Category: Uncategorized

By Susanne Dwyer

The net neutrality controversy came to a head last week when the Federal Communications Commission (FCC) repealed the Obama-era open internet regulations following a meeting on Dec. 14. These protections required broadband internet providers to offer equal web access without added fees for preferential treatment or higher speeds. The net neutrality rollback won in a 3-2 vote under party lines led by FCC Republican Commissioner Chairman Ajit Pai.

The repeal has been contested by the real estate industry, consumers and Democrat lawmakers, who sought to keep streaming and internet service provider (ISP) choice in consumers’ court.

What Is Net Neutrality?
Also known as “open internet” or “internet freedom,” net neutrality is a set of regulations enacted by the Obama Administration in 2015 that protects against the misuse of internet data by ISPs such as Comcast, Verizon and AT&T. These regulations maintained that providers could not use consumers’ streaming data against them to block competitor’s pages, force them to use specific services and visit specific websites, and/or increase prices by imposing additional costs for “package deals.”

Removing these protections opens the door to tiered service from ISPs. Tier one, or the “fast lane,” would allow businesses to buy into preferential treatment and faster speeds to their websites. Meanwhile, tier two companies (most likely small businesses who can’t afford to pay higher fees) would suffer slower internet speeds or even blocked pages. Without these protections, all of these business practices would be considered legal, as long as ISPs post their policies online or report them to the FCC.

With the rollback, the FCC is restoring the framework implemented before 2015, which featured a “light-touch” philosophy when it comes to FTC involvement.

“In particular, the FCC’s action…has restored the jurisdiction of the Federal Trade Commission (FTC) to act when broadband providers engage in anticompetitive, unfair or deceptive acts or practices,” according to an FCC statement that followed the rollback announcement. “The framework adopted by the Commission…will protect consumers at far less cost to investment than the prior rigid and wide-ranging utility rules. And restoring a favorable climate for network investment is key to closing the digital divide, spurring competition and innovation that benefits consumers.”

How Will This Impact Real Estate?
While the FCC maintains that this rollback will not affect how the internet is used, consumers are concerned that ISPs will take advantage by imposing added charges, obstructing their open internet rights and forcing them to sign up with ISP-specific streaming services, versus allowing them to subscribe to a competitor.

When it comes to real estate, brokers and agents are currently on a level playing field on the internet. With this repeal, high-earning brokerages may be able to pay for preferential treatment, creating an unfair advantage against small real estate businesses. This can also affect the visibility of certain MLSs, trickling down to consumers who may not want to list with a brokerage that doesn’t offer internet advantages.

Larger companies may also be able to create exclusive deals with certain companies to showcase their websites and block competitors’. Not only …read more

From:: Finance and Economy

By Susanne Dwyer

The net neutrality controversy came to a head last week when the Federal Communications Commission (FCC) repealed the Obama-era open internet regulations following a meeting on Dec. 14. These protections required broadband internet providers to offer equal web access without added fees for preferential treatment or higher speeds. The net neutrality rollback won in a 3-2 vote under party lines led by FCC Republican Commissioner Chairman Ajit Pai.

The repeal has been contested by the real estate industry, consumers and Democrat lawmakers, who sought to keep streaming and internet service provider (ISP) choice in consumers’ court.

What Is Net Neutrality?
Also known as “open internet” or “internet freedom,” net neutrality is a set of regulations enacted by the Obama Administration in 2015 that protects against the misuse of internet data by ISPs such as Comcast, Verizon and AT&T. These regulations maintained that providers could not use consumers’ streaming data against them to block competitor’s pages, force them to use specific services and visit specific websites, and/or increase prices by imposing additional costs for “package deals.”

Removing these protections opens the door to tiered service from ISPs. Tier one, or the “fast lane,” would allow businesses to buy into preferential treatment and faster speeds to their websites. Meanwhile, tier two companies (most likely small businesses who can’t afford to pay higher fees) would suffer slower internet speeds or even blocked pages. Without these protections, all of these business practices would be considered legal, as long as ISPs post their policies online or report them to the FCC.

