One Family Cannot Claim Homestead Exemption in Two States

Posted on 03/31/2016 by khaniauerbach

by Khila L. Khani, Esq.

On March 23, 2016, the Fourth DCA a/k/a the appeals court of Florida decided in VENICE L. ENDSLEY, Appellant, v. BROWARD COUNTY, FINANCE AND ADMINISTRATIVE SERVICES DEPARTMENT, REVENUE COLLECTIONS DIVISION; LORI PARRISH, as Broward County Property Appraiser, et al., Appellees. 4th District. in Case No. 4D14-3997 that Article VII, Section 6(b) of the Florida Constitution does apply if a homeowner has a second exemption property in another state, however, it is NOT unconstitutional to deny a spouse her exemption if the other spouse sought exemption in another state. What does that mean for you, the property owner of two homes in two different states?

Let’s rewind a bit and explain how the Florida Homestead Exemption works. The State of Florida, via the Florida Constitution, exempts a portion of a Florida homestead from ad valorem tax. This exemption can potentially save taxpayers a few hundred dollars each year. The economic value for homeowners is that such an exemption, under Florida’s Save our Homes provision, caps the ad valorem tax value increases to 3% per year, despite the fact that the value of the residence may increase by more than 3%.

In the case cited above, a husband owned a residence in Indiana. On the property in Indiana, he received a residency-based property tax exemption, somewhat similar to the tax exemption provided by the Florida Constitution. His wife, however, owned a Florida property that she claimed as her residence and received a Florida homestead ad valorem tax exemption. In August 2006, the Broward County Property Appraiser did their homework and revealed that husband and wife were double dipping with the dual exemption filings. The Broward County Property Appraiser audited the exemption with support from Article VII, Section 6(b) of the Florida Constitution, which reads in part that “[n]ot more than one exemption shall be allowed any individual or family unit or with respect to any residential unit.” Based on that provision, the Appraiser’s office sought to remove the homestead exemption from the couple’s Florida property, even though the property was held in the wife’s name alone, for 1996 through 2006 – this would remove the cap on the value for ad valorem tax purposes and thus, remove the 3% Save our Homes protection.

As mentioned above, the appeals court reviewed the lower court’s decision and decided that the Constitution provision applies if the second exemption property is in another state. Furthermore, the appeals court decided that it is NOT unconstitutional to deny the wife her exemption on the Florida property because her husband sought exemption in another state.

Florida homeowners with families, you are now informed, warned and advised that you cannot claim homestead in two different states, even if you are married and have individual ownership of those two different properties. One family cannot claim homestead exemption in two states.

At Khani & Auerbach, it is our goal to educate the public as much as possible about changes in real estate law. Khani & Auerbach is here to help.

The Importance of Hiring a Real Estate Attorney

Posted on 02/19/201605/28/2019 by khaniauerbach

I like to call this, “Story Time with Khani & Auerbach”. Yesterday, I received a phone call from a lovely lady regarding a Time Share transfer. The transfer to our caller was conducted back in 2007, but she had some concerns about her ownership interest and wanted to know where she stood. She wanted to ensure that she was in fact the owner and had an ownership interest that she thought she purchased. After doing very light research in the public records, I uncovered two transfers that gave me pause.

The first transfer was conducted in 2001, a Quit-Claim Deed. This Quit-Claim Deed, at first blush, looked really official, as it had been prepared by an attorney. But, as a real estate attorney practicing for 20 years in this field, I never quite trust that any document is prepared accurately, regardless if it’s prepared by an attorney or not. As luck would have it, the document was poorly drafted and the intentions of the transferor/grantor are really unclear. I would do the next best thing and reach out to the attorney that prepared the document. What do you think I would find next? The phone number provided on the Deed was disconnected and after some further inquiry, I found that the attorney was suspended several years ago, had never reapplied to the Bar and was no longer licensed to practice law in the State of Florida. So, the first brick wall in my research was erected. What now?

