Category Archives: Real Estate

Pending Emergency Legislation to Affect Tax Sales and Recordation Tax on Leases

The Washington, D.C. Council is considering B22-922: Fiscal Year 2019 Budget Support Congressional Review Emergency Act of 2018 which, among many provisions, contains a few changes of interest to real estate practitioners which are found here. Recordation Tax: On leases in excess of 30 years, the Washington, D.C. government may determine the fair market value of the leasehold interest... Read More >

Condo Liens Entitled To Super-Priority Status Regardless Of Number Of Months Sought

Under D.C. Code sec. 42-1903.13, liens imposed by a condominium association for up to six months of unpaid condo fees were entitled to super-priority status ahead of all other liens on the condo. In two prior decisions, the D.C. Court of Appeals held that a foreclosure sale under such a super-priority lien necessarily wiped out all other liens of the... Read More >

D.C. Announces New Tax Rates for First-Time Homebuyer

Washington, D.C.’s innovative First Time Homebuyer’s tax rate reduces the recordation tax to .725 percent. The statute is found at Official Code §42-1101(17). The tax rate and value of the property changes from year to year based upon the C.P.I. Effective on October 1, 2019, the purchase price may not exceed $632,500 and the income for a single-member household may not... Read More >

D.C. Tax Rate Changes Effective October 1, 2018

The District of Columbia’s Office of Tax and Revenue has issued a notification of changes in various tax rates that will become effective on Monday, October 1, 2018. The real property tax for Class 2 properties will increase to $1.65 per $100 of value for properties worth less than $5,000,000; $1.77 from $5 million to $10 million; and $1.89 for... Read More >

New Maryland Statute: Corporate Articles of Transfer No Longer Needed to Transfer Real Property

Until August 2018, Maryland was one of the few states that required a state-based corporation that transfers all of its real property assets to execute and file articles of transfer with the State Department of Assessment and Taxation (SDAT). This regulation is outlined in the Corporations and Associations Article of the Annotated Code of Maryland Section 1-101(y) and 3-109... Read More >

Virginia: No Bona Fide Purchaser of an Easement; Terms of Revocable Trust May Permit Transfer by Non-Trustee

The recent case of Kruck v. Krisak, 2018 WL 2386671 (Fairfax Cir. Ct. 2018) addressed two issues of first impression in Virginia regarding bona fide purchasers and how the transfer of real property to a trust might affect a grant of an easement. The case began with an easement for a septic field that was granted in 1974 by Austin Foster... Read More >

Housing Licensing and TOPA in the District of Columbia

Recent changes to the Tenant Opportunity to Purchase Act (TOPA) in the District of Columbia have had broad repercussions in the single-family rental market. Since TOPA’s inception, the competing purposes of maintaining a rental market and encouraging tenants to leave the rental market and become homeowners have resulted in a structure that is difficult to follow and has... Read More >

D.C. Real Estate Loan Drafting Guidance

Practical Law, a Thomson Reuters company that publishes online resources for attorneys, recently launched a state-by-state survey providing Real Estate Loan Drafting Guidance that caters to real estate finance practitioners.  Erica Litovitz and Brian W. Thompson contributed the DC-specific content, which Practical Law published on May 29, 2018 and is now available to subscribers of Practical Law. Published... Read More >

Conservation Easements: Congress Giveth and the IRS & Tax Court Taketh Away

By: Nancy Ortmeyer Kuhn, Esq. Charitable conservation easements have long been controversial, and there was some concern that the new tax legislation enacted in December 2017[1] would limit the conservation easement charitable deduction.  However, there were no limits placed upon conservation easements, and even the syndicated easements[2] were left alone.  This particular area of the law is... Read More >

TOPA Update – Single-Family Homes, DC Legislation Passed

This is an update from the articles posted March 9, April 4, April 6, and April 10, 2018 relating to Single-Family Homes – DC Legislation Proposed to Exclude from TOPA. The District of Columbia Council passed legislation today, April 10, 2018, that excludes single-family homes from TOPA. Bill 22-315, was first introduced last... Read More >

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DC Reduced Rate of Recordation Tax – Applies to Revocable Trust

The District recently passed legislation which reduces the Recordation Tax for most first-time homebuyers.  The Recordation Tax for a “first-time District homebuyer” purchasing “eligible property” is reduced to 0.725% (transfer taxes owed by the seller of 1.1% or 1.45% are unchanged) for houses and, for transfers of economic interests in a housing cooperative unit (co-op unit), the recordation tax rate is... Read More >

TOPA – Proposal to eliminate Bankruptcy and Court-Order Exemptions

Earlier this month, Bill 22-0739 was introduced to the District of Columbia Council. The Bill is named the TOPA Bankruptcy Tenant Displacement Prevention Amendment Act of 2018. The Bill seeks to amend the Tenant Opportunity to Purchase Act to remove TOPA’s exemption of bankruptcy sales and to require owners of property acquired via court order to submit to TOPA... Read More >

DC Super-Priority Lien on a Condo Cannot Foreclose Subject to First Priority Mortgage

