As noted in prior blog post the Fed confirms the end of program to buy mortgage securities which has been financing US debt. There is some evidence that the asset-backed securities market is already responding, and China has become a net seller of US Treasuries. The Fed claims they are…
In my previous post, I discussed a case where the parties had a “non- refundable” deposit in their real estate purchase contract, but the court refunded it anyway. Liquidated damages are damages whose amount the parties agree during the formation of a contract for the injured party to collect as…
A California Buyer entered a contract to buy Seller’s California beachfront property for $14 million. The agreement required a total of $620,000 in non-refundable deposits. The agreement did NOT contain a liquidated damages provision. Buyers backed out of the deal, and Seller sold to someone else for $15 million- one…
A California Broker entered a contract with a Buyer to locate commercial property for development; the broker would be representing the Buyer exclusively. They located a project, and the Buyer entered a contract to buy the property from the seller. The contract also required the seller to build over 175…
As reported in the Financial Times, the Federal Reserve plans to end its special program of buying mortgage securities in March. This program was implemented to keep mortgage costs – that is, the home buyer’s interest rate- artificially low to create a boost to real estate sales. The expectation is…
A recent California court decision addressed this issue, with surprising results. The B’s renovated their earthquake-damaged residence and, in the process, encroached on the neighbor’s land. The neighbors sold, and the new neighbors sued the B’s for the encroachment. The B’s insurance company refused to defend the lawsuit, claiming that…
While tax consequences may be the last thing on the mind of homeowners facing a real estate foreclosure, they play a role in the bigger picture and should be part of the decision process. What follows is a simple discussion of three aspects of personal income tax factors that should…
I have noted in two prior blogs that Arbitrators have nearly unlimited discretion to make mistakes and not follow the law, and their mistakes are protected by the courts. In a recent California case, buyers bought a house and learned that the pool and fence encroached on neighboring property. Claiming…
What happens to unpaid property tax when a mortgage lender forecloses? The payment of ad valorem real property taxes is secured by a lien on the assessed property. The tax lien is senior to other state tax liens and federal tax liens that take their priority from the date of…
California law provides a convenient way for parties in a lawsuit who reach a settlement to allow the court to enforce the settlement agreement, even if the settlement will take years to perform. Code of Civil Procedure section 664.6 provides that if parties to pending litigation agree in a signed…