I wanted to look at the second transfer made in 2007 to my client and found that the preparation of this document was even worse than the one made in 2001. This document looked like someone found a form at Office Depot and just filled in whatever they felt might look right. Well, nothing was right about it and it was ALL WRONG. The second brick wall in my research had now been erected. Now, you might say to yourself, “But, the County recorded this document, so it must be accurate.” Let me be clear when I say, the County will record ANYTHING you put in front of them as long you pay the required fees. They are an administrative agency and they do NOT practice real estate law and do not know anything about the history of the subject property. Furthermore, they have no obligation to know these things. All they do is record documents and collect taxes and fees.

So, now I am reviewing two poorly prepared documents/transfers and have the honor of telling the caller that not only are the transfers poorly prepared, but she may not even have ownership. The next question on your mind may be, “How could any of this been prevented?” Simply, by hiring a Real Estate attorney. A Real Estate attorney has the knowledge and experience to do the job accurately in the first place, avoiding the exact same situation we are presented with in this case.

Now, the first deed prepared in 2001 was, in fact, drafted by an attorney licensed to practice law in the State of Florida, but what I don’t know is how this attorney was found and whether he focused his practice on real estate or not. In addition to hiring an attorney, knowing whether an attorney focuses on real estate is even more important than just hiring any attorney. In this case, I just couldn’t determine this attorney’s area of practice and had to assume he just didn’t know what he was doing. As for the second deed prepared in 2007, well, that was just two parties trying to save a buck. Look where we are now. Unraveling these terrible transfers and correcting these poorly drafted deeds will take more effort, more time and certainly cost more money than all the parties could have ever imagined. All of this could have been prevented just by hiring a real estate attorney in the first place.

About the Writer
Khila Khani is a partner with Khani & Auerbach. Her practice focus has been in Real Estate law for 20 years.

The information and materials in this column are provided for general informational purposes only and are not intended to be legal advice. No attorney-client relationship is formed. Nothing in this column is intended to substitute for the advice of an attorney, especially an attorney licensed in your jurisdiction. Should you wish to discuss any potential matters with her or her partner, you can contact them here.

Florida Homestead Exemption Filing Deadline is March 1, 2016

Posted on 01/29/201601/29/2016 by khaniauerbach

Homestead Exemption Filing Deadline is March 1, 2016

All legal Florida residents are eligible for a Homestead Exemption on their homes, condominiums, co-op apartments, and certain mobile home lots if they qualify. The Florida Constitution provides this tax-saving exemption on the first and third $25,000 of the assessed value of an owner/occupied residence. While a complicated formula is used to explain this — as the additional $25,000 only applies to the non-schools portion of your tax bill — the bottom line is that the basic homestead exemption can save a Florida homeowner in 2015 anywhere from $641.73 to $1,077.67 (depending upon your city’s millage rate) in annual tax savings for all homes with a value of $75,000 or higher.

You are entitled to a Homestead Exemption if, as of January 1st, you have made the property your permanent home or the permanent home of a person who is legally or naturally dependent on you. By law, January 1 of each year is the date on which permanent residence is determined.

In some Florida Counties, you may be able to file for Homestead ONLINE. Check with your county’s property appraiser office for more information about how to file.

The timely filing period for Homestead Exemption for 2016 is March 3, 2015 through March 1, 2016. The absolute deadline to LATE FILE for any 2016 exemption — if you miss the March 1 timely filing deadline — is September 19, 2016. State law (Sec. 196.011(8), Fla. Stat.) does not allow late filing for exemptions after this date, regardless of any good cause reason for missing the late filing deadline.

What You Need When Filing for Homestead

When filing an application you must bring the following items listed below. To claim 100% coverage, all owners occupying the property as Tenants in Common (i.e., proportional share co-owners) must file in person on jointly held property. In the case of a married couple (“Tenants by the Entirety”) or Joint Tenants with Right of Survivorship (“JTRS”), any one owner may qualify for 100% coverage — although it is always highly advisable to have all eligible owner-occupants to file.

