LIEB BLOG

Legal Analysts

Wednesday, December 22, 2021

New Law: Real Estate Brokerage in NYS is Changed for Good - Standardized Qualifying of Homebuyers Required

Write down December 21, 2021 as the date that real estate brokerage was changed forever in NYS. That is when S2131A was signed into law and became effective. 


If you are a real estate salesperson or an associate real estate broker at a brokerage firm that is unaware of this new law, it's time to change brokers. 


This law requires your broker to institute standardized operating procedures for the prerequisites prospective homebuyers shall meet and to submit such procedures to the Department of State. 


If procedures are changed, whatsoever, the new procedures shall be submitted within 30 days of the change. 


Plus, the law requires the Secretary of State to promulgate regulations and the combined law / regulations shall, at a minimum, require brokerages to have a policy as to: 

  1. Whether prospective clients shall show identification; 
  2. Whether an exclusive broker agreement is required; &
  3. Whether pre-approval for a mortgage loan is required. 


If you are a salesperson who is operating under a brokerage's license that fails to satisfy this new submission of procedures requirements, or if you fail to follow the procedures, you are subject to a license law violation and penalty, including revocation or suspension of your license. 


This is very serious and will also work as important evidence in any and every fair housing / discrimination litigation moving forward. 




New Law: Real Estate License Law Violation Fine Doubled to Fund Fair Housing Enforcement

Starting on February 19, 2022, the maximum fine for real estate license law violations has been doubled from $1,000 to $2,000 by S945B. Brokers beware. 


Further, 50% of these fines, for violating Article 12-A and 19 NYCRR 175, will be used to establish an Anti-Discrimination in Housing Fund (ADHF). 


The ADHF shall be controlled by the NYS Attorney General and may be used for:

  • Fair housing testing;
  • Grants to duly applying county, city, town or village human rights commissions;
  • Grants to duly applying county, city, town or village agencies specializing in the prevention of unlawful discrimination in housing; &
  • Grants to duly applying not-for-profit agencies specializing in the prevention of unlawful discrimination in housing. 
It looks like there is about to be a lot more housing discrimination litigation going on starting in 2022. Are landlords, sellers, brokers, and property managers ready? 





New RE Brokerage CE Requirement - Implicit Bias Training - Lieb School is Ready

Starting on June 19, 2022, real estate licensees in NYS will be required to complete "at least two hours of instruction pertaining to implicit bias awareness and understanding" as part of their 22.5 hours of continuing education to renew their license because of a new law, S538B


According to the law, "'implicit bias' shall mean the attitudes or stereotypes that affect an individual's understanding, actions and decisions in an unconscious manner."


Lieb School is ready and already offers an implicit bias course that counts towards the fair housing and discrimination requirements. To comply with the new law, we are re-submitting this course to count towards the required implicit bias training as well. 




New RE Brokerage CE Requirement - Cultural Competency Training - Lieb School is Ready

Starting on April 20, 2022, real estate licensees in NYS will be required to complete "at least two hours of cultural competency training" as part of their 22.5 hours of continuing education to renew their license because of a new law, S979A


Lieb School is on top of making sure that its students lead the industry, having already drafted curriculum to satisfy this requirement. Our course will educate licensees on the following subtopics:

  1. Right to Social Benefits of Integration
  2. Misunderstanding in Cultural Competency
  3. 4 Elements in Developing Cultural Competency
  4. Friction Between Cultural Sensitivity & Discrimination Law
  5. Cultural Norms, Preferences, & Challenges
  6. Cultural Competence Techniques

While this course is being finalized for licensing, we asked the Bill Sponsor, James Gaughran, for guidance on what he envisioned in the Curriculum by email on 12/15/2021. We await a response.





New NYS / Local Government Fair Housing Enforcement Obligations

As of 12/21/2021, all state agencies administering housing programs or enforcing housing laws and all localities administering housing programs and receiving funds from the state for such activities are now required to affirmatively further fair housing.


What this means is that the state and local governments will actively seek to create more diverse, inclusive communities. They will do this, according to the new law (S1353A), by:

  1. Identifying and overcoming patterns of residential segregation & housing discrimination;
  2. Eradicating racially or ethnically concentrated areas of poverty;
  3. Reducing disparities in access to opportunities;
  4. Eliminating disproportionate housing needs;
  5. Providing the public reasonable & regular opportunities to comment on fair housing issues & participate in the development & advancement of affirmative fair housing policy; &
  6. Encouraging & maintaining compliance with Article 15 of the Executive law & any other applicable anti-discrimination or fair housing law. 
While this all sounds grand, it's really just aspirational because there are no concrete actions contained in this law, except that an annual report will be available to the public. Only through calling government on the report, will concrete change really happen.



