Blog > Blog > Other Topics > Archive by category 'Legal Issues'

February 16, 2009 at 11:42 am

Once again a small group within the Missouri General Assembly has targeted the Historic Tax Credit program for modification or elimination. Your input to your senator is critical if we are to preserve this critically important tool for redevelopment of our cities and towns.  Read more

December 1, 2008 at 6:55 pm

I’ve always considered myself a pretty understanding guy in terms of facing the reality of any situation. In terms of crime and violence I know that the world isn’t a perfect place and all we can do the best we can to fight it. But what do we do when those we entrust, those we pay to help keep us safe don’t do the job? In St. Louis, this often seems to be the case when crime and the local police meet. Read more

September 30, 2008 at 9:19 pm

This isn’t exactly breaking news, but I thought I should share some info about a St. Louis City Bill (Board Bill 174) that could have a direct affect on City investors. This bill was introduced in July to the Board of Alderman by Alderwoman Triplett and Alderman Kennedy. Here is the summary of the bill as it was presented in July: Read more

September 24, 2008 at 1:10 pm

It’s been about six months since I last took a look at this project, so I figured I needed to post an update. From appearances, the future home of the studio for Shock City Music Works appears to be nearly complete. Read more

August 1, 2008 at 10:46 pm

I was doing a little more research on the new federal housing legislation after posting about it this afternoon and I ran across an interesting concept on the Cato Institute’s website: Get rid of Fannie May and Freddie Mac. Not something that had really crossed my mind, but the author makes some pretty good points. You can take a look for yourself here. I doubt it would happen, but it could work.

August 1, 2008 at 11:37 am

If you’ve been living in a cave for the last year, you might be surprised to know that foreclosures are happening at a record pace in St. Louis and around the country. Obviously, this can make for some pretty great buys in the real estate market, but a lot of people and companies are hurting because of this trend. All levels of government have been talking about doing something to stop the bleeding for months, but nothing has been done. Until this past Wednesday that is. Read more

June 4, 2008 at 2:29 pm

This is a piece of trash. Intimidating isn’t it. Well don’t worry. If the St. Louis Board of Alderman has it’s way you won’t have to see this stuff anymore. According to an article recently published in the South Side Journal (Business owners want trash bill canned), Alderman Steve Conway, D-8th Ward, has sponsored a bill requiring convenience stores and carryout restaurants to pick up all trash originating from their place of business within a 300 foot radius at least once a day. Read more

April 10, 2008 at 12:09 pm

Handyman ThiefDon’t let this man’s phony smile fool you. He could be a thief. If someone comes knocking at your door, claiming to be a contractor, be careful of what you do. I just received this forward from a Circuit Attorney in the City of St. Louis. If you live or own any properties in the City you should really take this one to heart. Read more

March 7, 2008 at 6:43 pm

You are correct, man-with-sign, but not for long. At least in some situations. It looks like action is about to be taken to curb aggressive panhandling in the City of St. Louis. All I can say is that its about time. According to the St. Louis Post Dispatch, City Alderman just passed the bill addressing this issue, which has been kicked around the past few months. As the Post puts it:

“Under the proposal, panhandling would be allowed only during daylight hours. It would be banned at all hours at bus or MetroLink stops, around ATMs or an entrance to a bank, within 30 feet of a public doorway or at any sidewalk cafe, school or crosswalk.” Sounds like a good start.

The only thing left to do is get Mayor Slay’s signature on the bill. Seeing as he has already said that he would sign it on his blog, I think its safe to say that its a done deal.

You can read the whole article hear: article

February 27, 2008 at 1:23 am

They say that without order their is chaos. Then I guess the world of real estate is one of chaos. Or at least it feels like it at times. I have noticed a recurring theme in the real estate world that is becoming impossible to ignore: Nobody pays attention to contracts anymore!

Contracts seem to have gone from being legally binding agreements to mere pieces of paper. Have no contingencies left and decide you don’t like the deal anymore just days before closing? Just walk away from the contract. Pass your inspection contingency and decide a week later that you want to bail by fraudulently claiming that you can’t get financing? Just walk away from the contract. Decide that you want to sell your property to someone after you already have it under with someone else? Just walk away from the contract. Nobody seems to pay attention to these things anymore. Deadlines come and go and agents, lenders, buyers and sellers take no notice.

There was a time when businessmen, shady as many of them were, had a strong enough sense of follow-through that a mere handshake agreement was sufficient. Nowadays, I can have a legally binding agreement put down in writing only to have one of the parties spit on it as if it were meaningless. I don’t know if this is a sign of the world we live in today or something isolated to the world of real estate.

I am probably making the situation sound worse than it really is, but I often find myself quite frustrated during transactions. I often think we have come to this state due to the influx of unqualified or uninterested buyers that popped into the market over the last few years during the era of 100% financing and questionable appraisals. Hopefully with those days gone this trend will begin to dissipate. Hopefully.

