LIEB BLOG: #liebatlaw

Showing posts with label #liebatlaw. Show all posts

Thursday, August 06, 2020

Mortgage Lender Warning - No Consideration Deed

Andrew M. Lieb, Esq., MPH #liebatlaw , #listentolieb

The Appellate Division recently reminded us of the importance of investigating a no consideration deed prior to issuing a mortgage to the titleholder.

In 2386 Hempstead, Inc. v. 182 St., Inc., the Appellate Division held that the no consideration deed constituted notice of a potential previous fraud in the title spurring a duty to make inquiry concerning the circumstances of the transaction at issue.

By failing to make such inquiry, the lender lost its status as a bona fide encumbrancer for value and therefore, jeopardized its status as a prior lienholder, who gets paid first in a foreclosure action.

Statute of Limitations Tolled until September 4, 2020

Anonymous #liebatlaw ,

On August 5, 2020, Governor Cuomo signed Executive Order 202.55 which extends the tolling of statute of limitations to September 4, 2020. The tolling period was previously extended to August 5, 2020 by Executive Order 202.48. As a reminder, the Executive Orders do not toll all deadlines in pending and ongoing actions.

Title Litigation - Resolving a Boundary Line Dispute

Andrew M. Lieb, Esq., MPH #liebatlaw , #listentolieb

The Appellate Division recently reminded us how the courts make a boundary line dispute determination in the case of Old Timers Rod & Gun Club, Inc. v. Wa-A-We Rod and gun Club, Inc. with the following quote:

Where such discrepancies exist in property descriptions, ‘the rules of construction require that resort be had first to natural objects, second to artificial objects, third to adjacent boundaries, fourth to courses and distances and last to quantity’

We are therefore reminded of the importance of locating monuments referenced in a deed rather than simply relying on compass bearings and distances when resolving boundary line disputes.

Title Insurance - Read Your Policy Before You Sue Your Insurer to Take Action

Andrew M. Lieb, Esq., MPH #liebatlaw , #listentolieb

I want it; I want it; I want it is not a good enough argument said the Appellate Division in Irma Straus Realty Corp. v. Old Republic National Title Insurance Company.

Underlying the demand for action was a dispute between neighbors over use of a common stairwell. Plaintiff sued their insurer demanding that the title company pay attorneys' fees and costs to prosecute an ownership action against the neighbor.

Plaintiff's suit was pursuant to section 5 (b) of its policy, which provides that the title insurer “shall have the right ... to institute and prosecute any action or proceeding or to do any other act that in its opinion may be necessary or desirable to establish the Title, as insured, or to prevent or reduce loss or damage to the Insured."

Clearly, as the court points out, Plaintiff didn't understand the difference between the terms "right," which the policy stated, and "obligation," which the policy didn't state.

That is to say, the Plaintiff lost the case.

Clearly, words matter.

New Housing Discrimination Law – RE Brokers Exposed to Fines & Revoked / Suspended Licenses

Anonymous #liebatlaw , associate real estate broker

Effective August 3, 2020, the Department of State is given the discretion to fine, suspend, or revoke a real estate broker or salesperson's license for violations of the New York State Human Rights Law in their capacity as broker or agent.

Governor Cuomo signed Senate Bill S6874-A which specifically amends Section 441-c of the Real Property Law to include violations of Article 15 of the Executive Law or the New York State Human Rights Law as a ground for revoking or suspending a real estate broker or salesperson's license.

Ironically, the law already included the Department of State’s ability to revoke a license at 19 NYCRR 175.17(b), which states:

“No real estate broker or salesperson shall engage in an unlawful discriminatory practice, as proscribed by any federal, state or local law applicable to the activities of real estate licensees in New York State. A finding by any federal, state or local agency or court of competent jurisdiction that a real estate broker or salesperson has engaged in unlawful discriminatory practice in the performance of licensed real estate activities shall be presumptive evidence of untrustworthiness and will subject such licensee to discipline, including a proceeding for revocation. Nothing herein shall limit or restrict the Department from otherwise exercising its authority pursuant to section 441-c of the Real Property Law.”

Is the new law than just lip service to appease the public after the Newsday investigation which uncovered rampant housing discrimination violations in the real estate industry?

Weigh in.

