Dear Real Estate Professional:The DC Master Business License
Saga Continues: DC Council voted to extend the "grace" period
before filing for the MBL until May 31, 2003. Fees went up 40%,
however. MBL fee is now $35 plus $10 per endorsement. Threshold
remains $2,000 per annum. Apparently the groundswell of opposition
to the low figure has dissipated.
Click here for Official DC News Release
Law Firm Held Liable to Title Company for Non-Lawyer's Letter that
no Estate Taxes Due: In response to a title company's inquiry, an
intern replied in writing that "based on our tax preparation, no
estate taxes are due and owing" and "to my knowledge, no other
taxes are outstanding against the estate". A $50 legal bill was
enclosed (if THAT didn't put someone on notice, it should have).
Of course, there were more than $400,000 in estate taxes
eventually assessed, property was levied upon and the title
company paid off the IRS. Law firm argued that the letter did not
constitute negligent misrepresentation of information supplied by
a professional for the guidance of others because 1) the title
company should not have relied upon the letter, but should have
conducted an independent investigation, 2) the intern was not
wrong, because, at the time he signed the letter, he did not have
any actual knowledge of taxes due and 3) the $50 bill was not
paid. Court held to the contrary on all issues, except that a jury
could decide if reliance by the title company was reasonable.
Lawyers Title Ins. v. Baik, 55 P.3rd 619 (Wash 2002).
Three underwriters join forces for nationwide network of
independent title agents: United General, Attorneys' Title, and
Connecticut Attorney's Title will trade as RealAlliance and will
seek participants. It will also allow a sharing of resources to
allow agents to close in other jurisdictions by collaborating with
the "locals" who are familiar with the requirements. With good
on-line tracking ability viewable by customers, title agents, real
estate agents, etc. there is no special hardware/software will be
required, only access to Web. For information contact: jkosogof@ugtic.com.
Do you conduct settlements on D.C. Properties? Errors in your
Security Affidavit for Class 1 and Class 2 properties: The D.C.
Code numbers have changed and some title companies are using an
old Security Affidavit for Class 1 and Class 2. The first code
site for the D.C. Theft and White Collar Crimes Act is D.C.
22-2405 and no longer 2514 (there are no changes in the other
citations.
Click to see Text of D.C. Code 22-2405
U.S. Patriot Act affects title companies! You have to make sure
the parties to your transaction are not "Specially Designated
Nationals" the names of which are found on a list of approximately
250 names of people suspected in terrorism matters. The Act
freezes assets of those people and restricts everyone from having
"transactions" with these individuals. Fortunately, the ALTA has a
site that enables you to do this very quickly. You may want to add
this step to your settlement procedures.
Click to see ALTA Search for Specially Designated Nationals under
the USA Patriot Act
Please feel free to circulate this newsletter to others in the
industry, both within and outside your office.
Sincerely,
Real Property and Asset Management Group
Jackson & Campbell P.C.
email:
RKaufmann@JacksCamp.com
voice: (202) 457-1600
web:
http://www.JacksCamp.com
