Real Estate and Title Insurance Trends

Monitor Those Claims of 'Green'

Suzanne M. Avena, a partner at Garfunkel, Wild & Travis, and Colleen M. Tarpey, an associate at the firm, write: The FTC is currently fast-tracking a long overdue update to its "Green Guides," the Commission's cornerstone tool for preventing consumer deception in the ever-expanding arena of environmental claims. This update is expected to include new guidance to industry regarding so-called "green building" claims, an area in which the Green Guides had previously provided little instruction. If it does, there will be a brighter line over which those who market "green" or "sustainable" buildings and building products will need to watch their step not to cross to avoid the risk of an enforcement action based on false advertising.

Pre-Workout Agreements Are Today's Lender Essentials

David M. Stewart, a partner at Latham & Watkins, and Elizabeth Jaffe, an associate at the firm, write that in the recent real estate downturn, lenders increasingly find themselves faced with defaults, or imminent defaults, by their borrowers. To make matters more complex, they note, lenders today may find that foreclosing on the mortgaged property is not the best defaulted loan strategy: Due to decreased property values and a lack of willing purchasers, the lender could still face a significant shortfall in the recovery of its loan, even if the property could be sold at foreclosure.

Free With Registration: Conflict of Interest Pitfalls For Co-Op, Condo Counsel

Andrew P. Brucker, a founding member of Schechter & Brucker, writes: One might believe that the relationship between an attorney and a client is a simple and uncomplicated matter. One client, one attorney, and a mutually satisfying bond of trust. However, in reality, nothing seems to be further from the truth in the world of New York cooperative and condominium housing. Acting as general counsel to a co-op or condo can be a hazardous road on which to venture. The simple relationship is complicated when the attorney takes on different and additional roles.

Power of Attorney Statutory Overhaul Set to Take Effect

Benjamin Weinstock, a partner at Ruskin Moscou Faltischek, and Meeka Levin, an associate at the firm, write that the power of attorney has always been an attractive arrangement for real estate transactions, as a tool of convenience for both the client and attorney. Frequently, it is the only way a transaction can close. Under a major overhaul of the POA law that will take effect on Sept. 1, 2009, a POA will be radically different in form and substance from what practitioners are used to.