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Copyright 2005, 2006 All Rights Reserved
| The Harris Company, Commercial Real Estate Appraiser / Consultant 5780 West Centinela Avenue, Building 1, Suite 408 Los Angeles, California 90045 310.337.1973 harris_curtis@sbcglobal.net |
| A Full Service Commercial Appraisal / Consulting Firm *Certified General Real Estate Appraiser (May Appraise Any Type of Real Estate) *Estate Tax Appraiser *Inverse Condemnation / Forensic Appraiser *Expert Witness Appraiser *Trust Appraiser -Residential Real Estate Appraiser- Multi Family (Apartment) Appraiser- -Commercial Appraiser- -Investment Property Appraiser- -Medical Office Property Appraiser- -Industrial Property Appraiser- -Special Purpose Property Appraiser- -Review Appraiser- *Discount Real Estate Broker (Total Commission 4%) *Real Property Inspector (ASTM E-2018-01 Protocol) Rehab/Remodel Consultant *HUD 203K Consultant |
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| LOS ANGELES COUNTY BAR ASSOCIATION REAL ESTATE APPRAISERS AND CONSULTANTS HARRIS |
What's New? (Archives)
IT’S THE LAW-Designation Discrimination is Illegal [FIRREA, Sec. 564.6]: Professional
Association Membership: Commercial Appraiser, sic Membership in an appraisal
organization: A State Certified General Appraiser may not be excluded from
consideration for an assignment for a federally related transaction by virtue of
membership or lack of membership in any particular appraisal organization (Including the
Appraisal Institute (Commercial Appraisers) AKA mai)
What, in the world, are they Doing wRONG? Appraisal Institute suffers another loss! "AI commercial database bites the dust."
Appraisal Institute (AI) will be closing down the AI Commercial Database on November 1, 2005.
Are predetermined Appraisal ADJUSTMENTS Legal/Ethical? Please see attached
Predetermined adjustments provided by Curtis - Rosenthal, Inc. (MAI Appraiser Los
Angeles) LLC. an MAI Firm. You be the judge and get back with us or call them for this
years update.
http://lacity.org/lacity/
Los Angeles (pronounced /lɒˈsændʒələs/ los-AN-jə-ləs; Spanish: [los ˈaŋxeles]) is the
largest city in the state of California and the second largest in the United States.[1] Often
abbreviated as L.A. and nicknamed The City of Angels, Los Angeles has an estimated
population of 3.8 million[2] and spans over 498.3 square miles (1,290.6 km2) in Southern
California. Additionally, the Los Angeles metropolitan area is home to nearly 12.9 million
residents.[3] Los Angeles is the seat of Los Angeles County, the most populated and one
of the most diverse counties[4] in the United States. Its inhabitants are known as
"Angelenos" (/ændʒɨˈliːnoʊz/).
Los Angeles was founded September 4, 1781, by Spanish governor Felipe de Neve as El
Pueblo de Nuestra Señora la Reina de los Angeles del Río de Porciúncula (The Village of
Our Lady, the Queen of the Angels of the river of Porziuncola).[5] It became a part of
Mexico in 1821, following its independence from Spain. In 1848, at the end of the
Mexican-American War, Los Angeles and California were purchased as part of the Treaty
of Guadalupe Hidalgo, thereby becoming part of the United States; Mexico retained the
territory of Baja California. Los Angeles was incorporated as a municipality on April 4,
1850, five months before California achieved statehood.
Los Angeles is one of the world's centers of business, international trade, entertainment,
culture, media, fashion, science, technology, and education. It is home to renowned
institutions covering a broad range of professional and cultural fields, and is one of the
most substantial economic engines within the United States. As the home base of
Hollywood, it is known as the "Entertainment Capital of the World", leading the world in
the creation of motion pictures, television production and recorded music. The
importance of the entertainment business to the city has led many celebrities to call Los
Angeles and its surrounding suburbs home.
"Posted by Appraisal Police on July 10, 2006 at 00:33:42:
In Reply to: Predetermined Adjustments posted by Cochise on July 09, 2006 at 19:26:17:
Fannie Mae Single Family Selling Guide
Part XI: Property and Appraisal Guidelines
XI, Chapter 4: Reviewing the Appraisal Report (11/08/04)
XI, 406: Sales Comparison Approach to Value (01/31/06)
XI, 406.03: Adjustments to Comparable Sales (06/30/02)
Each comparable sale that is used in the sales comparison approach to value must be analyzed for
differences and similarities between it and the property that is being appraised. The appraiser must
base his or her analysis and any adjustments to the comparable sales on the market data for the
particular neighborhood and for competing locat1ons—not on predetermined or assumed dollar
adjustments. If an appraiser's adjustments to comparable sales (or the reconciliation of the
comparable sales) are based on unsupported assumptions or personal opinion that cannot be
supported by market data, poor quality appraisals that could have a discriminatory effect may
result."
Posted by Cochise
It appears that discrimination is something that the Appraisal Institute knows a lot about. In fact
they use to be called The American Institute of Real Estate Appraisers until they were sued,
for discrimination, by the Federal Government. They then changed their name to the Appraisal
Institute, same pig, different shade of lipstick. Application Local governments are not immune from
proscriptions of Title VIII, and may be sued. United States v Black Jack ... provides for actions
against states and political subdivisions as well as actions against private transactions and
practices; comprehensive purpose of Fair Housing Act)... would be diluted if it were to apply only to
actions of private individuals and entities. ... applies to appraisers of real estate. United States v
American Institute of Real Estate Appraisers etc. (1977, ND Ill) 442 F Supp 1072, 24 FR
Serv 2d 880, app dismd (CA7 Ill) 590 F2d 242, 48 ALR Fed 657. 42 USCS ? 3604(a, b, d)’
How many errors can you find in this appraisal prepared by Jeffrey T. Nagaski, MAI of Lea
Associates. They also perform similar low quality work for the Los Angeles Unified School District
and the County of Los Angeles. (Condemnation Appraiser, Inverse Condemnation Appraiser)
The Great Texas Bank Job
"The FIRREA Cover Up - FDIC / RTC The South West Scam
The Whitewaters & Castle Grandes of Texas and ALL Across America
The S&L Gold Rush - The Lack Of Public Accounting
If the bank’s board of directors were the ones doing the looting, however, they readily hired a pliant appraiser to
cook up whatever appraisal value they wanted. Behind every fraudulent loan was a fraudulent appraisal. It is nearly
impossible for appraisers to render independent appraisals if the people hiring them do not want one. When I
was in public accounting, auditors joked that MAI stood for “Made As Instructed.” The commercial appraisals
were largely worthless because they were not independently rendered. It is so obvious that it should be beneath
mention, but that situation still exists.
Even if the bank could not find a bona fide buyer, it was supposed to write down the property to fair market value on
the books, taking the loss on its financial statements. The S&L industry, however, was in dire straits. Reporting a
commercial loss on the deal would not look good, and might get bank regulators, auditors and others asking
questions. Here is what the bank did to hide its loss. Another developer showed up, with similar delusions of
grandeur and an equally pitiful pipedream, except his was twice as large. He wanted a $6 million construction
loan. The bank hired an appraiser to concoct the appraisal for the original empty strip mall that valued it at $5
million, even higher than the original pie-in-the-sky price tag that the original developer dreamed up. The MAI
commercial appraiser would appraise it for whatever number the bank wanted. The bank
would tell the second developer that it would loan him the $6 million if he would buy the empty strip mall for $5
million. The bank would loan the developer the money to make the down payment on the empty strip mall, and the
first two years of loan payments. The developer never got his hands on that money, but the bank held it in escrow,
taking the money out of the commercial account to make the down payment and loan payments.
When the bank made the $6 million commercial construction loan to the second developer, and played internal
accounting games to concoct the “sale” of the first strip mall, instead of recording the $1 million loss, it recorded a
$2 million gain, had a new performing loan on the first strip mall, and the loan was guaranteed to have loan
payments made on it for two years. Here is a chart to show how the commercial bank hid the loss.
Original loan
$3,000,000
Second MAI “commercial appraisal” and sale price to second developer $5,000,000
Gain on phony sale to second developer
$2,000,000
So, with some fancy games and pliant appraisers, the commercial bank recorded a $2 million gain on its deal
making. The reality, however, was that $9 million had gone out the door, the bank was paying 15% interest to
depositors, and no money was coming in, not even interest payments. "
Posted by Appraisal Police on July 06, 2006 at 22:12:55:
FBI: Appraisal Fraud Serious (Commercial Appraiser, sic); Calls for Industry to Team up with Law Enforcement
July 2006
In a June 14 speech, a Federal Bureau of Investigation specialist said that appraisal fraud has become the most
serious form of mortgage fraud. In a presentation to an American Bankers Association conference in Orlando,
Ronda Helig, supervisory special agent for the FBI, said that appraisal fraud accounts for 80 percent of all the
mortgage fraud that is reported and that the average loss per occurrence of appraisal fraud exceeds $60,000.
Based on these figures, Helig called for a cooperative response between industry and law enforcement.
Successfully using forensic appraisals (appraiser) in the tax courts requires that the property owner understand the
special issues involved with these types of appraisals, as they differ significantly from typical real estate
appraisals. The differences cover the gamut of legal issues from communication between the client and the
appraiser through the legal admissibility of appraisal methodology.
Kacha v. Allstate Ins. Co. (06/26/06 - No. D046961)
A judgment confirming an insurance commercial appraisal award involving property damaged by a wildfire is
reversed pursuant to an insured's claims that: 1) the award exceeded the appraisers' jurisdiction, and the trial court
erred by finding he waived the jurisdictional rule; and 2) the court erred by finding he was precluded from
challenging the appraisal award because he took possession of, but did not negotiate, checks the insurer provided
him to cover the award.
USPAP 2006: The Loss Of A Few Terms Will Be Less Confusing, I Think December 28th, 2005 by John Cicero
In January 2006 the new edition of USPAP will be available and distributed, though its changes will not become
effective until June. The Appraisal Standards Board
REVISIONS TO USPAP AND ADVISORY OPINIONS
The revisions in the 2006 Edition of USP Appraisal Practice are the result of two major Appraisal Standards Board
(ASB) initiatives: (1) examination of the proper role of the scope of work and departure concepts in the appraisal
process; and (2) specific review of STANDARDS 9 and 10. The ASB formally adopted the 2006 USPAP on October
28, 2005 based on testimony presented at public meetings, responses to three Concept Papers, six Exposure
Drafts, and extensive deliberation by the ASB over a two-year period. (USPAP 2006 Q & A) The effective date of the
2006 USPAP is July 1, 2006 commercial.
UNIFORM STANDARDS OF PROFESSIONAL APPRAISAL PRACTICE 2006
FHA training comes to the Pacific Northwest:
June 12, 2006 - Salem, OR. FHA Program Update, Appraisal Reform, & Home Equity Conversion Mortgage
Training. Approved for 6 hrs Continuing Education Credit. Registration required, no fee.
REAL ESTATE APPRAISAL
Nature of Appraisal Work (U.S. Department of Labor
Bureau of Labor Statistics)
Commercial appraisers and assessors of real estate estimate the value of real property for a variety of purposes,
such as to assess property tax, to determine a sales price, or to determine the amount of a mortgage that might be
granted on a property. They may be called on to determine the value of any type of real estate, ranging from
farmland to a major shopping center, although they often specialize in appraising or assessing only a certain type
of real estate such as residential buildings or commercial properties. Assessors determine the value of all
properties in a locality for property tax purposes whereas appraisers appraise properties one at a time for a variety
of purposes, such as to determine what a good sale price would be for a home or to settle an estate or aid in a
divorce settlement.
