The Public Trust Doctrine vs. Private Property Rights

In 1981 the California Supreme Court ruled that beach property owned by beachfront landowners on the California side of Lake Tahoe was subject to the public trust doctrine, and "would henceforth be open to the general public, at least up to the high water mark."  (Kim DeVincenzi, CFO of Pacific Legal Foundation, "Property rights wrangling could spark Supreme Court's interest", Special to the Tahoe Daily Tribune, August 15, 2010.)

In 2009, the California State Lands Commission "voted to start enforcing an expanded public trust doctrine on private landowners", thereby setting up a potential challenge to the public trust doctrine. In the words of Jim Burling, director of litigation at Pacific Legal Foundation, and Kim DeVincenzi:

“Redefining people's property rights out of existence.” That's what the California Supreme Court did when it announced — suddenly, jarringly, and, frankly, arrogantly — that Tahoe private beaches aren't private anymore. If bureaucrats now insist on enforcing that judicial decree, look for a lawsuit that could end up at the nation's highest court. And don't be surprised if the state loses — and the state's highest court is declared in violation of the nation's highest law.

(DeVincenzi, above.)

If appears that public vs. private rights may be the order of the day on the U.S. Supreme Court's docket for some years to come.

 

Avoiding short-sale fraud

The National Association of REALTORS might be accused of confirming the obvious when it reports that banks keep an eye out for short-sales fraud:

Short-sale fraud totals $310 million annually and the average amount of fraud is $41,000 per transaction, according to real estate research firm CoreLogic’s 2010 short-sale research study.

But avoiding short-sale fraud requires the diligent attention of all brokers and agents and parties in every short sale transaction.  

California real estate broker and risk-management specialist Kathy Mehringer reminds us that

Short sales have unleashed a fury of creative practices many of which are harmful to all parties involved in the transaction. Whether you are a real estate licensee or homeowner or a prospective purchaser you must be ever alert to "Red Flags." (Emphasis added.)

Kathy lists three such "Red Flags" on her Real Estate Risk Management blog.  

Spending some time at Kathy's blog could be worth your license!