Most condo owners prefer that their neighbors are owner-occupants. As a result, many condo boards enact rental restrictions or even outright ban rentals. If validly done, the condo board can levy fines and file lawsuit to stop you from renting your unit. Here is how to determine whether your board’s restrictions are enforceable. Most buildings don’t start off with rental restrictions. Developers want to cast the widest net possible for buyers, which means they want to be able to sell the new units to both owner-occupants and investors. Rental restrictions tend to scare off investors. As a result, rental restrictions tend to be enacted only after the condo board has…
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Per Crain’s: South Works Site Has New Developer On Board
Vacant since 1992, the former U.S. Steel South Works site is set to be purchased by WElink and Barcelona Housing Systems. Both companies specialize in environmentally friendly construction. Thanks to Crain’s Chicago Business for reporting the story. Any comments on how you think this news will affect economic development in South Shore neighborhood are appreciated!
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In Defense of Real Estate Broker Commissions
I hear it all the time from home sellers. “Why do Realtors make so much money?” I’ve heard a few variants on the sentiment, ranging from the more diplomatic, “Realtors don’t seem to do much work to earn their commission,” to the more direct, “this commission is horse s**t!” I submit to you, however, that Realtors more than earn every penny of their commissions. My first point is quite simple — You don’t realize how much work a Realtor actually does. If your Realtor friend goes for spa treatments every day, they are not closing deals — it’s that simple. Prospecting and networking for clients takes a lot of…
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Mindfulness & The Law
The topic of mindfulness is near and dear to me. Last year, I was in a bit of a funk when I was fortunate enough to stumble on Dan Harris’s podcast. Some of you may know Dan as the 10% Happier guy. Dan had a man named George Mumford on his podcast. I really liked the way George talked about this thing called mindfulness, so I decided to download is audio book, “The Mindful Athlete,” and my journey began. Mindfulness has a lot of definitions, but perhaps the best is from one of the first people to bring the practice of mindfulness from India to the western world, Jon Kabat-Zinn.…
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Why Chicago Landlords Should Not Take Security Deposits
I should first and foremost make it perfectly clear that the follow advice is geared specifically toward Chicago (and maybe also Evanston) residential landlords. If you are a commercial landlord, or a residential landlord somewhere else in Illinois, feel free to scroll past this to another blog post, because it does not apply to you. Now that I have the major disclaimer out of the way, let me tell you why it’s a bad idea to accept security deposits in Chicago. The City of Chicago has a law on its books called the Chicago Residential Landlords and Tenants Ordinance (RLTO). The RLTO imposes a number of fairly onerous requirements on…
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LoftusLaw Goes To London
In another departure from the topic of real estate, I am pleased to report that LoftusLaw (basically just me) had the honor of spending a week in London, UK soaking in the sites and learning about the UK legal system and the legal traditions we share with our brothers and sisters across the pond. I would like to give a huge thanks to the Chicago Bar Association, and especially Beth McMeen for organizing the trip. It is no small feat to get over 100 attorneys and their guests moving in the same direction for three straight days! The highlight of the trip was a banquet at the Inner Temple Main Hall.…
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Closing Costs Part 4 – Miscellaneous Charges
In the first three installments of my series on closing costs, I addressed real estate tax credits, title charges and lender costs. This fourth, and final, last installment will address the last category of closing costs – everything else. As you review your closing costs with your attorney at the closing table, it may feel like everyone is taking their pound of flesh from the transaction. That is because it is essentially true. Transfer Taxes Whenever you buy or sell real estate, the government sticks its hand in your pocket. The amount of the tax depends largely upon the location of the parcel. The State of Illinois always gets $1 per…
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Find Out If Hackers Have Your Personal Data and What To Do About It
This is not about real estate, but I feel like data security is important enough to share this with you all. I am sure you can all recall hearing about data breaches that seem to seem to occur not so infrequently these days. In 2016 alone, Verizon, U.S. Department of Health and Human Services, Myspace (thanks, Tom), Democratic National Committee and Yahoo were all victims of hackers, which resulted in the inadvertent disclosure of personal data of millions of people. Your email password, phone number, address, etc. might be floating on the “dark web” to be purchased by bad guys who want to steal from you. Ok, so maybe my personal information…
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It Always Feels Like Somebody’s Watching Me!
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New IHDA Program Offers Up To $50,000 In Assistance To Under Water Homeowners
The painful memories of the housing bubble are quickly fading amidst the red-hot real estate market here in the Chicago area. However, the good news is not universal. Some homeowners live in sort of a limbo where they can just afford their mortgage payment, but they cannot possibly sell their home due to the fact that they owe more than the property is worth. There may be hope for some of you. The Illinois Housing Development Authority (IHDA) has introduced a program for qualifying homeowners to receive up to $50,0o0 toward the balance due on their mortgage and refinance into a more affordable loan based on the market value of…
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Closing Costs Part 3 – Lender Charges
The third installment of my posts on closing costs focuses on charges you may incur at closing from your lender. The vast majority of buyers do not have the cash to plunk down a few hundred thousand dollars to buy a home. As a result, most real estate transactions involve a loan through a mortgage broker. Not surprisingly, lenders do not work for free, and there are a number of costs you can expect to incur in connection with borrowing their money. Unlike title charges and real estate tax credits, lender charges vary quite a bit depending on the lender and loan product you choose. However, there are some charges and costs…