New Real Estate Brokerage Law - Office Manager's Qualification / Supervisory Requirements

If you are an associate real estate broker serving as a real estate brokerage office manager you are now responsible for your associated real estate salespersons' license law violations. Be warned. 


The statute, S2157A, amends Real Property Law section 440(6) and also requires an associate real estate broker to have been active in the real estate industry for two of the four years preceding appointment as an office manager. 


All associate real estate brokers, who manage offices, should quickly become familiar with their company's policies and procedures to the extent of checking whether they comply with Article 12-A and 19 NYCRR 175 for if they don't, you, the manager are now liable. Also, read 19 NYCRR 175.21, which defines your supervisory responsibility to include "regular, frequent and consistent personal guidance, instruction, oversight and superintendence" together with record keeping.

Best of luck. 



Monday, December 20, 2021

Vaccine Mandates are Here - OSHA's Emergency Temporary Standard is Upheld - If You Don't Like it, Seek a Variance / Accomodation NOW

On 12/17/2021, the Sixth Circuit Court of Appeals upheld the OSHA vaccine mandate for employers with 100 or more employees


Per OSHA, citations for non-compliance will start on January 10, 2022. These citations are going to be huge with penalties for non-compliance set at:

Type of ViolationPenalty
Serious
Other-Than-Serious
Posting Requirements
$13,653 per violation
Failure to Abate$13,653 per day beyond the abatement date
Willful or Repeated$136,532 per violation

To remind employers, and according to the Circuit Court, the Emergency Temporary Standard of 11/5/2021 "requires that employees be vaccinated or wear a protective face covering and take weekly tests but allows employers to choose the policy implementing those requirements that is best suited to their workplace." 

If you are questioning why OSHA has the authority to issue this Emergency Temporary Standard, the Circuit Court explained that "OSHA is charged with ensuring worker safety and health 'by developing innovative methods, techniques, and approaches for dealing with occupational safety and health problems.'” Plus, it can make an Emergency Temporary Standard if it determines “that employees are exposed to grave danger from exposure to substances or agents determined to be toxic or physically harmful or from new hazards,” and (2) that an “emergency standard is necessary to protect employees from such danger.”

If you are still unconvinced and if you are an employer that doesn't want to follow the Emergency Temporary Standard don't just ignore it. Instead, seek a variance from the standard, which is available if you can demonstrate “that the conditions, practices, means, methods, operations, or processes used or proposed to be used by an employer will provide employment and places of employment to his employees which are as safe and healthful as those which would prevail if he complied with the standard.”

If you are an unconvinced employee, seek a reasonable accommodation based upon your sincerely held religious belief or disability.

If you are instead wrongfully relying on the Fifth Circuit's stay of these guidelines, DON'T. The Sixth Circuit is the final word unless the Supreme Court elects to hear the case. The difference between the Circuit Courts' decisions came down to the enabling statute 29 USC 655(c)(1) and OSHA's authority to issue the Emergency Temporary Standard (yes, there were differences about almost everything all the way to the Commerce Clause, but that wasn't the heart of the decisions). Section 655(c)(1) provides that OSHA is required "to issue an emergency standard if necessary to protect workers from a “grave danger” presented by 'exposure to substances or agents determined to be toxic or physically harmful or from new hazards.'" Whereas the Fifth Circuit defined the terms in that phrase ("substances or agents," "toxic or physically harmful," and "grave danger,") narrowly, the Sixth Circuit took a broader holistic view. As such, this entire issue isn't about COVID, vaccines, mandates, workers, liberty, or rights. Instead, this all comes down to the rules of statutory interpretation. 



Friday, December 17, 2021

Self-Represented Tenants Entering into Stipulations of Settlement Get More Protection

Additional protections in Housing Court are being enforced in order to aid self-represented parties. When opposing parties come to an agreement during a proceeding, they sign a Stipulation of Settlement ("Stipulation"), which is a binding agreement, so it is the judge's responsibility to ensure that the parties understand the Stipulation. 