1. Proof of Ownership: In general, the recorded Deed or Co-op Proprietary Lease must be held in the name(s) of the individuals applying for Homestead. In most counties, you may not need to bring a copy of the deed or co-op lease if the document has already been recorded in the Official Records. If the PROPERTY IS HELD IN A TRUST, THE COUNTY MAY ALSO REQUIRE EITHER A NOTARIZED CERTIFICATE OF TRUST OR A COMPLETE COPY OF THE TRUST AGREEMENT. Note: Most taxpayers prefer to use the simple Certificate of Trust form, instead of submitting the entire trust for our review, as it better protects the privacy of your estate planning and other financial matters.

2. Proof of Permanent Florida Residence — preferably dated prior to January 1 of the tax year for which you are filing — is established in the form of:

A. FOR ALL APPLICANTS: Florida’s Driver’s License (or — for non-drivers only — a Florida I.D. Card) is REQUIRED. Note: You must surrender to DMV any out-of-state regular driver’s license. You MUST also have either of the following:
1. Florida Voter’s Registration; or
2. Recorded Declaration of Domicile.

B. FOR NON-US CITIZENS, you MUST have the items listed above AND proof of permanent residency, asylum/parolee status (or other “PRUCOL” status); OR proof you are the parent of a US-born (US Citizen) minor child who resides with you.

3. If you or your married spouse have a Homestead Exemption in any other county, state or country (or an equivalent permanent residency-based exemption or tax credit, such as New York’s “S.T.A.R.” exemption) on another property you also currently own, you will NOT be eligible for a homestead in any Florida county until after you surrender the exemption in that other jurisdiction. (Note: If you know of someone with a Homestead Exemption in a Florida county who also maintains an exemption on another property elsewhere, please report this information to our Fraud Investigations Section at 954.357.6900.)

The State-approved application form requests certain information for all owners living on the premises and filing:
• Current employers of all owners
• Addresses listed on last I.R.S. income tax returns.
• Date of each owner’s permanent Florida residence.
• Date of occupancy for each property owner.
• Social Security numbers of all owners filing.
• Social Security number of any married spouse of the applicant, even if the spouse is not named in the deed and is not filing).

Note: The amount of the homestead exemption protection granted to an owner residing on a particular property is to be applied against the amount of that person’s interest in the property. This provision is limited in that the proportional amount of the homestead exemption allowed any person shall not exceed the proportionate assessed valuation based on the interest owned by the person. For example, assuming a property valued at $40,000, with the residing owner’s interest in the property being $20,000, then $20,000 of the homestead exemption is all that can be applied to that property. If there are multiple owners, all as joint tenants with rights of survivorship, the owner living at property filing receives the full exemption.

FIRPTA Withholding Rate to Increase to 15%

Posted on 01/14/2016 by khaniauerbach

Effective Feb. 16, FIRPTA general withholding rate increases from 10% to 15%

Author: Jonathan H. (Jason) Warner

Recent federal tax legislation increases the FIRPTA general withholding rate from 10% to 15% effective for closings on or after February 16, 2016. Closing agents should adjust their procedures and forms to reflect this change. (If you want a reference, it is H. R. 2029, now known as Public Law 114-113. See Section 324 for text of changes).

The 10% rate will still apply for those transactions in which the property is to be used by the Transferee as a residence, provided the amount realized (generally the sales price) does not exceed $1,000,000, and the existing $300,000 “exemption” remains unaffected. So here are your new guidelines:

• If the amount realized (generally the sales price) is $300,000 or less, AND the property will be used by the Transferee as a residence (as provided for in the current regulations), no sums need be withheld or remitted.

• If the amount realized exceeds $300,000 but does not exceed $1,000,000, AND the property will be used by the Transferee as a residence (there are no regulations that specifically address these changes but many are assuming you can follow the current regulations for the $300,000 exemption), then the withholding rate is 10% on the full amount realized.

