Did you know? Tenant Opportunity to Purchase Act in Takoma Park, Maryland

If you have been involved in real estate in the DC metro area you have likely come across the DC Tenant Opportunity to Purchase Act. But did you know that Takoma Park, Maryland also has a Tenant Opportunity to Purchase Act ("TOPA")?

The intent of TOPA is to promote the conversion of rentals to owner-occupied housing. Not complying with TOPA does leave the possibility that a court of competent jurisdiction may declare the transfer of the property void.  

As with DC, there are exceptions to the tenant opportunity to purchase. Some transfers that are exempt include transfers to a family member, transfers under a court order, transfers to the State or a local government and transfers of a minority title interest.  For a complete list of exempt transfers, please visit Section 6.32.020 of the City of Takoma Park Municipal Code.   

As the title company, Federal Title will require proof that the seller delivered a written offer of sale at the same price and terms as the third party contract of sale to each tenant, any registered  tenant association, and the City of Takoma Park by first class mail or personal delivery and, except for single family homes, that the offer was posted in a common area.  

For single family homes, the tenant has seven days from the date of receipt of the written offer of sale to provide a written statement of interest, and the City of Takoma Park has 14 days. For properties with two to six units, a group of tenants acting jointly have 14 days, then seven additional days for any individual tenant, then seven more days for the City.  

For properties with seven or more units, a registered tenant association representing at least one-third of the occupied rental units in the rental facility and the City of Takoma Park each have 45 days. (Please note that properties involving four or more units in Takoma Park will also need to comply with Montgomery County’s Right of First Refusal laws).

Similar to DC’s TOPA laws, a tenant does have the right to waive the rights but only if supported by consideration. Also, the closing must take place within 6 months of the offer of sale being mailed or personally delivered. Federal Title will additionally require that both the purchaser and the seller sign a TOPA affidavit. 

This is just a summary of the City of Takoma Park TOPA laws, but the full text can be found at Chapter 6.32 Tenant Opportunity to Purchase.

Close It!™ House of the Week: Large deck with spectacular views

This week we're checking out a contemporary, fully renovated detached single family home in the Fairway Hills neighborhood of Bethesda, Maryland. This living room of this home looks out on to a fantastic deck and spectacular views of Virginia. 

Large windows and skylights let in lots of sunshine. This house also has a custom kitchen with stainless steel appliances. It's four bedrooms and 3 bathrooms in all plus a family room, laundry room and separate exercise room. It's listed at $855,000.

Assuming a homebuyer puts down 20 percent on a conventional loan, her cash to close number will be approximately $194,712.59. The monthly payments would then be around $4,087.31 per month. For a complete picture of the cash to close, or for a run-down of the seller's side of the deal, plug the numbers into the Web version of Close It™ or download the free iOS app

Marketing Service Agreements face more scrutiny

The Consumer Financial Protection Bureau (CFPB) is actively seeking enforcement actions against Marketing Service Agreement (MSA) participants. 

Their latest enforcement action occurred last week against Lighthouse Title, a Michigan title company,  resulting in a $200,000 civil penalty,  forcing Lighthouse Title to cancel all existing MSAs and prohibiting them from entering into future MSAs. 

If your brokerage currently participates in MSAs, your broker would be well served to carefully review the findings issued by the CFPB in this order

Perhaps the most weighted finding by the CFPB stated that Lighthouse Title violated federal law by entering into MSAs with the understanding that, in exchange, the brokerages would refer closings and title insurance business to the title company and, further, by paying those brokerages fees with the understanding that in exchange the brokerages would refer business. 

It’s important to note that the CFPB didn’t state that the "understanding" to refer business had to be in the written agreement. 

One of the key factors to identifying an "understanding for the referral of business" was a determination that brokerages referred significantly more transactions to the title company when they had an MSA with the title company than when they did not.

Why else would a title company enter into an MSA and pay fees to a brokerage if not for the referral of business?  Otherwise, the title company would simply hire a marketing/advertising firm to "market" its services — right?

By its ruling and findings, the CFPB is effectively saying that if MSAs are premised on an understanding that the brokerage will refer business to the paying title company, then the MSA is in violation of federal law.

MRIS to offer custom, specially licensed version of Close It! to members through partnership with Federal Title

MRIS, the industry-leading Mid-Atlantic Multiple Listing Service (MLS), and Federal Title & Escrow Co. today announced they have launched MRIS Close It!, a desktop and mobile app that provides quick and concise closing cost estimates.