FannieMae's Property (Commercial Appraiser, SIC) and Appraisal Guidelines—details their general requirements
for analyzing the property residential appraisal, rather than commercial, aspects of conventional mortgages
secured by one- to four-family properties. It also discusses special considerations for certain types of housing-
units in condominium, PUD, and cooperative projects; manufactured (and other factory-built) homes; Community
Living group homes; mixed-use properties; properties affected by environmental hazards; urban properties;
affordable housing program properties; properties located in special assessment or community facilities districts;
properties subject to leasehold interests (including those held by community land trusts); and energy-efficient
properties—that merit special consideration in the property and appraisal review. Because the evaluation of a
property is such a vital part of the risk analysis, they expect a lender to place as much emphasis on underwriting
the property and reviewing the appraisal as it does on underwriting the borrower's commercial creditworthiness.
FDIC Law, Regulations, Related Acts § 323.4 Minimum appraisal standards.
For federally related transactions, all appraisals shall, at a minimum:
Is property owner liable when horse and rider fall on driveway?
For information on registering your business capabilities to assist in the
Hurricane Katrina disaster relief efforts pleas
FOUNDATION NEWS -
-The Appraisal Foundation is a non-profit educational organization founded to foster professionalism in appraising
through the establishment and promotion of (commercial) appraisal standards and (commercial) appraiser
qualifications.-
Editor’s note: On March 16, 2001, Daniel Muller of Morgan Miller Blair presented, “What Every Real Estate Attorney
Should Know About Inverse Condemnation,” to the real property section of the CCCBA. This article discusses
developments in the areas of inverse condemnation and eminent domain (direct condemnation) in the six months
since the presentation. For an outline of the presentation call (925) 937-3600. nverse Condemnation Plaintiffs
suffered setbacks in three inverse condemnation cases decided in 2001. However, a judge in a federal district
court case granted plaintiff’s motion for summary judgment, enjoining the agency from an impending
condemnation for failure to show a public use or purpose for the project.
ENVIRONMENTAL , GOVERNMENT , PROPERTY & REAL ESTATE, WATER
Turlock Irrigation Dist. v. Zanker, No F047094 (Cal. 5th App. Dist. June 26, 2006)
Judgment partially against a town in litigation concerning the scope of its right to receive treated water for domestic
use and other needs of the town is affirmed where the trial court (comercial appraiser sic) correctly found that the
districts must continue to provide water to the town, but the reasonable cost of treating the water to make it suitable
for domestic use may be passed through to the consumer.
Newport Beach Country Club, Inc. v. Founding Members of the Newport Beach Country Club, No G035099 (Cal. 4th
App. Dist. June 26, 2006)
When a trial court judgment decides a case on two alternate grounds, and the appellate court affirms based on one
ground, the judgment is binding under principles of res judicata and collateral estoppel only on the ground
addressed by the appellate court.
PROBATE, TRUSTS & ESTATES
Estate of Saueressig, No. S129110 (Cal. June 22, 2006)
Probate Code section 6110(c), which requires that a will be signed by two witnesses, requires attestation prior to
the testator's death.
Commercial Appraiser Los Angeles, Fair Market Value, Commercial Real Estate Appraisal LA, Probate and Estate,
Los Angeles Appraiser, Appraisal Expert Witness, PMI Appraiser, Historical Property Appraiser, Income Property
Appraiser,
Gilroy Citizens for Responsible Planning v. City of Gilroy, No. H028539 (Cal. 6th App. Dist. June 22, 2006)
Denial of writ petition challenging certification of Environmental Impact Report and approval of construction of a Wal-
Mart Supercenter is affirmed over claims that defendant city: 1) failed to provide the legally-required 45-day notice of
availability of the draft EIR; 2) did not serve the commenting agencies with either responses to comments or the
final EIR; 3) failed to complete an initial study which was necessary before it could rely on a report on economic
impacts; and 4) did not follow CEQA's required procedures in determining whether urban decay impacts should be
addressed in the EIR. In addition, the EIR: 5) excluded an analysis of the Supercenter's blight and urban delay
impacts; 6) failed to provide meaningful consideration of proposed mitigation measures; and 7) failed to properly
analyze certain traffic impacts.
BANKING , CONSUMER PROTECTION , CRIMINAL & PROCEDURE, INJURY AND TORT , PROPERTY LAW &
REAL ESTATE
CTC Real Estate Servs. v. Lepe, No B185320 (Cal. 2d App. Dist. June 21, 2006)
The victim of an identity theft, whose name and other personal information were used without authorization for the
purpose of obtaining a loan secured by a purchase money deed of trust to acquire real property, may, as the only
claimant, recover undistributed surplus proceeds deposited with the court that remained after a trustee sale of the
property and the satisfaction of creditors.
COMMUNICATIONS , GOVERNMENT , PROPERTY & REAL ESTATE, PUBLIC UTILITIES
Sprint Telephony PCS v. County of San Diego , No. D045957 (Cal. 4th App. Dist. June 20, 2006)
Trial court's upholding of defendant county's Wireless Telecommunications Ordinance (WTO) is affirmed over
claims that: 1) wireless telecommunications providers enjoy the privileges conferred by Public Utilities Code
section 7901 to install necessary equipment in a public right of way; and 2) the scope of the privileges accorded by
section 7901 preclude local governments from imposing design and siting restrictions when a wireless
telecommunications provider exercises the privilege to place equipment in a ROW.
CONSTITUTIONAL , GOVERNMENT , TENANT , & REAL ESTATE
Hillsboro Props. v. City of Rohnert Park , No A110441 (Cal. 1st App. Dist. April 06, 2006) A property owner prevented
from charging increased rent by a rent control ordinance eventually ruled unconstitutional is not entitled to recover
the lost rental income, either from its tenants or from the city that imposed the limit, if the ordinance did not deny the
owner a fair return on its investment.
COMMERCIAL , CONSTITUTIONAL , ENVIRONMENTAL , GOVERNMENT , & REAL ESTATE, RETAIL Wal-Mart
Stores, Inc. v. City of Turlock, No. F047372 (Cal. 5th App. Dist. April 05, 2006)
Order denying a writ of mandate regarding a city zoning ordinance prohibiting the development of "big box" retail
stores containing a full service grocery department is affirmed over a claim that defendant city unconstitutionally
exceeded its police powers and failed to comply with the California (Appraiser, sic) Environmental Quality Act.
Commercial Appraiser
First Ave. W. Bldg., LLC v. James (02/23/06 - No. 04-35324)
District court order permitting a bankrupt tenant's trustee to pursue recovery from the landlord of damages up to the
full amount of the tenant's security deposit, including a letter of credit, is affirmed where: 1) the landlord forfeited a
timeliness issue; 2) rejection of a lease did not bar the trustee's action; and 3) the bankruptcy court clearly erred in
finding it had no jurisdiction over the claim.
Benavides v. State Farm Gen. Ins. Co. (02/23/06 - No. B179028)
Judgment entered against defendant-insurer on a negligent investigation claim after a jury trial in an action based
on the presence of mold in condominium units is reversed where plaintiff could not recover for the negligent
handling of her claim because there was no coverage under the terms of the policy, and none of the circumstances
which allow for a contract claim to be pursued as a tort cause of action were present.
Commercial Appraiser, Commercial Appraiser Los Angeles, Commercial Real Estate Appraisal, Estate Appraiser,
Residential Appraiser, Apartment Appraiser, Appraisal, Special Purpose Property, Office Property, California
Appraiser, PMI Removal Appraiser, Fee Appraisal. Certified General Appraiser, Estate Tax Appraiser
CONSTRUCTION, & REAL ESTATE, WATER
Barnes v. Hussa, No C049163 (Cal. 3d App. Dist. February 24, 2006)
A judgment for plaintiffs in a dispute over a pipeline used by plaintiffs to divert water from a creek for use on their
ranch is affirmed where the trial court properly found that plaintiffs had an irrevocable license to continue using the
pipeline, they were not violating a court decree in their use of the pipeline, and defendants did not prove their
forfeiture claim.
CIVIL PROCEDURE, DEBT COLLECTION, ETHICS & DISCIPLINARY CODE, ETHICS & PROFESSIONAL
RESPONSIBILITY, PROFESSIONAL MALPRACTICE, PROPERTY LAW & REAL ESTATE
Fritz v. Ehrmann, No B178701 (Cal. 2d App. Dist. February 24, 2006)
Summary judgment for defendant-attorney pursuant to a statute of limitations defense in a malpractice action
relating to a promissory note prepared by defendant is reversed where the facts did not indisputably show that the
statute accrued until shortly before prior litigation commenced, and the statute was tolled while defendant
represented plaintiff in that litigation.
Supreme Court of California
CIVIL PROCEDURE, DEBT COLLECTION, ETHICS & PROFESSIONAL (Commercial Appraiser, sic)
RESPONSIBILITY, & REAL ESTATE, REMEDIES
Rusheen v. Cohen, No S123203 (Cal. February 23, 2006)
Where a cause of action is based on a communicative act, the litigation privilege of Civil Code section 47 extends to
those noncommunicative actions which are necessarily related to that communicative act.
California Appellate Districts
ADMINISTRATIVE , EDUCATION , HEALTH
Excelsior College v. California Bd. of Registered Nursing, No C047824 (Cal. 3d App. Dist. February 23, 2006)
A judgment for agency-defendant pursuant to its demurrer to a school's challenge of its interpretation and
application of a statute involving nurse licensure is affirmed since the statute at issue does not require defendant to
make prospective evaluations of out-of-state programs such as plaintiff's, and plaintiff has no right to an
administrative hearing on defendant's interpretation and application of the provision.
Bardin v. Daimlerchrysler Corp., No G034590 (Cal. 4th App. Dist. February 23, 2006)
Judgment for defendant, car marker, pursuant to its demurrer to a complaint alleging violations of the unfair
competition law and the Consumer Legal Remedies Act based on defendant's use of tubular steel in the exhaust
manifolds of certain vehicles instead of cast iron is affirmed where plaintiffs failed to state a claim under any of their
causes of action.
CONTRACTS, HEALTH , INJURY AND TORT , INSURANCE , & REAL ESTATE Benavides v. State Farm Gen. Ins.
Co., No B179028 (Cal. 2d App. Dist. February 23, 2006)
Judgment entered against defendant-insurer on a negligent investigation claim after a jury trial in an action based
on the presence of mold in condominium units is reversed where plaintiff could not recover for the negligent
handling of her claim because there was no coverage under the terms of the policy, and none of the circumstances
which allow for a contract claim to be pursued as a tort cause of action were present.
Appraisal Services: Appraiser, Commercial Appraisal, Commercial Real Estate Appraiser, Commercial Real
Estate Appraisal, Residential Appraiser, Eminent Domain Appraiser, Apartment Appraiser, Commercial Appraisal,
Special Purpose Property, Office Property, California Appraiser, PMI Removal Appraiser, Free Appraisal. Certified
General Appraiser, Tax Appraiser
CIVIL PROCEDURE, DEBT COLLECTION, ETHICS & PROFESSIONAL RESPONSIBILITY, & REAL ESTATE,
REMEDIES
Rusheen v. Cohen, No. S123203 (Cal. February 23, 2006)
Where a cause of action is based on a communicative act, the litigation privilege of Civil Code section 47 extends to
those noncommunicative actions which are necessarily related to that communicative act.
BANKING , BANKRUPTCY , CIVIL PROCEDURE, CONTRACTS, LANDLORD TENANT , & REAL ESTATE
First Ave. W. Bldg., LLC v. James, No. 04-35324 (9th Cir. February 23, 2006)
District court order permitting a bankrupt tenant's trustee to pursue recovery from the landlord of damages up to the
full amount of the tenant's security deposit, including a letter of credit, is affirmed where: 1) the landlord forfeited a
timeliness issue; 2) rejection of a lease did not bar the trustee's action; and 3) the bankruptcy court clearly erred in
finding it had no jurisdiction over the claim.
Western States Petroleum Ass'n v. S. Coast Air Quality Mgmt. Dist., No. B181303 (Cal. 2d App. Dist. February 15,
2006) Denial of a writ of mandate challenging a rule adopted by defendant, an air quality management district,
requiring the oil refineries in its jurisdiction to reduce certain emissions is affirmed where: 1) substantial evidence
supported defendant's findings of feasibility and cost effectiveness, and 2) defendant complied with the applicable
California Environmental Quality Act requirements, and 3) substantial evidence supported the trial court's findings
regarding the record.