• If the amount realized exceeds $1,000,000, then the withholding rate is 15% on the entire amount, regardless of use by the Transferee.
The well-documented flaws and risks of the $300,000 exemption will likely continue although future regulations could change existing procedures. Members should document the Transferee’s intent to use the property as a residence as best they can and point out to the Transferee the risks of allowing the exemption to apply to their transaction. Under the law, the Transferee is the withholding agent and is responsible for withholding and remitting the proper amount to the IRS. Members should also be alert for situations where the foreign Transferor forces the Transferee to claim residence status merely to lower the withholding rate, since the Transferee could be liable for any additional withholding tax, penalty, and interest if their intent is ever challenged by the IRS.
The current FAR/BAR contract form contains language specifically referring to a 10% withholding. An amendment to the contract for closings scheduled on or after February 16, 2016 should be added to change the potential rate of withholding to 15%.
The remainder of the FIRPTA changes in the recent legislation involve REITS, but a new exemption from FIRPTA taxation and withholding is provided for qualified foreign pension funds. A new certification form likely will be needed to document the exemption.

It is recommended that you seek the advice of a tax specialist regarding the implementation of this new rate, but if you have any questions about how this change might applies to you or a transaction, please do not hesitate to contact Khani & Auerbach.

Reprinted with permission from Attorney’s Title Insurance Fund

Is Consummation the Same Thing as Closing?

Posted on 11/30/201505/28/2019 by khaniauerbach

On October 3rd 2015, the Consumer Finance Protection Bureau (CFPB) implemented new regulations with respect to consumer financing. These regulations affect anyone who purchases real estate and obtains a loan (whether through a bank, mortgage broker or private lender). This video explores a few of those changes and how some of the terms we have been used to hearing for so many years in the title insurance industry are going to change.

One of the most interesting changes comes with terminology used in the process. As title agents that issue title insurance, we are well acquainted with these new terms and are sharing them with you. Something new that is explored in this video below, produced by one of our underwriters, Old Republic Title, is the use of the word “consummation.” In Florida, we are using the word Consummation in place of Closing. Additionally, while we were all used to the word “HUD” or “Closing Statement,” that term has also been replaced with the “Closing Disclosure”. While the HUD or Closing Statement might not necessarily be completed until moments before the closing, under the new regulations, the Closing Disclosure must be received by the Borrower at least three business days prior to the Consummation.

At Khani & Auerbach, it is our goal to educate the public as much as possible about these changes. We hope to provide you with useful videos over the next few months that will assist you in your understanding of these changes so that when you are ready to undertake the purchase of residential real estate, you are armed with all the knowledge to get through the transaction as smoothly as possible. We are here to help.

6 Steps Every Homebuyer Should Expect for Closings

Posted on 11/19/2015 by khaniauerbach

CLOSING TIME: 6 STEPS EVERY HOMEBUYER SHOULD EXPECT

Get owner’s title insurance and buy your home with confidence
Your long home-buying journey is almost over. You found the home you love, the seller agreed to your offer and now it’s time for closing. Of course, there’s a lot to think about right now, and the last thing you want is something¬ to go wrong. So make sure you work with an experienced closing agent to help ensure the details come together and everything runs smoothly.

As soon as the seller accepts your offer, the behind-the-scenes work begins. You can expect closing to happen within 30 to 45 days.

1. Select a Closing Agent
If you are working with a real estate agent, with your permission, he or she may place an order with a closing agent as soon as your sales contract is accepted. The closing agent can be a real estate attorney or title company.

Most homebuyers rely on their real estate agent to select a closing agent—someone they work with regularly and know to be professional, reliable and efficient. However, you are always permitted to choose your own closing agent. The closing agent will oversee the closing process and make sure everything happens in the right order and on time, without unnecessary delays or glitches.

2. Make a Good Faith Deposit
First, a contract or escrow agreement is drafted, which the closing agent reviews for completeness and accuracy. The agent will also put your good faith deposit into an escrow account, where the funds will remain until closing. Typically, the real estate attorney or title company can hold those funds in escrow until closing.

3. Title Search is Conducted
Once the title order is placed, the title company conducts a search of the public records. This should identify any issues with the title such as liens against the property, utility easements, and so on. If a problem is discovered, most often the title professional will take care of it without you even knowing about it. After the title search is complete, the title company can provide a title insurance policy.

