legal hotline
Q A Q A
education schedule
By Chris Darby, Tom Muldoon, and John Nalls of Counselors Title, LLC, and Pardo & Drazin, LLC, General Counsel
Question: My client owns a 4-unit building that
he is thinking about converting into condominiums. He is unfamiliar with the process, but is specifically concerned about the condominium conversion fee. How do we know if he will be subject to it?
Answer: DC Law has established a fee of 5% of the sales price,
to be paid into escrow at the time of the sale of the units, for each condominium unit (or proportionate value of the cooperative) on an owner who converts a housing accommodation (including vacant buildings). There are exemptions from the fee contained in the law (D.C. Code § 42-3402.04 (b)). In creating the condominium, you will need to file for an exemption, if applicable. The attorney preparing the condominium documents will be able to assist in the application for exemption.
Question: I have a listing where the tenant has recently vacated. She is the only one on the lease and she and her boyfriend are looking for a place with more space. To whom do I need to send Tenant Opportunity to Purchase Act (TOPA) notices? Answer:
The individual on the lease is certainly entitled to her TOPA rights, and so might her boyfriend. DC Law has a rather broad definition of “tenant”. Offers of Sale (and rights of first refusal) under TOPA must be sent individually to each tenant. The definition of a tenant in D.C. Code §42-3401(17) is the following: Tenant means a tenant, subtenant, lessee, sub lessee, or other person entitled to the possession, occupancy or benefits of a rental unit within a housing accommodation. The facts relating to the living relationship here, as well as any assent of the owner to allow the boyfriend to occupy the property, may very well make the boyfriend a tenant as well. This is a perfect example of why every TOPA case needs to be addressed on its individual merits, and as early as possible, so as to ensure compliance with the law.
Q A Q A
Question: I need your help to interpret Clause
24 of the MC Lease where it says notices are to be given 60 days before the lease expires, but 30 days for single-family rental property. Are leased townhouses, which are attached to a block of few other townhouses, considered single-family rental property, per interpretation of Clause 24?
Answer: Section 29-1 of the Montgomery County Code defines a Single-Family Dwelling Unit as follows: “Dwelling unit, single-family: A dwelling unit that has at least one direct entrance from the outside for the exclusive use of its occupants. A single-family dwelling unit may be detached from other dwelling units or share a side or rear wall with another dwelling unit.” Therefore, a townhouse would be considered a single-family rental property for purposes of the notice clause. Question:
What is a “subagent” in regard to the Broker giving commission? Is a subagent a licensed agent? If not, is it best to NOT agree to pay a subagent, and have the payment only go to a licensed agent?
Answer: Subagency refers to the relationship between the listing
broker/agent and another broker/agent who brings the buyer to purchase the property. In subagency, the agent bringing the buyer is actually working for the seller as a subagent of the listing broker. This is important, as the agent working with the buyer actually owes fiduciary duties to the seller, not the buyer. Subagency occurs when the agent does not have a buyer-broker agreement in place with the buyer. So while a subagent is licensed, the question of whether to pay a subagent is a good one. The problem with subagency is the fact that the listing broker/agent and their seller clients are held responsible for the actions, errors and omissions of the subagent. Does the seller want a third party, who they likely do not know, representing them? It’s a discussion you should have with the seller. The reason to pay a subagent is so you do not eliminate anyone from showing the property.
The answers provided here are the opinions of the authors, are for informational purposes, and are only for GCAAR members. Neither Counselors Title, LLC, nor Pardo & Drazin, LLC is providing legal advice, but rather providing a general statement of law. No lawyer/client relationship is – or will be – established as a result of the material which follows. Readers are encouraged to retain their own counsel for their specific questions. Answers may have been edited for formatting purposes.