Appraisal Services: Appraiser, Commercial Appraisal, Commercial Real Estate Appraiser, Commercial Real
Estate Appraisal, Residential Appraiser, Apartment Appraiser, Commercial Appraisal, Special Purpose Property,
Eminent Domain Appraiser Appraisal, Forensic Appraiser Los Angeles, Forensic Appraisal,Office Property,
California Appraiser, PMI Removal Appraiser, Free Appraisal. Certified General Appraiser, Tax Appraiser
Hotel valuation, Commercial Appraisal, is a taxing issue
Debate centers on how to account for factors like brand recognition Are two hotels, comparable in size, location,
age and condition, worth the same if one is a Ritz-Carlton and the other is an unbranded unknown?
Mayer v. L & B Real Estate, No B180540 (Cal. 2d App. Dist. February 14, 2006)
Judgment quieting title in an action brought by plaintiffs to restore their ownership of commercial property that was
sold by a county tax collector to defendant, real estate company, for unpaid property taxes is reversed where
plaintiffs had constructive and actual notice of the tax sale, and thus had time to comply with a one-year statute of
limitations period.
ADMINISTRATIVE , ENVIRONMENTAL , GOVERNMENT , PROPERTY & REAL ESTATE
Hale v. Norton, No. 03-36032 (9th Cir. February 09, 2006)
Denial of a motion for a temporary restraining order and dismissal of plaintiffs' case for lack of subject matter
jurisdiction is affirmed in a case challenging an agency's regulation of plaintiffs' use of a trail crossing federally
protected land to access their property which was surrounded by the federal park at issue.
Howard S. Wright Constr. Co. v. BBIC Investors, LLC (01/31/06 - No. A109876)
Judgment for defendant following a non-jury trial in an action to foreclose a mechanic’s lien recorded against
defendant's property pursuant to a finding that the mechanic's lien was premature and therefore void is reversed
where plaintiff recorded its claim of lien after its contract was completed, upon the anticipatory breach of the other
contracting party.
City & County of San Francisco v. Ballard, No A107227, A108569 (Cal. 1st App. Dist. February 02, 2006)
An award of attorney's fees to defendant, a building owner, in an action by a municipality alleging that defendant's
building was a public nuisance is reversed where the statute at issue under which fees were awarded only applies
to receivership proceedings, which did not occur in the case.
GOVERNMENT , LANDLORD TENANT , & REAL ESTATE
Apartment Ass'n of Los Angeles County, Inc. v. City of Los Angeles, No B179133 (Cal. 2d App. Dist. January 31,
2006) Judgment against defendant-municipality in a declaratory relief action invalidating a municipal ordinance is
affirmed where an ordinance limiting certain charges a landlord could make from tenants in a housing assistance
program is affirmed where the ordinance conflicts with, and is preempted, by another law.
CONSTITUTIONAL , CONSTRUCTION, GOVERNMENT , PROPERTY & REAL ESTATE D & M Fin. Corp. v. City of
Long Beach, No B173977 (Cal. 2d App. Dist. January 31, 2006) Judgment for inverse condemnation in favor of a
holder of a security interest in real property on which defendant-municipality demolished an alleged substandard
apartment building is affirmed where defendant violated plaintiff's due process rights.
ENVIRONMENTAL , GOVERNMENT , & REAL ESTATE
108 Holdings, Ltd. v. City of Rohnert Park, No A108629 (Cal. 1st App. Dist. January 31, 2006) Judgment in favor of
defendant-municipality on plaintiff's, property owner, challenge to certain actions is affirmed where defendant did
not unlawfully surrender its police power or improperly amended its General Plan by entering into a settlement
agreement to resolve environmental litigation brought against it.
Crawford v. Weather Shield Mfg., Inc. (02/01/06 - No. G032301)
Order granting a new trial and judgment of the trial court in a construction defect case involving a window
manufacturer are affirmed where there was no abuse of discretion in the grant of a new trial, the trial court correctly
interpreted and adjudicated the subcontract at issue, and there was no abuse of discretion as to attorneys' fees.
Davis v. Newmar Corp. (02/01/06 - No. B174944)
Judgment for plaintiff on a claim under the Song-Beverly Consumer Warranty Act involving plaintiff's purchase of a
mobile home is reversed where the trial court erred in denying a pretrial motion to dismiss since the Act applies
only to vehicles sold in California and plaintiff's motor home was not sold in California.
California Appellate Districts
ATTORNEY'S FEES, CIVIL PROCEDURE, COMMERCIAL , CONSTRUCTION, CONTRACTS, MANUFACTURING,
PRODUCT LIABILITY, PROPERTY & REAL ESTATE
Crawford v. Weather Shield Mfg., Inc., No G032301 (Cal. 4th App. Dist. February 01, 2006)
Order granting a new trial and judgment of the trial court in a construction defect case involving a window
manufacturer are affirmed where there was no abuse of discretion in the grant of a new trial, the trial court correctly
interpreted and adjudicated the subcontract at issue, and there was no abuse of discretion as to attorneys' fees.
The National Association of Realtors is protesting rulings by the Office of the Comptroller of the Currency that the
trade group says "will inevitably lead to national banks becoming actively involved in real estate development and
brokerage." The OCC regulates banking activities.
Taxpayer Alert for Property Tax Assessor Records Corp.
This is an alert concerning a company that may be sending misleading letters to taxpayers. The company, Property
Tax Assessor Records Corp. sends forms and letters to Los Angeles, Riverside and San Diego county property
owners telling them that they have not filed Homeowners’ Exemption forms and they are entitled to file them. In
many cases, these letters are sent to people who are not entitled to the exemption or to property owners who have
already filed for the exemption. For a fee, the company offers to file a claim for exemption on the property owners’
behalf. The assessor’s office does NOT charge a fee to file the homeowners’ exemption claim form.
ADMINISTRATIVE , CIVIL PROCEDURE, CONSTITUTIONAL , ENVIRONMENTAL , GOVERNMENT , & REAL
ESTATE
Dunn v. County of Santa Barbara, No B175149 (Cal. 2d App. Dist. January 25, 2006)
Judgment on the pleadings for defendant-county on regulatory takings claims, and constitutional and civil rights
claims involving defendant's determinations as to a subdivision application is reversed where those claims are
ripe for adjudication because defendant issued what amounted to a final decision, and the permissible use of the
property is known to a reasonable degree of certainty.
Appraisal, Appraiser, Commercial Appraisal, Inverse Condemnation Appraiser, Commercial Real Estate
Appraiser, Commercial Real Estate Appraisal, Residential Appraiser, Apartment Appraiser, Commercial Appraisal,
Special Purpose Property, Office Property, California Appraiser, PMI Removal Appraiser, Free Appraisal. Certified
General Appraiser, Tax Appraiser, Forensic Appraiser Los Angeles, Forensic Appraisal,
ETHICS & DISCIPLINARY CODE, ETHICS & PROFESSIONAL RESPONSIBILITY, PROFESSIONAL MALPRACTICE,
PROPERTY & REAL ESTATE
Gackstetter v. Frawley, No B173070 (Cal. 2d App. Dist. January 25, 2006)
Denial of defendant-attorney's summary judgment motion in an action for breach of fiduciary duties, professional
negligence and additional claims by plaintiff-trustee is reversed where defendant's good faith settlement of an
underlying malpractice action brought by trust beneficiaries against him barred plaintiff-trustee's claims.
What is Building Commissioning? Michael Dadjou, PinnacleOne
In essence, building commissioning is similar to the commissioning of a ship. The captain (or, in this case,
commissioning consultant) takes the building for a trial run PRIOR to opening the building for occupancy. The
performance of the building is compared to specifications (and expectations) and areas requiring correction are
identified.
Developers Raising Roof Over Rights to Downtown’s ‘Hot’ Air
By ANDY FIXMER Los Angeles Business Journal Staff
There is nearly $100 million worth of thin air sitting on top of the Los Angeles Convention Center – and downtown
boosters want the financially strapped city to cash in on it.
California Appellate Districts
Strebel v. Brenlar Invs., Inc. (01/12/06 - No. A104681)
Judgment of damages for plaintiff in a real estate fraud case involving plaintiff's contract to buy an encumbered
house is affirmed where there was no error in trial court's allowing a jury to include lost appreciation in the value of
plaintiff's sold home, and lost use of plaintiff's property in the measure of recovery.
CIVIL PROCEDURE, CONTRACTS, INSURANCE , & REAL ESTATE
1231 Euclid Homeowners Ass'n v. State Farm Fire & Cas. Co., No B175242 (Cal. 2d App. Dist. January 20, 2006)
Summary judgment for defendant on breach of contract and breach of the implied covenant of good faith and fair
dealing claims against defendant-insurer involving damages resulting from the Northridge earthquake is affirmed
where plaintiff-homeowners association's earlier withdrawal of claims excused defendant from further
performance of any coverage obligation under its policy and precluded plaintiff's claims.
CIVIL PROCEDURE, GOVERNMENT , LANDLORD TENANT , PROPERTY & REAL ESTATE, REMEDIES Carson
Gardens, L.L.C. v. City of Carson Mobilehome Park Rental Review Bd., No B180308 (Cal. 2d App. Dist. January 17,
2006) Trial court order declaring a decision by defendant-rent control board null and void, and setting a rent
increase based on methodology defendant had considered and rejected is reversed where the trial court exceeded
its authority by setting the amount of a rent increase itself instead of remanding the matter to the board.
PROPERTY & REAL ESTATE
Torres v. Torres, No B179146 (Cal. 1st App. Dist. January 17, 2006) Judgment for defendants in a quiet title action
disputing the validity of a certain power of attorney is affirmed where a valid power of attorney was created even
though in using the statutory form the principal placed an X instead of her initials next to the line conferring the
powers.
ATTORNEY'S FEES, DEBT COLLECTION, GOVERNMENT , & REAL ESTATE, WATER LAW Souza v. Wetlands
Water Dist., No F045293 (Cal. 5th App. Dist. January 17, 2006)
Judgments and award of attorney's fees in favor of plaintiffs, farmland owners, against defendants, a water district
and finance company, is reversed in a dispute over certain assessed water charges where the district court's
conclusions were in error.
lCOMMUNICATIONS , CONSTRUCTION, GOVERNMENT , PROPERTY & REAL ESTATE
Sprint PCS Assets, L.L.C. v. City of La Canada Flintridge, No. 05-55014 (9th Cir. January 17, 2006)
Summary judgment in favor of defendant-municipality upholding certain permit denials involving wireless
telecommunications facilities based on aesthetic impact is reversed where defendant overstepped its regulatory
authority under state law, its wireless ordinance is invalid, and no evidence supported the permit denial.
U.S. 9th Circuit Court of Appeals Carson Harbor Village, Ltd. v. County of Los Angeles (01/12/06 - No. 04-55024)
Summary judgment for defendant, oil company, denying plaintiff recovery of certain cleanup costs under the
Comprehensive Environmental Response, Compensation, and Liability Act is affirmed where there are no genuine
issues of material fact regarding whether plaintiff substantially complied with the National Oil and Hazardous
Substances Pollution Contingency Plan.
AGRICULTURE, GOVERNMENT , & REAL ESTATE, PUBLIC UTILITIES
Placer County Local Agency Formation Comm'n v. Nevada County Local Agency Formation Comm'n, No C047697
(Cal. 3d App. Dist. January 13, 2006)
Government Code section 56387 gives principal counties jurisdiction over spheres of influence and service
reviews of multicounty districts within neighboring counties. Judgment entered in favor of defendant in a dispute
between neighboring Local Agency Formation Commissions (LAFCO) under the Cortese-Knox-Hertzberg Local
Government Reorganization Act is affirmed where plaintiff failed to show grounds for reversal of the judgment.
