LIEB BLOG

Legal Analysts

Friday, January 27, 2012

New York State Bar Association - Annual Meeting - Real Property

Hi all,

I just got back from the Real Property Meetings in New York City and wanted to report on the great experience had by all. We discussed why New York Real Estate is different, Current real estate development issues, Rebuilding the World Trade Center, Current real estate financing issues, Current real estate leasing issues, Residential mortgages, Real estate issues facing not-for-profits, and NYC skyscrapers. The meeting was very positive and their was an air that the market is improving in NY. Also, I learned that the foreclosure woes are estimated to be 1/2 done in NY where they are only 1/3 through the crisis in the rest of the Country.

Personally, the discussion about the stages of building up the World Trade Center's buildings to achieve market rentals as opposed to building them all at the same time when they would compete for tenants and the discussion about the German influence on NYC's skyline were the most interesting aspects of the meetings.

Yet, I would say that Suffolk County's real estate issues were not addressed and the focus was on NYC. Therefore, I wrote the Chair of the Committee asking how we can get more localized into the future. Hopefully, we can learn from other counties and share with them the lessons we learn from having the best residential community in the State, the Hamptons / North Fork.

Sunday, January 15, 2012

Case of Interest - Douglas Elliman v. Tretter - Agency Disclosure

Summary: Appellate Division, 1st Department Case, discussing whether the absence of an agency disclosure from precludes a real estate agent from receiving her commission. The issue was side-stepped by the Court, which holds that a dual agency relationship didn't exist so we are left to speculate whether a commission could be earned if such a relationship had existed.

Advice: Get your agency disclosure forms signed on the first point of substantive contact because the question remains open whether you can collect a commission if you fail to get the disclosure completed. Additionally, its required by real estate license law to get an agency disclosure form completed; so to keep your license in good standing, you must get this done.

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Case Analysis:

Issue: Did real estate agent act as a dual agent and consequently was she required to disclose her divided loyalties and obtain the sellers' consent thereto on an agency disclosure form?

Claim: Real estate brokerage sought $70K brokerage commission.

Facts: Tretters, Mr. Tretter being an attorney, retained Douglas Elliman to sell their cooperative apartment. Douglas Elliman's agent, Lockwood, met prospective purchaser Zeitzer at an open house and showed approximately 5 other apartments to Zeitzer, her "customers". Zeitzer contracted to purchase Tretter's property. Contract price was $1.4 million with a 5% commission to the brokerage company. Sellers were solely responsible for the brokerage commission pursuant to the contract.

Finding of Fact: Lockwood did not act as a dual agent. While she had a signed exclusive agency agreement with the Tretters, she did not with the purchasers and she received no monies from them.

Dissent: There is an issue of fact whether Lockwood was a dual agent because Lockwood acknowledged in depositions that the was the "buyers' agent" among other facts such as their attorney referring to her as a dual agent.

As the Department of State says: Be Wary of Dual Agency

Thursday, January 12, 2012

Thanks to our students for a great CLE in Bridgehampton last evening

I had a great time presenting our CLE Course: Property Wars last evening and wanted to thank all those who attended for being a great audience.