tag:blog.josephandjoseph.com,2010:/23 2010-08-09T14:02:54Z Movable Type Pro 4.34-en tag:blog.josephandjoseph.com,2010://23.15205 2010-08-09T13:50:31Z 2010-08-09T14:02:54Z

Congratulations to John Joseph on having been selected by his peers for inclusion in the 2011 edition of The Best Lawyers in America. Indeed, a special congratulations are in order because he is one of a distinguished group of...

Jennifer Joseph http://www.josephandjoseph.com

Congratulations to John Joseph on having been selected by his peers for inclusion in the 2011 edition of The Best Lawyers in America. Indeed, a special congratulations are in order because he is one of a distinguished group of attorneys who have now been listed in Best Lawyers® for ten years or longer. He has been listed beginning in 1993.

For over a quarter of a century, Best Lawyers has been regarded - by both the profession and the public - as the definitive guide to legal excellence in the United States. Because selection to Best Lawyers is based on an exhaustive and rigorous peer-review survey (comprising more than 3.1 million confidential evaluations by top attorneys) and because no fee or purchase is required to be listed, inclusion in Best Lawyers is rightly considered a singular honor. The annual, advertisement-free publication has been described by The American Lawyer as "the most respected referral list of attorneys in practice." ]]> tag:blog.josephandjoseph.com,2010://23.13551 2010-05-03T14:02:11Z 2010-06-24T18:24:31Z

What are the Investors, Buyers, Sellers and others involved in the Real Estate Industry to do in these times where foreclosures and evictions are prominent and bank loans are very hard to find or come with such requirements that...

John Joseph http://www.josephandjoseph.com

What are the Investors, Buyers, Sellers and others involved in the Real Estate Industry to do in these times where foreclosures and evictions are prominent and bank loans are very hard to find or come with such requirements that make it almost impossible to do business? Many Real Estate investors are finding themselves taking non-traditional paths in order to make deals happen. Due to buyer's inability to obtain financing, many sellers are now turning to variations of "owner-financing." Some sellers are offering options for buyers such as note/mortgage seller financing, wrap mortgages, land contracts, leases, and leases with options to purchase. Some of these non-traditional paths can be fraught with unexpected consequences and need to be examined carefully, with the risks fully understood before they are attempted.

The sellers who offer to sell their property and provide owner financing by taking back a note and mortgage are in essence becoming the bank. They trade their ownership in the property for a promissory note, a promise to pay, secured by a lien on the property. Before entertaining this type of transaction the parties need to understand the transaction and the consequences if the transaction goes bad. The state of the economy is the reason the parties are entering into the nontraditional transaction, but these same parties may find themselves joining the multitudes of banks and debtors in line at the court house, and a part of the foreclosure fiasco. The traditional banks have always been meticulous in documenting and securing their loans. A seller should be just as meticulous. Choosing the appropriate promissory note and/or the appropriate mortgage can save the seller months and even years of litigation expense. Assuming the parties finally get to the point of a sheriff sale, the parties need to know about the bidding process, deficiency judgments, and what a bankruptcy might do to the process.

If the seller does not own the property free and clear from any encumbrance, the owner financing becomes that much more problematic. The seller might try to sell the property subject to their mortgage. These sellers might use a wrap mortgage behind their lender's mortgage in an attempt to secure their position in the event their buyer fails to pay the mortgage. An understanding of the bidding process in foreclosure is important to know the consequences of such a wrap mortgage especially since it is in the secondary position. However, the seller's mortgage company, more often than not, placed a due on sale or due on encumbrance clause in its mortgage. These clauses allow the first lender to call the loan and foreclose upon the property if the property is conveyed or another lien is put on the property. The seller's mortgage company could send both parties into the foreclosure process notwithstanding the faithful payment of the monthly installments on the first mortgage.

