Real Estate Law Blog

‘Tis The Season To Think About Your Retail Lease

With November nearly upon us, the holiday shopping season is right around the corner. For retailers, the peak season can bring a whole host of issues to be considered in connection with a commercial lease. The best time to think about these issues is now – before the droves of eager customers start lining up at the doors. So, if you are a retailer and lease a space for your business, take a few minutes and consider the following: More >

National Association of Realtors Pushing For Drone Use in Industry

Currently, pursuant to Federal Aviation Administration (“FAA”) policy, the use of unmanned aerial vehicles (“UAVs”, also known as “drones”) for commercial use is strictly prohibited. The National Association of Realtors (“NAR”) is hoping to change that very soon. On September 23, the President of the NAR sent a letter to the Director of the FAA, compelling him to consider the ways in which drones can benefit all industries. According to the letter, drones have the unique potential to be a “game changer for the real estate industry.” More >

Finding the Perfect Fit the Right Way

Many of the issues that landlords encounter with problem tenants can be avoided or, at least minimized, by using a comprehensive screening process. This is sometimes easier said than done. Screening applicants in order to find the right fit is legal. However, landlords must be mindful that, under the Fair Housing Act and other applicable state and federal laws, a landlord cannot refuse to rent or lease to a person or otherwise discriminate against a person based on race, color, religion, sex, familial status, disability or national origin. Furthermore, while background searches and/or credit checks can be an effective screening method, a landlord must adhere to certain procedures during the application process. It is important to have the process outlined beforehand and carefully follow it with each prospective tenant to ensure fairness and consistency. The following are some helpful guidelines to keep in mind in the screening process: More >

Is An Interest-Only Mortgage Right For You?

There are a number of financing options to consider when purchasing a home, one of which is the interest-only mortgage. This type of mortgage requires a homeowner to pay only the interest that accrues on the loan each month. None of the principal is paid off until the interest-only period expires. The length of the interest-only periods can vary, but payments are relatively low during this time. After expiration of the interest-only term, the buyer is then required to make monthly payments for the principal. More >

Western Kentucky University & City of Bowling Green Make Great Remodeling Team

Last week, the New York Times featured a story about Bowling Green’s redeveloping district near downtown, formally called the WKU Gateway to Downtown Bowling Green (Gateway, for short). The district began taking shape in 2007, after the city and Warren County reached an agreement with the state to establish a 383-acre, 52-block special development and tax district. Since then, there has been a steadily increasing amount of projects in this once rundown area.

Twenty eights projects, to be exact, have been completed or are under construction in the Gateway district, including the Bowling Green Ballpark, Hitcents Park Plaza, the Southern Kentucky Performing Arts Center, the Bowling Green Area Chamber of Commerce building, and WKU’s Health Sciences Complex. Since 2008, $262 million has been spent in downtown construction. While that figure may cause a gasp, the renovation is nothing short of breath taking.

Mr. Gary A. Ransdell, WKU’s President, credits the construction with breaking down the barrier that once existed between the university and city. As he stated in the NYT article, “[T]here’s been a shift in student density at the north end of our campus. With each new project that density increases.” WKU itself has added $24 million dollars’ worth of student housing, new fraternity housing, parking, and a $10 million alumni center.

Pursuant to the 2007 deal, Gateway pays local government 80% of the increases in payroll, property, sales and other tax revenue generated by new development within the district. The revenue is devoted to retiring construction bonds, building infrastructure and assisting developers. It’s a win-win situation, with students, residents and visitors all coming out on top.

The recent efforts of the university and city are a testament to the transformative power of real estate. Revitalization projects shape everything from the economy to living patterns. Gateway serves as proof that hard work, interest, funding, and government cooperation can result in praiseworthy results. Hats off to them!

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This article does not constitute legal advice.

LBAR Launches App, Just As Industry Giants Merge & New Concerns Arise

Zillow and Trulia, the two largest sites in the home listings game, are merging. These sites enable buyers to navigate an online map to find a home’s value, look at available listings, and connect with local real estate agents. And while the companies, nearly a decade old, have somewhat helped to streamline the home buying and selling process, real estate deals remain a transaction that largely require professional assistance – from agents, to bankers, to attorneys. Even with online assistance from sites like Zillow and Trulia, most homebuyers prefer one-on-one guidance and advice from a trusted professional.

The merger, which will result in the two companies becoming by far the biggest online portal in the industry, has caused concern throughout the residential brokerage business. Some are worried that the merger will result in the company having too much power over listings, possibly raising associated fees. There has even been talk that the company might now break into the brokerage business itself, something that the separate companies have not done to date.

The National Association of Realtors (NAR) has its own consumer website, realtor.com, which is operated by Move Inc. and ranks third behind Zillow and Trulia in terms of popularity. In July, a new NAR marketing campaign emphasized the accuracy of realtor.com listings and the role of realtors in buying and selling homes. The long-standing critique of both Zillow and Trulia has been the accuracy of their services’ listing information. Realtor.com, on the other hand, gets listings directly from most of the nation’s more than 800 multiple listing services (MLSs).

Local MLS associations should not worry about the merger too much, as there is still very much a need for professionals in the world of real estate transactions. Associations, should, however note that they must make more of an effort to reach consumers in the online environment and offer value-added services that the industry behemoths do not – such as proving local expertise or always having the latest listings.

Taking a page from this playbook, the Lexington-Bluegrass Association of Realtors (LBAR) just announced the launch of their mobile app, LBAR Homes, which allows users to view all homes for sale or rent in the Bluegrass Region. Users can search by address, city, or zip code to see property details for all homes for sale or rent in a specified area, including price, square footage, estimated mortgage, taxes, features, maps, pictures, and more. A contact feature allows users to connect with respective listing agents by phone or email. The free app can be downloaded from an app store or at app.lbar.com, or by texting LBAR to 87778.

Once you find your home, you’ll want to contact a closing attorney to assist in the legal aspect of the purchasing process. Contact McBrayer's real estate group if you're ready for this exciting step in the process!

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This article does not constitute legal advice.

A Slippery Slope for Boat Slips

What happens when an existing condominium property regime is found to be invalid? Well, the Louisville Yacht Club recently encountered that exact problem. The case, Steenrod v. Louisville Yacht Club Ass’n, Inc.,[1] is one which Kentucky boat owners and condominium association members should be familiar so as to avoid similar problems. More >

Mortgage Prequalification versus Preapproval

First time home-buyers are often under the impression that mortgage prequalification and preapproval are interchangeable terms, but they are actually two separate steps in the financial process and it is important to understand the difference between them. More >

Do I Really Need a Real Estate Attorney?

A question I commonly encounter is why a buyer or seller needs an attorney’s assistance for the sale, purchase, or refinancing of property. A title company ensures that the title to a piece of real estate is legitimate and then issues title insurance for that property…why involve another party in the process? The answer is simple – because attorneys do what title companies cannot. Title companies, and their employees, are prohibited from providing any type of legal advice to those in the closing process. More >

Landlords, Make Sure Your Eviction is URLTA-Compliant

As tempting as it may be to immediately attempt to throw an unruly and non-abiding tenant out of the house or apartment, doing so can have serious legal consequences. Kentucky has codified the Uniform Residential Landlord Tenant Act in KRS 383.500 – 383.715 (“URLTA”). Pursuant to KRS 383.500, in order for the URLTA to be applicable in a given locale, that particular city, county, or urban county government must adopt the URLTA in its entirety. In areas where the URLTA has been adopted, tenants are often afforded greater protection at the landlord’s expense. More >