A look on the legal side with Dennis Badagliacco

Dennis Badagliacco
dennisb@legacyrea.com

408-218-1800
Silicon Valley

Dennis Badagliacco, who is one of three members serving on the Legal Advisory Board of the NAR, as are other prominent members of AREA: Diana Bull and Patti Lawton, who is vice Chair, made the following presentation about current legal considerations facing the NAR:

Zip Forms Update: CAR has discovered a group headed by an attorney who is using the Zip forms library without authorization. As most of you know, the forms are strictly a member benefit for NAR members. The forms are tightly controlled and the “group” using the forms has also allowed the changing of the forms while still using the CAR and NAR logos! The offenders have refused to cease and desist. CAR has sued the offenders to protect the forms for all of us.

The City of Pasadena has a tree ordinance requiring homeowners to keep street trees. Many cities in all States have a similar ordinance. During a violent storm a tree came down and did $720,000 damage to the adjacent home. The lower courts have held Pasadena liable. Pasadena came to CAR and requested funding for the appeal. The request was unanimously denied by CAR. The case needs to be watched because of the National Implications. Many cities require land owners to maintain city trees and pay for repair damages, including sidewalk repairs. It will be interesting to see if a city can require a tree, but not be responsible for any damage caused by the tree.

On the rent control front, San Francisco is at it again! This time San Francisco is attempting to say a tenancy may not be terminated during the school year is a school age child lives in the structure! Obviously, organized Real Estate is fighting the law.

Cyber claims for unsecured emails continue to be filed across the USA. Both phone and internet attacks continue to occur with looming large costs to the Title industry and Real Estate Firms. Remember the FBI will not even take the case if the loss is less than $240,000!

AREA Spain

Diana Bull

Diana Bull, Chair of the AREA Advisory Board

In 2012 we had the pleasure of meeting some of Spain’s finest real estate professionals in San Francisco, as they attended the annual NAR Convention in that fair city. During the visit they met with Hans Hansson and Carl Bosse and because of that meeting have created AREA-Spain, and have become our special partners. So, it is not so much about what you know. In AREA it’s all about who you know.

Here is a salute to these wonderful partners in Europe.

AREA SPAIN (Espana)

Espana

 

AREA Spain

L-R: Daniel Gomez; Montse Moreno; Eva Lopez Cordero; Maria Jose’ Janez

Montse and Daniel work out of the same office, Avenir; and Montse is our direct Contact and can be reached at

011-34-600-410-007

montse@avenir-bcn.com

Paseo de Gracia 123, ático, 08008 Barcelona

 

These are very special people who would love to work with you. But if you are only passing through, they would love to hear from you regardless. Through their connections they can help you in any and all locations in Spain. And now could not be a better time to invest in and with America’s historic partner and great friend. Se habla Ingles!

Here is their latest update on the economy:

And though the forecast for 2016 is better it’s important to take into account the severity of Spain’s economic downturn: 

  • In 2007 it was the fastest growing economy in the Euro-zone at 3.5% with a budget surplus.  Five years later it had the highest unemployment rate in the developed world and a banking sector, rated as solid by the OECD in 2010, close to meltdown.  
  • In the property sector, although there were a total of 401,281 transactions in 2015, up 8.6% compared with 2014, the market is still around 65% smaller than at the peak in 2006/7, an indication of the scale of the catastrophe that overtook Spain’s real estate industry.  
  • There’s still a long way to go even to get back to some sort of equilibrium.