Some sellers and buyers have turned to the land installment contracts in order to sell and buy a property. These contracts are defined and governed by Chapter 5313 of the Ohio Revised Code. In general these contracts are executory agreements where the seller agrees to convey title and the buyer agrees to pay the purchase price in installment payments while the seller retains title to the property as security. These contracts became popular in the early 1980's when mortgage interest rates soared into the mid teens. Buyers did not want to buy at those rates, and promised to pay seller's mortgage which was at a much lower rate. Since the 1980s most banks became wise to this concept and now these contracts typically violate the due on sale clauses as described above. The current financing slow down has caused a resurgence of this contract. Aside from the foreclosure procedures described above, Chapter 5313 imposes certain obligations on the seller such as the recording of the contract, and provides for various remedies depending on the state of the economics of the contract at the time of default. Even though sellers retain title to the property, they may be required to foreclose upon default as opposed to evicting. Buyers do not have title to the property and therefore need to concern themselves as to whether the seller can convey title at the point of maturity of the contract.

Instead of selling, some investors are leasing their property. Leases with options to purchase are alternatives for owners to hold on to potential buyers for their properties until the buyers are able to finance the properties on their own. Drafting of the lease must be done carefully to avoid the transaction from falling within the laws and obligations governing land installment contracts. If the lease is for the use and occupancy of residential premises, the parties may be subjecting themselves to the Landlord/Tenant Laws. These laws impose specific obligations on the Landlord and Tenant, some of which may not have occurred to the parties since their ultimate intent was a sale and purchase of the property. As with the land installment contract, the seller should determine whether the lease terms violate the terms of their mortgage, and the buyer should concern themselves with whether this seller can transfer the property at the time they exercise the option to purchase.

While sellers and buyers are using alternative means to close deals, they must do so with careful consideration to the risks. Entering these transactions on a whim, without due consideration is a formula for disaster. That does not mean that the parties should not utilize alternative and creative means to get the deals done; indeed, that may be the only way to do business in these times. However, this is not the time to cut corners. Both sellers and buyers need to make sure that each business deal is done in a manner that reduces their risks, or at least that they understand those risks. ]]> tag:blog.josephandjoseph.com,2010://23.13394 2010-04-22T17:59:22Z 2010-04-22T18:03:33Z

According to the Ohio Court of Appeals, Tenth Appellate District in the case, Kopp v. Associated Estates Realty Corp, decided April 15, 2010, a nonrefundable redecorating fee, pet fee, and the requirement to pay for a bond in lieu of...

John Joseph http://www.josephandjoseph.com According to the Ohio Court of Appeals, Tenth Appellate District in the case, Kopp v. Associated Estates Realty Corp, decided April 15, 2010, a nonrefundable redecorating fee, pet fee, and the requirement to pay for a bond in lieu of a security deposit, are not Security Deposits subject to itemization by the Landlord and return pursuant to R.C. 5321.16 of Ohio's Landlord Tenant Act. The Plaintiff tenants terminated their lease and sued for the return of these fees including the amount paid for the bond, arguing that they were security deposits, thus requiring the Landlord to itemize and account to the Tenants in accordance with the Landlord Tenant Act. The Tenants' argument could have subjected the Landlord to damages and attorney fees if successful. However, the trial court granted summary judgment for the Landlord, which was affirmed by the appellate court, closing the door to this argument to tenants and opening the door for landlords to draft their way out of the Security Deposit pitfalls of the Landlord Tenant Act. tag:blog.josephandjoseph.com,2010://23.13376 2010-04-21T17:23:10Z 2010-04-21T17:29:03Z

In Franklin County Ohio, the Commissioners are spending $1.3 million on a system to permit lawyers to file their law suits online. By mid 2011, the system should be operational for law suits filed in the civil division of Franklin...

John Joseph http://www.josephandjoseph.com In Franklin County Ohio, the Commissioners are spending $1.3 million on a system to permit lawyers to file their law suits online. By mid 2011, the system should be operational for law suits filed in the civil division of Franklin County Common Pleas Court, followed later by the Probate Court, Domestic Relations Court and the Court of Appeals. tag:blog.josephandjoseph.com,2009://23.10442 2009-11-16T11:58:00Z 2009-11-16T12:02:44Z

Joseph & Joseph has moved its offices to The Waterford, 155 West Main Street, Suite 200, Columbus, Ohio 43215. We are very excited about our Expansion!!! See photo on the home page of our web site....

