Gaza – A Focus For Redevelopment

Most recently, the Trump administration has made targeted statements regarding the redevelopment of Gaza – into what some explanations seem to encompass as a “dreamland” or sought after coastal destination by tourists everywhere.  But, is this…. legal?  Let’s zone in on what I believe would be a large factor delineating the administration’s ability to achieve an idea of such girth – INTERNATIONAL REAL ESTATE LAW. 

Who owns the land in Gaza?  At current, land ownership in Gaza is covered by a complex mix of regulations and customs (yes, customs can also play a major role in legality for certain countries) that leaves no room for a unified land law.  Most commonly, in the United States land/real property is easily conveyed from one person to another, and done so successfully, especially with the assistance of legal professionals and there being a more unified land law in place.  Gaza’s ownership drawing board leaves large room for error – much different than the drawing board most commonly found in the United States.  It is imperative to establish land ownership prior to any redevelopment taking place – something that just doesn’t seem possible or resolved in Gaza as it currently stands.  

Some relevant statistics to consider;

  • Based on information provided by the Palestinian Land Authority, 30% of the land in the Gaza strip has NOT been surveyed.  In addition, roughly 30% of land (most privately owned) remains unregistered.   
  • 2% of land is Waaf land – land that has been allocated for religious endowment to a type of Islamic trust called Waaf.  The ministry of Waaf maintains the exclusive right to administer decisions on the administration of Waaf properties.  The properties are typically maintained with religious purpose and the ministry does not stray from this usage.  
  • Former settlement land has ongoing, continuous disputes as to ownership between the Government and private land owners.      

The question of who owns the land in Gaza remains – and in my opinion, a question that MUST be answered prior to any redevelopment efforts.    Perhaps the Trump administration has a brick path to establishment… or maybe they don’t! For only time will really tell!   

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Peace Out Net-Zero Banking Alliance!

Let’s start off with answering – whatttt is it exactly?  The Net Zero Banking Alliance is a group of leading global banks – all committed to aligning pretty important activities with net-zero greenhouse gas emissions by 2050. What types of activities you ask?  Their lending, investment and capital markets activities. 

The Net-Zero Banking Alliance provides a groundwork, including science-based net-zero targets, that shapes how net-zero greenhouse gas emissions will deliver value for their investors and clients – sounds great, but big banks have other ideas.   

Most recently, Morgan Stanley, Citi-Group, Bank of America and the like have completely bailed on the alliance – PEACE OUT!  While all of these banks still have major environmental targets for the better, they all seemed to be in agreement that having a unifying accountability system put too much pressure on participation.  Political? Perhaps.  Or is it more the question of where is the line in the sand when it comes to successful independent governance for major financial institutions and just another “person asking if you’re doing something correctly” – Curious to see how these big banks will now independently make moves for environmental success.  What are some of your strategic ideas for how?  Climate change is real – but – so is our power to change it.  Comment, share and the like!

Federal Eviction Moratorium – Extended!

The eviction clock started ticking on July 31st – the day the federal eviction moratorium expired. Millions of renters became riddled with panic as wonderment hit – were they finally going to be evicted due to the non-payment of rent? Was someone going to show up at their door with the final straw eviction notice? DON’T PANIC! This past week, the Biden Administration extended the federal eviction moratorium until October 3, 2021. Renters rejoice! (Shhhh, don’t let the Landlords hear you).

The extension comes with a more limited scope, though. The extension, now, will only apply to areas/locations hit hardest by the Coronavirus. According to CNN, the moratorium extension will now only protect those in areas of the Country with “high” or “substantial” transmission of Covid-19 based on the CDC’s tracking of the virus. The limited scope comes with little drawback though, since as of August 1st, more than 80% of US counties were still being tacked as areas of “high” or “substantial” transmission.

To move forward easy enough, the CDC offers a tool where renters can check the applicability of the eviction moratorium according to county – which can be found by clicking here

Check away, renters!

Want That House? PLAN BITCOIN

Prior to the pandemic, the real estate market had barely even begun to digest the thought of opening their gates to cryptocurrencies, such as Bitcoin.  Slowly but surely though, the real estate market is seeing Bitcoin make its way in as a form of payment for the home buying process. 

Listed just last week, Treehouse Nightclub in Miami Beach is willing to accept cash OR cryptocurrency for payment.  Will this sale make it to closing using Bitcoin as a form of payment? And will this transaction end up paving the way for future cryptocurrency transactions in the real estate market?  Can’t wait to see! 

Let’s pump the brakes for a second though, speedy Sally – Million dollar question – What about the volatility of Bitcoin’s worth?  The home sale process takes time.  After an offer, then comes acceptance, and then comes a whole slew of other tasks that must take place prior to the actual closing date.  Bitcoin’s value could very well drop – and drastically at that – before closing.  AHEM, then what?  I’m positive litigation sparks will a-fly. 

Along with volatility, there still seems to be a rather large stack of regulatory issues lingering when it comes to matching a real estate purchase with a cryptocurrency form of payment.  A large enough stack that I’m not quite sure cryptocurrency will ever be a valid form of payment for real estate in the eyes of the legal world.  

But, we all shall remain curious. For as the saying goes – all is fair in love and war.

Rate up, Rate down, Take it Back Now

After nearly a full year of record lows, mortgage rates seem to be back on the rise, and with a steady climb at that. This past week, mortgage rates were the highest they had been since this past July. AH!

According to the latest data released by Freddie Mac, the weekly U.S. average for a 30-yr. fixed rate mortgage as of March 11, 2021 stands at 3.05%.

How come you ask? I’d like to say that there’s some economic positivity coming our way – the workforce is getting back out there, vaccines are continuing to make their way through the population, and there’s another round of stimulus payments getting dumped into the population. Win on a lot of fronts, but not necessarily for the current home buyer when it comes to their mortgage rate – the rate they could possibly be stuck with for the next 30 years.

What’s this mean if you’re a home buyer? GET MOVING, SALLY. Spend time looking, NOW. Find your new home and put your offer on the table. Get your rate locked in before rates continue their steady climb.

What’s on the legal front? Let’s chat about a mortgage rate lock and what that means. Protecting against rising rates and market fluctuations, a mortgage lender may provide a rate lock guarantee assuring you’re able to receive a certain mortgage rate so long as you use said mortgage company and your closing happens before a specified date. With a forecasted steady climb in mortgage rates, this is definitely something that can be leveraged to your benefit. But what if it isn’t? What if rates unexpectedly fall to 2.5% again after you’ve locked your rate in at 3.05%? Can you back out? In simple form, YUP. It’s great to know that the only party bound to the agreement is the lender or broker. How exactly do you go about breaking the rate lock you ask? Easy – simply don’t proceed with the application or loan officer – go elsewhere! Do keep in mind that switching lenders after a certain point in the closing process can be detrimental – but if it’s early on and rates unexpectedly lower, I say GO FOR IT.