ADMINISTRATIVE , ENVIRONMENTAL , GOVERNMENT , OIL & GAS , PROPERTY & REAL ESTATE
Carson Harbor Village, Ltd. v. County of Los Angeles, No. 04-55024 (9th Cir. January 12, 2006)
Summary judgment for defendant, oil company, denying plaintiff recovery of certain cleanup costs under the
Comprehensive Environmental Response, Compensation, and Liability Act is affirmed where there are no genuine
issues of material fact regarding whether plaintiff substantially complied with the National Oil and Hazardous
Substances Pollution Contingency Plan.
CONSTRUCTION, GOVERNMENT , & REAL ESTATE, PUBLIC UTILITIES, REMEDIES
Metro. Water Dist. of S. California v. Campus Crusade for Christ, Inc., No. E034248 (Cal. 4th App. Dist. January 09,
2006)
Judgment of damages in an eminent domain action to condemn land owned by defendants to construct a water
pipeline is reversed where the trial judge erred in overruling a prior judge's earlier evidentiary rulings in the case, in
allocating the burden of proof as to severance damages, and defendants offered substantial evidence that should
have been presented to a jury in determining the amount of just compensation.
Metro. Water Dist. of S. California v. Campus Crusade for Christ, Inc., No E034248 (Cal. 4th App. Dist. January 09,
2006) Judgment of damages in an eminent domain action to condemn land owned by defendants to construct a
water pipeline is reversed where the trial judge erred in overruling a prior judge's earlier evidentiary rulings in the
case, in allocating the burden of proof as to severance damages, and defendants offered substantial evidence that
should have been presented to a jury in determining the amount of just compensation.
Appraisal, Appraiser, Commercial Appraisal, Commercial Real Estate Appraiser, Commercial Real Estate Appraisal, Residential
Appraiser, Apartment Appraiser, Commercial Appraisal, Special Purpose Property, Office Property, California Appraiser, PMI
Removal Appraiser, Free Appraisal. Certified General Appraiser, Tax Appraiser
(Property Tax and Domestic Partners - eff. 2006-7 fiscal year)
Beginning the lien date for the 2006-07 fiscal year, SB 565 permits registered domestic partners to transfer
property to each other without triggering a reassessment and taxation at the current market value. As a result,
registered domestic partners will be treated the same as spouses under California property tax laws.
Federal Estate Tax Changes Take Effect In 2006
Mortgagee Letter 2005-19 (ML 05-19) announced the Streamlined (k) Limited Repair Program to augment FHA's
existing Section 203(k) rehabilitation program for less extensive repairs and improvement. This Mortgagee Letter
replaces in its entirety ML 05-19 and is designed to make the program more reflective of the desire of many
homebuyers and existing homeowners to improve their homes including making them more energy efficient...
FEATURE: 2005 COST vs. VALUE REPORT Remodeling's Payoff Residential Appraisal
Minor Kitchen Remodel
Project Description: In a functional but dated 200-square-foot kitchen with 30 linear feet of cabinetry and
countertops, leave cabinet boxes in place but replace fronts with new raised-panel wood doors and drawers.
Replace wall oven and cooktop with new energy-efficient models. Replace laminate countertops. Install midpriced
sink and faucet. Repaint trim, add wall covering, and replace existing flooring with resilient flooring. Commercial
Appraiser
ADMINISTRATIVE LAW, ENVIRONMENTAL , GOVERNMENT , PROPERTY & REAL ESTATE, TAX
Martin v. City & County of San Francisco, No A107768 (Cal. 1st App. Dist. December 30, 2005)
A municipality may not lawfully require the owner of a private single-family residence who proposes to modify a
portion of the interior of his residence, in an area not visible to the general public, to undergo the burden and
expense of a review of his proposed project pursuant to the California Environmental Quality Act.
CIVIL PROCEDURE, CONTRACTS, INJURY AND TORT , INSURANCE , & REAL ESTATE
Davaloo v. State Farm Ins. Co., No B171352, B171353 (Cal. 2d App. Dist. December 30, 2005)
Orders of dismissal of plaintiffs' complaints containing claims for policy benefits against insurers for losses
caused by the Northridge earthquake is affirmed since the relation-back doctrine cannot be used to find plaintiffs'
first amended complaints timely filed under a revival statute.
Free Landscaping Course
Don't know where to begin with landscape design? The online landscape design course that I'm offering may be
just the thing for you. Have a lesson delivered to your e-mailbox daily, for 108 days. Each lesson contains 3 links,
plus a link to the Discussion, should you wish to discuss your "homework" with other students (don't worry: there
aren't any tests!). The links take you directly to landscape design and maintenance tips. All in all, just about the right
dose of landscape design talk to enjoy over a cup of coffee. To sign up for free, click the link above.
CIVIL PROCEDURE, DEBT COLLECTION, PROPERTY & REAL ESTATE
Ung v. Koehler, No. A109532 (Cal. 1st App. Dist. December 28, 2005)
Civil Code section 882.030, a provision of the Marketable Record Title Act, does not override the 10 or 60 year time
limits for the exercise of a power of sale in a deed of trust from the "final maturity date" of the underlying debt.
Further, once the beneficiary of a deed of trust has become entitled to claim the 60-year time limit, the beneficiary
does not lose that entitlement merely by filing a notice of default that specifies the "final maturity date" of the
underlying debt.
ATTORNEY'S FEES, CONSTRUCTION, GOVERNMENT , & REAL ESTATE
City & County of San Francisco v. Jen, No A107911 (Cal. 1st App. Dist. December 29, 2005)
Award of attorneys fees to plaintiff-municipality is affirmed as to claims of public nuisance, violation of state housing
law, failure to comply with an abatement order, and unlawful business practices where the trial court properly
awarded fees and costs to plaintiff under the State Housing Law.
COMMERCIAL PROPERTY , CONTRACTS, INJURY AND TORT , LANDLORD TENANT , PROPERTY & REAL
ESTATE, RETAIL
Hinesley v. Oakshade Town Ctr., No C045865 (Cal. 3d App. Dist. December 29, 2005)
Summary judgment for defendant on plaintiff's complaint for fraud and rescission of his commercial lease with
defendant is affirmed where defendant successfully demonstrated no triable issue of fact existed as to whether
plaintiff justifiably relied on any material misrepresentation or concealment.
ADMINISTRATIVE , GOVERNMENT , INJURY AND TORT , & REAL ESTATE, WATER
Brady v. Abbott Labs., No. 04-15257 (9th Cir. December 29, 2005)
Judgment for plaintiffs on negligence and nuisance claims regarding defendant's illegal removal of groundwater
from their property and subsequent resulting damages to plaintiffs' adjacent property is reversed where defendant
owed plaintiff's no duty under the common law doctrine of reasonable use. Commercial Appraiser
ENVIRONMENTAL , GOVERNMENT , PROPERTY & REAL ESTATE, REMEDIES
Butler v. City of Palos Verdes, No B177260 (Cal. 2d App. Dist. December 28, 2005)
Judgment for plaintiffs in an action to enjoin a municipality's peafowl management program is reversed since the
peafowl management program does not violate certain deed restrictions under which title to the parklands and
canyons was taken by defendant-municipality.
Two Pennsylvania residents were indicted on charges of bank fraud, mail fraud and making false statements on
loan applications in connection with alleged mortgage fraud schemes said to have taken place in 2002 and 2003.
Crooked REAL ESTATE appraisers fuel scams. Stolen identities used in mortgage swindles.
By David Jackson
Tribune staff reporter
Published December 14, 2005
This story contains corrected material, published Dec. 16, 2005. A loose network of crooked real estate appraisers
is stealing the identities of legitimate colleagues to file false reports and fuel the surge of mortgage fraud in
Chicago and across the nation.
2006 Real Estate Capital Markets Industry Outlook Top Ten Issues
The U.S. economy is expanding, now at a slower rate, and investments are on the increase again. The economy
appears poised for continued positive growth in 2006. Interest rates remain relatively low and, contrary to
conventional wisdom, are not increasing as quickly as expected, creating the famous “conundrum” in the economy.
Yet a number of concerns remain on the horizon, especially with the budget and trade deficits; selected residential
“bubbles;” post hurricane Katrina, Rita and Wilma impacts; along with the Iraqi war.
The California Housing Finance Agency has announced changes in servicing release requirements of first
mortgage loans made in conjunction with a HiCAP subordinate loan.
Supreme Court of California
ADMINISTRATIVE , CONSTRUCTION, GOVERNMENT , PROPERTY & REAL ESTATE
Barratt Am., Inc. v. City of Rancho Cucamonga, No S117590 (Cal. December 22, 2005)
Grant of a demurrer for municipal defendant in an action regarding plaintiff's challenge, under the Mitigation Fee
Act, to fees imposed relating to development projects is reversed to the extent that the court erred in determining
that plaintiff could not challenge the validity of a resolution reenacting a fee previously set forth in an earlier
resolution.
Curtis - Rosenthal, Inc.
Forensic Appraiser Los Angeles, Forensic Appraisal,
CONSTRUCTION, CONTRACTS, INSURANCE , & REAL ESTATE
Amwest Surety Ins. Co. v. Patriot Homes, Inc., No B175822 (Cal. 2d App. Dist. December 22, 2005)
Judgment for defendants, real estate developers, in an action for breach of an indemnity contract and statutory
indemnity regarding plaintiff-insurer's provision of an appeal bond to defendants is reversed since the parties'
indemnity agreements covered all bonds, including appeal bonds.
ADMINISTRATIVE , CONSTRUCTION, GOVERNMENT LAW, LABOR & EMPLOYMENT , PROPERTY & REAL
ESTATE
Greystone Homes, Inc. v. Cake, No A107763, A107769 (Cal. 1st App. Dist. December 21, 2005)
Determination that a housing development project was a public work for purposes of being subject to California's
Prevailing Wage Law is reversed where the determination was based on an erroneous application of former Labor
Code section 1720(a), and plaintiff-developer paid all demolition and construction costs with private funds.
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WASHINGTON, DC 20410-8000
ASSISTANT SECRETARY FOR HOUSING-FEDERAL HOUSING COMMISSIONER December 19, 2005
MORTGAGEE APPROVED APPRAISERS LETTER 2005-48 TO: ALL APPROVED MORTGAGEES, ALL APPROVED
APPRAISERS
SUBJECT: FHA Repair and Inspection Requirements for existing properties and revisions to FHA Appraisal
Protocol In a continuing effort to reform and standardize its appraisal requirements, FHA has shifted from its
historical emphasis on the repair of minor property deficiencies and now only requires repairs for those property
conditions that rise above the level of cosmetic defects, minor defects or normal wear and tear. FHA Roster
Appraisers are reminded to report all readily observable property deficiencies, as well as any adverse conditions
discovered performing the research involved in completing the appraisal, within the appraisal reporting form.
Lenders should use professional judgment and rely upon prudent underwriting practices in determining when a
property condition poses a threat to the safety of an occupant and/or jeopardizes the soundness and structural
integrity of the property, such that additional inspections and/or repairs are necessary...
CONSTITUTIONAL , GOVERNMENT , APPRAISAL VALUATION, PROPERTY & REAL ESTATE
Cathedral City Redevelopment Agency v. Stickles, No E036456 (Cal. 4th App. Dist. December 19, 2005)
Judgment condemning properties for redevelopment purposes in quick take eminent domain proceedings is
affirmed where the trial court did not abuse its discretion in setting the date of valuation for purposes of a trial on the
compensation issue, and defendants' constitutional rights were not violated.
IT’S THE LAW-Designation Discrimination is Illegal [FIRREA, Sec. 564.6]: Professional
Association Membership: Commercial Appraiser, sic Membership in an appraisal
organization: A State Certified General Appraiser may not be excluded from
consideration for an assignment for a federally related transaction by virtue of
membership or lack of membership in any particular appraisal organization (Including the
Appraisal Institute (Commercial Appraisers) AKA mai)
What, in the world, are they Doing wRONG? Appraisal Institute suffers another loss! "AI commercial database bites the dust."