John Joseph http://www.josephandjoseph.com Joseph & Joseph has moved its offices to The Waterford, 155 West Main Street, Suite 200, Columbus, Ohio 43215. We are very excited about our Expansion!!! See photo on the home page of our web site. tag:blog.josephandjoseph.com,2009://23.10105 2009-10-29T16:06:35Z 2009-10-29T16:10:47Z

Great article in the Other Paper with references to the Domestic Practice of Joseph & Joseph with quotes from Jennifer Joseph....

John Joseph http://www.josephandjoseph.com ]]> tag:blog.josephandjoseph.com,2009://23.8100 2009-07-29T14:53:33Z 2009-07-29T14:57:40Z

In the department of watch what you tweet, Amanda Bonnen may have thought it was amusing to tweet about her Landlord, "....Who said sleeping in a moldy apartment was bad for you? Horizon realty thinks it's okay." Horizon Group Management...

John Joseph http://www.josephandjoseph.com In the department of watch what you tweet, Amanda Bonnen may have thought it was amusing to tweet about her Landlord, "....Who said sleeping in a moldy apartment was bad for you? Horizon realty thinks it's okay." Horizon Group Management wasn't amused and filed a complaint in the Circuit Court of Cook County, Illinois. The complaint alleges that Ms. Bonnen's statement damaged the Landlord's reputation in its business and was libelous per se. The plaintiff seeks damages in excess of Fifty Thousand Dollars. See the complaint http://bit.ly/72hyR tag:blog.josephandjoseph.com,2009://23.7174 2009-06-08T15:15:49Z 2009-06-08T15:19:57Z

If you are collecting rent on behalf of someone, you need to be licensed, at least according to the Office of Attorney General of Ohio. The issue revolves around the fact that there appear to be a number of unlicensed...

John Joseph http://www.josephandjoseph.com If you are collecting rent on behalf of someone, you need to be licensed, at least according to the Office of Attorney General of Ohio. The issue revolves around the fact that there appear to be a number of unlicensed property management companies that are managing rental properties without obtaining a real estate broker's license. Ohio Revised Code Section, 4735.01 (5) defines a Real Estate Broker as one who "operates, manages, or rents, or offers or attempts to operate, manage, or rent, other than as custodian, caretaker, or janitor, any building or potions of buildings to the public as tenants." A real estate broker must be properly licensed under the laws of the State and are subject to regulation and monitoring by the State. That is the key. The Attorney General wants the ability to regulate those that are handling money on behalf of the Landlords. As always, there are exceptions to the rule, including certain employees and owners of the Landlord as well as out of state commercial brokers acting through a local broker's license. tag:blog.josephandjoseph.com,2009://23.6925 2009-05-27T17:38:59Z 2009-05-27T18:01:33Z

With the onslaught of foreclosures, and with some investors trying to capitalize on the bargains at a foreclosure sale, some are finding out about the pitfalls of such a purchase. A reminder of one pitfall came recently from the Eighth...

John Joseph http://www.josephandjoseph.com With the onslaught of foreclosures, and with some investors trying to capitalize on the bargains at a foreclosure sale, some are finding out about the pitfalls of such a purchase. A reminder of one pitfall came recently from the Eighth Appellate District Court of Ohio addressing an appeal out of Cleveland in Sky Bank vs. Joseph A. Mamone, et. al. 2009 Ohio 2265; 2009 Ohio App. LEXIS 1911, May 14, 2009. In this case the successful purchaser at the sale sought to vacate the sale on the basis that it believed that it was buying a building with 39 rental suites within two connected buildings, when in fact only one building with 20 rental suites was included in the sale. The trial court vacated the sale and denied the motion to hold the purchaser in contempt. Even though there was no transcript of the trial court's hearing (which usually precludes appellate review), the appellate court reversed the trial court, saying that there was no justification for the trial court's decision, and held that the trial court abused its discretion by failing to hold the purchaser in contempt. The lesson from this decision is that a thorough due diligence must be performed before purchasing at a foreclosure sale. A purchaser needs to know what is being sold, and cannot hope that a friendly judge will provide relief if things don't turn out as expected. tag:blog.josephandjoseph.com,2009://23.6858 2009-05-22T17:30:19Z 2009-05-22T17:38:05Z

With the downturn in the residential real estate market, some investors are exploring fracture condo deals. Fracture condos describes a condominium complex where some units have sold, but the bulk of the remaining units remain unsold or are being rented...

