2017

The New Federal Tax Reform and LLCs

The recently adopted federal tax reform legislation should cause owners of investment real estate to reevaluate the use of limited liability companies (LLCs) as they and other "pass through" entities may be able to take advantage of certain new tax provisions under the new legislation.

Realtors Beware of Commercial Tenant’s Right of First Refusal

In a decision published on October 26, 2017, the Appellate Division affirmed the grant of summary judgment in favor of a commercial tenant against a realtor who claimed that the tenant, who had a right of first refusal under its lease to purchase the premises, was obligated to pay the realtor's commission arising from a separate contract with another prospective purchaser of the leased premises.

New Construction Requirements for Properties in “Coastal A” Flood Zones

Many shore municipalities, including Ocean City, are now adopting the Preliminary Work Flood Maps promulgated by FEMA as the official Flood Insurance Rate Maps (or "FIRM") of the municipality. These maps contain areas known as "Coastal A" zones that may be subject to waves of 1.5 feet or more. The state building code now has requirements for construction in these zones that become effective once the maps are officially adopted as the municipal FIRM.