. Associates at the Palm, Mort v. United States, mortgage, new mortgage, note, priority position, Second Judicial Department, the Appellate Division-
Economic cycles come and go. It is important for commercial real estate professionals, as a prelude to lease negotiations, to know and understand the economic picture and prospects related to the general economy. Regular contact with business leaders and corporate … Continue reading
Tags: available lease space, business cycle, Commercial Real Estate, lease renegotiation; landlord, lease renewal, lease renewal process, lease terms, original lease, real estate agent, real estate Broker, space requirements, tenant
By Michael Donini, Esq.
Senior Commercial Counsel, Madison Title
Earlier this summer, five regional title insurance underwriters reported their decision to join forces and form the American Title Reinsurance Alliance (ATRA). The Agents include National Title Insurance, Alliant National Title Insurance, Attorneys’ Title Guaranty Fund, Connecticut Attorneys Title Insurance, and Security Title Guarantee—and more may be joining the fold.
What’s behind this alliance, and what are the pros—and cons? Is it a game changer? Continue reading
Tags: Alliant National Title Insurance, American Title Reinsurance Alliance, ATRA, Attorneys’ Title Guaranty Fund, Connecticut Attorneys Title Insurance, National Title Insurance, Security Title Guarantee, title insurance, title insurance exclusions, title insurance market consolidation, title insurance policies, title insurance underwriter
By Samuel M. Shiel, Esq.
Director National Title Services / Senior Underwriting Counsel
Madison Title Agency
In my May 31, 2012 blog post, I wrote of the decision by the Fidelity Title Insurance Group to stop offering coverage over mechanic’s liens effective June 15, 2012. Yet, within six weeks of the May 10th announcement, Fidelity reversed its position and decided in fact to continue to provide coverage. Read on to learn what led to this major reversal in such a short period of time. Continue reading
Tags: and Fidelity National Title, Chicago Title, Commonwealth Land Title, Deed of Trust, Fidelity Title Insurance Group, hidden lien, indemnities, independent verification of facts, Lien Agent, lien rights, long-form lien waivers, mechanic’s lien, mechanic’s lien coverage, North Carolina General Assembly
REITs have been the shining star of the stock market the last three years. For those who aren’t familiar with REITs, a REIT is an acronym for a Real Estate Investment Trust, a tax designation for a corporate entity investing in real estate. The REIT structure was designed to provide a real estate investment structure similar to the structure mutual funds provide for investment in stocks. REITs can be publicly or privately held. Until recently, financial advisers were telling investors to hold about 5% of their portfolio in REITs. Recently, this started to change. Continue reading
Tags: corporate taxes, dividends, mutual funds, NAV, Net Asset Value, publicly-traded REITS, Real Estate Investment Trust, REIT, REIT sectors, S&P 500, Stock Index, stock prices, stock shares
As a marketer in the world of real estate and finance, I crunch numbers and analyze data to determine the best course of action. I don’t believe in reading tea leaves, tarot cards or palms. I don’t look for symbolic ‘signs’ that are supposed to point the way in big life decisions. Admittedly, over the last five years, the numbers haven’t been very positive or pleasant to digest. Housing starts down. Commercial lending down. Foreclosures up. It’s been a veritable smorgasbord of sour data. So it is encouraging to finally see a wealth of indicators (hard numbers not just anecdotal reports) from all directions agreeing that the real estate market – which has supposedly been on a journey of healing for a long time – seems to finally be reaching that coveted destination: solid economic recovery.
Here are some of the highlights from the past month or so in case you’ve missed them, haven’t had the time to comb through dozens of media sites to aggregate the data, or are just tired of reading headlines prognosticating recovery that turn out to just be false-starts.
Tags: Commerce Department, commercial lending, CoreLogic, Department of Housing and Urban Development, Federal Reserve, Foreclosure Market Report, foreclosures, Home Depot, Housing Scoreboard, housing starts, Inc., Realtor.com, RealtyTrac, Title Insurance Underwriter Fidelity National, U.S. Census Bureau
By Moshe Hildeshaim
While you may not be able to retire early, certain depreciable assets in your real estate portfolio may be eligible for early retirement. While we are all familiar with the concept of a cost-segregation study, there is another aspect to a cost-segregation study that – although not as well known – offers the potential of huge tax savings. This is known as the “write off component”. It is what should happen when you decide to renovate a property and remove its original assets. Continue reading
Tags: accelerated depreciation, cost segregation, cost segregation study, depreciable assets, ghost assets, Internal Revenue Service, IRS, renovation, retirement loss, short depreciation cycles, taxpayer, write-off component