Bill A3320A relates to stipulations in summary proceedings to recover possession of real property. Moving forward, a stipulation will not be approved by the court unless the court first verifies the following:

  • All parties have been accurately and appropriately named;
  • The authority of the signatory if a named party is not present;
  • The unrepresented party understands he may try the case if he does not agree with the stipulation;
  • An opposing party's attorney did not inappropriately give advice to the unrepresented party;
  • Whether or not the unrepresented party agrees or contests any allegations in the petition or predicate notices;
  • The unrepresented party understands the claims and defenses available to him and what his options may be in light of the claims and defenses, and, that the claims and defenses are adequately addressed in the stipulation;
  • The unrepresented party agrees to the terms in the stipulation;
  • The unrepresented party understands the consequences of either party's non-compliance with the stipulation; and
  • An appropriate rent breakdown is included, if applicable. 

An allocution is the process in which the judge determines if the parties understand the terms of the Stipulation. The amended Bill offers judges a checklist, if you will, that will allow them to efficiently ensure unrepresented parties understand the agreement that they have entered into.

Landlord's attorneys should become well versed in the allocution so that they can ensure that the Court will approve their client's settlements and resolve disputes.  












Landlord Training Classes to be Included in Neighborhood Preservation and Community Renewal Activities

In an effort to improve neighborhood preservation and community renewal, New York will expand their current definition of preservation and renewal to include the administration of landlord training classes. The amended bill covers all municipalities and aims to provide assistance primarily to underserved neighborhoods. Landlords are not required to participate in these classes so they will not be penalized if they choose not to do so. 


The amended bill, A05393, which is awaiting Gov. Hochul's signature, will administer landlord training classes in the definitions of neighborhood preservation activities and community renewal activities. These classes will cover information ranging from building codes to evictions. Preservation and community renewal activities include, but are not limited to, repairs, renovations, and restorations. Ultimately, the goal of the Bill is to preserve underserved neighborhoods and to protect tenants from being unnecessarily bothered and illegally evicted by landlords. 


Landlords are having new laws thrown at them on a regular basis in light of the COVID pandemic. And if you're not tuned in, updates on regulations and new laws can be easily missed or misunderstood. These classes will afford landlords the opportunity to know what's going on in their industry. This Bill could also help landlords reduce legal fees by getting it right the first time around. 


Details have not yet been released regarding where the classes will take place, in what form - virtual or in-person, how often, and how New York will monitor whether or not a landlord has actually completed the training classes. If all goes according to plan, this Bill will be helpful to both landlords and tenants alike. The classes in theory sound like they will be an extremely useful tool for landlords. But, if a landlord is not required to attend the classes, will they actually go to them? 






Thursday, December 16, 2021

NYC Releases New COVID-19 Vaccine Requirements for all Private Sector Workers

NYC released new vaccine requirements, by Order of the Commissioner of Health and Mental Hygiene, mandating all private sector workers to be vaccinated by December 27th with at least 1 dose of any COVID-19 vaccine. A 2nd dose is required 45 days after a worker shows proof of vaccination for the Pfizer or Moderna vaccines.


The City’s new Order is its strictest yet. Businesses are prevented from allowing unvaccinated workers to enter the workplace. Further, businesses must verify and keep a record of each worker’s proof of vaccination by December 27th. Records may consist of physical copies of worker’s proof of vaccination; a business-created paper or electronic record displaying worker’s name, vaccination status, and date by which they can provide proof of second vaccination; or a daily record verifying that the business checked the worker’s vaccination status before the worker entered the workplace. Businesses should be prepared to make their records available for inspection and need to set their protocol ASAP so that they comply.


The Order includes a path for vaccination exceptions if a worker seeks a reasonable accommodation for medical or religious reasons. If such an accommodation is sought, employers must record the reasonable accommodations, and supporting documentation relevant thereto, for each worker under 1 of the above record keeping options. Moreover, NYC employers must familiarize themselves with the Cooperative Dialogue or they will face failure-to-accommodate lawsuits by the drove. 


Also of note is that proof of vaccination applies to both employees and non-employee workers such as independent contractors.


The mandate does not apply to people who work alone; people who enter a workplace briefly for a limited purpose; and Non-NYC resident performing artists, college or professional athletes, and anyone who accompanies them.


NYC provides a detailed memo explaining how businesses can properly comply with the guidelines.  Businesses are subject to fines of $1,000 for non-compliance, and escalating penalties thereafter if violations persist. NYC provides a link for those who wish to report fake proof of vaccination records in order to maintain compliance.