Some numbers about Spanish Real Estate Market:

  • According to the world’s leading commercial property and real estate services adviser, CBRE, Spain has re-entered the top 10 countries in terms of real estate investment, 6th at the end of 2015.
  • Buyers from the E.U. made up more than 60% of all purchases by buyers from outside Spain and once again the British were the largest single group, edging towards 25% market share by year-end.  
  • overseas property buyers generally start out as tourists and there were very big increases in the tourist numbers from certain countries; in July 2015, tourism from the U.S. was up 40.5%, an increase no doubt linked to the strength of the US$,  Asian markets, most notably from Japan and China were up 30%+, lured in particular by golf tourism, and other European countries, indicating that the pool of nationalities buying property in Spain will widen further in the future.
  • The majority of property transactions in Spain in 2015 occurred in Mediterranean coastal regions, the Balearics and the Canaries and within those regions overseas buyers made up anything between 30% and 60% of all purchasers
  • From an investment point of view, the fact that prices are off the floor in the prime locations has to be set against price falls from peak to trough of around 40%, even in the best places, so, in my view, there is still potential for capital growth of up to 30% in the relative short term before prices are back to where they were, from which point, no doubt, they will move on upwards.  
  • Rental yields had another strong year in 2015.  Across the board, owners of top-quality, luxuriously furnished properties in prime coastal locations enjoyed 100% high season occupancy which is easy to understand when you look at a breakdown of the booming tourism  figures showing where all these millions stay

The National Heritage Awards

A program sponsored by The Far Points Group and Associated Realty of the Americas

This award has been created to honor those who preserve and protect. Now, more than ever our environment and the wonderful gifts that signify our historical character are under intense pressure. We salute the following national properties for their vision for understanding and responding to the tenents of responsible stewardship.

Katy Bullock, Chair, Preservation Committee
Ponce Inlet, Florida

Historic Properties

Dunleith, Natchez! The Queen on the Mississippi River!

Dunleith

Dunleith is an exquisite 1856 Historic Inn located in the heart of Natchez, Mississippi, overlooking the river. This unique inn is listed as a National Historic Landmark and sits on 60 landscaped acres. It is graced with the original antebellum buildings dating back to the 19th-century. Today it operates as a fully functional luxury boutique hotel, event venue, and award winning gourmet restaurant. Peter Patout, Talbot Historic Properties of New Orleans, who heads up AREA’s historic properties division, represents this property, which is listed for $6.95 M. peterpatout@yahoo.com.

The Chauvet, Glen Ellen, California

The Chauvet

The original hotel for the Sonoma County (wine country) town of Glen Ellen, California was built in 1906. The Hansson Family of San Francisco has converted this incredible building into a beautiful condominium, preserving and protecting the original character for now and in the future. This property was sold through the efforts of the Wine Country’s premier residential/commercial real estate company, Terra Firma Global Properties, and was represented by Terry Wunderlich of their Napa office terry@napawunder.com.

In response to the award, Christine Hansson wrote:

Hi Carl: This is truly an honor and I am grateful to have been selected as a winner. Terry has been a wonderful broker and is now a great friend. Ours was not an easy project by any stretch as its historic nature was its greatest asset and greatest liability! The relationships built demonstrate the power of AREA. I asked Hans if there was anyone in the Network that we could consider as the broker for The Chauvet. After speaking with you, Carl, Hans called Heidi Rickerd-Rizzo who recommended Terry. Her acute marketing acumen and incredible patience was a match made in heaven for The Chauvet and me. The relationships built are enduring and we will turn to her again should we ever need an agent in that region. Further, I would not hesitate to recommend her to anyone.

Buildings such as The Chauvet are truly national treasures and deserve to be preserved. I thank you for this wonderful award and will see you in April.

Happy holidays,

Christine Hansson

Land Developments Dedicated to Preservation

Stone House, Green Valley, Arizona

Stone House

Located on the edge of a 50,000 acre preserve, which touches the Santa Rita Mountains with Mount Wrightson rising to 10,000 feet in elevation, it is located 17 miles south of Tucson, and is a carefully designed Custom Lot development of Tucson based Diamond Ventures. The property is represented by Shannon Murphy, Broker smurphy@diamondven.com.

We congratulate these fine developments for their responsible stewardship as they are our 2015 “National Heritage Award” winners.

The National Heritage Award is a private organization consisting of companies and individuals who understand that responsible development is a consistent requirement for the preservation of our environment. www.thenationalheritageawards.com