Appraisal Institute (AI) will be closing down the AI Commercial Database on November 1, 2005.
Are predetermined Appraisal ADJUSTMENTS Legal/Ethical? Please see attached
Predetermined adjustments provided by Curtis - Rosenthal, Inc. (MAI Appraiser Los
Angeles) LLC. an MAI Firm. You be the judge and get back with us or call them for this
years update.
http://lacity.org/lacity/
Los Angeles (pronounced /lɒˈsændʒələs/ los-AN-jə-ləs; Spanish: [los ˈaŋxeles]) is the
largest city in the state of California and the second largest in the United States.[1] Often
abbreviated as L.A. and nicknamed The City of Angels, Los Angeles has an estimated
population of 3.8 million[2] and spans over 498.3 square miles (1,290.6 km2) in Southern
California. Additionally, the Los Angeles metropolitan area is home to nearly 12.9 million
residents.[3] Los Angeles is the seat of Los Angeles County, the most populated and one
of the most diverse counties[4] in the United States. Its inhabitants are known as
"Angelenos" (/ændʒɨˈliːnoʊz/).
Los Angeles was founded September 4, 1781, by Spanish governor Felipe de Neve as El
Pueblo de Nuestra Señora la Reina de los Angeles del Río de Porciúncula (The Village of
Our Lady, the Queen of the Angels of the river of Porziuncola).[5] It became a part of
Mexico in 1821, following its independence from Spain. In 1848, at the end of the
Mexican-American War, Los Angeles and California were purchased as part of the Treaty
of Guadalupe Hidalgo, thereby becoming part of the United States; Mexico retained the
territory of Baja California. Los Angeles was incorporated as a municipality on April 4,
1850, five months before California achieved statehood.
Los Angeles is one of the world's centers of business, international trade, entertainment,
culture, media, fashion, science, technology, and education. It is home to renowned
institutions covering a broad range of professional and cultural fields, and is one of the
most substantial economic engines within the United States. As the home base of
Hollywood, it is known as the "Entertainment Capital of the World", leading the world in
the creation of motion pictures, television production and recorded music. The
importance of the entertainment business to the city has led many celebrities to call Los
Angeles and its surrounding suburbs home.
"Posted by Appraisal Police on July 10, 2006 at 00:33:42:
In Reply to: Predetermined Adjustments posted by Cochise on July 09, 2006 at 19:26:17:
Fannie Mae Single Family Selling Guide
Part XI: Property and Appraisal Guidelines
XI, Chapter 4: Reviewing the Appraisal Report (11/08/04)
XI, 406: Sales Comparison Approach to Value (01/31/06)
XI, 406.03: Adjustments to Comparable Sales (06/30/02)
Each comparable sale that is used in the sales comparison approach to value must be analyzed for
differences and similarities between it and the property that is being appraised. The appraiser must
base his or her analysis and any adjustments to the comparable sales on the market data for the
particular neighborhood and for competing locat1ons—not on predetermined or assumed dollar
adjustments. If an appraiser's adjustments to comparable sales (or the reconciliation of the
comparable sales) are based on unsupported assumptions or personal opinion that cannot be
supported by market data, poor quality appraisals that could have a discriminatory effect may
result."
Posted by Cochise
It appears that discrimination is something that the Appraisal Institute knows a lot about. In fact
they use to be called The American Institute of Real Estate Appraisers until they were sued,
for discrimination, by the Federal Government. They then changed their name to the Appraisal
Institute, same pig, different shade of lipstick. Application Local governments are not immune from
proscriptions of Title VIII, and may be sued. United States v Black Jack ... provides for actions
against states and political subdivisions as well as actions against private transactions and
practices; comprehensive purpose of Fair Housing Act)... would be diluted if it were to apply only to
actions of private individuals and entities. ... applies to appraisers of real estate. United States v
American Institute of Real Estate Appraisers etc. (1977, ND Ill) 442 F Supp 1072, 24 FR
Serv 2d 880, app dismd (CA7 Ill) 590 F2d 242, 48 ALR Fed 657. 42 USCS ? 3604(a, b, d)’
How many errors can you find in this appraisal prepared by Jeffrey T. Nagaski, MAI of Lea
Associates. They also perform similar low quality work for the Los Angeles Unified School District
and the County of Los Angeles. (Condemnation Appraiser, Inverse Condemnation Appraiser)
The Great Texas Bank Job
"The FIRREA Cover Up - FDIC / RTC The South West Scam
The Whitewaters & Castle Grandes of Texas and ALL Across America
The S&L Gold Rush - The Lack Of Public Accounting
If the bank’s board of directors were the ones doing the looting, however, they readily hired a pliant appraiser to
cook up whatever appraisal value they wanted. Behind every fraudulent loan was a fraudulent appraisal. It is nearly
impossible for appraisers to render independent appraisals if the people hiring them do not want one. When I
was in public accounting, auditors joked that MAI stood for “Made As Instructed.” The commercial appraisals
were largely worthless because they were not independently rendered. It is so obvious that it should be beneath
mention, but that situation still exists.
Even if the bank could not find a bona fide buyer, it was supposed to write down the property to fair market value on
the books, taking the loss on its financial statements. The S&L industry, however, was in dire straits. Reporting a
commercial loss on the deal would not look good, and might get bank regulators, auditors and others asking
questions. Here is what the bank did to hide its loss. Another developer showed up, with similar delusions of
grandeur and an equally pitiful pipedream, except his was twice as large. He wanted a $6 million construction
loan. The bank hired an appraiser to concoct the appraisal for the original empty strip mall that valued it at $5
million, even higher than the original pie-in-the-sky price tag that the original developer dreamed up. The MAI
commercial appraiser would appraise it for whatever number the bank wanted. The bank
would tell the second developer that it would loan him the $6 million if he would buy the empty strip mall for $5
million. The bank would loan the developer the money to make the down payment on the empty strip mall, and the
first two years of loan payments. The developer never got his hands on that money, but the bank held it in escrow,
taking the money out of the commercial account to make the down payment and loan payments.
When the bank made the $6 million commercial construction loan to the second developer, and played internal
accounting games to concoct the “sale” of the first strip mall, instead of recording the $1 million loss, it recorded a
$2 million gain, had a new performing loan on the first strip mall, and the loan was guaranteed to have loan
payments made on it for two years. Here is a chart to show how the commercial bank hid the loss.
Original loan
$3,000,000
Second MAI “commercial appraisal” and sale price to second developer $5,000,000
Gain on phony sale to second developer
$2,000,000
So, with some fancy games and pliant appraisers, the commercial bank recorded a $2 million gain on its deal
making. The reality, however, was that $9 million had gone out the door, the bank was paying 15% interest to
depositors, and no money was coming in, not even interest payments. "
Posted by Appraisal Police on July 06, 2006 at 22:12:55:
FBI: Appraisal Fraud Serious (Commercial Appraiser, sic); Calls for Industry to Team up with Law Enforcement
July 2006
In a June 14 speech, a Federal Bureau of Investigation specialist said that appraisal fraud has become the most
serious form of mortgage fraud. In a presentation to an American Bankers Association conference in Orlando,
Ronda Helig, supervisory special agent for the FBI, said that appraisal fraud accounts for 80 percent of all the
mortgage fraud that is reported and that the average loss per occurrence of appraisal fraud exceeds $60,000.
Based on these figures, Helig called for a cooperative response between industry and law enforcement.
Successfully using forensic appraisals (appraiser) in the tax courts requires that the property owner understand the
special issues involved with these types of appraisals, as they differ significantly from typical real estate
appraisals. The differences cover the gamut of legal issues from communication between the client and the
appraiser through the legal admissibility of appraisal methodology.
Kacha v. Allstate Ins. Co. (06/26/06 - No. D046961)
A judgment confirming an insurance commercial appraisal award involving property damaged by a wildfire is
reversed pursuant to an insured's claims that: 1) the award exceeded the appraisers' jurisdiction, and the trial court
erred by finding he waived the jurisdictional rule; and 2) the court erred by finding he was precluded from
challenging the appraisal award because he took possession of, but did not negotiate, checks the insurer provided
him to cover the award.
USPAP 2006: The Loss Of A Few Terms Will Be Less Confusing, I Think December 28th, 2005 by John Cicero
In January 2006 the new edition of USPAP will be available and distributed, though its changes will not become
effective until June. The Appraisal Standards Board
REVISIONS TO USPAP AND ADVISORY OPINIONS
The revisions in the 2006 Edition of USP Appraisal Practice are the result of two major Appraisal Standards Board
(ASB) initiatives: (1) examination of the proper role of the scope of work and departure concepts in the appraisal
process; and (2) specific review of STANDARDS 9 and 10. The ASB formally adopted the 2006 USPAP on October
28, 2005 based on testimony presented at public meetings, responses to three Concept Papers, six Exposure
Drafts, and extensive deliberation by the ASB over a two-year period. (USPAP 2006 Q & A) The effective date of the
2006 USPAP is July 1, 2006 commercial.
UNIFORM STANDARDS OF PROFESSIONAL APPRAISAL PRACTICE 2006
FHA training comes to the Pacific Northwest:
June 12, 2006 - Salem, OR. FHA Program Update, Appraisal Reform, & Home Equity Conversion Mortgage
Training. Approved for 6 hrs Continuing Education Credit. Registration required, no fee.
REAL ESTATE APPRAISAL
Nature of Appraisal Work (U.S. Department of Labor
Bureau of Labor Statistics)
Commercial appraisers and assessors of real estate estimate the value of real property for a variety of purposes,
such as to assess property tax, to determine a sales price, or to determine the amount of a mortgage that might be
granted on a property. They may be called on to determine the value of any type of real estate, ranging from
farmland to a major shopping center, although they often specialize in appraising or assessing only a certain type
of real estate such as residential buildings or commercial properties. Assessors determine the value of all
properties in a locality for property tax purposes whereas appraisers appraise properties one at a time for a variety
of purposes, such as to determine what a good sale price would be for a home or to settle an estate or aid in a
divorce settlement.
FannieMae's Property (Commercial Appraiser, SIC) and Appraisal Guidelines—details their general requirements
for analyzing the property residential appraisal, rather than commercial, aspects of conventional mortgages
secured by one- to four-family properties. It also discusses special considerations for certain types of housing-
units in condominium, PUD, and cooperative projects; manufactured (and other factory-built) homes; Community
Living group homes; mixed-use properties; properties affected by environmental hazards; urban properties;
affordable housing program properties; properties located in special assessment or community facilities districts;
properties subject to leasehold interests (including those held by community land trusts); and energy-efficient
properties—that merit special consideration in the property and appraisal review. Because the evaluation of a
property is such a vital part of the risk analysis, they expect a lender to place as much emphasis on underwriting
the property and reviewing the appraisal as it does on underwriting the borrower's commercial creditworthiness.
FDIC Law, Regulations, Related Acts § 323.4 Minimum appraisal standards.
For federally related transactions, all appraisals shall, at a minimum:
Is property owner liable when horse and rider fall on driveway?
For information on registering your business capabilities to assist in the
Hurricane Katrina disaster relief efforts pleas
FOUNDATION NEWS -
-The Appraisal Foundation is a non-profit educational organization founded to foster professionalism in appraising
through the establishment and promotion of (commercial) appraisal standards and (commercial) appraiser
qualifications.-
Editor’s note: On March 16, 2001, Daniel Muller of Morgan Miller Blair presented, “What Every Real Estate Attorney
Should Know About Inverse Condemnation,” to the real property section of the CCCBA. This article discusses
developments in the areas of inverse condemnation and eminent domain (direct condemnation) in the six months
since the presentation. For an outline of the presentation call (925) 937-3600. nverse Condemnation Plaintiffs
suffered setbacks in three inverse condemnation cases decided in 2001. However, a judge in a federal district
court case granted plaintiff’s motion for summary judgment, enjoining the agency from an impending
condemnation for failure to show a public use or purpose for the project.
