by Ron S. Brand:
Mortgage lenders should be preparing to implement the Consumer Financial Protection Bureau’s (“CFPB”) TILA-RESPA Integrated Disclosure (“TRID”) Rule, which is scheduled to take effect on August 1, 2015 and applies to most closed-end consumer mortgages. Issued in November 2013, the TRID Rule amends portions of Parts 1024 and 1026 of Title 12 of the Code of Federal Regulations.
On April 1, 2015, Governor Jerry Brown issued Executive Order B-29-15 imposing, for the first time in California history, mandatory water use restrictions aimed at achieving a statewide 25 percent reduction in potable urban water use compared with 2013 levels. The Order directs the State Water Resources Control Board (“State Water Board”) to develop, impose and enforce the mandatory water reduction measures against the more than 3,000 urban water providers throughout California. The State Water Board is expected to impose the new restrictions by mid-May 2015, establishing a different targ
Effective for 2014, taxpayers who exchange real property located in California for like-kind properties located outside of California in a tax-deferred like-kind exchange will need to file an annual information return with the State of California. A new California tax form, Franchise Tax Board ("FTB") Form 3840, California Like-Kind Exchanges, will be utilized to report the exchange and a separate FTB Form 3840 is required for each exchange completed.
This month the voters of the City and County of San Francisco narrowly rejected Proposition G which would have allowed San Francisco to impose an additional transfer tax (ranging from 14%-24% of the total sale price) on certain multi-unit residential properties within San Francisco that were sold within five years of acquisition. This proposed tax, although rejected by the voters, is part of a pattern by some California cities and counties to seek additional revenues from transfer taxes associated with real estate transactions and/or entities that own real estate.
On September 26, 2014, developers of condominium projects throughout the country achieved a major victory, as President Obama signed H.R. 2600 into law. When it becomes effective, H.R. 2600 will amend 15 U.S.C. 1702 of the Interstate Land Sales Full Disclosure Act (“ILSA”) to exempt condominiums from the filing, registration and disclosure requirements of ILSA. H.R. 2600 drew wide-ranging, bipartisan support with both the House of Representatives and the Senate unanimously voting to adopt the amendment.
Original Article Published 9/19/13: The Right to Repair Act, also known as “SB800” (the “Act”), which applies to new residential construction sold on or after January 1, 2003, superseded common law causes of action such as strict liability and negligence by homeowners for defective residential construction. The Act gave builders a right to repair any alleged deficiencies before homeowners could sue. Not so, said the Court of Appeal in Santa Ana on August 28, 2013.
The California Revised Uniform Limited Liability Company Act ("RULLCA") will repeal and supersede California’s existing limited liability company act (the Beverly-Killea Limited Liability Company Act, "Beverly-Killea"). RULLCA is different from Beverly-Killea in many significant respects.
On September 23, 2013, Sections 506(d) and 506(e) of Regulation D under the Securities Act of 1933 became effective regarding “bad actors.” Section 506 provides a commonly used exemption from the requirement under the Securities Act of 1933 to register offerings for sales of securities.
On August 5, 2013, the California Supreme Court released an important decision concerning the California Environmental Quality Act (“CEQA”) and an interpretation of CEQA Guideline section 15125(a) on the “baseline” from which potential impacts would be measured in the matter entitled Neighbors for Smart Rail v. Exposition Metro Line Construction Authority et al. (Los Angeles Metropolitan Transportation Authority et al.).