Making Real Estate Work

Showing 6 posts by Christina L. Moore.

Quit Claim Deeds Can Void Existing Owner’s Title Policy; Use with Caution

Quit Claim Deeds Can Void Existing Owner’s Title Policy; Use with Caution

Lawyers have been trained to avoid using a general warranty deed when representing a client in a real estate transaction or when conveying property between related entities or individuals. In instances of dissolution, merger, a transfer from individuals to a majority owned entity or a transfer between other related parties, where there is not a concern of a claim to title, a Quit Claim Deed is erroneously believed to be the type of deed of choice. While not intending to cause an issue with the client’s title insurance, the use of a Quit Claim Deed, in these situations, may void any existing Owner’s Title Insurance Policy in Georgia by canceling the “continuation of insurance.”  Even for this seemingly minor assistance to a client, it is critical to ask a knowledgeable real estate attorney and check the jacket of the client’s Owner’s Title Insurance Policy to determine how “continuation of insurance” is applied and how the “Insured” is defined. For example, “Continuation of Insurance” can only be maintained if the “Insured” shall have liability by reason of warranties in any transfer or conveyance of the Title.” 

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Apartment Owners & Property Managers: Have You Posted Your Signs Yet?

Apartment Owners & Property Managers: Have You Posted Your Signs Yet?

As part of the Florida legislature’s effort to raise awareness of human trafficking – labor and commercial sex trafficking – it passed legislation requiring “public lodging establishments” to post signage regarding human trafficking in a conspicuous location accessible to employees. While subject to some exclusions, public lodging establishments include apartment buildings along with other property types.

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Extension of CDC Order to Temporarily Halt Residential Evictions Nationwide

Posted In Coronavirus

Coronavirus

The Coronavirus Response and Relief Supplemental Appropriations Act, 2021 was signed into law by President Trump on December 27. Section 502 of the Act extended the Department of Health and Human Services (HHS) and the Centers for Disease Control and Prevention (CDC) Order of September 4, 2020 which temporarily halts residential evictions for failure to pay rent until January 31, 2021. The original order is discussed in more detail in a law alert from September 3rd, which can be found here.

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PPP Loans and Changes of Ownership: Considerations for M&A Transactions

Coronavirus

On October 2, 2020, the Small Business Administration (SBA) issued a Procedural Notice to provide information concerning required procedures for a “change in ownership” of an entity that has received a paycheck protection program (PPP) loan.  Prior to issuance of this Procedural Notice, the SBA regulations that govern PPP loans did not expressly address asset acquisitions/sales or even provide a detailed definition of “change of ownership” for borrowers.  Further, while most PPP loan documents required the PPP lender to consent prior to a “change of ownership,” the term “change in ownership” was not defined.  This lack of guidance and undefined language in the PPP loan documents left PPP borrowers who wanted to accomplish an asset acquisition/sale, sale of common stock or ownership or merger at risk of defaulting on their PPP loan covenants, which would require immediate repayment of their PPP loan.

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CDC Order to Temporarily Halt Residential Evictions Nationwide

Posted In Coronavirus

Coronavirus

On August 8, 2020, President Trump directed his administration to prevent residential evictions and foreclosures resulting from financial hardships caused by the COVID-19 pandemic. Specifically, his Executive Order (EO) states that the administration will take all legal measures needed to prevent this activity. In order to prevent the further spread of the virus, the EO tasks the Department of Health and Human Services (HHS) and the Centers for Disease Control and Prevention (CDC) to consider measures to temporarily prohibit residential evictions for failure to pay rent due to COVID-19 hardships.

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Treasury Market Guidance on Paycheck Protection Program Loans

Coronavirus

On Tuesday, the Treasury Department released guidelines to the market in the form of a Top-Line Overview of the Paycheck Protection Program (PPP), Lender Information Sheet, Borrower Information Sheet and Application Form, which can be found here: https://home.treasury.gov/policy-issues/top-priorities/cares-act/assistance-for-small-businesses. This guidance is not firmly established and we expect additional guidance, clarification or reconsideration of interpretations to come. For now, however, the market guidance is noteworthy for several reasons as it is informative, clarifies and even contradicts the statutory provisions contained in the CARES Act. Specifically, below are the notable points of information, clarification and contradiction:

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