Real Estate Regulatory Updates

It started with a simple LinkedIn post I asked: What’s your take on LO Comp reform? What followed was a tidal wave of responses. 30+ industry leaders reached out to share how LO Comp is affecting the people who originate loans and, more importantly, the consumers they serve. Some saw opportunity. Some saw overreach. Many saw the same thing: a broken system with no clear path forward. What reignited this conversation? A white paper from the Community Home Lenders of America (CHLA). It argued that the current LO Compensation rule, originating from the Dodd-Frank Act, has strayed far from its original intent and is now harming consumers by limiting flexibility, reducing access to bond and affordable loan programs, and creating inconsistent enforcement across channels. The CHLA’s proposed reforms include: → Allowing loan officers to reduce compensation to match competing offers → Exempting bond/HFA loans from rigid comp restrictions → Allowing adjustments for LO errors or brokered loan structures It was a bold move—and it sparked an even bolder response from across the industry. Greg Sher, pointed to a morale crisis among LOs: “They get discouraged and leave the business because they can’t compete like every other line of work.” Dana Peznowski, CRCM flagged unintended consequences: “The rule removes incentives for accuracy and forces lenders to eat the cost of mistakes. That gets priced in, and consumers pay for it.” Ken Perry highlighted a core compliance problem: “Without real enforcement, the rule gives violators the upper hand and punishes ethical originators. That’s the opposite of consumer protection.” But not everyone saw CHLA’s white paper as a step forward. Brendan McKay, Broker Action Coalition, fired back: “This wasn’t reform. It was a tired ‘blame the broker’ narrative… lazy, inaccurate, and frankly disappointing.” Robert Pieklo, President & CEO of AFR, was even more direct: “This was a poorly crafted attempt to take shots at a channel. Competition, not fulfillment method, should drive this conversation.” Some leaders reminded us that real reform must be done carefully—and with an eye on legislative realities. Alfred Pitzner, CMCP, Managing Director at Conforma Compliance Group, cautioned: “If the CFPB rescinds the rule without a statutory replacement, the industry loses its safe harbors and becomes subject to vague Dodd-Frank prohibitions. That would create more confusion, not less.” Justin Wiseman, at MBA, agreed: “We support thoughtful reform, but let’s be clear, this isn’t just a regulation. It’s embedded in statute. Any change must protect both consumers and competitive fairness.” Even so, nearly every contributor agreed on one thing: Reform is overdue, but it must unite, not divide. Any regulation on LO comp (which I don't think is needed any longer) should result in the same handling at LO level regardless of channel that LO originates in. Where do you stand on this? #VieauxPoint

What is Indexation?? In the latest Budget 2024, the Government of India made a significant change regarding the taxation of property sales. Previously, when someone sold a property, they could use a method called "indexation" to adjust the purchase price based on inflation. This adjustment helped reduce the amount of capital gains (profit) that was taxable. What Changed? In the new budget, the Finance Minister announced that this indexation benefit has been removed for real estate assets. This means that when you sell your property, you will no longer be able to adjust the purchase price to account for inflation. As a result, the taxable capital gain (the profit you make from selling the property) will be higher, leading to a higher tax bill. New Tax Rate To somewhat balance this change, the government has reduced the long-term capital gains (LTCG) tax rate on property sales from 20% to 12.5%. However, even with the lower tax rate, most property owners will end up paying more tax because they can't adjust the purchase price for inflation anymore. Let's say you bought a property for ₹50 lakhs several years ago and now you sell it for ₹70 lakhs. Old System (with indexation): Adjusted purchase price (after indexation): ₹64.82 lakhs Capital gain: ₹70 lakhs - ₹64.82 lakhs = ₹5.18 lakhs Tax at 20%: ₹1.04 lakhs New System (without indexation): Purchase price: ₹50 lakhs Capital gain: ₹70 lakhs - ₹50 lakhs = ₹20 lakhs Tax at 12.5%: ₹2.50 lakhs As you can see, under the new system, you would pay significantly more tax despite the lower tax rate because the capital gain is much higher when you can't adjust the purchase price for inflation. This change is expected to increase the tax burden on property sales, particularly for those who have held their properties for a long time. While the government aims to simplify the tax process, the removal of the indexation benefit might make real estate investments less attractive. Some experts believe this could slow down the resale market for residential properties and potentially lead to more cash transactions in real estate deals, which can be problematic. #indexation #LTCG #BUDGET #Inflation #2024 #realestate #investments #capitalgain #taxable #assets #Tax #sales #profit