Following from its decision in Chase Plaza Condominium Assoc. v. JPMorgan Chase Bank, 98 A.3d 166 (DC 2014), in which the DC Court of Appeals held that a DC condominium foreclosing on its statutory six-month super-priority lien could by law extinguish an otherwise first-priority mortgage when the proceeds of the sale were insufficient to satisfy that mortgage, the Court was... Read More >

Immigrants Detained By The Government Not Entitled To Bond Hearings

Under immigration law, applicants for admission to the United States may be detained by the Government until certain proceedings have concluded. Nothing in the applicable statutes limit the duration of detention, nor mention bond hearings. In Jennings v. Rodriguez, an immigrant filed a habeas corpus suit arguing that he should be entitled to a bond hearing once his detention... Read More >

Court Narrows Bankruptcy Safe Harbor Provision

In Merit Management Group, LP v. FTI Consulting, Inc., the Court addressed 11 U.S.C. sec. 548(e), which allows bankruptcy trustees to set aside and recover certain transfers for the benefit of the bankruptcy estate, but not a “settlement payment . . . made by or to (or for the benefit of) a . . . financial institution . ... Read More >

Southern District Heightens Lawyers’ Duties in Preventing Spoliation of Evidence by Clients

In Industrial Quick Search, Inc. et al. v. Miller, Rosado & Algois, LLP et al., January 2, 2018, the Southern District of New York issued a decision underscoring the importance of lawyers paying early attention to the need for imposing “litigation holds,” being proactive in ensuring compliance with such holds, and making a clear record of steps taken with... Read More >

Art Burger to Moderate Panel at ABA National Conference

Arthur D. Burger, Chair of Jackson & Campbell’s Professional Responsibility Practice Group, will be the moderator on a Panel at the 44th ABA National Conference on Professional Responsibility. The panel will be on Friday, June 1 during the Conference in Louisville, KY from May 30-June 1 of 2018.  Art’s Panel, When Clients Go Rogue will feature speakers Carol... Read More >

Supreme Court Clarifies Which Deadlines Are Jurisdictional

In Hamer v. Neighborhood Housing Services of Chicago, the Court, in a unanimous opinion by Justice Ginsburg, set forth a clear and easy way to tell whether a deadline is jurisdictional, and cannot be waived or extended, or is merely a “claim-processing rule” that can be extended: deadlines provided by statute are jurisdictional, while deadlines provided by court rules are... Read More >

Roy L. Kaufmann Testifies before the D.C. City Council on proposed TOPA legislation

Roy L. Kaufmann, from the Firm's Real Estate Group, testified before the D.C. City Council's Committee on Housing and Neighborhood Revitalization on behalf of the D.C. Land Title Association.  He testified on a proposed legislation to amend the Tenant Opportunity to Purchase Act (TOPA) called the TOPA Accessory Dwelling Act of 2017. REDLINE of DCLTA-requested revisions vs. current law 9-8-17... Read More >

New Emergency and Proposed Inclusionary Zoning Regulations

The Department of Housing and Community Development (DHCD), which oversees the Inclusionary Zoning program in DC, has new proposed regulations relating to Inclusionary Zoning.  The nature of these Emergency and Proposed regulations, can be found here.  Although the regulations are called “proposed”, they are effective.  Public comment ends on September 30.  If you care to make any comments, you... Read More >

Congratulations to our Best Lawyers in America © 2018!

Jackson & Campbell would like to congratulate our Best Lawyers in America © for 2018 Arthur D. Burger, Ethics and Professional Responsibility Law David H. Cox Litigation - Real Estate; Real Estate Law William E. Davis, Litigation - Trusts & Estates; Trusts & Estates Roy L. Kaufmann, Real Estate Law James P. Schaller, Commercial Litigation; Ethics and Professional Responsibility Law... Read More >

Right of First Refusal Must Be In Writing

The United States District Court for the District of Columbia restated the fundamental principle that in order for a right of first refusal to be enforceable, it must be in writing under the Statute of Frauds.  A tenant under a restaurant lease sued its landlord when the latter sold the real property in which the leased premises was located without... Read More >

Headstrong HOA Board Member Puts Himself in Harm’s Way Over Fair Housing Issues

In a recent case decided by the D.C. Court of Appeals, the court heard a matter involving the intersection between community association governance and fair housing law.  In this case, Wilfred Welsh, a board member of the Chaplin Woods Homeowners Association (the “HOA”), sued fellow HOA members Beverly McNeil and Alvin Elliott (the “McNeils”), claiming that the McNeil’s violated the... Read More >

Court Provides Guide For Defining Property In A Takings Case

St. Croix has a regulation that prohibits the owners of two neighboring properties along the St. Croix River from being separately sold or built upon unless each property has at least an acre of developable land. The Murrs owned two such parcels, each with less than an acre available to be developed. The Murrs wanted to sell one of the... Read More >

POSTED: Murr v. Wisconsin

Court Rules That District Courts Can Hear Mixed Cases Dismissed For Lack Of Jurisdiction, Over Justice Gorsuch’s First Dissent

In Perry v. Merit Systems Protection Board, the Court had to determine which federal court could hear an appeal from the Board’s decision that it lacked jurisdiction to hear a federal employee’s case. When Perry was fired from his job with the U.S. Census Bureau, he claimed discrimination (making his case a “mixed” one), but then signed a settlement agreeing... Read More >