On May 21, 2019, Governor Ducey signed new provisions regulating short-term rentals. The new laws aim to curb issues where short-term rentals are perceived as increasing noise and traffic in residential neighborhoods or are operated as “party houses.” Among other things, these new laws return control to municipalities, require permits for special events (such as weddings or banquets), and mandate that a person be designated for handling complaints. Due to prompting by Sedona and Paradise Valley officials, other regulations may be in the works as well….
The Arizona Supreme Court recently promulgated new rules for eviction actions. Per the new rules, before proceeding with an eviction action, landlords must serve tenants with not only the Complaint and Summons, but also with a copy of the controlling lease, any addenda to the lease, plus a written accounting of all rent payments for the prior six months. If the above documents are not properly served on the tenant, the tenant will have grounds to dismiss the Complaint for failing to comply with Rule 5, Arizona Rules of Procedure for Eviction Actions. The new law hopes to streamline evictions and help the parties understand early in the process what contract controls the dispute and what monies are owing. Read More
Join us Friday, September 27th from 9:00am – 12:30pm for our Short-Term Leases Seminar
At this seminar, attendees will gain an understanding of the landlord-tenant act, Arizona innkeeper statutes, homeowner association regulations and how they affect the short-term lease. Local industry experts will discuss important contract terms unique to vacation rental agreements and key differences between standard residential lease agreements and vacation rental agreements.
You won’t want to miss this seminar! Read More
Arizona law provides certain protections to homeowners who obtain purchase money financing for a home and then subsequently default. There are, however, important limitations to those protections. Read More
Late last week, the federal court in Alaska granted a homeless shelter’s request to stop the City of Anchorage from designating is as a public accommodation under the Anchorage Municipal Code. My friends and former colleagues at Alliance Defending Freedom have been litigating this case. The issues in this case may sound technical, but what is at stake has profound ministry implications for nonprofit ministries. Read More
“To whom much is given, much is required.” This principal applies to REALTORS® who, under Article 26 of the Arizona Constitution, may “draft any and all instruments, including contracts, incident to the sale, exchange, trade, or leasing of property.” See Article 26 §1, Arizona Constitution. Because of this authority, REALTORS® bear the responsibility of explaining to their clients what the real estate transaction documents actually mean. Morley v. J. Pagel Realty & Ins., 27 Ariz. App. 62, 66, 550 P.2d 1104 (1976). Put another way, to meet their standard of care, REALTORS® must have the real estate drafting skills and real estate knowledge of an attorney. Read More
Yesterday, the Seventh Circuit Court of Appeals decided an important case under the ministerial exception to employment discrimination laws. The case was Sterlinski v. Catholic Bishop of Chicago and it involved a lawsuit brought by Stanislaw Sterlinski who claimed he was fired from his position as a church organist because of his Polish heritage. Mr. Sterlinski used to hold the position as Director of Music but was then demoted to the job of organist and subsequently terminated from employment. The Court stated that, while Sterlinski was Director of Music, he was a “minister” for purposes of the ministerial exception to Title VII and could have been fired for any reason. But the question the Court wrestled with was whether Sterlinski could be considered a “minister” after he was demoted to the position of organist and, more importantly, who gets to decide the answer to that question? Read More
Vacation Rentals Update:
Congress Passes New Law Regulating
Short Term Rentals
Our state legislature and Governor have spoken, and short-term rentals are here to stay. Since the inception of online platforms like VRBO and Airbnb nearly a decade ago, short term rentals have steadily grown in popularity, in terms of demand and availability. The opportunity to rent a home or condo for a short duration provides new income opportunity to owners, and new lodging options for travelers and local residents alike. But not everyone is thrilled about short-term rentals in their neighborhoods. Stories abound about wild bachelor parties, wedding venues, and other large groups. Read More
By: Bryan Eastin, Esq.
The Court of Appeals recently issued an opinion explaining how easements can be extinguished in certain circumstances. Specifically, the Court ruled, as a matter of first impression, that common ownership of adjoining parcels might eradicate an easement even if the title owners are technically different. Here is why this matters. Read More
LAYING DOWN THE LAW
Christopher J. Charles, Esq. and David F. Kotter
Are Nonrecourse Loans Feasible?
At first blush, asking a lender for nonrecourse financing seems like someone asking for your first-born child – weird and awkward. But in today’s economic and real estate climate, under the right conditions, nonrecourse loans can make sense.
Practically speaking, most commercial loans are essentially “full recourse,” which means that because many lenders insist on personal guaranties, the guarantors are personally liable for the loan balance – meaning if the borrower defaults, the lender can sue the guarantor (and the borrower in some cases) for the unpaid balance, plus interest, and attorneys’ fees. And the lender can pursue collection against the guarantor’s non-exempt assets, which typically includes bank accounts, wages, stocks, bonds, automobiles, and of course, real estate. Read More