Converting Traditional Land By Dickson Jere On area that has recently triggered legal battles and disputes in land management in Zambia is the conversion of traditional land to state land or titled land. The emerging disputes are usually on the role of the traditional leaders - the area Chiefs - in granting consent to the applicant. It has emerged that in areas where there is no substantive Chief, caretaker traditional leaders have been granting consents. However, when the substantive one is appointed and installed, he or she then refuse to ratify the consent that was earlier given. This creates problem and protracted legal battle. So, the Ministry of Local Government and Rural Development, has given out some Guidelines to the Local Authorities when dealing with land conversion from traditional land to State land. The Government has provided administrative Guidelines to Councils in an attempt to prevent further escalation of disputes in this area. The government guided as follows; “Local Authorities should refrain from processing applications for conversation of land from customary to leasehold tenure in chiefdoms where the chieftaincy is vacant,” the guidelines reads. “This directive applies even if the applicants have obtained consent from the previous chief or other representatives,” the guidelines further read. Some newly installed Chiefs have refused to recognize consent given by their predecessors or claim that the consent was not properly done by the applicant or indeed that the previous consent was forged. It is usually advisable to process the conversation while the Chief who gave the consent is alive and in the seat to avoid such problems. “It is essential to await the installation of a new chief, who will better positioned to provide the necessary consent and guidelines on land allocation matters,” the government guidelines reads. For starters, if one wants to convert the traditional land to state land, he or she will need to follow the process which will involve obtaining consent from the chief. Take note that it is the Chief and not the Headman. The process is usually done thus; 1. Application Letter from the Applicant to the Local Authority 2. Consent Letter from the Applicant from the Chief 3. Form I completed by the Applicant 4. Form II completed, signed and stamped by the Chief 5. Form III 6. Site Plans of the land signed and stamped by Chief 7. Copy of National Registration Card (NRC). There is also usually a requirement for the Report to indicate that there are no other people on the area or land to be converted from traditional land to state land. In short, there should be no prior interest in the land by the villagers. Currently, some Chiefs are advocating that they should be given power to recommend to the Commissioner of Lands for land to be reconverted back to traditional land if the applicant does not develop it as per consent given by the Chief. It is still a moot point that needs further debate.

ILLEGAL LAND GRABBING - real estate talk - The Physical Planning (Amendment) Act 2022 introduces critical changes to the regulatory framework governing land use and development in Papua New Guinea. For homeowners, individuals, and business owners, compliance with these amendments is essential to ensure legal and sustainable development practices. The Physical Planning Act of PNG aims to regulate land use, development, and urban planning to promote orderly growth and development while protecting the environment and public interest. It sets out guidelines for zoning, subdivision, building codes, and development permits, among other provisions. To comply with the Physical Planning (Amendment) Act 2022, homeowners, individuals, and business entities must adhere to the following key principles: Obtain Necessary Permits: Before undertaking any development activities, such as building construction or land subdivision, it is crucial to obtain the necessary permits from the relevant authorities, such as the National Capital District Commission (NCDC) Physical Planning Division or the Lands Department. Adhere to Zoning Regulations: Respect the designated zoning regulations for your area, which dictate permissible land uses and development densities. Ensure that your proposed development aligns with the zoning requirements to avoid violations. Failure to comply with the Physical Planning (Amendment) Act 2022 may result in penalties, including fines, demolition orders, or legal action. The severity of penalties depends on the nature and extent of the violation. Examples of violations include unauthorized construction, illegal land subdivision, and non-compliance with building codes. Port Moresby and other urban areas in PNG are grappling with an increase in unlawful land grabbing and illegal squatting, posing significant challenges to urban planning and development. One deceptive tactic used by land grabbers is the illegal erection of boundary fences on land that does not belong to them, followed by attempts to obtain false ownership through fraudulent paperwork. For instance, a group of individuals may encroach upon vacant land, erect a boundary fence, and falsely claim ownership through forged land titles or documents. In another scenario, unscrupulous developers may engage in illegal land subdivision, dividing parcels of land without proper authorization and selling them to unsuspecting buyers. In response to these illicit activities, it is essential for the public to remain vigilant and report any suspicious or illegal land dealings to the relevant authorities. This includes the NCDC Physical Planning Division, the Lands Department, the NCDC Building Board, the Boroko Police Station, local Members of Parliament, and the Governor of NCDC. By working together to combat land fraud and uphold the rule of law, we can safeguard our communities and ensure sustainable development for future generations. PLEASE SHARE IT.

