Several bills relating to real estate have become law and a few more are still alive. Here is the latest:
PASSED - NEW LAWS
Disclosure of vendor and referral fees by condo managers and certain contractors
HB 298: Requiring property managers to disclosure referral fees from vendors and fees received from unit owners unless those fees are set forth in the management contract.
The bill also requires contractors who perform work on a unit to disclose referral fees passed through to the unit owner. Signed into law by the Governor on May 27 as Chapter 96. The effective date is January 1, 2012.
Real estate closings - Declaration of Consideration form (Form CD-57)
SB 42:requiring both sellers and buyers to file separate Declarations of Consideration within thirty days following real estate closings. Currently, both parties sign the same form and it is the buyer's duty to file the form with the Department of Revenue Administration. Signed by the Governor on June 14 as Chapter 179. The effective date is August 13, 2011.
Tax Credits and Holding Property in Trust
HB 541: expanding the definition of "owner," "owned" or "own," when applied to certain real estate tax credits, to include those who have placed their property in a grantor/revocable trust orwho have equitable title or the beneficial interest for life in the subject property. Signed into law by the Governor on June 7, 2011 as Chapter 138. The effective date is April 1, 2011.
Serving on More than One Municipal Board
HB 409: limiting the number of boards on which planning board members may sit. "In the case of towns, any two appointed or elected members of the planning board may also serve together on any other municipal board or commission, except that no more than one member of theplanning board shall serve on the conservation commission, the local governing body, or a local land useboard as defined in RSA 672:7." Signed by the Governor on June 14 as Chapter 190. The effective date is August 13, 2011.
Shoreline Protection Act
SB 20: exempting commercial and industrial terrain alteration permit holders (RSA 485-A:17) from requiring certain shoreland protection permits. This bill was signed into law by the Governor on June 7, 2011 as Chapter 141. The effective date is August 6, 2011. See also SB 154 (below).
Short sales
SB 111: exempting purchasers of short sales from the statute regulating foreclosure consultants. But the bill contains a potential trap because the exemption would not apply to persons who attempt to purchase someone's home in a short sale but fails to complete the transaction. Signed by the Governor on June 7 as Chapter 145. The effective date is August 6, 2011.
STILL ALIVE
LLC tax
SB 125: permitting the deduction of personal services from the business profits tax. This bill permits a deduction from gross business profits of such a proprietorship, partnership, or limited liability company of all amounts that are fairly attributable to the actual personal services of the proprietor, partner, or member. It passed both the House and Senate earlier this month, and is waiting for the Governor's signature. See also HB 557 (laid on the table) and HB 611 (sent to study).
Evictions
SB 70: Shortening from 28 to 7 the number of days a landlord must store property left behind by a residential tenant. The bill also eliminates the $1,000 minimum damage award should landlords violate the 7-day storage requirement. Instead, the violating landlord only will be responsible for the tenant's actual damages. This bill went to a Committee of Conference, meaning a small group from each body was tasked with hammering out a final version, which they did. It is due to come before the House this week for a vote.
HB 173: permitting commercial landlords to serve tenants at the leased property, provided a copy also be sent by certified mail to the tenant's last known address if the tenant is a New Hampshire resident or entity; otherwise, the "long-arm" procedures of RSA 510:4 must be followed. This bill simplifies the process commercial landlords must follow in serving tenants whose primary address may be someplace other than at the leased premises. The original bill would only have required the certified letter, but the senate added the requirement that service also be made at the leased premises. The amended version still creates greater certainty for landlords. The new procedure would go into effect January 1, 2012. Passed the House and Senate and awaiting the Governor's signature.
Tax Abatements
HB 316: Preserves the right to contest real estate tax assessments even if the property owner fails to file an inventory form. While the final version of this bill says no person who fails to file an inventory form shall "lose the right to apply for, or appeal the denial of, any other type of tax relief," a specific reference to the statute concerning the assessment of real estate for tax purposes was deleted. I still think this is a big victory for taxpayers, but keep an eye open for how this law is applied. Passed both House and Senate. Waiting for Governor's signature. This law would go into effect thirty days after the Governor's signature.
Involuntarily Lot Consolidation
This issue previously was addressed in HB 352 but is now part of HB 316 (see above). HB 316 adds a new section, 674:39-aa, giving owners of previously involuntarily merged lots until December 31, 2016 to request the lots be restored to their pre-merger status. The request must be made to the governing body, meaning the board of selectmen or city council/board of mayor and aldermen. This right does not apply to lots that were merged voluntarily, and the municipality shall have the burden of proving any previous owner voluntarily merged his or her lots. HB 316 passed both House and Senate. Waiting for Governor's signature. This law would go into effect thirty days after the Governor's signature.
Shoreline Protection Act
SB 154 (to amend it) passed House and Senate but still needs to be signed by the Governor. HB 470 (to repeal it) was sent to study and SB124 (to amend it) was killed, no doubt because SB 154 became the primary vehicle. I will send an analysis of the changes in a future issue of the Legislative Review.
Commission to study business regulations in New Hampshire HB 248: creating a commission to study business regulations in New Hampshire. The committee would be required to issue a final report by October 31, 2012. Passed the House and Senate and awaiting the Governor's signature.
We are following other bills as well. Click this link to see the current status of each bill.