4. Lender’s Title Insurance Policy and Owner’s Title Insurance Policy
There are two kinds of title insurance coverage: a Lender’s policy, which covers the lender for the amount of the mortgage loan; and an Owner’s policy, which covers the homebuyer for the amount of the purchase price. If you are obtaining a loan, the bank or lender will typically require that you purchase a Lender’s policy. However, it ONLY protects the lender.

It strongly recommended that you obtain an Owner’s policy to protect your investment. The party that pays for the Owner’s policy varies from county to county within the State of Florida, so ask your settlement agent for guidance before closing.

5. Obtain a Closing Disclosure
Your lender must provide a Closing Disclosure to you at least THREE (3) days prior to closing. Your lender will provide this Closing Disclosure directly to you, the Buyer, at a minimum, three days before you close your transaction.

If you or your lender makes certain significant changes between the time the Closing Disclosure form is given to you and the closing, you must be provided a new Closing Disclosure form and an additional three-business-day waiting period after receipt of the new form. The three (3) day period will reset or apply if the creditor:
• Makes changes to the APR above ⅛ of a percent for most loans (and ¼ of a percent for loans with irregular payments or periods)
• Changes the loan product
• Adds a prepayment penalty to the loan

If the changes are less significant, they can be disclosed on a revised Closing Disclosure form provided to you at or before closing, without delaying the closing.

6. The Finish Line: Prepare for Closing
As closing day approaches, the closing agent orders any required updated information. Once the closing agent confirms with all parties, (the lender, the buyer and the seller), a final date for closing will be set, along with time and location of the closing.
On closing day, all of the behind-the-scenes work is complete. While you’ve been busy packing, ordering utilities and coordinating the movers, your closing agent has been managing the closing process so that you can rest assured, knowing all the paperwork is in order.

This document provides a brief description of insurance coverages, products and services and is meant for informational purposes only. Actual coverages may vary by state, company or locality. You may not be eligible for all of the insurance products, coverages or services described herein. For exact terms, conditions, exclusions, and limitations, please contact our office.

Time to Buy and Refinance is Now!

Posted on 10/27/201502/26/2016 by khaniauerbach

Are you wondering what the rates on mortgages are hovering around these days? Data released on Thursday by Freddie Mac indicates that the 30-year fixed-rate average ticked down to 3.79 percent with an average 0.6 point. (Points are fees paid to a lender equal to 1 percent of the loan amount.) It was 3.82 percent a week ago and 3.92 percent a year ago. The 30-year fixed-rate average has remained below 4 percent for three months.

The 15-year fixed-rate average dropped to 2.98 percent with an average 0.5 point, falling below 3 percent for the second time in three weeks. It was 3.03 percent a week ago and 3.08 percent a year ago.

Hybrid adjustable rate mortgages moved higher. The five-year ARM average edged up to 2.89 percent with an average 0.4 point. It was 2.88 percent a week ago and 2.91 percent a year ago.

The one-year ARM average jumped to 2.62 percent with an average 0.2 point. It was 2.54 percent a week ago.

Now, really is the time to buy and refinance!

New Mortgage Disclosures Expected to Delay Real Estate Closings

Posted on 09/29/2015 by khaniauerbach

Our sincerest apologies for not having provided you with new content in such a long time, but we have been working tirelessly on becoming prepared for the changes ahead! In just a few short days, federal laws will be implemented that will affect the way homebuyers finance their mortgages in real estate transactions. The Consumer Financial Protection Bureau created “TILA RESPA Integrated Disclosure,” known in the industry as TRID, and TRID implementation begins on Saturday, October 3, 2015. Most, if not all, of the experts in our industry agree that these changes could increase the time to close on purchases by at least double. Take note, these changes do NOT affect all-cash or commercial transactions. Furthermore, the implementation of TRID will only affect loan applications that are taken on residential purchases that are financed ON or AFTER Saturday, October 3rd. So, if you are able to squeeze in a loan application before that date, you will avoid being subject to these changes. Our local colleague, Gary M. Singer, outlines all these changes and we have reposted his article originally published in the Sun Sentinel, below:

Sept. 25, 2015

By GARY M. SINGER Sun Sentinel – Tribune News Service

Big changes are planned for how homebuyers finance their mortgages, and that almost certainly means that closings will take longer. In some cases, closings that now speed through in 30 days probably will require at least 60 days.