ENVIRONMENTAL , GOVERNMENT , PROPERTY & REAL ESTATE, WATER
Turlock Irrigation Dist. v. Zanker, No F047094 (Cal. 5th App. Dist. June 26, 2006)
Judgment partially against a town in litigation concerning the scope of its right to receive treated water for domestic
use and other needs of the town is affirmed where the trial court (comercial appraiser sic) correctly found that the
districts must continue to provide water to the town, but the reasonable cost of treating the water to make it suitable
for domestic use may be passed through to the consumer.
Newport Beach Country Club, Inc. v. Founding Members of the Newport Beach Country Club, No G035099 (Cal. 4th
App. Dist. June 26, 2006)
When a trial court judgment decides a case on two alternate grounds, and the appellate court affirms based on one
ground, the judgment is binding under principles of res judicata and collateral estoppel only on the ground
addressed by the appellate court.
PROBATE, TRUSTS & ESTATES
Estate of Saueressig, No. S129110 (Cal. June 22, 2006)
Probate Code section 6110(c), which requires that a will be signed by two witnesses, requires attestation prior to
the testator's death.
Commercial Appraiser Los Angeles, Fair Market Value, Commercial Real Estate Appraisal LA, Probate and Estate,
Los Angeles Appraiser, Appraisal Expert Witness, PMI Appraiser, Historical Property Appraiser, Income Property
Appraiser,
Gilroy Citizens for Responsible Planning v. City of Gilroy, No. H028539 (Cal. 6th App. Dist. June 22, 2006)
Denial of writ petition challenging certification of Environmental Impact Report and approval of construction of a Wal-
Mart Supercenter is affirmed over claims that defendant city: 1) failed to provide the legally-required 45-day notice of
availability of the draft EIR; 2) did not serve the commenting agencies with either responses to comments or the
final EIR; 3) failed to complete an initial study which was necessary before it could rely on a report on economic
impacts; and 4) did not follow CEQA's required procedures in determining whether urban decay impacts should be
addressed in the EIR. In addition, the EIR: 5) excluded an analysis of the Supercenter's blight and urban delay
impacts; 6) failed to provide meaningful consideration of proposed mitigation measures; and 7) failed to properly
analyze certain traffic impacts.
BANKING , CONSUMER PROTECTION , CRIMINAL & PROCEDURE, INJURY AND TORT , PROPERTY LAW &
REAL ESTATE
CTC Real Estate Servs. v. Lepe, No B185320 (Cal. 2d App. Dist. June 21, 2006)
The victim of an identity theft, whose name and other personal information were used without authorization for the
purpose of obtaining a loan secured by a purchase money deed of trust to acquire real property, may, as the only
claimant, recover undistributed surplus proceeds deposited with the court that remained after a trustee sale of the
property and the satisfaction of creditors.
COMMUNICATIONS , GOVERNMENT , PROPERTY & REAL ESTATE, PUBLIC UTILITIES
Sprint Telephony PCS v. County of San Diego , No. D045957 (Cal. 4th App. Dist. June 20, 2006)
Trial court's upholding of defendant county's Wireless Telecommunications Ordinance (WTO) is affirmed over
claims that: 1) wireless telecommunications providers enjoy the privileges conferred by Public Utilities Code
section 7901 to install necessary equipment in a public right of way; and 2) the scope of the privileges accorded by
section 7901 preclude local governments from imposing design and siting restrictions when a wireless
telecommunications provider exercises the privilege to place equipment in a ROW.
CONSTITUTIONAL , GOVERNMENT , TENANT , & REAL ESTATE
Hillsboro Props. v. City of Rohnert Park , No A110441 (Cal. 1st App. Dist. April 06, 2006) A property owner prevented
from charging increased rent by a rent control ordinance eventually ruled unconstitutional is not entitled to recover
the lost rental income, either from its tenants or from the city that imposed the limit, if the ordinance did not deny the
owner a fair return on its investment.
COMMERCIAL , CONSTITUTIONAL , ENVIRONMENTAL , GOVERNMENT , & REAL ESTATE, RETAIL Wal-Mart
Stores, Inc. v. City of Turlock, No. F047372 (Cal. 5th App. Dist. April 05, 2006)
Order denying a writ of mandate regarding a city zoning ordinance prohibiting the development of "big box" retail
stores containing a full service grocery department is affirmed over a claim that defendant city unconstitutionally
exceeded its police powers and failed to comply with the California (Appraiser, sic) Environmental Quality Act.
Commercial Appraiser
First Ave. W. Bldg., LLC v. James (02/23/06 - No. 04-35324)
District court order permitting a bankrupt tenant's trustee to pursue recovery from the landlord of damages up to the
full amount of the tenant's security deposit, including a letter of credit, is affirmed where: 1) the landlord forfeited a
timeliness issue; 2) rejection of a lease did not bar the trustee's action; and 3) the bankruptcy court clearly erred in
finding it had no jurisdiction over the claim.
Benavides v. State Farm Gen. Ins. Co. (02/23/06 - No. B179028)
Judgment entered against defendant-insurer on a negligent investigation claim after a jury trial in an action based
on the presence of mold in condominium units is reversed where plaintiff could not recover for the negligent
handling of her claim because there was no coverage under the terms of the policy, and none of the circumstances
which allow for a contract claim to be pursued as a tort cause of action were present.
Commercial Appraiser, Commercial Appraiser Los Angeles, Commercial Real Estate Appraisal, Estate Appraiser,
Residential Appraiser, Apartment Appraiser, Appraisal, Special Purpose Property, Office Property, California
Appraiser, PMI Removal Appraiser, Fee Appraisal. Certified General Appraiser, Estate Tax Appraiser
CONSTRUCTION, & REAL ESTATE, WATER
Barnes v. Hussa, No C049163 (Cal. 3d App. Dist. February 24, 2006)
A judgment for plaintiffs in a dispute over a pipeline used by plaintiffs to divert water from a creek for use on their
ranch is affirmed where the trial court properly found that plaintiffs had an irrevocable license to continue using the
pipeline, they were not violating a court decree in their use of the pipeline, and defendants did not prove their
forfeiture claim.
CIVIL PROCEDURE, DEBT COLLECTION, ETHICS & DISCIPLINARY CODE, ETHICS & PROFESSIONAL
RESPONSIBILITY, PROFESSIONAL MALPRACTICE, PROPERTY LAW & REAL ESTATE
Fritz v. Ehrmann, No B178701 (Cal. 2d App. Dist. February 24, 2006)
Summary judgment for defendant-attorney pursuant to a statute of limitations defense in a malpractice action
relating to a promissory note prepared by defendant is reversed where the facts did not indisputably show that the
statute accrued until shortly before prior litigation commenced, and the statute was tolled while defendant
represented plaintiff in that litigation.
Supreme Court of California
CIVIL PROCEDURE, DEBT COLLECTION, ETHICS & PROFESSIONAL (Commercial Appraiser, sic)
RESPONSIBILITY, & REAL ESTATE, REMEDIES
Rusheen v. Cohen, No S123203 (Cal. February 23, 2006)
Where a cause of action is based on a communicative act, the litigation privilege of Civil Code section 47 extends to
those noncommunicative actions which are necessarily related to that communicative act.
California Appellate Districts
ADMINISTRATIVE , EDUCATION , HEALTH
Excelsior College v. California Bd. of Registered Nursing, No C047824 (Cal. 3d App. Dist. February 23, 2006)
A judgment for agency-defendant pursuant to its demurrer to a school's challenge of its interpretation and
application of a statute involving nurse licensure is affirmed since the statute at issue does not require defendant to
make prospective evaluations of out-of-state programs such as plaintiff's, and plaintiff has no right to an
administrative hearing on defendant's interpretation and application of the provision.
Bardin v. Daimlerchrysler Corp., No G034590 (Cal. 4th App. Dist. February 23, 2006)
Judgment for defendant, car marker, pursuant to its demurrer to a complaint alleging violations of the unfair
competition law and the Consumer Legal Remedies Act based on defendant's use of tubular steel in the exhaust
manifolds of certain vehicles instead of cast iron is affirmed where plaintiffs failed to state a claim under any of their
causes of action.
CONTRACTS, HEALTH , INJURY AND TORT , INSURANCE , & REAL ESTATE Benavides v. State Farm Gen. Ins.
Co., No B179028 (Cal. 2d App. Dist. February 23, 2006)
Judgment entered against defendant-insurer on a negligent investigation claim after a jury trial in an action based
on the presence of mold in condominium units is reversed where plaintiff could not recover for the negligent
handling of her claim because there was no coverage under the terms of the policy, and none of the circumstances
which allow for a contract claim to be pursued as a tort cause of action were present.
Appraisal Services: Appraiser, Commercial Appraisal, Commercial Real Estate Appraiser, Commercial Real
Estate Appraisal, Residential Appraiser, Eminent Domain Appraiser, Apartment Appraiser, Commercial Appraisal,
Special Purpose Property, Office Property, California Appraiser, PMI Removal Appraiser, Free Appraisal. Certified
General Appraiser, Tax Appraiser
CIVIL PROCEDURE, DEBT COLLECTION, ETHICS & PROFESSIONAL RESPONSIBILITY, & REAL ESTATE,
REMEDIES
Rusheen v. Cohen, No. S123203 (Cal. February 23, 2006)
Where a cause of action is based on a communicative act, the litigation privilege of Civil Code section 47 extends to
those noncommunicative actions which are necessarily related to that communicative act.
BANKING , BANKRUPTCY , CIVIL PROCEDURE, CONTRACTS, LANDLORD TENANT , & REAL ESTATE
First Ave. W. Bldg., LLC v. James, No. 04-35324 (9th Cir. February 23, 2006)
District court order permitting a bankrupt tenant's trustee to pursue recovery from the landlord of damages up to the
full amount of the tenant's security deposit, including a letter of credit, is affirmed where: 1) the landlord forfeited a
timeliness issue; 2) rejection of a lease did not bar the trustee's action; and 3) the bankruptcy court clearly erred in
finding it had no jurisdiction over the claim.
Western States Petroleum Ass'n v. S. Coast Air Quality Mgmt. Dist., No. B181303 (Cal. 2d App. Dist. February 15,
2006) Denial of a writ of mandate challenging a rule adopted by defendant, an air quality management district,
requiring the oil refineries in its jurisdiction to reduce certain emissions is affirmed where: 1) substantial evidence
supported defendant's findings of feasibility and cost effectiveness, and 2) defendant complied with the applicable
California Environmental Quality Act requirements, and 3) substantial evidence supported the trial court's findings
regarding the record.
Appraisal Services: Appraiser, Commercial Appraisal, Commercial Real Estate Appraiser, Commercial Real
Estate Appraisal, Residential Appraiser, Apartment Appraiser, Commercial Appraisal, Special Purpose Property,
Eminent Domain Appraiser Appraisal, Forensic Appraiser Los Angeles, Forensic Appraisal,Office Property,
California Appraiser, PMI Removal Appraiser, Free Appraisal. Certified General Appraiser, Tax Appraiser
Hotel valuation, Commercial Appraisal, is a taxing issue
Debate centers on how to account for factors like brand recognition Are two hotels, comparable in size, location,
age and condition, worth the same if one is a Ritz-Carlton and the other is an unbranded unknown?
Mayer v. L & B Real Estate, No B180540 (Cal. 2d App. Dist. February 14, 2006)
Judgment quieting title in an action brought by plaintiffs to restore their ownership of commercial property that was
sold by a county tax collector to defendant, real estate company, for unpaid property taxes is reversed where
plaintiffs had constructive and actual notice of the tax sale, and thus had time to comply with a one-year statute of
limitations period.
