Maronda Homes, Inc. files bankruptcy petition; Title issues of which to be aware.

Last week, the Pittsburgh area's third largest builder filed for bankruptcy protection.

Maronda Homes Inc., the region's third-largest home builder, filed for bankruptcy protection from creditors yesterday amid a national and local housing market that continues to stagnate.

H/T Pittsburgh Tribune Review

The builder assures buyers that settlements will continue as scheduled:

For Maronda customers, homes will be built, and closings will be held on time "with no issues whatsoever," according to attorney Joseph F. McDonough, representing Maronda.

U.S. Bankruptcy Judge Judith Fitzgerald approved an order that closings continue, he said.

It may be true that closings will continue as scheduled, but title agents will face additional issues as a result of the bankruptcy filing and whatever legal/debt issues forced Maronda into bankruptcy.
Title agents should do the following in addition to their regular duties handling the closings:

• scrutinize all bankruptcy orders to make certain that sales are authorized and liens are removed.


• devote additional diligence to the judgment index in the county in which the real estate exists.


• make certain that all subcontractors and materialmen have been paid prior to closing. The period for filing mechanics liens was expanded in 2007 to six months following the performance of the work. Even if the subcontractors have filed no lien prior to settlement, any lien they file up to six months after settlement could take priority over the new deed and the new mortgage.


• be certain that all real estate taxes have been paid - especially for the current year - instead of relying only on the records of tax claim bureau.

Buyers should be careful to hire a real estate attorney for settlements instead of letting the mortgage broker or realtor choose a non-attorney title company to conduct settlement. Non-attorney settlement companies may not be aware of the above issues, especially the mechanics lien issues.

These concerns should be addressed always, but in the current real estate market these issues are more likely to create a problem.

Maronda conducts development in five states, including western Pennsylvania.

HB 377 passes both house of Pennsylvania legislature; Sprinkler requirement repealed.

House Bill 377 has now passed both houses of the Pennsylvania legislature. Click here for items on the history of this legislation.

The sprinkler requirement for new single family home construction is now repealed.

Amendments to the repeal bill also would make it more difficult for the legislature to adopt large scale revisions to the Uniform Construction Code in the future without careful consideration.

Pennsylvania HB 377; residential sprinkler requirement.

House Bill 377 today passed the Pennsylvania House of Representatives by a vote of 154-39. The bill now moves on to the Pennsylvania Senate.

Click here for the history of this bill.

House Bill 377 passes Labor and Industry Committee;

Click here for information on Pennsylvania House Bill 377. This bill seeks the repeal of Pennsylvania's newly enacted sprinkler requirement for new home construction. HB 377 was reported out of the House Labor and Industry Committee last week and is expected to be voted on by the full House early this coming week.

The full text of HB 377 can be found here.

update - PAR has issued a "call to action" in support of Bill 377.

Pennsylvania residential sprinkler requirement; House Bill 377

Since January 1, 2011, all new houses built in Pennsylvania have been required to contain sprinkler systems. This requirement adds thousands of dollars to the cost of construction. The sprinkler requirement also creates potentially higher insurance costs for homeowners, as sprinklers that activate accidentally can create tremendous water damage within a home.

Pending now before the Pennsylvania House of Representatives is House Bill 377. HB 377 would repeal the sprinkler requirement for new homes and would provide consumers with a choice at the time of the construction contract.

HB 377 is currently before the House Labor and Industry Committee and is expected to be reported out of committee shortly. A vote on the bill might occur in the full house as early as next week.
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click here for an update.