New Rules for Residential and Commercial Foreclosure Proceedings

Anonymous #liebatlaw , #listentolieb

Effective June 24, 2020, the following rules apply to residential and commercial foreclosure proceedings as per Administrative Judge Lawrence K. Marks memorandum dated June 23, 2020:

Like eviction proceedings, commencement documents must be filed only by NYSCEF or by mail and commencement papers for residential and commercial foreclosure proceedings are required to include:

A form plaintiff’s attorney affirmation, indicating that counsel has reviewed the various state and federal restrictions and qualifications on foreclosure proceedings and believes in good faith that the proceeding is consistent with those restrictions and qualifications; and
A form notice to defendants-tenants (in English and Spanish), informing them that they may be eligible for an extension of time to respond to the complaint in light of legal directives related to the COVID-10 pandemic, and directing them to a website link for further information.

In addition, regardless of whether an answer is filed, further hearing of the case shall be stayed until Executive Orders suspending deadlines for the prosecution of legal matters expire. However, the following may proceed:

Foreclosure matters wherein all parties are represented by counsel may be calendared for both initial and follow-up virtual settlement conferences;
Lenders may move for a judgment of foreclosure and sale on the ground that a property is vacant and abandoned; and
Lenders may also move to discontinue a pending case.

No motions shall be entertained or decided, except for motions to discontinue and motions for judgments of foreclosure for vacant and abandoned property only.

Stay tuned as Administrative Judge Lawrence K. Marks is expected to issue further directives on foreclosures at or before the Executive Orders suspending deadlines expire.

Are You Ready to Reopen Your Business? Here is Your 5-Step Plan

Andrew M. Lieb, Esq., MPH #liebatlaw , #listentolieb

5-Step Plan to Reopen Your Long Island Business

We are reopening throughout Long Island!

Phase 2 is Wednesday - Are you ready to open your business?

Reopening isn’t just going back to work – there are 5 steps that businesses must take to open their doors if they want to avoid legal troubles.

Step 1. Review the applicable guidance for reopening & affirm that you will comply.

Each industry has tailored guidelines from NYS DOH, which represents the minimum requirements for you to reopen.

Before you open your doors, you MUST affirm that you have read the guidelines at this link.

Guidance for your industry can be located here.

Step 2. Formulate a business safety plan.

Each business MUST develop a written safety plan to prevent the spread of COVID.

The plan must be retained on the premises of the businesses and made available for inspection by DOH or your local health and safety authorities (zoning) upon request.

The sample plan provided by NYS is 7 pages long and includes a daily mandatory health screening assessment for employees and essential visitors, a requirement to record a log of all those physically present at the premises, cleaning requirements, and much more.

Start writing your plan now in compliance with the law if you plan to reopen.

Step 3. Create logbooks to comply and maintain policies.

You need to create forms to implement your plan. You need the health screening assessment developed, a logbook for cleaning, and a logbook for visitors. These can be inspected by DOH and other authorities so they better exist before you open your doors.

Step 4. Floor markings and PPE.

You are required to provide your entire team with PPE so it’s time to start ordering supplies yesterday. Plus, you need to place signage and floor markings throughout your premises to maintain proper social distancing. So, take out your tape and measuring stick to get going.

Step 5. Craft your message.

Your team and your customers need to understand your plan and how it impacts them, or they won’t follow it. So, you need to create a message, start getting it out there via email and make it available to everyone at your business. This message must explain your safety plan and the new policies that you will enforce for the rest of COVID. Getting buy-in is the key to proper implementation and protecting you from suit and negative PR.

Here is a radio clip with our employment lawyer, Mordy Yankovich, discussing how to comply and protect your business when you are ready to reopen – have a listen - Real Estate Investing with Andrew Lieb 6/7/20 - Seg 3: Advice for Phase 2 Business Owners Reopening.

Thursday, August 06, 2020

Mortgage Lender Warning - No Consideration Deed

Statute of Limitations Tolled until September 4, 2020

Title Litigation - Resolving a Boundary Line Dispute

Title Insurance - Read Your Policy Before You Sue Your Insurer to Take Action

Monday, August 03, 2020

New Housing Discrimination Law – RE Brokers Exposed to Fines & Revoked / Suspended Licenses

Wednesday, June 24, 2020

New Rules for Residential and Commercial Foreclosure Proceedings

Friday, June 05, 2020

Are You Ready to Reopen Your Business? Here is Your 5-Step Plan

Get New Posts by Email:

Podcast

HOT TOPICS

Recent

Featured

Popular Posts

About

Blog Archive

Contact Form