ADMINISTRATIVE , ENVIRONMENTAL , GOVERNMENT , PROPERTY & REAL ESTATE
Hale v. Norton, No. 03-36032 (9th Cir. February 09, 2006)
Denial of a motion for a temporary restraining order and dismissal of plaintiffs' case for lack of subject matter
jurisdiction is affirmed in a case challenging an agency's regulation of plaintiffs' use of a trail crossing federally
protected land to access their property which was surrounded by the federal park at issue.
Howard S. Wright Constr. Co. v. BBIC Investors, LLC (01/31/06 - No. A109876)
Judgment for defendant following a non-jury trial in an action to foreclose a mechanic’s lien recorded against
defendant's property pursuant to a finding that the mechanic's lien was premature and therefore void is reversed
where plaintiff recorded its claim of lien after its contract was completed, upon the anticipatory breach of the other
contracting party.
City & County of San Francisco v. Ballard, No A107227, A108569 (Cal. 1st App. Dist. February 02, 2006)
An award of attorney's fees to defendant, a building owner, in an action by a municipality alleging that defendant's
building was a public nuisance is reversed where the statute at issue under which fees were awarded only applies
to receivership proceedings, which did not occur in the case.
GOVERNMENT , LANDLORD TENANT , & REAL ESTATE
Apartment Ass'n of Los Angeles County, Inc. v. City of Los Angeles, No B179133 (Cal. 2d App. Dist. January 31,
2006) Judgment against defendant-municipality in a declaratory relief action invalidating a municipal ordinance is
affirmed where an ordinance limiting certain charges a landlord could make from tenants in a housing assistance
program is affirmed where the ordinance conflicts with, and is preempted, by another law.
CONSTITUTIONAL , CONSTRUCTION, GOVERNMENT , PROPERTY & REAL ESTATE D & M Fin. Corp. v. City of
Long Beach, No B173977 (Cal. 2d App. Dist. January 31, 2006) Judgment for inverse condemnation in favor of a
holder of a security interest in real property on which defendant-municipality demolished an alleged substandard
apartment building is affirmed where defendant violated plaintiff's due process rights.
ENVIRONMENTAL , GOVERNMENT , & REAL ESTATE
108 Holdings, Ltd. v. City of Rohnert Park, No A108629 (Cal. 1st App. Dist. January 31, 2006) Judgment in favor of
defendant-municipality on plaintiff's, property owner, challenge to certain actions is affirmed where defendant did
not unlawfully surrender its police power or improperly amended its General Plan by entering into a settlement
agreement to resolve environmental litigation brought against it.
Crawford v. Weather Shield Mfg., Inc. (02/01/06 - No. G032301)
Order granting a new trial and judgment of the trial court in a construction defect case involving a window
manufacturer are affirmed where there was no abuse of discretion in the grant of a new trial, the trial court correctly
interpreted and adjudicated the subcontract at issue, and there was no abuse of discretion as to attorneys' fees.
Davis v. Newmar Corp. (02/01/06 - No. B174944)
Judgment for plaintiff on a claim under the Song-Beverly Consumer Warranty Act involving plaintiff's purchase of a
mobile home is reversed where the trial court erred in denying a pretrial motion to dismiss since the Act applies
only to vehicles sold in California and plaintiff's motor home was not sold in California.
California Appellate Districts
ATTORNEY'S FEES, CIVIL PROCEDURE, COMMERCIAL , CONSTRUCTION, CONTRACTS, MANUFACTURING,
PRODUCT LIABILITY, PROPERTY & REAL ESTATE
Crawford v. Weather Shield Mfg., Inc., No G032301 (Cal. 4th App. Dist. February 01, 2006)
Order granting a new trial and judgment of the trial court in a construction defect case involving a window
manufacturer are affirmed where there was no abuse of discretion in the grant of a new trial, the trial court correctly
interpreted and adjudicated the subcontract at issue, and there was no abuse of discretion as to attorneys' fees.
The National Association of Realtors is protesting rulings by the Office of the Comptroller of the Currency that the
trade group says "will inevitably lead to national banks becoming actively involved in real estate development and
brokerage." The OCC regulates banking activities.
Taxpayer Alert for Property Tax Assessor Records Corp.
This is an alert concerning a company that may be sending misleading letters to taxpayers. The company, Property
Tax Assessor Records Corp. sends forms and letters to Los Angeles, Riverside and San Diego county property
owners telling them that they have not filed Homeowners’ Exemption forms and they are entitled to file them. In
many cases, these letters are sent to people who are not entitled to the exemption or to property owners who have
already filed for the exemption. For a fee, the company offers to file a claim for exemption on the property owners’
behalf. The assessor’s office does NOT charge a fee to file the homeowners’ exemption claim form.
ADMINISTRATIVE , CIVIL PROCEDURE, CONSTITUTIONAL , ENVIRONMENTAL , GOVERNMENT , & REAL
ESTATE
Dunn v. County of Santa Barbara, No B175149 (Cal. 2d App. Dist. January 25, 2006)
Judgment on the pleadings for defendant-county on regulatory takings claims, and constitutional and civil rights
claims involving defendant's determinations as to a subdivision application is reversed where those claims are
ripe for adjudication because defendant issued what amounted to a final decision, and the permissible use of the
property is known to a reasonable degree of certainty.
Appraisal, Appraiser, Commercial Appraisal, Inverse Condemnation Appraiser, Commercial Real Estate
Appraiser, Commercial Real Estate Appraisal, Residential Appraiser, Apartment Appraiser, Commercial Appraisal,
Special Purpose Property, Office Property, California Appraiser, PMI Removal Appraiser, Free Appraisal. Certified
General Appraiser, Tax Appraiser, Forensic Appraiser Los Angeles, Forensic Appraisal,
ETHICS & DISCIPLINARY CODE, ETHICS & PROFESSIONAL RESPONSIBILITY, PROFESSIONAL MALPRACTICE,
PROPERTY & REAL ESTATE
Gackstetter v. Frawley, No B173070 (Cal. 2d App. Dist. January 25, 2006)
Denial of defendant-attorney's summary judgment motion in an action for breach of fiduciary duties, professional
negligence and additional claims by plaintiff-trustee is reversed where defendant's good faith settlement of an
underlying malpractice action brought by trust beneficiaries against him barred plaintiff-trustee's claims.
What is Building Commissioning? Michael Dadjou, PinnacleOne
In essence, building commissioning is similar to the commissioning of a ship. The captain (or, in this case,
commissioning consultant) takes the building for a trial run PRIOR to opening the building for occupancy. The
performance of the building is compared to specifications (and expectations) and areas requiring correction are
identified.
Developers Raising Roof Over Rights to Downtown’s ‘Hot’ Air
By ANDY FIXMER Los Angeles Business Journal Staff
There is nearly $100 million worth of thin air sitting on top of the Los Angeles Convention Center – and downtown
boosters want the financially strapped city to cash in on it.
California Appellate Districts
Strebel v. Brenlar Invs., Inc. (01/12/06 - No. A104681)
Judgment of damages for plaintiff in a real estate fraud case involving plaintiff's contract to buy an encumbered
house is affirmed where there was no error in trial court's allowing a jury to include lost appreciation in the value of
plaintiff's sold home, and lost use of plaintiff's property in the measure of recovery.
CIVIL PROCEDURE, CONTRACTS, INSURANCE , & REAL ESTATE
1231 Euclid Homeowners Ass'n v. State Farm Fire & Cas. Co., No B175242 (Cal. 2d App. Dist. January 20, 2006)
Summary judgment for defendant on breach of contract and breach of the implied covenant of good faith and fair
dealing claims against defendant-insurer involving damages resulting from the Northridge earthquake is affirmed
where plaintiff-homeowners association's earlier withdrawal of claims excused defendant from further
performance of any coverage obligation under its policy and precluded plaintiff's claims.
CIVIL PROCEDURE, GOVERNMENT , LANDLORD TENANT , PROPERTY & REAL ESTATE, REMEDIES Carson
Gardens, L.L.C. v. City of Carson Mobilehome Park Rental Review Bd., No B180308 (Cal. 2d App. Dist. January 17,
2006) Trial court order declaring a decision by defendant-rent control board null and void, and setting a rent
increase based on methodology defendant had considered and rejected is reversed where the trial court exceeded
its authority by setting the amount of a rent increase itself instead of remanding the matter to the board.
PROPERTY & REAL ESTATE
Torres v. Torres, No B179146 (Cal. 1st App. Dist. January 17, 2006) Judgment for defendants in a quiet title action
disputing the validity of a certain power of attorney is affirmed where a valid power of attorney was created even
though in using the statutory form the principal placed an X instead of her initials next to the line conferring the
powers.
ATTORNEY'S FEES, DEBT COLLECTION, GOVERNMENT , & REAL ESTATE, WATER LAW Souza v. Wetlands
Water Dist., No F045293 (Cal. 5th App. Dist. January 17, 2006)
Judgments and award of attorney's fees in favor of plaintiffs, farmland owners, against defendants, a water district
and finance company, is reversed in a dispute over certain assessed water charges where the district court's
conclusions were in error.
lCOMMUNICATIONS , CONSTRUCTION, GOVERNMENT , PROPERTY & REAL ESTATE
Sprint PCS Assets, L.L.C. v. City of La Canada Flintridge, No. 05-55014 (9th Cir. January 17, 2006)
Summary judgment in favor of defendant-municipality upholding certain permit denials involving wireless
telecommunications facilities based on aesthetic impact is reversed where defendant overstepped its regulatory
authority under state law, its wireless ordinance is invalid, and no evidence supported the permit denial.
U.S. 9th Circuit Court of Appeals Carson Harbor Village, Ltd. v. County of Los Angeles (01/12/06 - No. 04-55024)
Summary judgment for defendant, oil company, denying plaintiff recovery of certain cleanup costs under the
Comprehensive Environmental Response, Compensation, and Liability Act is affirmed where there are no genuine
issues of material fact regarding whether plaintiff substantially complied with the National Oil and Hazardous
Substances Pollution Contingency Plan.
AGRICULTURE, GOVERNMENT , & REAL ESTATE, PUBLIC UTILITIES
Placer County Local Agency Formation Comm'n v. Nevada County Local Agency Formation Comm'n, No C047697
(Cal. 3d App. Dist. January 13, 2006)
Government Code section 56387 gives principal counties jurisdiction over spheres of influence and service
reviews of multicounty districts within neighboring counties. Judgment entered in favor of defendant in a dispute
between neighboring Local Agency Formation Commissions (LAFCO) under the Cortese-Knox-Hertzberg Local
Government Reorganization Act is affirmed where plaintiff failed to show grounds for reversal of the judgment.
ADMINISTRATIVE , ENVIRONMENTAL , GOVERNMENT , OIL & GAS , PROPERTY & REAL ESTATE
Carson Harbor Village, Ltd. v. County of Los Angeles, No. 04-55024 (9th Cir. January 12, 2006)
Summary judgment for defendant, oil company, denying plaintiff recovery of certain cleanup costs under the
Comprehensive Environmental Response, Compensation, and Liability Act is affirmed where there are no genuine
issues of material fact regarding whether plaintiff substantially complied with the National Oil and Hazardous
Substances Pollution Contingency Plan.
CONSTRUCTION, GOVERNMENT , & REAL ESTATE, PUBLIC UTILITIES, REMEDIES
Metro. Water Dist. of S. California v. Campus Crusade for Christ, Inc., No. E034248 (Cal. 4th App. Dist. January 09,
2006)
Judgment of damages in an eminent domain action to condemn land owned by defendants to construct a water
pipeline is reversed where the trial judge erred in overruling a prior judge's earlier evidentiary rulings in the case, in
allocating the burden of proof as to severance damages, and defendants offered substantial evidence that should
have been presented to a jury in determining the amount of just compensation.
Metro. Water Dist. of S. California v. Campus Crusade for Christ, Inc., No E034248 (Cal. 4th App. Dist. January 09,
2006) Judgment of damages in an eminent domain action to condemn land owned by defendants to construct a
water pipeline is reversed where the trial judge erred in overruling a prior judge's earlier evidentiary rulings in the
case, in allocating the burden of proof as to severance damages, and defendants offered substantial evidence that
should have been presented to a jury in determining the amount of just compensation.
