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Dear Real
Estate Professional:
D.C. Land Title Association elects new officers.
At its annual meeting, DCLTA elected David H. Cox (Jackson & Campbell, P.C.), Dennis Vendetti (LandAmerica) as Executive V.P., and Pauline Haynes (Jackson & Campbell, P.C.) Secretary/Treasurer > Elected to the Board: Steven Buckman (Lotstein and Buckman), Rick Eisen (Eisen & Rome), Vivian Smith (LandAmerica); Larry Blassingame (First American), Elizabeth Zajic (First American) and Janelle Gaughan (Sentinel Title). Roy L. Kaufmann (Jackson & Campbell, P.C.) was approved as lobbiest for DCLTA.
At that meeting, WASA made a presentation on their billing and lien processes. If nothing else became apparent, it was that there is a need for future discussions between the title industry and WASA.
New implementations of old laws have changed how WASA is doing business. One cannot rely upon the OTR website because those figures may be out of date, but there was only a glimmer of hope expressed that the OTR website would someday reflect WASA bills "real-time". Nor can one rely upon a telephonic request for amounts owing because the responding telephone operator only sees, on her screen, the current account for the property. There may be several accounts for the same property. Nor is even the WASA website to be relied upon because accounts older than 365 days are "moved" to another account. Nor should one be lulled in the hopes that WASA only has one account per address. They set up new accounts each time they are advised of a property transfer.
Temporary Solution: While DCLTA works with WASA to come up with a standardized form for requesting a statement of all amounts owing to WASA, the title industry should request such a statement, in writing, sent by fax. The request should clearly state that a final figure be given, as well as the following: Name/address of existing WASA account holder; name/address of the new account holder; name/address of title company; date of proposed closing. Unless they are told to the contrary, they send the final bill to the current account holder, so you must indicate what third party (i.e. title company) should get a copy thereof. The letter should also clearly state who should be getting the bills after payment of the "final bill".
That, we are told, will prompt a diligent search and the delivery of a "final bill". Donna Lewis, Collections Manager, assures us that, if such final bill fails to disclose a prior amount due, that the amount due will not constitute grounds for a lien on the property.
Nothing above renders moot the requirement to search for recorded WASA liens and it is noted that a recorded lien automatically covers all amounts owed to WASA. Obviously the "super-priority" effect of such a lien should be carefully considered by title professionals. See 34 D.C. Code 2407.02
Contact and payment information: Payments of clearly delinquent bills should be made at 810 1st St NE. WASA assures us that, if payment is made in cashiers or title company check, that a release will be recorded within days. Routine bills can be mailed to the lock-box address.
Note: If a settlement is delayed or cancelled, you should advise WASA by fax. Otherwise there are complications with interim bills and the "final" nature of the bill issued at your request.
Key contacts at WASA: Donna Lewis at 202-354-3675; LMarshall@DCWASA.com and Rosie Jenkins at 202-354-3667; Rjenkins@DCWASA.com. Fax number for routine requests for final bills: 202-354-3711.
Clean City And Other Assessments Being Handled by New Entity: Back in the days when DMV was a part of the Department of Public Works, it was somehow logical for DMV to handle the Clean City tickets. You may all recall dealing with Paul Wallig of that office who has since retired. Now that DMV is on its own, that relationship is less logical. Effective March 22, 2004, the Clean City matters will be handled by a new agency, the Office of Administrative Hearings ("OAH"). That office was created by statute ("Office of Administrative Hearings Establishment Act of 2001". Emergency Rules published in the D.C. Register on March 5, 2004 announce the passing of the baton. The individual agencies will be petitioners before the ALJs. Discussions are underway between OAH and OTR as to the reporting of assessments handed down by ALJs, but it will be up to the individual reporting agencies to handle their own post-judgment collections process (including filing of liens at ROD, etc.). In the meantime, title companies should be well advised to add OAH to their list of entities to check on outstanding monetary obligations due to the District. (As we collectively put our hand to our foreheads, we can only hope that, some day, there will be centralized system which would inform the title industry of amounts due, require that such amounts be paid upon recordation, and the estoppel effect thereof). Many agencies have the authority to issue citations and notices of infraction and some adjudications, once reduced to lien, may affect real property. OAH will have authority over many agencies (although the Mayor has the right to exempt an agency for a period of up to 2 years) the following agencies: Dept. of Employment Services (effective later, on 10/1/2004), Department of Human Services, D.C. Taxicab Commission (effective 10/1/2004), DCRA, Litter Control Act/Illegal Dumping Enforcement Act, Tax-related issues of OTR, Department of Banking and Financial Institutions. For information, contact Mr. Tracy BeMent, Chief Administrative Officer, OAH, at tracy.bement@dc.gov.