Govt. proposes significant changes in the Finance (No.2) Bill, 2024, offering protection to LTCG on Immovable Property acquired prior to 23.7.2024. Taxpayers can now opt for the old rule of 20% with indexation or the new rule of 12.5% without indexation, choosing the lower applicable rate. These entails: - LTCG on Immovable Property acquired before 23.7.2024 and transferred between 1.4.2024 and 22.7.2024 will be taxed at 20% with indexation. - LTCG on Immovable Property acquired before 23.7.2024 and transferred on or after 23.7.2024 will be taxed at 20% with indexation or 12.5% without indexation, opting for the lower rate. A commendable move by the GOI in the Finance Bill 2024, addressing concerns raised by many. The amendment notably impacts individuals selling properties, particularly the middle class. The proposal to tax at the lower of two is a fair and welcome step.

"𝐑𝐞𝐪𝐮𝐢𝐫𝐞𝐦𝐞𝐧𝐭 𝐨𝐟 𝐃𝐮𝐛𝐚𝐢 𝐋𝐚𝐧𝐝 𝐃𝐞𝐩𝐚𝐫𝐭𝐦𝐞𝐧𝐭 𝐭𝐨 𝐥𝐚𝐮𝐧𝐜𝐡 𝐚 𝐩𝐫𝐨𝐣𝐞𝐜𝐭" To launch a real estate project in Dubai, developers must comply with the Dubai Land Department (DLD) and Real Estate Regulatory Agency (RERA) requirements. Below is an overview of the key requirements: 1. 𝐃𝐞𝐯𝐞𝐥𝐨𝐩𝐞𝐫 𝐑𝐞𝐠𝐢𝐬𝐭𝐫𝐚𝐭𝐢𝐨𝐧 The developer must be registered with RERA. Obtain a Developer License from the Dubai Economy and Tourism (DET) (formerly DED). Register with DLD’s Oqood System for off-plan project approvals. 2. 𝐋𝐚𝐧𝐝 𝐎𝐰𝐧𝐞𝐫𝐬𝐡𝐢𝐩 & 𝐓𝐢𝐭𝐥𝐞 𝐃𝐞𝐞𝐝 The developer must own the land or have a long-term lease. The land should be registered with the DLD, and a title deed must be obtained. 3. 𝐄𝐬𝐜𝐫𝐨𝐰 𝐀𝐜𝐜𝐨𝐮𝐧𝐭 𝐑𝐞𝐪𝐮𝐢𝐫𝐞𝐦𝐞𝐧𝐭 Open an Escrow Account with an approved bank. Deposit at least 20% of the project cost into the escrow account before launching sales. 4. 𝐀𝐩𝐩𝐫𝐨𝐯𝐚𝐥𝐬 𝐟𝐫𝐨𝐦 𝐑𝐄𝐑𝐀 & 𝐎𝐭𝐡𝐞𝐫 𝐀𝐮𝐭𝐡𝐨𝐫𝐢𝐭𝐢𝐞𝐬 Obtain RERA approval for the project. Submit feasibility studies, financial plans, and legal documents. Secure approvals from relevant government bodies, including: Dubai Municipality (for planning & zoning). Dubai Electricity & Water Authority (DEWA) (for utilities). Civil Defense (for safety compliance). 5. 𝐎𝐟𝐟-𝐏𝐥𝐚𝐧 𝐒𝐚𝐥𝐞𝐬 𝐑𝐞𝐠𝐮𝐥𝐚𝐭𝐢𝐨𝐧𝐬 Developers can only sell off-plan units after registering the project with DLD & RERA. Sales contracts must be registered under the Oqood System. Construction progress must be monitored, and developers should submit regular updates to RERA. 6. 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐆𝐮𝐚𝐫𝐚𝐧𝐭𝐞𝐞𝐬 & 𝐂𝐨𝐦𝐩𝐥𝐢𝐚𝐧𝐜𝐞 Developers must submit financial guarantees or performance bonds. Ensure compliance with Law No. 8 of 2007 (Escrow Law) & Law No. 13 of 2008 (Interim Real Estate Register).  