Or maybe if more people would sue buyers or sellers that violate contracts we could curb this issue. Perhaps people are becoming emboldened due to the fact that it is very unlikely that they will face any repercussions from breaking a contract. I’m not advocating that everyone in the real estate world become sue-happy, but it’s a perfectly acceptable recourse in certain situations.

These issues probably play a role in the lack of respect shown to contracts, but in the end there is probably something less tangible at work. We all just need to remember that a contract is a contract is contract. Once you sign on the dotted line, you can’t just change your mind and walk away if there are no loopholes or contingencies. There is an endless amount of money to be made in this business if we all just learn to keep our heads. A well-written document protects the interests of all parties to our mutual benefit, but only if we can all have enough integrity to show these documents the respect they deserve.

December 20, 2007 at 9:59 pm

I find myself constantly shocked at what some landlords say to perspective renters. Lines like “I don’t rent to single mothers?” or “How many kids do you have?” seem to come out of far too many people’s mouthes. For those who use that kind of language, I have a bit of advice: STOP!

According to Federal Fair Housing Law, the State of Missouri and the City of St. Louis, the following classes are protected from discrimination:

  • Race
  • Color
  • Religion
  • Sex
  • Disability
  • Familial Status
  • National Origin
  • Ancestry (Missouri)
  • Sexual Orientation (St. Louis)
  • Source of Income (St. Louis)

    • So what does this mean for you? That you better not even ask personal questions of prospective tenants that relate to these classes. Credit scores, employment history and criminal records are fine to use as determining factors, but the categories above are not. Despite what many property owners seem to think, these laws apply to everyone. Even private owners.

    Your personal feelings towards these laws or these people are irrelevant in this situation. The fact is that if you discriminate or treat one group of prospective tenants differently than another, you are opening yourself up to a lawsuit. There are plenty of nonprofit organizations that provide free legal assistance in such cases of discrimination. If you can’t force yourself to keep within the limits of these laws, you’re probably in the wrong business. Watch what you say, watch what you do. You’ll be better off for it.

    *If you want to take a look at the current Landlord-Tent Law Handbook, you can check it out HERE.

    November 15, 2007 at 9:56 pm

    *NOTE – This article was originally written in May of 2007 for the newsletter.

    In the landlord world, eviction is a four-letter word. The process is so despised because current Missouri eviction law clearly favors the tenant. Even the deadbeat ones. There are so many problems with current laws that finding
    a starting point for reform has been a little tricky. Despite this hurdle, the wheels are finally in motion heading in the direction of change.

    Over the last few years, one of the biggest issues landlords have faced is what to do with a tenant’s personal belongings during an eviction. Current laws are unclear about this situation and that has worried many a landlord. That’s where the new Landlord-Tenant Liability law comes into play.

    The bill (HB 504), as summarized on the Missouri House of Representatives website, “exempts landlords from liability for any damage to personal property resulting from the enforcement of a judgment granting possession of the property.Landlords are given the absolute right to dispose of the personal property in any manner they consider reasonable.”

    This bill has just made it out of committee in the State House. It passed unanimously, but a greater battle still looms ahead. The bill still needs to pass the muster of the entire body of the State House and Senate. No date has been set for further debate, but the House website lists the “proposed effective date” for the bill as 08/28/2007. This would indicate that movement on the subject can be expected in the near future.

    This bill would do a lot to even the playing field between landlords and tenants in St. Louis and the entire state of Missouri. Ensuring it’s passage should be a high priority on any investor’s checklist. You can help improve the bill’s chances by contacting your State Senator and Congressman and voicing your support. There are various interest groups pushing to kill the bill or add crippling amendments and your letters can make a big impact.

    Lookup your representatives here:
    www.senate.mo.gov/llokup/leg_lookup.aspx

    For more information on the bill or to checkup on its status visit:
    www.house.mop.gov/bills071/bills/hb504.htm

    *UPDATE – This bill ended up failing to pass during the last session. Not do to lack of support, but due to lack of time. It has been picked up again for the current session and already has traction. So its still vital that everyone throw their support behind this one. Check back soon for and update on the status and more information.

    November 15, 2007 at 7:28 pm

    *NOTE – This article was originally written in March of 2007 for the newsletter. It was written with the help of, then intern, Will Roestel.

    Being new to the investment world, I don’t know a whole lot about the inspection process. In an attempt to learn more, as well as see what resources are currently available on the subject, I assumed the role of a prospective rental property buyer and paid a visit to the St. Louis City Inspections Department in City Hall, Room 407.

    Upon my arrival, the receptionist politely asked if she could help. I told her that I found several rental properties I was interested in purchasing, but wanted to get a general idea of the codes and regulations inspectors would be looking at so that I might identify problems and calculate their costs. I explained that I was trying to minimize my headaches, by being proactive about addressing violations.

