Franceschi v. Mautner-Glick Corp.: Property Manager’s Collection of Overdue Rent Is Exempt From Requirements of the Federal Fair Debt Collection Practices Act
In 1998 U.S. District Court case, Franceschi v. Mautner-Glick Corp., involved claims that a property manager and the property owner violated the federal Fair Debt Collection Practices Act (the “FDCPA”) when attempting to collect overdue rent. The purpose of the FDCPA is to protect consumers from unfair and abusive debt collection practices, and it regulates collections made by third parties, such as attorneys, on behalf of another.
A couple bought a new house from the contractor. The lot had a steep slope, and to control drainage and erosion, the contractor had built terraces and retaining walls and had contoured the site to direct drainage away from the house. The property had been listed with a real estate brokerage firm, and two of its sales associates (the “Sales Associates”) handled the sale. Subsequent to the closing, the drainage system failed and the buyers experienced excessive rainwater runoff and erosion problems.
In a case of first impression, the Court of Appeals of Georgia upheld the validity of a commercial broker’s lien under the Georgia Commercial Real Estate Broker Lien Act. Padgett v. City of Moultrie. In this case, a commercial real estate broker (the “Broker”), had entered into an agreement with Cambridge Health Care, Inc. (“Cambridge”) to provide services in connection with its purchase of a property in the City of Moultrie for conversion into a health care facility.
Note: This case has not been included in an official reporter and may not be cited as legal authority. Consult with counsel before relying on this decision.
An unreported case decision from the North Carolina Court of Appeals, is a very favorable decision for the real estate licensee, but another court addressing similar issues might not reach the same conclusion.
This 1998 case out of Maryland involved a beach house in Ocean City, Maryland owned by David Polland. Polland had not seen the house in several years but was aware that it was in disrepair and had received notices from the city’s Code Enforcement Office about its dangerous condition. A Code Enforcement officer had put yellow "caution" tape across the front stairs of the house, which were deemed unsound, and had placed a sign on the house indicating that it was uninhabitable.
A recent decision from the Supreme Court of Idaho involved the liability of a tenant for fire damage. Empire Lumber Company v. Thermal-Dynamic Towers, Inc. Empire Lumber Company owned a 32,000 square foot warehouse located in Post Falls, Idaho. It leased over a third of the space to Thermal-Dynamic Towers (“TDT”) for a short time while TDT was in the process of constructing its own facility. At the expiration of the initial term, the lease continued on a month-to-month basis.
In August 1998, the New Jersey Multiple Listing Service, Inc. (“NJMLS”) filed a lawsuit with the Superior Court of New Jersey, Chancery Division - Bergen County, against NEWMLS, doing business as the Garden State Multiple Listing Service (“GSMLS”) and the real estate brokerage firms which own GSMLS. NJMLS is owned by the Eastern Bergen County Board of REALTORS®, Inc. and the West Bergen Association of REALTORS®, Inc.
Owen Wagener & Co. v. U.S. Bank: Broker Cannot Recover Commission From Bank in Foreclosure Situation
A recent Appellate Court of Illinois decision highlights important issues for brokers involved in foreclosure situations. Wagener v. U.S. Bank. In this case, Lewis Kaplan (the “Owner”) owned property located in Crestwood, Illinois. He fell behind on his mortgage payments to U.S. Bank (the “Bank”) and it began foreclosure proceedings. The Owner decided to sell the property, and in June, 1994, he entered into a listing agreement with Owen Wagener & Co. (the “Broker”), a real estate brokerage.
Lopata v. Miller: Maryland Court Holds That Subagents of Seller Did Not Have Duty to Verify for Buyers Acreage Information Provided By Seller
A 1998 Maryland case, Lopata v. Miller, stemmed from a discrepancy in the actual acreage of the property from what had been communicated to the buyers. Marcia and Edward Lopata (the “Buyers”) had asked two social acquaintances of theirs who were real estate salespeople (the “Salespeople”), to help them find a waterfront home with a variety of requirements, such as a deep-water slip for their sailboat.
Professional Property Management Services, Inc. v. Agler Green Townhouses, Inc.: Joint Venture Agreement Lending Ohio Firm’s Broker’s License to Michigan Entity Is Illegal and Agreement to Do so Is Void and Unenforceable
In a recent case, the U.S. District Court for the Southern District of Ohio ruled that a joint venture agreement between a Michigan entity and an Ohio corporation which was intended to satisfy Ohio real estate brokerage licensing requirements failed to do so. Professional Property Management Services, Inc. v. Agler Green Townhouses, Inc.