Some Old Assessments to be Purged: Henry Riley addressed the group and announced that Clean City, Nuisance and similar assessments, if not recorded at ROD, may be "purged". Such would apply only assessments arising before October 1, 2001 and only to properties that have not changed hands since October 1, 2001 (the time when the web-site was updated to put people on notice of assessments).
Lower Income Abatement Program (New Qualifying Incomes)(47 D.C. Code 3502(a)(1)): Effective 1/28/04 the new limits for this exciting program are: 1 Household Member: $48,300; 2: $55,200; 3: $62,100; 4: $69,000; 5: 74,250; 6: $80,040; 7: $85,560; 8: $91,080. This program, which exempts qualified buyers from recordation tax, exempts them from 5 years of real estate taxes and puts the transfer tax into their pockets, is one of the best in the tri-state area and title professionals should be familiar with its provisions (especially the one that makes it almost fatal not to apply for it at the time the deed is recorded). Refer to prior issues of this newsletter for more details of this law.
New D.C. Superior Court Rules: Corporate Plaintiffs must file two copies of a statement that identifies any parent corporation and any publicly-held corporation that owns 10% or more of its stock. D.C. Civil Court Rule 7.1. The time for service of process under a tax sale foreclosure case is extended to 180 days. D.C. Civil Court Rule 4(o).
Tax Sale Foreclosure Cases being filed: We are now filing the Complaints for Possession on properties bid upon at the July 2003 tax sale. The statute required a 6-month waiting period. A recurring problem is encountered when title companies conduct settlements where a tax sale is involved. All too often the statute (47 D.C. Code 1360 et. seq.) is not complied with by the title company and the result is the continued pendency of a lawsuit with the danger of complete failure of title. Note also that Rules were promulgated and are available in the January 16 issue of the D.C. Register (and, yes, those Rules need some work).
Legislative "Wish-List": If, during the course of working with a statute related to real estate, business, liens, etc., you come upon something that needs to be fixed, please let us know. We are keeping a folder of suggested corrections/changes to statutes. We will soon have a form you can fill out, but in the meantime, please indicate the statute, your suggestion for change, and, briefly, the advantages or need for the correction. If the statute comes up for discussion at the administrative agency or D.C. Council levels, we can include your request for consideration.
Upcoming Event: Real Estate, Housing and Land Use Section of the D.C. Bar is having its 13th Annual Real Estate Highlights Program on 3/25/04 at the Westin Embassy Row Hotel (2100 Mass. Ave. NW from 6-9pm). Speakers are Uwe Brandes (D.C. Office of Planning re: Anacostia Waterfront Initiative); Roy L. Kaufmann (Jackson & Campbell, P.C. re: D.C. Caselaw Update); Elizabeth Zajic (First American Title Ins. Co. re: D.C. Legislative Update); John Mowery (D.C. Recorder of Deeds re: Electronic Recording of Deeds/Liens); Jacob Geesing (Bierman, Geesing & Ward, LLC re: DC Foreclosure, Eviction and 95/5 Conversion Issues); Cary Smith (Arnold & Porter LLP re: Public/Private Partnerships with DC). For Info: Call D.C. Bar Sections Office at 202-626-3463 or sections@dcbar.org.
To update your list of very handy websites:
www.NTIWeb.com: an excellent site made available by Chicago Title to its agents and clients with state-specific customs (i.e. who traditionally pays for premiums, recording taxes, recording requirements, etc.) and other information.
www.FreeTimeSheet.com: provides a free integrated timesheet, expense reporting and project tracking for up to 5 users (you will have to put up with their advertising).
www.FindLaw.com: good, free portal with links to resource materials in various practice groups.
http://Thomas.loc.Gov: Full text of federal legislation, roll-call votes, complete Congressional Record.
www.USCourts.gov: An ever-improving site giving access to federal courts, opinions, rules, guidelines.
http://www.washington.dc.us.landata.com: Obtain copies of documents recorded at the D.C. Recorder of Deeds. Search by party name, lot/square, or instrument number. Free version will not let you view documents. Registered users may view documents for free (but modest per-document charge to print).
www.EntreWorld.org: A wonderful site geared towards entrepreneurs produced by the Kauffman Foundation (no relation to Roy Kaufmann)
www.TheUltimates.com: one of the best search tools for addresses and names. It includes a "reverse search" where you put in the phone number and the listing is provided, but does not include a "criss-cross" whereby you can put in an address and confirm the listed phone and/or occupants.
Please feel free to circulate this newsletter to others in the industry, both within and outside your office.
Sincerely,
Roy L. Kaufmann of the Real Property and Asset Management Group
Jackson & Campbell P.C. |
