Transactional

By: Denise C. Werkley

A little reminder that Pennsylvania isn’t as builder friendly as some other states, at least in regards to insurance coverage. In late 2010, the Indiana courts looked at the issue of whether damage to a home caused by a subcontractor was covered under the general contractor’s standard liability insurance policy. Indiana ruled in favor of builders and determined that if the subs workmanship was unintentional, then the resulting damage would be unforeseeable and could be deemed an accident, thus falling within the policy’s definition of an “occurrence”.

Today I was reminded that PA is one of only 5 states that have ruled the other way-in favor of the insurance companies. See the article here.

Denise Werkley

Denise Werkley is a partner at Unruh, Turner, Burke and Frees, Denise practices in the areas of Pennsylvania Commercial Transactions and Business Organizations, Pennsylvania Real Estate, and Pennsylvania Trademarks and Copyright Law. The firm maintains law offices in Malvern, Phoenixville, and West Chester Pennsylvania which serve the Main Line, and many surrounding communities such as Devon, Exton, West Chester, Ardmore and others.

By: Denise C. Werkley

Fannie Mae and Freddie Mac announced that they are raising risk fees that they charge to lenders. Lenders in turn typically pass those fees on to borrowers. The first time in 12 years risk fees will jump and the impact will be felt by all, even those with excellent credit. Persons with great credit (typically a FICO score of 740 or higher) were previously excluded from risk fees. Now, to avoid the fees a borrower with that score would likely have to put down at least 25% of the value of the house being purchased. The issue is whether this fee really impacts affordability for homebuyers, or whether it is simply looked at as just another fee and cost of obtaining a mortgage. The National Association of Home Builders does not appear to have responded publicly about the increase or its effect on home sales.

See Builder Magazine’s full article on the fees here.

Denise Werkley

Denise Werkley is a partner at Unruh, Turner, Burke and Frees, Denise practices in the areas of Pennsylvania Commercial Transactions and Business Organizations, Pennsylvania Real Estate, and Pennsylvania Trademarks and Copyright Law. The firm maintains law offices in Malvern, Phoenixville, and West Chester Pennsylvania which serve the Main Line, and many surrounding communities such as Devon, Exton, West Chester, Ardmore and others.

By: Theodore F. Claypoole

The Chester County Department of Community Development has announced that, effective as of October 7, 2010, areas eligible for Recovery Zone Bond financing have been expanded to include a 1-mile radius surrounding Chester County’s 15 Boroughs and the City of Coatesville. Recovery Zone Bonds can be used for private or municipal purposes of promoting development or other economic activity in a Recovery Zone.

For information on Recovery Zone Bond financing, please contact Theodore F. Claypoole at 610-692-1371 or tclaypoole@utbf.com.

Theodore F. Claypoole

Theodore F. Claypoole is a partner at Unruh, Turner, Burke and Frees, Theodore practices in the areas of Pennsylvania Commercial Transactions and Business Organizations, Pennsylvania Land Use and Construction, Pennsylvania Real Estate, and Tax-Exempt Organizations. The firm maintain law offices in Malvern, Phoenixville, and West Chester Pennsylvania which serve the Main Line, and many surrounding communities such as Devon, Exton, West Chester, Ardmore and others.

By: Denise C. Werkley

As a follow up to my March 26, 2010 post on the new Uniform Construction Code provisions in Pennsylvania that mandate sprinkler systems in new homes, the Pennsylvania Builders Association has set up a “Roll Back the Code” website. The issue appears not to be with sprinklers themselves, but the requirement and associated cost to include them, especially when hard wired smoke detectors are already mandated by the building codes. The Builder’s Association states that the installation of sprinklers should be the consumer. Whether you agree with the code changes or not, the site contains useful links to the new rule, the obligations builders now face and public commentary on the subject. You can find all the information here or contact Denise Werkley.

By: Denise C. Werkley

Today, April 22, 2010, the final portion of the Environmental Protection Agency’s Lead Paint Renovation, Repair and Painting Rule takes effect. All contracting firms performing renovation, repair and painting projects that disturb lead-based paint in homes, child care facilities, and schools built before 1978 must now be certified, use individuals with accredited training and must follow specific work practices to prevent lead contamination. To become certified, your firm must submit an application and fee payment to EPA and you must ensure that each of your employees working with lead paint is properly trained. In addition to the certification, the owner of the property must be provided with certain disclosures and you will need to properly document receipt. For more information on the new lead paint rules, please contact Denise C. Werkley.

The application and more general information about the Lead Paint Renovation, Repair and Painting Rule can be found at the Environmental Protection Agency’s website.

By: Nancy J. Glidden

Read my recent blog about real estate on “offer” vs. contract. For more information, contact Nancy Glidden.

By: Denise C. Werkley

After some delay, the Pennsylvania Association of Realtors has released its new 2010 form Agreement of Sale. You can find a sample of the PAR Standard Agreement for the Sale of Real Estate on the Pennsylvania Association of Realtors website.

If you have questions on the new form, please contact Denise C. Werkley in our West Chester office.

By: Kimberly P. Venzie

Read my recent Blog about the affirmation of the Schaffer decision by the Pennsylvania Supreme Court and its impact upon development in Pennsylvania.

By: Denise C. Werkley

Will you see solar panels in your neighborhood? Maybe, or maybe not depending on whether there is a homeowners association and what the restrictions for your neighborhood say – but it may not matter for long. Pennsylvania State Representative Tom Houghton has recently indicated he intends to put forth legislation which would prohibit Homeowners Associations from enforcing restrictions which impede or prohibit the use of solar panels.

Do solar panels help or hurt the aesthetics and value of a neighborhood? Will this increase green building and marketability of homes? It will be interesting to watch how this legislation unfolds. View a recent press release and Rep. Houghton’s request for co-sponsorship describing the legislation.

Contact Denise C. Werkley for more information.

By: Daniel P. Dwyer

Please read my blog to learn about the 2009 update to the Pennsylvania Mechanics Lien Law.

Contact Daniel Dwyer for more information.