| In This Issue: Monday, December 12, 2005 | |||||
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INDUSTRY NEWS AND EVENTS |
LEARN ON THE GO WITH T & I BRIEFINGS |
| The Technology & Intelligence (T&I) Briefings are quarterly audio interviews with notable commercial real estate professionals. Each interview is available for listening or download in MP3 format from the RCA home page http://www.realtor.org/commercial/index.html. Make the most of your drive into the office or listen while at your desk to industry experts share ideas and opinions on forces that shape the industry. The host, an industry expert himself, Jack Peckham knows the questions to ask so you get usable business information. The first audio CD release, sent with the RCA Report, features essential information on using the Internet in your practice, software recommendations and insights from NAR’s Chief Economist, David Lereah. The quarterly series will mail with the RCA Report to help keep you up to date on issues that affect your business and ideas for you to grow your business. If you would like to receive the Q4 2005 audio CD, please contact rca@realtors.org . |
PUBLIC POLICY UPDATES |
NAR COMMENDS HOUSE PASSAGE OF TERRORISM RISK INSURANCE ACT |
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The National Association of REALTROS® commended the U.S. House of Representatives for passing legislation that ensures the continued availability and affordability of terrorism insurance. The Terrorism Risk Insurance Revision Act of 2005, H.R. 4314, would extend the federal backstop against losses resulting from terrorist attacks. A companion bill, S. 467, passed the Senate last month. The legislation now goes to a conference committee to resolve minor differences between the two bills. The Terrorism Risk Insurance Act of 2002 (TRIA), which is set to expire December 31, has enabled economic development to flourish and kept commercial real estate markets strong amidst the ongoing threat of terror attacks. The Terrorism Risk Insurance Revision Act would extend the TRIA program through December 31, 2007, with the possibility of extending it for a third year. Read the full press release. |
RECOMMENDATIONS OF THE PRESIDENT’S ADVISORY PANEL ON TAX REFORM |
| President Bush appointed a 9-member, bipartisan Advisory Panel on Tax Reform early in 2005. The Executive Order creating the Panel directs it to, among other things, provide options that “share the burdens and benefits of the Federal tax structure in an appropriately progressive manner while recognizing the importance of homeownership and charity in American society.” The Panel released its formal report on November 1, 2005. The Panel has recommended two separate tax schemes. The provisions in the two proposals related to homeownership identical. The two proposals offer two sharply contrasting models for taxation of commercial and investment real estate. Read more about the restructuring plans and the investment/commercial real estate provisions. |
TAX LEGISLATION DELAYED |
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As the end of the year approaches, Congress is in a rush to complete its business. One item left unresolved is the tax reconciliation legislation. That bill would extend several expiring provisions for one or two more years. The 15-year cost recovery period for leasehold improvements is extended through the end of 2006. The deduction for brownfields cleanup is extended for two years and expanded to include petroleum contaminants. The Senate has passed its version of the bill, but the House has not yet voted and may not have a majority to pass the bill. This tax legislation could be delayed until early 2006.
CONTACTS: Linda Goold 202-383-1083, Jimmy Williams 202-383-1234, Joe Ventrone 202-383-1095. |
UPDATES ON COMMERCIAL ISSUES IN CONGRESS |
| Read brief updates on current issues in Congress from NAR Regulatory and Industry Relations in the Commercial Issues Tracker. The November issue includes updates on the Terrorism Risk Insurance Act, commercial lending practices, USA Patriot Act Reauthorization and information from the tax reform commission. The Commercial Issues Tracker can be found on the NAR Action Center for commercial real estate interests. Visit the NAR Action Center. |
RESEARCH, RESOURCES, LEGAL |
MEDIA BROKER DENIED COMMISSION |
| Nebraska's highest court denied a broker payment because the transaction involved sale of real estate and the broker did not have a real estate license. The owner retained the broker to help sell a radio station, although it does not appear that the parties entered into a written agreement. The broker contacted several parties about acquiring the station and negotiations proceeded to purchase the property. The broker served as an intermediary between the parties during negotiations, and eventually a price was agreed upon. The broker contacted the owner about his commission, but the owner and the broker could not reach an amicable resolution of the matter. Eventually, the broker filed suit against the owner and a jury awarded the broker the amount of $66,000. The owner appealed. Read the full story. |
LEARN ABOUT TICS IN THE PREMIERE ISSUE OF RCA HOT TOPICS |
| The RCA has compiled information addressing issues surrounding tenants in common (TIC). Tenants in common is a way of sharing ownership of property among two or more persons in which each tenant holds an undivided interest in the property, and the tenants may own interests of differing sizes. This new investment vehicle, which are now frequently used to complete 1031 exchanges does hold risks and rewards, so it’s best to be informed up front. Read the first RCA Hot Topic on tenants in common. |
AFFILIATE NEWS |
LOOK TO “PRINCIPLES OF REAL ESTATE MANAGEMENT” TO HELP EXPAND YOUR BUSINESS |
| If you’re a commercial REALTOR thinking about adding management activities to your menu of service offerings, the 15th edition of “Principles of Real Estate Management,” just published by IREM, is a must-have resource. The new edition continues to provide comprehensive coverage of all property types. Topics covered include the financial basics and challenges of managing real property, using technology effectively as well as staffing, maintenance, marketing, and tenant relations. Check the “IREM Store” section of the IREM Web site at www.irembooks.org to learn more. |
Report compiled by Carolyn Schwaar, cschwaar@realtors.org, 312/329-8874. |
| QUESTIONS on this report? Visit the INS FAQ and online feedback area on REALTOR.org. CLICK HERE. |
