Jackson & Campbell P.C. Update
	July 8, 2006
	Dear Real Estate Professional: DC: Reinstated Requirement for Co-signature of non-titled spouses and domestic partners on Deeds of Trust (notwithstanding abolishment of dower). DC Land Title Association has met with representatives of all DC Councilmembers to emphasize the industry's discomfort with the present 15 D.C. Code 502 which has rekindled the need, across the District of Columbia, to have non-titled spouses/domestic partners join on all Deeds of Trust and UCC-1s (those that involve co-ops and improvements to residences). Almost universally, the representatives appear to have understood the need for a legislative correction to bring the District in line with all the other States. Councilmember Phil Mendelson has agreed to introduce the Bill next week. While we had hoped that an emergency bill would also be introduced, Mr. Mendelson has respectfully declined to do so, based upon advise from Charlotte Brookins-Hudson, General Counsel, who opined that the legislation was more appropriate for full deliberation and that she did not see that an emergency existed. When we know the Bill number, we will advise the subscribers. The proposed red-line changes to the Bill that are being proposed may be found here. DC: OTR's policy of retroactively assessing real property taxes in the event of sale from homestead exemption holder to non-holder (similar situation with senior citizens). As most of the title companies have experienced, when this situation arises, OTR is automatically and retroactively assessing the taxes for the half year, and sometimes for the entire year. To add insult to injury, OTR also assesses penalties and interest. The shock to the seller is not only the loss of the exemption deduction, but also the loss of the "cap". Further, the title companies have no advance method of calculating the effect of OTR's actions. Multiple meetings between DCLTA and OTR have proved fruitless. A meeting was had with Councilmember Jack Evans on June 14; he appears to understand the issues and has taken steps to have DC Land Title Assn meet with Dr. Natwar Ghandi, Chief Financial Officer. If that course fails to correct the situation, DCLTA intends to propose a legislative correction. DC Tax Sale To Begin on July 10: A recent seminar given by DC Bar Real Estate, Housing and Land Use Section dealing specifically with Tax Sales. Notes on the presentation by Roy L. Kaufmann can be seen by clicking here. The images referred to in that presentation can be seen by clicking here. DC: Real Property Tax Appeals: If a property owner is not satisfied with the first level of appeal of real property tax assessment, the second level of appeal must be initiated within 30 days of the date of the 1st level action. The second level is initiated with the Board of Real Property Assessments and Appeals. The appeal form is not available on the Web, but can be seen by clicking here. Virginia: See the new on-line assistant for calculating recording costs and taxes for deeds at 208.210.219.132/deed/deed.jsp (our system will not allow links to numeric URLs). Federal: 1031 Exchange regulations: There were congressional hearings on proposed regulations for 468B and 7872, but, the word on the street is that they will go back to committee because there was some non-compliance with certain Administrative Procedures Act requirements. Section 1.935=1T now allows 1031 exchanges for replacement property in Guam and the Northern Mariana Islands, in case any of your were shopping around there. DC: Status of Other DC Legislation: A16-0391 (was Bill B16-109) "Rent Control Amendment Act of 2006" (former name was "Tenants Rights to Information Act of 2005" eliminates rent ceilings, limits ability to raise rent on vacant and occupied units, mandates information that must be given to tenants. Status: Passed by Council and Mayor, in Congressional Review, anticipated effective date is 9/5/2006. Text of Enrolled Act B16-109. Law 16-907 "Residential Energy Conservation Tax Credit". Status: Law 16-097, effective 5/12/06. Click here for text of Law 16-097. B16-0789 "Condominium Warranty Bond Amendment Act of 2006". Status: Introduced on 6/6/06 and referred to committee. Click here for text of B16-0789. Click Here for DCRA's position on Condominium Warranty Bonds in the interim. B16-0785 "Interest on Rental Security Deposits Amendment Act of 2006". Just introduced on 6/6/06 and referred to committee. Proposes setting a fixed 2% interest rate on residential security deposits (unless the 3-year T-bill rate exceeds that amount. The Office of Tenant Advocate would be required to keep track of that rate. Adjustments to security deposits would be made once a year. Status: Introduced on 6/6/06 and in committee. Click here for text of B16-0785. L16-240 (was Bill B16-0556) Tenant Evictions Reform Act of 2006. Affects rights of tenants when properties undergo substantial rehabilitation. Status: Effective 6/22/06 Click here for text. Projected effective date of 6/22/06. B16-0781 "Additional Sanctions for Nuisance Abatement and Office of the Tenant Advocate Duties" requires Office of Tenant Advocate to reach out to affected tenants to advise them of their rights after TOPA notices are received and other provisions. Status: introduced 6/5/06, Click here for Enrolled Bill. Please feel free to circulate this newsletter to others in the industry, both within and outside your office. The contents of this Update are intended for general informational purposes only and should not be relied upon as legal advice or as a substitute for consultation with a qualified attorney. Moreover, the mailing hereof is not intended to create nor does it constitute an attorney-client relationship. Sincerely, Roy L. Kaufmann of the Real Property and Asset Management Group Jackson & Campbell P.C. email: rkaufmann@jackscamp.com voice: (202) 457-1600 web: http://www.JacksCamp.com

Jackson & Campbell P.C. · 1120 20th Street NW · Washington · DC · 20036