With the rollback, the FCC is restoring the framework implemented before 2015, which featured a “light-touch” philosophy when it comes to FTC involvement.

“In particular, the FCC’s action…has restored the jurisdiction of the Federal Trade Commission (FTC) to act when broadband providers engage in anticompetitive, unfair or deceptive acts or practices,” according to an FCC statement that followed the rollback announcement. “The framework adopted by the Commission…will protect consumers at far less cost to investment than the prior rigid and wide-ranging utility rules. And restoring a favorable climate for network investment is key to closing the digital divide, spurring competition and innovation that benefits consumers.”

How Will This Impact Real Estate?
While the FCC maintains that this rollback will not affect how the internet is used, consumers are concerned that ISPs will take advantage by imposing added charges, obstructing their open internet rights and forcing them to sign up with ISP-specific streaming services, versus allowing them to subscribe to a competitor.

When it comes to real estate, brokers and agents are currently on a level playing field on the internet. With this repeal, high-earning brokerages may be able to pay for preferential treatment, creating an unfair advantage against small real estate businesses. This can also affect the visibility of certain MLSs, trickling down to consumers who may not want to list with a brokerage that doesn’t offer internet advantages.

Larger companies may also be able to create exclusive deals with certain companies to showcase their websites and block competitors’. Not only …read more

From:: Real Estate News

By Susanne Dwyer

While the cultivation, distribution and possession of marijuana remain illegal under the federal Controlled Substances Act (CSA), nearly all states* allow for the limited medical use of marijuana and eight states (plus the District of Columbia) allow for some recreational use. More than 17 states allow individuals to grow their own marijuana plants for personal use.

To date, the federal government has primarily targeted marijuana trafficking and distribution of marijuana to minors; however, the Trump Administration has specifically stated that there is a “big difference”* between medical and recreational marijuana, and Attorney General Jeff Sessions is strongly opposed to the legalization of marijuana.

Marijuana legalization has an impact on real estate in a variety of ways. It can affect closings, leasing, property condition, association policies and more. If you are in one of the 46 states that allows some form of legal marijuana, you should develop policies and procedures for marijuana use and cultivation in properties that you own, sell, lease or manage.

Marijuana plants require significant light and water to thrive. This affects utility usage, and, if not controlled, can cause mold due to the high humidity that encourages growth. Many growers use closets or other small spaces as grow rooms. You may want to address this type of usage in your building policies and be aware of it during inspections.

Residents can request an accommodation for medical marijuana even if your building is non-smoking. You should consider what types of accommodation you will provide. Marijuana does not have to be smoked; there are edible options, and creams that can be absorbed through the skin.

If your state permits the use of recreational marijuana, there are also decisions to make. Do you allow residents to smoke it? If your property is non-smoking, do your rules apply to marijuana in addition to cigarettes? Does your condominium or homeowners association address this in rules relating to smoking and/or growing marijuana? If you do allow smoking (either for recreation or as a medical accommodation), how do you address secondhand smoke to other residents? What about future use of a unit if the odor permeates drywall or carpeting?

Financial institutions are regulated by the federal government and are subject to criminal and administrative sanctions if they offer services to marijuana businesses. As a result, most marijuana business is conducted in cash. Business tenants are also likely to pay rent in cash. This can lead to increased security risks for properties and subject landlords to money laundering statutes. If you do lease to a marijuana business, you should clearly identify landlord and tenant responsibilities for security measures.

Recently, there have been changes in policy by some title companies, refusing to close or insure any property associated with the cultivation, distribution, manufacture or sale of marijuana. Obviously, this will complicate the settlement process for some properties. You should strive to be aware if title companies in your area have similar policies.

The biggest risk for real estate is federal civil asset forfeiture laws. If the government utilizes civil asset forfeiture, entire buildings and …read more

From:: Real Estate News