The changes had been expected to begin in August, but the effective date was pushed back to Oct. 3.

After the housing crash, Congress felt that we needed a better system of mortgage disclosures and procedures so that Americans can better protect themselves and make the best choices when getting home loans.

The Consumer Financial Protection Bureau was created and charged with accomplishing this.

The bureau decided that the four existing disclosure forms required under federal law would be changed into two new, more comprehensive documents — a Loan Estimate and a Closing Disclosure.

These forms are known as the “TILA RESPA Integrated Disclosure,” or more commonly, TRID.

In addition, the closing process was unified so that all 50 states use the same forms and procedures.

Who Do These New Rules Apply To?
They apply to residential properties that include a mortgage as part of the transaction — both sales and refinances.

The rules are designed to protect the buyer/borrower, but they will affect all parties to the transaction.

Lenders are bearing the brunt of ensuring compliance with the new rules, making the lender responsible for getting all of the other parties on board. The rules do not apply to commercial transactions or all-cash deals.

What is Changing?
Buyers applying for loans will get a Loan Estimate (instead of the current Good Faith Estimate) within three days of applying for the loans.

The new form is designed to highlight key terms to enable borrowers to shop around for the best deals. It’s supposed to be user-friendly and almost certainly will be, considering how confusing the current form is.

The Closing Disclosure must be received by the borrower three business days before the closing. If the form is mailed, couriered or emailed, the lender must allow an extra three business days on top of that.

This means that the closing can’t occur for at least six business days after the lender sends out the completed Closing Disclosure.

This is a massive change from the way it is now, when some of the information is still being filled in on the closing day, sometimes even while the parties are sitting at the closing table.

The biggest issue I have with these new forms is that they significantly downplay the importance of getting owner’s title insurance policies, which is money well spent. I can’t think of any situation in which not getting this very important coverage would be a good idea. And I’ve seen many instances in which not having title insurance costs a buyer the home.

K&A note: There are many ways a person can lose their home as a result of not having an Owner’s Policy for Title Insurance. Should you wish to learn what they are, contact us and we’ll share that information with you. It’s certainly not a short list and being uninsured can definitely result in the loss of property.

What do Buyers and Sellers Need to Do?
Closing agents — used to finalizing the process at the last minute to accomplish everyones’ rush to close — now will need to get the final closing information to the mortgage lender at least 10 days before the closing date so that the lender can complete the Closing Disclosure in time to get it out six days before the scheduled closing.

Realistically, to accomplish this, buyers and sellers will need to add three to four weeks to their closing time lines.

To make matters even more confusing, all of the standard purchase contract forms have been recently changed to address the new rules.

That’s causing real estate professionals to learn the new forms.

K&A note: If you are a real estate professional, please reach out to us for guidance on the new forms. We are all in this together and are looking forward to making all future transactions go as smoothly as possible.

Be sure your real estate agents and others on your team are aware of the new information and have been trained on how to deal with it.

Fortunately, the industry seems ready for this change, and there is plenty of training available for those in the business.

About the Writer
Gary M. Singer is a Florida attorney and board-certified as an expert in real estate law by the Florida Bar. He is the chairperson of the Real Estate Section of the Broward County Bar Association and is an adjunct professor for the Nova Southeastern University Paralegal Studies program.

This article, originally dated 9/25/15, was re-posted from the Sun-Sentinel, distributed by Tribune News Service.

Distressed Homeowner? Freddie Mac Offers a Complete Guide to Foreclosures and Alternatives

Posted on 06/22/201505/28/2019 by khaniauerbach

As part of a new website launched this week, Freddie Mac is now offering distressed homeowners a complete guide to foreclosure and prevention, from assessing your situation to what to do when your home has been foreclosed on.

