Business Issues

Agency disclosure

IREM recognizes property owner agency, tenant agency and, with full disclosure and informed consent, disclosed dual agency as appropriate forms of representation in residential and commercial rental property transactions.

(11/94, updated 11/05, 10/09, 9/12, 10/15, 10/21)


Single asset bankruptcy

IREM believes that the ninety-day automatic stay should apply to all properties, with no cap on the value of the asset. There should be adequate provisions that allow for the extension of the ninety-day stay to formulate a reorganization plan for successive like periods of time in highly complex cases.

Shopping center bankruptcy

IREM believes the definition of shopping center as provided for in the Bankruptcy Code, should be sufficiently broadened as to encompass all multi-tenanted neighborhood, community, regional, specialty and outlet centers and malls.

Debtors-in-possession should be expected to expeditiously appraise their leaseholds and assume or reject their leases. Debtors-in-possession and trustees should be strictly held to an obligation to pay all post-petition rent, percentage rent, operating expenses, and other charges as an administrative expense of the bankruptcy estate until lease resolution.

Assignments should be limited to bona fide operators of retail businesses and not include temporary tenants or licensees or investment entities buying portfolios of leases to re-tenant as sub-landlords.

Tenant bankruptcy

IREM is opposed to an automatic stay allowing continued occupancy by a debtor tenant due to the filing of personal bankruptcy.

In addition, the Institute supports efforts to correct the problems caused by the inconsistent administration of bankruptcy laws between districts and the unreasonable delays in collecting occupancy charges and assessments from bankrupt owners and tenants.

Common interest communities

IREM supports clarification within the bankruptcy code to better address condominiums and cooperatives and ensure fair treatment of all parties affected by the bankruptcy.

(4/05, updated 10/09, 10/13, 10/15, 10/21)

Commercial broker lien laws

IREM supports commercial broker lien laws to ensure contractual payment for property managers and brokers.

(Adopted 10/06, updated 10/10, 9/15, 10/21)

Community assessment protection lien

IREM supports state legislation that strikes a balance between the protection of the security of the lenders and the need to enforce collection of assessments by authorizing the recovery of up to six months of community association assessments through a lien of first priority. The priority lien should apply only to monthly or periodic common expense assessments made by an association, pursuant to an annual operating budget, and due during the six months immediately preceding institution of an action to enforce the lien.

(12/93, updated 4/08, 4/15, 10/21)

Consumer price index

IREM believes that the current method of calculating the Consumer Price Index (CPI) needs to be more accurate in conveying the true cost of living. Careful consideration should be given to the effects that would occur in the real estate marketplace as a result of changes to the current method of calculating the CPI which could negatively impact the business of property managers. Changes in methodology should include a plan for a transition period where the old and new calculation would be used to minimize any negative impact on the commercial real estate industry.

(11/04, updated 4/09, 10/13, 4/15, 10/21)

Credit risk retention

IREM supports fiscally responsible lending practices for all financial institutions to ensure a certain level of “skin in the game”. Overly burdensome paperwork and tight lending requirements significantly hinder and slow commercial real estate transactions.

(Adopted: 9/11. Updated: 10/16, 10/21)

Data security

IREM supports government efforts aimed at sharing information about possible cyber threats, establishing reasonable data security standards, and helping avert security breaches and their aftermath. IREM opposes legislation that would be overly onerous on property owners and managers or their clients.

IREM supports legislation that would ensures businesses are not liable for the negligent acts of third parties unless contributory negligence exists.

(Adopted: 10/06. Updated: 10/10, 10/16, 10/21)

Immigration reform

IREM supports a federal system that ensures that all workers be verified for their legal employment status. We support a web accessible employer verification system that is free for employers and that employers are held harmless from errors made by the federal system. In addition, IREM supports a guest worker program that will allow employers to temporarily hire legal foreign workers when other qualified workers are unavailable.

(Adopted: 10/06. Updated: 10/10, 10/16, 10/21)

Pandemic preparation and response

IREM recommends real estate managers and owners of businesses and properties to establish policies and procedures determining what resources would need to be allocated to employees and clients during a pandemic.

Communicating with public health officials and related government regulatory authorities is critical as each pandemic may require different procedures depending upon how it is spread.

(Adopted 10/21)

Private property rights

IREM opposes legislation that arbitrarily infringes on the basic right of the individual to acquire, possess and freely transfer real property.

When government actions or regulations are not founded within legitimate police powers, the government should be required to pay just compensation for the unlawful takings of the owner’s property right and burden placed on the property owner.

In addition, IREM supports legislation, which will provide property owners expeditious access to administrative and judicial systems at all levels.

(Updated 11/04, 4/09, 9/14, 10/21)

Real estate management licensing

IREM believes that the management of residential apartments, condominiums, cooperatives, homeowner's associations office buildings; shopping centers; and all other commercial property by independent contractors involves real estate activities and should require a license under existing state license laws. While IREM acknowledges that the issue of separate real estate management licensing is a state's rights issue and should be left to the discretion of each individual state, IREM is opposed to a separate state mandated license or certification for community association management and urges all forms of real estate management to be under the jurisdiction of existing state real estate broker and agent licensing laws.

In states where state mandated community association manager certification or licensing already exists, IREM supports placing the ongoing regulation and management of the certification or licensing process under the jurisdiction of the state real estate commission.

(11/91, updated 4/06, 4/10, 4/13, 10/21)

Use of eminent domain

IREM, a strong supporter of private property rights, urges state legislatures and local municipalities to respect the rights of property owners by limiting the circumstances under which eminent domain is permitted. The power of eminent domain should only be exercised for ‘public use’ as guaranteed by the Fifth Amendment.

(11/05, confirmed 10/09, updated 9/15, 10/21)

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