This is an all-star issue, with articles by Samuel Levine, Jack Murray and Dick Bales! Regular readers will recognize these experts from prior issues and numerous other real estate publications.
If your practice involves any tax-deferred exchanges of real property, the first article in this issue is a must read. Internal Revenue Code § 1031(f), read literally, provides that if a taxpayer exchanges like-kind property with a related party, the tax deferral will be denied if the property acquired from or transferred to the related party is disposed of within two years.
A topic that many of us would rather avoid is attorney billing practices. G. A. Finch, a former member of the Real Estate Law Section Council, has shared an excellent article that should help all of us be more effective when billing.
The real estate bar has lost a true friend and perhaps its most ardent educator. Harold I. Levine passed away in May following an illness.
We are starting this issue with a short quiz. Did you pass the quiz in the previous issue?
Federal preemption of state prepayment-penalty statutes: Back to the future?
Federal associations have, for many years, been able to include prepayment penalty clauses in commercial loan documents and enforce such clauses according to their terms, regardless of any state law to the contrary (including equitable principles). C.F.R. §§ 545.2 and 545.34(c), as amended at 49 F.R. 43044 (1984), authorize a federal association to include a prepayment penalty clause in any loan it makes and to enforce such a clause in accordance with its terms regardless of any state law-including equitable principles in a foreclosure action-that purports to prohibit the collection of a prepayment penalty under certain circumstances.
From the construction corner
The recent case of Luise, Inc. v. Village of Skokie, 335 IllApp3d 672, 781 NE2d 353 (1st Dist. 2003) (Luise) has further defined what constitutes lienable work under section 23 of the Illinois Mechanics Lien Act (the Act).
Insurer uses termites to pursue home seller
Evidence that sellers of a residence concealed active termite infestation was sufficient for the buyers' homeowners' insurance company to collect from the sellers.
Issues relating to toxic mold
Frequently, in the construction industry, a "hot issue" overtakes the industry. The latest "hot issue" is mold-related lawsuits relating to residential and office buildings.
On March 20, 2003, the Fourth District Appellate Court of Illinois decided Rothers Construction, Inc. v. Centurion Industries, Inc., et al., 272 Ill.Dec. 105, 786 NE2d 644.
Revenue ruling limits related party exchanges
A Revenue Ruling issued by the Internal Revenue Service on November 26, 2002, added a 10-penny nail to the coffin of a certain type of tax-deferred exchange among related parties.
A short quiz
1. A provision in a lease requiring the rent to be paid in gold is enforceable if: