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Volume I, Issue 14
June 20, 2008
SB 245, Eminent Domain Legislation, Still With the Governor:
Except for amendments to the state constitution, all bills passed by the General Assembly are sent to the Governor for consideration. If she signs a bill, it becomes law. If she does not approve, it is returned to the General Assembly with reasons for rejection. If each of the two houses of the General Assembly passes the bill again with a three-fifths majority, it becomes law without the Governor's signature. If the Governor does not act on a bill within 10 days after receiving it (Sunday excluded), it becomes law without signature.

At the end of the legislative session, when the General Assembly has adjourned, the Governor has 30 days to decide which bills to approve. Any bill not signed in that time is automatically vetoed. The Assembly has no opportunity to override a pocket veto. In appropriations bills, the Governor may veto individual items while approving the rest of the bill. This is called a line item veto and may be overridden by the General Assembly the same as any other veto.

HB 218, DAR's Agency Bill Sent to Governor:
The bill clarifies that the employer (broker, broker owner, broker of record or brokerage organization) of the real estate salesperson or broker remains liable for the wrongful actions of the licensee. The bill exempts certain commercial real estate transactions from the obligation to provide the Consumer Information Statement.

DAR Submits Comments on the PCS:
DAR told Secretary Hughes and the members of the House Energy and Natural Resources Committee that we believe it is vital to our communities to sustain green infrastructure, to protect our environmental systems and conserve resources. However, until our concerns can be officially addressed, DAR must oppose the Regulations Governing the Pollution Control Strategy for the Indian River, Indian River Bay, Rehoboth Bay and Little Assawoman Bay Watersheds. DAR expressed concern that the DNREC is moving in to an area where it does not have authority and that a comprehensive cost-benefit analysis was not done. We also expressed concern about many vague definitions including vegetation, view corridors, forested ditch and "certified" lawn care specialist.

Additionally, DAR noted the many new requirements being placed on home owner associations. Finally, we addressed the septic provisions of the regulation noting that it is highly problematic that the regulations require that all septic systems are inspected prior to the completion of a sale yet do not specify who is responsible. We expressed concern about the costs associated with new system requirements and asked a series of questions including: If a septic system fails, can a property still close? What if a sewer is available and the owner is hooked up to septic? Will inspection be required or will the owner be forced to hook in to sewer before closing?

After the public hearing closes as the end of the month, Secretary Hughes can move to make the regulations final. Please attend the public hearing on Monday night, June 23rd beginning at 6:00 p.m. at the Cheer Center in Georgetown. It is imperative to get your opinion in the record.

Foreclosure Task Force:
The Lt. Governor's Foreclosure Task Force continues to meet. At their most recent meeting, legislative proposals were circulated which address mortgage delinquency notice, property sale notice, reset notice, foreclosure consultants regulation, increased fees for mortgage brokers and licensing loan originators. We do not expect to see action on these items this session.

Real Estate Transfer Tax:
The General Assembly has heard from REALTORS® across the state in opposition to an increase in the real estate transfer tax. We believe that the general sentiment is not to raise the transfer tax BUT it's not over until they adjourn sine die on June 30th. Keep the pressure on. . . and if you have time, we're looking for REALTORS® on the last two days of session, Thursday June 26th and Monday, June 30th to come to Legislative Hall in Dover and be present as the final bills are passed. For more information, please contact Charlotte Herbert at 734-4444 or charlotte@delawarerealtor.com.

Manufactured Housing Compromise:
The House Subcommittee on Manufactured Housing reported out a compromise bill (HB 504) co-sponsored by every member of the Delaware House of Representatives and eight members of the Senate. It is expected to be considered by both bodies in the remaining days of the 144th General Assembly. The legislation ensures the right of first offer to purchase be given to the home owner association. The home owner association has 30 calendar days from the date of mailing of the notice to respond to the offer to give written notice of intent to purchase and another 30 days to formalize the price, terms and conditions into a contract for sale. An alternative offer of price for the sale of the community remains valid for 12 months. The community owner may accept an offer higher than the original price or the alternative price. However, the home owner association must be given 7 business days to match the higher offer under specific circumstances. Failure of the home owner association to formalize a contract for sale during the 30-day period following an agreement of price, terms and conditions eliminates any right of the home owner association to purchase the community during the remainder of the 12-month period that commenced on the date of the community owner's notice of intention to sell, transfer or convey all or part of the community.

4 Legislative Days Left: Bills Moving Fast!

HB 452, Legislation setting up a three-tiered system for Tax Ditch Rights-of-Way: HB 452 passed the House and is expected to be considered in the Senate next week.

HB 268, Ensuring that natural areas will be subject to local zoning regulations unless and until formally acquired: The bill is expected to be considered by the House next week.

HB 238, Prohibiting deed restrictions from banning roof-mounted solar systems: DAR sent a letter to the House Energy and Natural Resources Committee expressing support for alternative energy sources, but opposition to governmental efforts to override private deed restrictions. A hearing has not been set to consider the legislation in the House nor legislation prohibiting deeds restrictions from banning wind energy systems.

HB 451, Tax Increment Financing/Sussex: We expect the bill to be on the House agenda next week.

SB 191, Legislation to prevent insurance companies from terminating homeowner policies in response to claims or policy questions: The legislation passed the House with an amendment clarifying the circumstances under which a property insurance carrier may refuse to renew a homeowners insurance. We expect the legislation to be considered in the Senate next week.

Delaware Association of REALTORS®
Kent County    —    New Castle County    —    Sussex County
134 East Water Street, Dover, Delaware 19901, USA
Phone (302) 734-4444  ~  Fax (302) 734-1341  ~  Email info@delawarerealtor.com
www.delawarerealtor.com
© Copyright 2008 Delaware Association of REALTORS®

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