    She asked if I had the exact addresses so she could look to see if there were any current violations. I told her that while it might give me part of what I was looking for, I really needed a resource that would allow me to cover all my bases, not just for specific properties.

    She appeared baffled. The widely distributed Landlord handbook, InfoRent, was out of stock, but they had a brochure that might be of some help in my quest for knowledge. It was a Missouri Landlord-Tenant Law booklet. Not exactly what I had hoped for. Asking if there was any other office I might visit with helpful information, I was told to try “next door” in Room 406, the Housing Conservancy Office, or at 418, the Neighborhood Stabilization Team. She also stated that if I had specific questions I could make an appointment to talk to one of the inspectors. I noted that if I couldn’t even get guidelines for inspection expectations, it surely would be difficult to ask pointed questions.

    Next door at the Conservancy I waited at the front of an entry area unfolding into a large office area. After a few moments of staring at the housing and community preservation brochure, a woman leaned backed from her desk and asked if she could help. Repeating my previous request, I was quickly informed that the brochure I was holding was all the available literature they had. So it was across the beautiful atrium to room 418, and the Neighborhood Stabilization Team office.

    This group’s mission is to: “To empower constituents to sustain a quality environment within their neighborhood through assistance, education, intervention and organization.” Sounded like a place that may provide some much needed assistance in proper property management. Unfortunately, all the young receptionist could provide was a typical 8.5” x 11” piece of paper with the general concepts surrounding the Team and its officers. She told me, as I had been told before, to look at the InfoRent booklet, but she added that it was available online.

    She pointed to a link listed at the bottom of the page. I skimmed the document, and noted the bulleted item outlining “problems” the Team addresses listed “physical violation of health, safety, and/or property maintenance codes.” This seemed as good a lead as any, and I asked if they had any documentation on the codes/regulations that governed these problem issues. I was told that all their information could be found on the website, and was given a brief tutorial on how to find their page through the City’s homepage.

    I thanked her for her time and left City Hall after almost an hour of searching with only a Landlord-Tenant law booklet, an outline of the responsibilities of a Neighborhood Stabilization Officer and a Housing Conservation brochure to show for my time.

    The latter came closest to answering my query with a small section at the bottom of its interior middle tri-fold. It read:

    “More commonly cited items include:

    • Smoke Detectors
    • Overcrowding
    • Unsanitary Conditions
    • Doors and Locks
    • Falling or Cracked Plaster
    • Defective Electrical or Plumbing Systems”

    That’s all well and good, but what specs need to be followed when addressing these issues? How can I be expected to fix something if nobody can tell me what I need to fix?

    The City’s inspection process seems to reward neither initiative nor forward thinking. The overworked inspectors, and the property owners that deal with them, would both greatly benefit from a readily accessible and comprehensive information source outlining the responsibilities and expectations of each, and from one to the other. Not so dissimilar from the Landlord-Tenant guide I received in their department, just a bit more on target.

    November 15, 2007 at 6:14 pm

    *NOTE – This article was originally written in February of 2007 for the newsletter.

    There is a plague afflicting the St. Louis area. This onslaught is indiscriminate in choosing victims. Businesses, residences, apartments, even churches are not safe from the salivating jaws of this beast. Keep on the lookout for the copper thief.

    Everyone seems to agree that the surge in copper prices from $.50 a pound to over $3.00 has caused a major surge in copper theft. Whether by stealth, trickery or reckless abandon, copper thieves have been ransacking our area. Copper pipes, electrical wiring and old gutters are especially vulnerable targets.

    Many residents blame the continual climb in theft on an inept police force or dismissive neighbors. But there is no way you can pin this on them. It would be impossible to have eyes on every potential theft target at all times. There isn’t enough manpower. Even if there was, in a city with so many rehabs going on at any given time, thieves posing as contractors can too easily gain hassle-free access to vulnerable areas.

    Preventative measures are not the key to solving this issue. If we really want to stop the thieves, we need to cut off their buyers: scrap yards. These businesses serve a necessary and functional purpose, but more has to be done to prevent this theft. Perhaps scrap buyers should only pay sellers by check and keep drivers license records of all sellers? Perhaps scrap yards who knowingly buy from thieves should face stiffer fines. Regardless of the path to be taken, there must be action.

    Protect yourself. Take a stand. Call your local alderman (search for your alderman) and scrap yards today and demand that they fix this problem. We need to be fostering a hospitable environment for developers and residents not robbing them blind.

    Notable scrap yards in close proximity:

    - Ace Scrap Metals, 5900 Manchester, St. Louis
    - Top Metal Buyers, 808 Walnut, East St. Louis
    - Cash’s Scrap Metal, 300 E. Nagel, St. Louis

    *Check out my previous blog entry, “Stopping Copper Thieves: What can you do?” for tips on protecting yourself.