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Capital Area REALTOR® • Mar/Apr 2014
May 7, 2014 Financing Issues/Update CEU: 3 hours DC (Required); MD & VA (Elective) Instructor: James Semeyn Time: 10:00 a.m. – 1:00 p.m. *NAR Building/3rd Floor
May 2, 2014 Financing Issues/ Update CEU: 3 hours DC (Required), MD & VA (Elective) Instructor: James Semeyn Time: 9:30 a.m. – 12:30 p.m. May 2, 2014 Maryland Code of Ethics & Predatory Lending CEU: 3 hours MD (Required), DC (Elective) Instructor: Counselors Title Time: 10:00 a.m. – 1:00 p.m. * NAR Building/3rd Floor May 1, 2014 Veterans Administration (VA) Financing CEU: 3 hours MD & DC (Elective) Instructor: James Semeyn Time: 1:30 – 4:30 p.m. May 1, 2014 Maryland Fair Housing CEU: 1.5 hours MD (Required), DC (Elective) Instructor: Counselors Title Time: 2:00 – 3:30 p.m.
May 7, 2014 Broker Manager Forum: The Most Common Mistakes that Agents Make that Delay Settlement and How to Avoid Them CEU: No CE Instructor: Counselors Title Time: 12:00 – 2:00 p.m. May 7, 2014 Non-Conforming Financing CEU: 3 hours MD, DC & VA (Elective) Instructor: James Semeyn Time: 2:00 – 5:00 p.m. May 8, 2014 Maryland Code of Ethics & Predatory Lending CEU: 3 hours MD (Required) & 3 hours DC (Elective) Instructor: Jill Michaels Time: 9:30 a.m. – 12:30 p.m. May 8, 2014 New Member Orientation CEU: No CE Instructor: Jill Michaels Time: 1:30 – 3:00 p.m. May 15, 2014 DC Fair Housing CEU: 3 hours DC (Required) Instructor: Suzanne Feinstein Time: 9:30 a.m. – 12:30 a.m.
May 5, 2014 RPR Basics CEU: No CE Instructor: Jacqueline Talpa Time: 10:30 a.m. – 12:00 p.m.
May 15, 2014 Regional Sales Contract Update CEU: 3 hours MD, DC & VA (Elective) Instructor: Greg Flynn Time: 1:30 – 4:30 p.m.
May 5, 2014 RPR Advanced CEU: No CE Instructor: Win Singleton Time: 1:30 – 3:00 p.m.
May 16, 2014 Contracts, Settlement Procedures & Disclosures CEU: 3 hours MD & DC (Elective) Instructor: Chad Older Time: 9:30 a.m. – 12:30 p.m.
May 16, 2014 Working with Investors CEU: 1.5 hours MD & DC (Elective) Instructor: Chad Older Time: 1:30 – 3:00 p.m. May 19, 2014 Virginia Fair Housing CEU: 2 hours VA (Required) & DC (Elective) Instructor: George Glekas Time: 2:00 – 4:00 p.m. May 21, 2014 2011-2013 Maryland Legislative Update CEU: 3 hours MD (Required) & DC (Elective) Instructor: Greg Flynn Time: 9:30 a.m. – 12:30 p.m. May 21, 2014 Contract Basics CEU: 3 hours MD, DC & VA (Elective) Instructor: Greg Flynn Time: 1:30 – 4:30 p.m. May 22, 2014 Maryland Code of Ethics & Predatory Lending CEU: 3 hours MD (Required) & DC (Elective) Instructor: Al Monshower Time: 9:30 a.m. – 12:30 p.m. May 22, 2014 MREC Agency - Residential CEU: 3 hours MD (Required) & DC (Elective) Instructor: Jacqueline Talpa Time: 10:00 a.m. – 1:00 p.m. * NAR Building/3rd Floor May 22, 2014 Maryland Fair Housing CEU: 1.5 hours MD (Required), DC (Elective) Instructor: Al Monshower Time: 1:30 – 3:00 p.m. May 22, 2014 DC Fair Housing CEU: 3 hours DC (Required) Instructor: Jacqueline Talpa Time: 2:00 – 5:00 p.m. * NAR Building/3rd Floor May 28, 2014 Home Inspections CEU: 3 hours MD, DC & VA (Elective) Instructor: Vimal Kapoor Time: 9:30 a.m. – 12:30 p.m.
continued, page 32 Capital Area REALTOR® • Mar/Apr 2014
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