John Joseph http://www.josephandjoseph.com With the downturn in the residential real estate market, some investors are exploring fracture condo deals. Fracture condos describes a condominium complex where some units have sold, but the bulk of the remaining units remain unsold or are being rented out as rental units. Investors may try to strike a deal with the developer (or lender/owner as the case may be) to purchase at a discount a bulk or the remainder of the unsold units. The deeper the discount, the greater the delight, but, as is true with most things that are too good to be true, these transactions can be fraught with disaster. A thorough due diligence is not just prudent, but mandatory before closing one of these transactions. Structuring the deal properly is important. Often the developer is in trouble with the project, in which case the investors do not want to step into the shoes of the developer, thus taking on the developer's liability. The Declaration and By Laws of the Condominium Association need to be thoroughly analyzed to assure that the investor buyers can do what they intend to do with the units. If the investors intend to rent the units, there may be restrictions or prohibitions on renting. Owning only a portion of the project, the investors will not have total control of their destiny. They will be marrying into the family of the other unit owners, and therefore, the economic feasibility of the project must be analyzed. Often developers have kept the initial homeowners association dues artificially low. The true future expenditures and burden of the project need to be studied. With an understanding of the risks, and care and discerning selection, there is fertile ground for investors in the fractured condo market. tag:blog.josephandjoseph.com,2009://23.6783 2009-05-18T21:38:32Z 2009-05-18T21:41:21Z

Single-family home builder's confidence in the market improved in the month of May according to the National Association of Home Builders/Wells Fargo (NAHB) Housing Market Index (HMI), released today; and for good reason. Housing affordability jumped ten percent in the...

John Joseph http://www.josephandjoseph.com http://bit.ly/ff3Of]]> tag:blog.josephandjoseph.com,2009://23.6752 2009-05-15T12:32:10Z 2009-05-15T12:36:42Z

According to the Mortgage Bankers Association 2009 Quarterly Survey, commercial and multifamily mortgage loan originations is 70% lower the first quarter of 2009 compared to the previous year. Lower borrower demand and constrained lender supply has equated to lower originations...

John Joseph http://www.josephandjoseph.com http://bit.ly/CVqZ2 ]]> tag:blog.josephandjoseph.com,2009://23.6681 2009-05-13T14:00:37Z 2009-05-13T14:04:46Z

A hidden haven for wildlife and birds in the midst of an industrial landscape is about to be transformed into an Audubon Center. With ground breaking occurring in May 2008, Grange Insurance Audubon Center is near completion in 2009. This...

John Joseph http://www.josephandjoseph.com http://bit.ly/wpBMG ]]> tag:blog.josephandjoseph.com,2009://23.6672 2009-05-12T19:13:05Z 2009-05-12T19:16:02Z

Our Real Estate Department has just posted a new article about Real Estate Appraisers: The Violations; The Complaint Process; The Disciplinary Action; The Decision. See---> http://www.josephandjoseph.com/article16.html...

John Joseph http://www.josephandjoseph.com http://www.josephandjoseph.com/article16.html ]]> tag:blog.josephandjoseph.com,2009://23.6671 2009-05-12T19:06:44Z 2009-05-12T19:11:24Z

Our Domestic Relations Department has just posted a new article about Modification of Spousal Support and Child Support. See---> http://www.josephandjoseph.com/article17.html...

John Joseph http://www.josephandjoseph.com http://www.josephandjoseph.com/article17.html ]]>