Real Estate Law Blog

Is An Interest-Only Mortgage Right For You?

There are a number of financing options to consider when purchasing a home, one of which is the interest-only mortgage. This type of mortgage requires a homeowner to pay only the interest that accrues on the loan each month. None of the principal is paid off until the interest-only period expires. The length of the interest-only periods can vary, but payments are relatively low during this time. After expiration of the interest-only term, the buyer is then required to make monthly payments for the principal. More >

Western Kentucky University & City of Bowling Green Make Great Remodeling Team

Last week, the New York Times featured a story about Bowling Green’s redeveloping district near downtown, formally called the WKU Gateway to Downtown Bowling Green (Gateway, for short). The district began taking shape in 2007, after the city and Warren County reached an agreement with the state to establish a 383-acre, 52-block special development and tax district. Since then, there has been a steadily increasing amount of projects in this once rundown area.

Twenty eights projects, to be exact, have been completed or are under construction in the Gateway district, including the Bowling Green Ballpark, Hitcents Park Plaza, the Southern Kentucky Performing Arts Center, the Bowling Green Area Chamber of Commerce building, and WKU’s Health Sciences Complex. Since 2008, $262 million has been spent in downtown construction. While that figure may cause a gasp, the renovation is nothing short of breath taking.

Mr. Gary A. Ransdell, WKU’s President, credits the construction with breaking down the barrier that once existed between the university and city. As he stated in the NYT article, “[T]here’s been a shift in student density at the north end of our campus. With each new project that density increases.” WKU itself has added $24 million dollars’ worth of student housing, new fraternity housing, parking, and a $10 million alumni center.

Pursuant to the 2007 deal, Gateway pays local government 80% of the increases in payroll, property, sales and other tax revenue generated by new development within the district. The revenue is devoted to retiring construction bonds, building infrastructure and assisting developers. It’s a win-win situation, with students, residents and visitors all coming out on top.

The recent efforts of the university and city are a testament to the transformative power of real estate. Revitalization projects shape everything from the economy to living patterns. Gateway serves as proof that hard work, interest, funding, and government cooperation can result in praiseworthy results. Hats off to them!

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This article does not constitute legal advice.

LBAR Launches App, Just As Industry Giants Merge & New Concerns Arise

Zillow and Trulia, the two largest sites in the home listings game, are merging. These sites enable buyers to navigate an online map to find a home’s value, look at available listings, and connect with local real estate agents. And while the companies, nearly a decade old, have somewhat helped to streamline the home buying and selling process, real estate deals remain a transaction that largely require professional assistance – from agents, to bankers, to attorneys. Even with online assistance from sites like Zillow and Trulia, most homebuyers prefer one-on-one guidance and advice from a trusted professional.

The merger, which will result in the two companies becoming by far the biggest online portal in the industry, has caused concern throughout the residential brokerage business. Some are worried that the merger will result in the company having too much power over listings, possibly raising associated fees. There has even been talk that the company might now break into the brokerage business itself, something that the separate companies have not done to date.

The National Association of Realtors (NAR) has its own consumer website, realtor.com, which is operated by Move Inc. and ranks third behind Zillow and Trulia in terms of popularity. In July, a new NAR marketing campaign emphasized the accuracy of realtor.com listings and the role of realtors in buying and selling homes. The long-standing critique of both Zillow and Trulia has been the accuracy of their services’ listing information. Realtor.com, on the other hand, gets listings directly from most of the nation’s more than 800 multiple listing services (MLSs).

Local MLS associations should not worry about the merger too much, as there is still very much a need for professionals in the world of real estate transactions. Associations, should, however note that they must make more of an effort to reach consumers in the online environment and offer value-added services that the industry behemoths do not – such as proving local expertise or always having the latest listings.

Taking a page from this playbook, the Lexington-Bluegrass Association of Realtors (LBAR) just announced the launch of their mobile app, LBAR Homes, which allows users to view all homes for sale or rent in the Bluegrass Region. Users can search by address, city, or zip code to see property details for all homes for sale or rent in a specified area, including price, square footage, estimated mortgage, taxes, features, maps, pictures, and more. A contact feature allows users to connect with respective listing agents by phone or email. The free app can be downloaded from an app store or at app.lbar.com, or by texting LBAR to 87778.

