LIEB BLOG

Legal Analysts

Showing posts with label Real Estate. Show all posts
Showing posts with label Real Estate. Show all posts

Friday, February 16, 2024

New Rule for Real Estate Closings Coming Nationwide

On February 16, 2024, the Financial Crimes Enforcement Network (FinCEN) proposed a new rule to mandate certain individuals involved in real estate closings and settlements to report and maintain records on non-financed transfers of residential real property to specific legal entities and trusts nationwide. This proposed rule is called the Anti-Money Laundering Regulations for Residential Real Estate Transfers


Reporting persons ("RP") include, but are not limited, to real estate agents, title insurance companies, settlement agents, and attorneys. There is a “cascading” approach, based on the function performed by the person in the real estate closing and settlement that determines which RP has the burden to report. Regardless, real estate professionals would also have the option to designate a reporting person from among those in the cascade by agreement.


RPs are required to report:

  1. The names and addresses of reporting persons, transferee entities, transferee trusts, signing individuals, transferors, and any beneficial owners.
  2. The citizenship details for all beneficial owners of transferee entities or transferee trusts.
  3. The unique identifiers, such as IRS Taxpayer Identification Numbers (TINs), for individuals and entities involved in the transactions.
  4. A description of the capacity in which the signing individual is authorized to act, such as legal representative or employee.
  5. The details about the total consideration paid for the property, method of payment, accounts used, and the names of payors if different from the transferee entity or trust.
  6. The address of the property and a legal description, such as section, lot, and block.


RPs must e-file the report with FinCEN within 30 calendar days after the transferee entity or transferee trust receives the ownership interest in the residential real property. RPs must maintain a copy of the report, any certifications regarding beneficial ownership, and any designation agreements for five years from the date of the report filing.


Note that transfers of real property to individuals, as opposed to an entity (LLC, Corp, LLP) are not covered by this proposed rule. 


If this rule is adopted the effective date will be one year from the date the final rule is issued. This time period is to allow real estate professionals to have sufficient time to review and prepare for the implementation of the reporting requirements. 


Written comments about this proposed rule are being accepted and must be submitted on or before April 16, 2024 by utilizing this link.



Thursday, October 14, 2021

Real Estate Transfer Taxes Going Up 0.5% on the East End?

On October 8, 2021, Governor Hochul signed S6492 into law and now the five eastern towns (East Hampton, Riverhead, Shelter Island, Southampton and Southold) are authorized to establish community housing funds to be funded by a supplemental real estate transfer tax.


Before any additional taxes are going to be levied, each town's board will need to enact a local law to that effect. 


Do you think that taxes should be raised on real estate sales to create affordable housing?


Before you answer that question, do you agree that the East End is unaffordable for much of its labor force?


The public purpose of this bill is "to establish a dedicated fund to provide needed housing opportunities" for "moderate income and working class local residents."


So, do you think your town should enact a local law, raise transfer taxes, and increase its supply of affordable housing? 






Thursday, September 09, 2021

NY Legal Podcast Does In-depth Analysis On Why Landlords Statewide Can Evict Tenants Even With The Eviction Ban

"The Lieb Cast" (a New York based legal podcast hosted by Attorney Andrew Lieb and Lauren Lieb) has featured an entire episode devoted to New York's eviction moratorium (which gives landlords options to pursue evictions or get paid through governmental rent relief). "The Lieb Cast" discusses why landlords can still sue for a money judgment in supreme court. In addition, the podcast explores residential and commercial distinctions for evictions, plus the foreclosure moratoriums in New York.

"NYS landlords can and should file evictions. The new moratorium does not totally prevent evictions and if you file, you will either be able to proceed with the eviction or your tenant will be directed by the court to get government money to pay your rent". Said Andrew Lieb, Co-Host of The Lieb Cast.

 

Podcast Link: https://www.listentolieb.com/876124/9130411-ny-landlords-can-evict-tenants-even-with-the-eviction-ban-here-is-what-you-need-to-know

About The Lieb Cast

Business success takes hard work, but physical hustle can only get you so far. You also need to work out your mind to succeed today. Join Andrew Lieb's weekly podcast to explore how current events impact your business and real estate holdings. This podcast is for business owners and managers who want to stay up to date with the latest legislation and regulations that will impact their business. Learn how to navigate these laws to avoid getting sued, grow and market your business, manage employees, and strategize to dominate our ever-changing business world.

Andrew Lieb is a litigator, corporate trainer, author, real estate school owner, and entrepreneur. He is joined on the air by Lauren Lieb, his wife and business partner, to present this educational and personal podcast. They coach their listeners to business greatness and entertain you with a ton of fun, sarcasm, wit, and banter. Search "Lieb Cast" on any podcast player.