Real Estate Agent Commissions Are Changing. Here’s How It’ll Work Major changes to US real estate agent commissions following a class-action settlement with the National Association of REALTORS® (NAR), effective 17 August 2024. Agents currently command a 5% or 6% fee that gets divvied up between both sides, but the rules are poised to shift power away from them, and drive down commissions over time. Key points: + Steve Brobeck, Consumer Federation of America: "Agents have such great advantages over consumers in any negotiation. The typical consumer doesn't know what a reasonable commission is. Two percent is a good goal, and in some areas they can get it down to 1.5%." New rules: + Sellers can't specify buyer's agent commission in listing forms + Buyer's agents must have written contracts with upfront commission details NAR President Kevin Sears: "Anyone looking to skirt the rules, let me just tell them the Department of Justice is going to be watching." Jake Johnson, Redfin broker in Indianapolis: Buyers are less likely to view homes if sellers won't cover commissions, potentially reducing offers and sale prices. Ryan Tomasello, Keefe, Bruyette & Woods analyst: "A buyer who negotiates a lower fee with their agent is going to be more competitive." Redfin data: Buyer's agent compensation averaged 2.55% in mid-July 2024, down from 2.62% at year start. Farah R. Alli, Compass broker in New Jersey: "Often I'm connecting with people on the phone — they haven't met me, they don't know what a fabulous person I am. And I have to tell them that I can't help them until they sign the form." Jennifer Johnson, real estate attorney: "Talking about money is always uncomfortable, but it's also good." These changes may gradually reduce commissions and increase transparency, despite initial challenges in implementation. #RealEstate #Homesales #Realtors #Fees #Professionalism #Transparency I Bloomberg News I Patrick Clark I Prashant Gopal

🌍 **Land Use Planning & Development Regulation for Disaster Risk Reduction** Disaster resilience is not achieved after an event—it is **designed and regulated before it happens**. **Land Use Planning and Development Regulation** are critical non-structural strategies that guide how we build, grow, and protect our cities against natural and human-induced hazards. 🔹 **What is Land Use Planning?** A strategic and systematic process of allocating land for various uses—residential, commercial, industrial, infrastructure, agriculture, and conservation—while considering environmental sustainability and hazard risk. It ensures that development is **safe, efficient, and risk-informed**. 🔹 **What is Development Regulation?** A set of legal, administrative, and technical controls that govern land development and construction practices. It ensures that buildings and infrastructure comply with **safety standards, hazard resilience, and public welfare requirements**. 🔑 **Core Provisions** **Land Use Planning** ✔️ Zoning and land use classification ✔️ Hazard mapping and risk-sensitive planning ✔️ Allocation of open spaces and green buffers ✔️ Infrastructure and service planning (roads, drainage, utilities) ✔️ Planned urban expansion and redevelopment ✔️ Environmental protection and conservation **Development Regulation** ✔️ Enforcement of building codes (NBC, IS Codes) ✔️ Setbacks, building lines, and land development controls ✔️ Height, density, and Floor Area Ratio (FAR) regulations ✔️ Restrictions in hazard-prone areas (floodplains, slopes, coastal zones) ✔️ Stormwater drainage and water management norms ✔️ Safety provisions (fire safety, accessibility, emergency exits) ✔️ Approval systems, inspections, and compliance enforcement 🎯 **Role in Disaster Risk Reduction & Management** ✅ Prevents development in high-risk zones ✅ Reduces vulnerability of built environment ✅ Facilitates safe evacuation and emergency access ✅ Minimizes loss of life and property ✅ Enhances preparedness and response efficiency ✅ Supports sustainable and climate-resilient development ✅ Strengthens governance, planning, and accountability 💡 **Key Message:** Integrating **risk-sensitive land use planning** with **strict development regulation** is essential to build **safe, resilient, and sustainable communities**. 📌 *Plan smart. Regulate strictly. Build resilience.* #LandUsePlanning #DevelopmentRegulation #DisasterRiskReduction #DisasterManagement #UrbanPlanning #ResilientCities #SustainableDevelopment #BuildBackBetter #ClimateResilience #ResilientIndia