Appraisal, Appraiser, Commercial Appraisal, Commercial Real Estate Appraiser, Commercial Real Estate Appraisal, Residential
Appraiser, Apartment Appraiser, Commercial Appraisal, Special Purpose Property, Office Property, California Appraiser, PMI
Removal Appraiser, Free Appraisal. Certified General Appraiser, Tax Appraiser
(Property Tax and Domestic Partners - eff. 2006-7 fiscal year)
Beginning the lien date for the 2006-07 fiscal year, SB 565 permits registered domestic partners to transfer
property to each other without triggering a reassessment and taxation at the current market value. As a result,
registered domestic partners will be treated the same as spouses under California property tax laws.
Federal Estate Tax Changes Take Effect In 2006
Mortgagee Letter 2005-19 (ML 05-19) announced the Streamlined (k) Limited Repair Program to augment FHA's
existing Section 203(k) rehabilitation program for less extensive repairs and improvement. This Mortgagee Letter
replaces in its entirety ML 05-19 and is designed to make the program more reflective of the desire of many
homebuyers and existing homeowners to improve their homes including making them more energy efficient...
FEATURE: 2005 COST vs. VALUE REPORT Remodeling's Payoff Residential Appraisal
Minor Kitchen Remodel
Project Description: In a functional but dated 200-square-foot kitchen with 30 linear feet of cabinetry and
countertops, leave cabinet boxes in place but replace fronts with new raised-panel wood doors and drawers.
Replace wall oven and cooktop with new energy-efficient models. Replace laminate countertops. Install midpriced
sink and faucet. Repaint trim, add wall covering, and replace existing flooring with resilient flooring. Commercial
Appraiser
ADMINISTRATIVE LAW, ENVIRONMENTAL , GOVERNMENT , PROPERTY & REAL ESTATE, TAX
Martin v. City & County of San Francisco, No A107768 (Cal. 1st App. Dist. December 30, 2005)
A municipality may not lawfully require the owner of a private single-family residence who proposes to modify a
portion of the interior of his residence, in an area not visible to the general public, to undergo the burden and
expense of a review of his proposed project pursuant to the California Environmental Quality Act.
CIVIL PROCEDURE, CONTRACTS, INJURY AND TORT , INSURANCE , & REAL ESTATE
Davaloo v. State Farm Ins. Co., No B171352, B171353 (Cal. 2d App. Dist. December 30, 2005)
Orders of dismissal of plaintiffs' complaints containing claims for policy benefits against insurers for losses
caused by the Northridge earthquake is affirmed since the relation-back doctrine cannot be used to find plaintiffs'
first amended complaints timely filed under a revival statute.
Free Landscaping Course
Don't know where to begin with landscape design? The online landscape design course that I'm offering may be
just the thing for you. Have a lesson delivered to your e-mailbox daily, for 108 days. Each lesson contains 3 links,
plus a link to the Discussion, should you wish to discuss your "homework" with other students (don't worry: there
aren't any tests!). The links take you directly to landscape design and maintenance tips. All in all, just about the right
dose of landscape design talk to enjoy over a cup of coffee. To sign up for free, click the link above.
CIVIL PROCEDURE, DEBT COLLECTION, PROPERTY & REAL ESTATE
Ung v. Koehler, No. A109532 (Cal. 1st App. Dist. December 28, 2005)
Civil Code section 882.030, a provision of the Marketable Record Title Act, does not override the 10 or 60 year time
limits for the exercise of a power of sale in a deed of trust from the "final maturity date" of the underlying debt.
Further, once the beneficiary of a deed of trust has become entitled to claim the 60-year time limit, the beneficiary
does not lose that entitlement merely by filing a notice of default that specifies the "final maturity date" of the
underlying debt.
ATTORNEY'S FEES, CONSTRUCTION, GOVERNMENT , & REAL ESTATE
City & County of San Francisco v. Jen, No A107911 (Cal. 1st App. Dist. December 29, 2005)
Award of attorneys fees to plaintiff-municipality is affirmed as to claims of public nuisance, violation of state housing
law, failure to comply with an abatement order, and unlawful business practices where the trial court properly
awarded fees and costs to plaintiff under the State Housing Law.
COMMERCIAL PROPERTY , CONTRACTS, INJURY AND TORT , LANDLORD TENANT , PROPERTY & REAL
ESTATE, RETAIL
Hinesley v. Oakshade Town Ctr., No C045865 (Cal. 3d App. Dist. December 29, 2005)
Summary judgment for defendant on plaintiff's complaint for fraud and rescission of his commercial lease with
defendant is affirmed where defendant successfully demonstrated no triable issue of fact existed as to whether
plaintiff justifiably relied on any material misrepresentation or concealment.
ADMINISTRATIVE , GOVERNMENT , INJURY AND TORT , & REAL ESTATE, WATER
Brady v. Abbott Labs., No. 04-15257 (9th Cir. December 29, 2005)
Judgment for plaintiffs on negligence and nuisance claims regarding defendant's illegal removal of groundwater
from their property and subsequent resulting damages to plaintiffs' adjacent property is reversed where defendant
owed plaintiff's no duty under the common law doctrine of reasonable use. Commercial Appraiser
ENVIRONMENTAL , GOVERNMENT , PROPERTY & REAL ESTATE, REMEDIES
Butler v. City of Palos Verdes, No B177260 (Cal. 2d App. Dist. December 28, 2005)
Judgment for plaintiffs in an action to enjoin a municipality's peafowl management program is reversed since the
peafowl management program does not violate certain deed restrictions under which title to the parklands and
canyons was taken by defendant-municipality.
Two Pennsylvania residents were indicted on charges of bank fraud, mail fraud and making false statements on
loan applications in connection with alleged mortgage fraud schemes said to have taken place in 2002 and 2003.
Crooked REAL ESTATE appraisers fuel scams. Stolen identities used in mortgage swindles.
By David Jackson
Tribune staff reporter
Published December 14, 2005
This story contains corrected material, published Dec. 16, 2005. A loose network of crooked real estate appraisers
is stealing the identities of legitimate colleagues to file false reports and fuel the surge of mortgage fraud in
Chicago and across the nation.
2006 Real Estate Capital Markets Industry Outlook Top Ten Issues
The U.S. economy is expanding, now at a slower rate, and investments are on the increase again. The economy
appears poised for continued positive growth in 2006. Interest rates remain relatively low and, contrary to
conventional wisdom, are not increasing as quickly as expected, creating the famous “conundrum” in the economy.
Yet a number of concerns remain on the horizon, especially with the budget and trade deficits; selected residential
“bubbles;” post hurricane Katrina, Rita and Wilma impacts; along with the Iraqi war.
The California Housing Finance Agency has announced changes in servicing release requirements of first
mortgage loans made in conjunction with a HiCAP subordinate loan.
Supreme Court of California
ADMINISTRATIVE , CONSTRUCTION, GOVERNMENT , PROPERTY & REAL ESTATE
Barratt Am., Inc. v. City of Rancho Cucamonga, No S117590 (Cal. December 22, 2005)
Grant of a demurrer for municipal defendant in an action regarding plaintiff's challenge, under the Mitigation Fee
Act, to fees imposed relating to development projects is reversed to the extent that the court erred in determining
that plaintiff could not challenge the validity of a resolution reenacting a fee previously set forth in an earlier
resolution.
Curtis - Rosenthal, Inc.
Forensic Appraiser Los Angeles, Forensic Appraisal,
CONSTRUCTION, CONTRACTS, INSURANCE , & REAL ESTATE
Amwest Surety Ins. Co. v. Patriot Homes, Inc., No B175822 (Cal. 2d App. Dist. December 22, 2005)
Judgment for defendants, real estate developers, in an action for breach of an indemnity contract and statutory
indemnity regarding plaintiff-insurer's provision of an appeal bond to defendants is reversed since the parties'
indemnity agreements covered all bonds, including appeal bonds.
ADMINISTRATIVE , CONSTRUCTION, GOVERNMENT LAW, LABOR & EMPLOYMENT , PROPERTY & REAL
ESTATE
Greystone Homes, Inc. v. Cake, No A107763, A107769 (Cal. 1st App. Dist. December 21, 2005)
Determination that a housing development project was a public work for purposes of being subject to California's
Prevailing Wage Law is reversed where the determination was based on an erroneous application of former Labor
Code section 1720(a), and plaintiff-developer paid all demolition and construction costs with private funds.
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WASHINGTON, DC 20410-8000
ASSISTANT SECRETARY FOR HOUSING-FEDERAL HOUSING COMMISSIONER December 19, 2005
MORTGAGEE APPROVED APPRAISERS LETTER 2005-48 TO: ALL APPROVED MORTGAGEES, ALL APPROVED
APPRAISERS
SUBJECT: FHA Repair and Inspection Requirements for existing properties and revisions to FHA Appraisal
Protocol In a continuing effort to reform and standardize its appraisal requirements, FHA has shifted from its
historical emphasis on the repair of minor property deficiencies and now only requires repairs for those property
conditions that rise above the level of cosmetic defects, minor defects or normal wear and tear. FHA Roster
Appraisers are reminded to report all readily observable property deficiencies, as well as any adverse conditions
discovered performing the research involved in completing the appraisal, within the appraisal reporting form.
Lenders should use professional judgment and rely upon prudent underwriting practices in determining when a
property condition poses a threat to the safety of an occupant and/or jeopardizes the soundness and structural
integrity of the property, such that additional inspections and/or repairs are necessary...
CONSTITUTIONAL , GOVERNMENT , APPRAISAL VALUATION, PROPERTY & REAL ESTATE
Cathedral City Redevelopment Agency v. Stickles, No E036456 (Cal. 4th App. Dist. December 19, 2005)
Judgment condemning properties for redevelopment purposes in quick take eminent domain proceedings is
affirmed where the trial court did not abuse its discretion in setting the date of valuation for purposes of a trial on the
compensation issue, and defendants' constitutional rights were not violated.
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Commercial Appraiser and Real Estate Consultant - Serving Los Angeles (LA) and Southern California (CA)
Commercial Appraiser Los Angeles (LA) and Real Estate Consultant, Los Angeles, California CA
Condemnation Appraiser, Inverse Condemnation Appraiser, Eminent Domain Appraiser appraisal, Commercial Appraiser, Residential Appraiser, Los Angeles, California
Commercial Appraiser Los Angeles, California
Curtis-Rosenthal Inc., Commercial Appraiser and Real Estate Consultant, Los Angeles, California Commercial Appraisal Los Angeles, Commercial appraisal la, comercial appraiser, Expert Witness, Real Estate consultant, LA, L.A., Condemnation Appraiser, Inverse Condemnation Appraiser, Southern Californiacommercial appraiser,appraiser los angeles, real estate appraiser,commercial expert witness real estate, real property,commercial appraiser, commercial real estate, Los Angeles, Estate , Probate, Trust, Tax, MAI Appraiser, LA, L.A., real estate land los angeles, commercial real estate inspectors, real estate brokers, los angeles, real estate appraiser, Los Angeles, llp, mark to marker, Land Appraiser, Special Purpose Property Appraiser, Office Property, Commercial appraisal, Restaurant, Apartment, VANDEMA, Southern California Commercial Real Estate, Residential Appraiser, Apartment Appraiser,California Appraiser,PMI Removal, Certified General, Tax , Multi Family , Bank appraisal institute, Apraiser, Comercial Apraiser| We Make a Simple Pledge to Communicate, in a timely Fashion, each appraisal, analysis, and opinion without bias or partiality Abstain from behavior that is deleterious to our clients, the appraisal profession, and the public Hold paramount the confidential nature of the appraiser/consultant - client relationship and Comply with the requirements of the Uniform Standards of Professional Appraisal Practice and the Code of Professional Ethics of the National Society of Real Estate Appraisers |
The Harris Company, Real Estate Appraiser / Consultant
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