Thursday, March 11, 2021

New Law Extends Commercial Eviction Moratorium to May 1, 2021 for Small Businesses

On March 10, 2021, Governor Cuomo signed the COVID-19 Emergency Protect our Small Businesses Act of 2021 (“Act”). In summary, the Act provides some commercial tenants with an opportunity to submit a Hardship Declaration, which upon submission to the Court or landlord, stays most evictions and ejectment actions until May 1, 2021. The second part of the Act which provides for commercial mortgage foreclosure relief is discussed in a separate blog HERE.

Applicability
  • The Act applies to summary proceedings or any other judicial or administrative proceeding to recover possession of a commercial unit, including evictions and ejectment actions.
  • The Act only applies to a commercial tenant who:
    • is a resident of New York State;
    • is independently owned and operated;
    • is not dominant in its field; and
    • employs fifty or fewer persons.

Hardship Declaration
  • The Act requires the Court or the landlord (depending on the status of the eviction proceeding) to provide the tenant with the Hardship Declaration in English and in the language of the lease / tenancy agreement.
  • The tenant should complete the Hardship Declaration if the tenant is suffering a financial hardship and is unable to pay rent or other financial obligations or obtain alternative suitable commercial property because of:
    • significant loss of revenue;
    • significant increase in necessary expenses related to providing protective equipment to prevent transmission of COVID-19; or
    • moving expenses and difficulty securing alternative commercial property.

New Commercial Proceedings
  • If there is no pending proceeding and a tenant provides a Hardship Declaration to the landlord, the landlord is prohibited from commencing any proceeding until May 1, 2021.
  • If the tenant does not provide a Hardship Declaration, the landlord is required to file and serve the following to commence an action:
    • affidavit of service of the Hardship Declaration in English and the language of the commercial lease / tenancy agreement;
    • affidavit of service of predicate notices required by law and the lease;
    • affidavit of the landlord / landlord’s agent attesting to the following:
      • Landlord / his agent did not receive a Hardship Declaration from the Tenant; or
      • The tenant returned the Hardship Declaration but the tenant is “persistently and unreasonably engaging in behavior that substantially infringes on the use and enjoyment of other tenants or occupants or causes a substantial safety hazard to others, with a specific description of the behavior alleged.”
  • If the Court determines that the landlord failed to provide the Hardship Declaration to the tenant, the Court shall stay the proceedings for at least 10 business days to allow the tenant to complete the Hardship Declaration.

Pending Commercial Proceedings
  • Refers to proceedings commenced on or before March 7, 2020 and commenced within 30 days of March 10, 2021.
  • Stayed for at least 60 days, or to such later date the Court deems necessary to provide tenants time to complete and submit the hardship declaration.
  • Court shall issue stay and mail copy of the Hardship Declaration to the tenant.
  • If the tenant provides a completed Hardship Declaration to the Court or landlord, the matter is stayed until May 1, 2021.

Post-Warrant of Eviction
  • In any proceeding in which an eviction warrant has already been issued, execution is stayed until the court holds a status conference with the parties.
  • If the tenant provides a Hardship Declaration, the execution of the warrant is stayed until May 1, 2021.
  • For the sheriff to execute the warrant of eviction, it must now state:
    • The tenant has not submitted a Hardship Declaration and the tenant was properly served with a copy of the Hardship Declaration, listing dates of service by the petitioner and the court; or
    • The tenant is ineligible for a stay under this act because the court determined that the tenant is persistently and unreasonably engaging in behavior that infringes on the use and enjoyment of other tenants/occupants or causes a safety hazard to others with a specific description of the behavior.


Tuesday, March 02, 2021

New Tenant Disclosure Form on Reasonable Modification and Accommodation Required

Effective today, all owners, lessees, sub-lessees, or managing agent of housing accommodations are required to provide a reasonable modification and accommodation disclosure form to tenants pursuant to recent amendments to the New York State Human Rights Law.

Specifically, the new law requires the reasonable modification and accommodation disclosure form prescribed by the New York State Division of Human Rights (NYSDHR) be provided within 30 days of the beginning of a tenant’s lease or within 30 days of March 2, 2021 for all current tenants. The disclosure form must also be conspicuously posted on every vacant housing accommodation that is available for rent.

Seems simple enough, right? Apparently not. As of today, the disclosure form has not been published by NYSDHR and so, compliance by real estate professionals is currently impossible. Until NYSDHR prescribes a form, to reduce exposure, all leases should include language notifying tenants and prospective tenants of their right to request reasonable modifications and accommodations if they have a disability under the New York State Human Rights Law.