𝐑𝐢𝐲𝐚𝐝𝐡’𝐬 𝐍𝐞𝐰 𝐖𝐡𝐢𝐭𝐞 𝐋𝐚𝐧𝐝 𝐓𝐚𝐱: 𝐖𝐡𝐚𝐭 𝐃𝐞𝐯𝐞𝐥𝐨𝐩𝐞𝐫𝐬 𝐚𝐧𝐝 𝐈𝐧𝐯𝐞𝐬𝐭𝐨𝐫𝐬 𝐍𝐞𝐞𝐝 𝐭𝐨 𝐊𝐧𝐨𝐰 Saudi Arabia is taking bold steps to optimize urban land use in Riyadh with the enhanced White Land Tax, effective August 2025. The reform is designed to curb real estate speculation, encourage development, and align with Vision 2030’s goals for housing affordability and urban growth. Under the new system, undeveloped land within Riyadh’s urban boundaries is subject to tiered annual fees based on location: 𝐏𝐫𝐢𝐨𝐫𝐢𝐭𝐲 𝐙𝐨𝐧𝐞 𝟏: 10% of land value 𝐏𝐫𝐢𝐨𝐫𝐢𝐭𝐲 𝐙𝐨𝐧𝐞 𝟐: 7.5% 𝐏𝐫𝐢𝐨𝐫𝐢𝐭𝐲 𝐙𝐨𝐧𝐞 𝟑: 5% 𝐏𝐫𝐢𝐨𝐫𝐢𝐭𝐲 𝐙𝐨𝐧𝐞 𝟒: 2.5% Plots under 5,000 square meters or outside priority zones are generally exempt. In addition, long-term vacant properties may incur annual fees of 5–10% of estimated rental value, providing a clear incentive to develop, lease, or sell idle land. https://lnkd.in/dqJHW79h 𝐋𝐨𝐜𝐚𝐭𝐢𝐨𝐧 𝐃𝐞𝐭𝐚𝐢𝐥𝐬: The specific boundaries of the priority zones have not been publicly disclosed. Landowners and developers should consult the Royal Commission for Riyadh City or the Ministry of Municipalities and Housing for official maps and guidance to determine applicable fees. Understanding these zones is critical for compliance and strategic planning. The Ministry will monitor land and housing availability, price trends, and market activity annually. Based on its assessment, the program may be adjusted to ensure it supports efficient land use and the city’s development objectives. For developers, investors, and property owners, this means proactively assessing holdings, planning development projects, and considering leasing or selling idle land. The new White Land Tax not only creates a financial incentive to use land productively but also signals broader opportunities in Riyadh’s evolving real estate market. https://lnkd.in/dqe8bP4g #SaudiArabia #Riyadh #RealEstate #WhiteLandTax #Vision2030 #UrbanDevelopment #PropertyInvestment #TaxUpdate #HousingAffordability #RoyalCommissionforRiyadhCity #MinistryofMunicipalitiesandHousing #Tax #Zakat #GCC

Property tax season shouldn’t feel like a maze. Every year, I hear from homeowners who open their assessment notice and feel overwhelmed by the numbers, the deadlines, and the fine print. That’s why I introduced SB 853 — a bill that helps make the assessment process clearer and easier to navigate for families across St. Louis County. Here’s what it would do in plain language: • You’d get your notice earlier — by June 1. • The information would be clearer, including your old value, your new value, and how the change might affect your taxes. • You’d get a projected breakdown of your property tax bill, with each taxing district listed. • Homeowners could see how their value was calculated online in larger counties. • You’d have more time to appeal, with the deadline moving to the first Monday in August. This is about respect for people’s time and their homes. When assessments rise, families deserve straight answers and a fair process.