"MRIS Close It! accurately answers questions real estate agents commonly hear such as 'how much cash do I need to close?' and 'how much can I expect to net from the sale of my home'," said Andrew Strauch, Vice President of Product Innovation at MRIS. "Through this new core product, our customers now have the ability to quickly and easily answer these questions for homebuyers and sellers on the fly."

Through the partnership, MRIS, which facilitates nearly $125 million a day in real estate transactions, now offers a custom, specially licensed version of Close It! to calculate total cash-to-close and net proceeds for real estate transactions. MRIS Close It! allows users to instantly create, edit and share HUD-1 Settlement Statements and net sales sheets.

"I am going on 37 years in this business and MRIS Close It! is as easy as it gets to calculating closing costs for buyers and sellers," said Scott Miller, MRIS customer and Associate Broker at RE/MAX 100. "My clients and I can rely on MRIS Close It! for quick and helpful closing cost estimates."

Federal Title, a technology pioneer in the title industry, initially launched the consumer-facing Close It! app in May 2013 to simplify homebuying costs. The app, along with the MRIS version, can compare costs in different jurisdictions and show the difference in closing on the first of the month compared to at the end of the month. Many features are customizable including the mortgage rate and down payment amount and allow the user to differentiate between FHA, VA loans and cash purchases.

"We created the most accurate app on the market that simplifies the closing process," said Federal Title founder Todd Ewing. "It removes the guesswork from the equation and is the ultimate closing costs calculator."

The app is a new core product for MRIS customers and is included in their MRIS subscription at no additional charge. To learn more about MRIS Close It! and to download the app for iPhone/iPad, please visit http://www.mris.com/CloseIt.

ABOUT MRIS 

MRIS is Real Estate in Real Time™. We’re a leading provider of real estate information technology and services, and are frequently ranked among the most productive Multiple Listing Services (MLS) in the nation, facilitating over $45 billion in system wide sales in 2013. In its core market, MRIS supports over 45,000 real estate professionals spanning the Mid-Atlantic region, including Maryland, Northern Virginia, Washington, D.C. and parts of Pennsylvania, Delaware and West Virginia. MRIS provides a portfolio of technology solutions and proprietary databases for real estate professionals, as well as broker and agent software products and an industry-leading consumer portal, MRIShomes.com (formerly HomesDatabase). In addition, the CURE Solutions Group, a subsidiary of MRIS, provides proprietary back-end technology to other MLS systems, serving nearly 180,000 customers each day. Visit MRIS at MRIS.com and our web based TV station, mrisTV.com. “Like” us on Facebook/MRISonFB, follow us on Twitter, @MRIS_REal_News and be sure to visit MRISblog.com for real-time news and company updates.

About Federal Title & Escrow Company 

Federal Title & Escrow Company is the largest independently owned title company in Washington, D.C. – innovators within the title industry, trend setters who leverage technology to streamline the closing process, pioneers of a business model that has saved homebuyers more than $8 million in closing costs. Their innovative app Close It!, has over 10,000 downloads to date. It was nominated for a Tabby Award in October 2013 and has been featured in the Washington Post, Title Report and Washington and Baltimore business journals. To find out how this unique company is changing the way homebuyers and sellers think about title companies, visit federaltitle.com.

.realtor coming in October

All you tech-savvy real estate agents out there who wish to further distinguish yourselves online will be able to register a .realtor domain name by Halloween, says the National Association of Realtors

If this is something that interests you, make sure to jump on the band wagon early since NAR is offering a year's worth of free hosting to the first 500,000 people who register. And if you have an existing profile at Realtor.com, you'll be able to transition it into a stand-alone site with your name on it. 

The .realtor domain name, in the works since 2012, is NAR's latest attempt to close the gap between the number of buyers who find their real estate agent online (about 9 percent) and the number of buyers who search for homes online (about 89 percent). They've tried other approaches in the past that didn't pan out so well. 

NAR initially applied for the .realtor domain name to help its Realtors® stand out from other real estate professionals and to help consumers distinguish between websites operated by industry professionals from sites maintained by third parties, according to an earlier report from Inman News

  • Ways to save at closing

    Title charges are the largest chunk of closing costs and can vary by hundreds of dollars.

    Learn more

  • What are closing costs?

    The real estate closing process involves loan steps, legal steps and title steps.

    Learn more

  • What's title insurance?

    Insure your legal ownership just like you'd insure the building, but for lots cheaper.

    Learn more

Connect with us


Our blog contains general information only, not intended to be relied upon as, nor a substitute for, specific professional advice. Rate tables and figures that appear on our blog are deemed reliable but not guaranteed. For current rates & policies, refer to our Quick Quote and Consumer Guide. We accept no responsibility for loss occasioned to any purpose acting on or refraining from action as a result of any material on our blog.