“MyHome by Freddie Mac” is an option on Freddie Mac’s site offering homeowners various options under the “Foreclosure and Alternatives” tab that guide a borrower on who to contact for help, as well as non-foreclosure solutions that include both home retention and home forfeiture options.

Freddie Mac initiates their discussion with a brief overview on the importance of getting an understanding of your financial situation and determining what a borrower can and cannot pay for in their home upkeep. If a borrower cannot pay for these things, continues to incur major expenses that keep them from paying the mortgage, Freddie Mac recommends reaching out to the lender as soon as possible.

Borrowers are warned to watch for the warning signs of foreclosure and to seek help if they look familiar. If a borrower needs guidance on avoiding foreclosure, Freddie Mac lists several options to contact for help: the lender, housing counselors, Freddie Mac borrower help centers, and house finance agencies. The key is to seek assistance before it becomes a permanent problem.

Some home retention solutions discussed for eligible borrowers are forbearance, reinstatements, repayment plans, and modifications, including the government’s Home Affordable Modification Program (HAMP). Non-foreclosure solutions in which the home is forfeited include short sales or deeds-in-lieu of foreclosure. There are several resources provided on the site to assist the borrower in understanding the options and how to properly prepare your financial documentation before meeting with the lender.

For situations where foreclosure cannot be avoided, Freddie Mac gives the borrower a list of what to expect after foreclosure that includes how it affects the borrower’s credit, how to rebuild credit, finding a home after foreclosure, and re-entering the housing market.

Additional options provided to homeowners who have already lost their home to foreclosure include: finding out who purchased the home after the foreclosure to increase options available. In some situations, if Freddie Mac acquired the home, options may include renting the home back while it’s being marketed for sale, receiving “cash for keys,” or purchasing the home back.

Khani & Auerbach is a law firm with experienced real estate attorneys and we are here to help.

Looking to see the estimated value of a potential real estate purchase or real property you presently own? Check out our partners at Zillow for more information.

CFPB Fails to Comply with Congressional Review Act Moving TRID date to Oct. 3rd

Posted on 06/18/201505/28/2019 by khaniauerbach

In a statement made June 17th, the Consumer Financial Protection Bureau (CFPB) announced a proposal to delay implementation of the TILA-RESPA Integrated Disclosures (TRID) rule until Oct. 1st. The CFPB’s original implementation date of Aug. 1^st had been been pushed to Oct. 1st, as they claim an “administrative error” caused the delay of Know Before You Owe rule. On June 24, 2015, the Bureau announced in a new Press Release, the selection of Saturday, October 3, 2015, rather than October 1, 2015, as the proposed implementation date.

Under the Congressional Review Act, the CFPB failed to timely notify Congress, which requires agencies to submit the rule to Congress and the Government Accountability Office 60 days before the effective date. The agency’s submission should include (1) a copy of the rule; (2) a concise general statement relating to the rule, including whether it is a major rule; and (3) the proposed effective date of the rule.

According to CFPB Director Richard Cordray, the bureau “made this decision to correct an administrative error that we just discovered in meeting the requirements under federal law, which would have delayed the effective date of the rule by two weeks. We further believe that the additional time included in the proposed effective date would better accommodate the interests of the many consumers and providers whose families will be busy with the transition to the new school year at that time.”

At Khani & Auerbach, we were already well on our way to being prepared to implement these new procedures into our real estate practice, however, the CFPB’s decision to delay the deadline for their implementation is great news for everyone. The consumers, the vendors and the industry in general are all not exactly “ready” and there are aspects of TRID that simply made no sense, further confusing the consumer. This push to Oct. 3rd^st was definitely something we expected and comes as no surprise. The CFPB listened to the industry and its concern for consumers.

With that said, Khani & Auerbach highly recommends that you initiate your real estate transactions before the implementation date expected for October 1^st.

Call the attorneys at Khani & Auerbach (954) 921-1517 if you have any questions about this or any real estate matters.