Once you find your home, you’ll want to contact a closing attorney to assist in the legal aspect of the purchasing process. Contact McBrayer's real estate group if you're ready for this exciting step in the process!

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This article does not constitute legal advice.

“Mi Casa Es Su Casa”… Not So Fast, Landlords

Mi Casa Es Su Case translates to “My House Is Your House.” That sounds nice, and while technically true, tenants are not always so welcoming to their landlord. In fact, sometimes they may downright refuse to let their landlord enter their unit. There are several reasons that access by the landlord to an occupied unit may be necessary: to address a disturbance, to respond to an emergency, to make repairs, etc. However, a landlord must be mindful of the parties’ respective rights under the Uniform Residential Landlord Tenant Act.[1]While tenants generally have a right to quiet and exclusive possession of the property during the lease term, the tenants may not unreasonably withhold consent or deny access to the landlord.[2] Pursuant to Kentucky Revised Statute (KRS) 383.615, the landlord is entitled “to enter the dwelling unit in order to inspect the premises, make necessary or agreed repairs, decorations, alterations, or improvements, supply the necessary or agreed services, or exhibit the dwelling unit to prospective or actual purchasers, mortgagees, tenants, workmen, or contractors.”[3] More >

Overlay zoning

Many communities that have adopted zoning laws governing the uses that are allowed in the various zones have also adopted overlay zones that control the same property. Overlay zones are just that -- they add another layer of regulation to those that control the underlying zone.   Overlay zones are intended to add additional protection the underlying area. The most common types of overlay zones are intended to protect historic areas, neighborhoods or buildings with unique characteristics or environmentally sensitive areas. More >

A Slippery Slope for Boat Slips

What happens when an existing condominium property regime is found to be invalid? Well, the Louisville Yacht Club recently encountered that exact problem. The case, Steenrod v. Louisville Yacht Club Ass’n, Inc.,[1] is one which Kentucky boat owners and condominium association members should be familiar so as to avoid similar problems. More >

Mortgage Prequalification versus Preapproval

First time home-buyers are often under the impression that mortgage prequalification and preapproval are interchangeable terms, but they are actually two separate steps in the financial process and it is important to understand the difference between them. More >

Do I Really Need a Real Estate Attorney?

A question I commonly encounter is why a buyer or seller needs an attorney’s assistance for the sale, purchase, or refinancing of property. A title company ensures that the title to a piece of real estate is legitimate and then issues title insurance for that property…why involve another party in the process? The answer is simple – because attorneys do what title companies cannot. Title companies, and their employees, are prohibited from providing any type of legal advice to those in the closing process. More >

Landlords, Make Sure Your Eviction is URLTA-Compliant

As tempting as it may be to immediately attempt to throw an unruly and non-abiding tenant out of the house or apartment, doing so can have serious legal consequences. Kentucky has codified the Uniform Residential Landlord Tenant Act in KRS 383.500 – 383.715 (“URLTA”). Pursuant to KRS 383.500, in order for the URLTA to be applicable in a given locale, that particular city, county, or urban county government must adopt the URLTA in its entirety. In areas where the URLTA has been adopted, tenants are often afforded greater protection at the landlord’s expense. More >

The Limits of Regulating Morality through Zoning Regulations

Zoning regulations are a reflection of a community’s identity and the image it desires to project to the larger world.   Some otherwise lawful activities are perceived to be unsavory, immoral or conducive to crime. As such, they are often regulated more stringently than other lawful businesses. Although some of these activities can generate more police reports and government oversight than other kinds of businesses, often such establishments are safe and well operated. Even so, many community residents have moral, religious, or cultural beliefs that cause them to oppose the existence of these types of businesses anywhere at all. Not only do they fight to shutter existing businesses, but they also support zoning regulations that would prevent any new such businesses from opening within the borders of their community. Examples of such activities include sexually oriented businesses (such as adult nightclubs and book stores), gambling establishments, tattoo parlors/ piercing studios, pool halls and internet cafes that offer video games with sweepstakes prizes. More >