Storm Front CE - LICREE - Links from Course

Last week, at the Long Island Commercial Real Estate Expo, we presented our course Storm Front to a packed room of real estate professionals.

Some students asked that I share the links from the Powerpoint Deck future reference.

So, here goes:

1) Participating Community List for National Flood Insurance Program (NFIP) can be found by clicking here
2) NFIP Summary of Coverage can be found by clicking here
3) Cost of Flooding can be found by clicking here
4) 2010 Annual Performance Report of Industrial Development Agencies (IDAs) can be found by clicking here
5) FEMA's Building Science & Rebuilding Building Code Resources can be found by clicking here

For all those who attended, I hope you enjoyed the class and the Expo. We, at Lieb School, had a terrific time and were glad to participate.

Housing Analysts are Bullish - 8% Rise Expected in Home Prices

4 Important Data Points will be out this week according to Mamta Badkar at Business Insider supporting the rise in Housing!

To read the article, "There Are 4 Big Pieces of Housing Data Coming Out This Week", click here.

This is fabulous news for all Real Estate Professionals. With the rebound in housing, more transactions, new builds and investment in everything real estate will be occurring.

Lets get ready to finally ride the wave up in housing and compound this positive data with a lot of hustle and hard work to keep the momentum going.

ALERT - Village of Quogue, New Real Estate Transactional Requirement

Buyers and Sellers of real estate should always hire a real estate agent who is familiar with the local municipal Code concerning their property.

Guess what?

In the Village of Quogue, as of July 2013, transacting parties will be required to have a new Certificate of Occupancy issued within 3 months either before or after the change of ownership.

This rules is a result of the Village of Quogue amending its Village Code, which happens all too often in many municipalities to be able to keep track of them all. Now, Chapter 196 of the Village Code has been amended by adding new subsection "F" to section 196-61, which can be read by clicking here.

So, the reason that you need a real estate agent familiar with the local municipal Code is evidenced by the fact that I only learned about this new Code section from my friend, Ed Kurosz, of the Corcoran Group.

Thanks Ed from all of the Real Estate Professionals who read this blog to stay in the loop about real estate happenings within Downstate New York.

Do I have to pay my unlicensed plumber?

It depends where your pipes are clogged.

In Manhattan and the Bronx you have to pay.

In Brooklyn, Queens, Staten Island, Long Island, as well as Dutchess, Orange, Putnam, Rockland and Westchester Counties you don't have to pay.

We live in a crazy world, don't we?

Title Waves - Advanced Payoff Authorization Sample

At our class last evening in East Hampton, Title Waves, our sponsor, Aquebogue Abstract Corp. offered to provide the students with a sample authorization for mortgage payoff figures. As Ken Zahler from Aquebogue Abstract explained, having advance authority can expedite the closing by way of avoiding waiting for the payoff figures from all outstanding loans while everyone is prepared to close. 

Ken's contact information is on the form should our students wish to reach out to him with further questions about his company or title insurance, in general. 

Is My Broker Required to Release My License?

Yes and the broker must do so immediately says the Department of State in Department of State v. Gill, Vassel and Heritage Realty, Inc. at 2283 DOS 07 where it was held that: "The failure to make such a filing until some one or two months after the termination of association with their brokerage, Respondents Vassel and Heritage violated RPL §442-b, and demonstrated incompetency. DLS v James, 10 DOS 93."

Specifically, the Department of State referred to Real Property Law 442-b when it made its decision. The statute states:


Discontinuance or change of salesperson’s association; report: When the association of any real estate salesperson shall have been terminated for any reason whatsoever, his broker shall forthwith notify the Department of State thereof in such manner as the department shall prescribe. Where change of such salesperson’s association is the basis for such termination, the salesperson’s successor broker shall forthwith notify the department of such change in such manner as the department shall

Therefore, the broker has the duty to release a license forthwith.

To learn more about brokerage statutes and regulations in NY and how the actually effect your life and livelihood  register for Lieb School today.

Does the Department of State hear Brokerage Commission Claims?

Generally no.

Real Property Law 442-e(5) provides the Secretary of State with the power to enforce the provisions of Real Property Law Article 12-A, which is the statute applicable to Real Estate Agents in the State of New York. Section 442-e is the basis under which the Department of State hears Administrative Complaints.

With respect to commission disputes, Section 442-e(3) provides as follows:

Penalty recoverable by person aggrieved. In case the offender shall 
have received any sum of money as commission, compensation or profit by 
or in consequence of his violation of any provision of this article, he shall 
also be liable to a penalty of not less than the amount of the sum of money 
received by him as such commission, compensation or profit and not more 
than four times the sum so received by him, as may be determined by the 
court, which penalty may be sued for and recovered by any person aggrieved 
and for his use and benefit, in any court of competent jurisdiction.

Therefore, it appears that commission disputes could be heard by the Department of State, at first glance. Yet, the Courts have also spoken on this issue in Matter of Gouiran v. Department of State of State of N.Y., at 82 AD2d 832. 

In this case, the Appellate Division adopted the Dissent from Partridge v. Lomenzo when it states: "it is ”improper for the Secretary of State to interfere with pending civil actions relative to brokerage claims and such actions ought to be left to judicial determination "“. 

Consequently, while commission can be addressed by the Department of State, it should not serve as the primary basis for the complaint, but instead for violations of license law, whereas the Courts or arbitration are the best forum for commission disputes. 

To learn about this and other commission topics, register for Lieb School's continuing education course, Deal Killers, Don't Let Your Deal Die, this Friday at Chase Plaza in NYC by clicking here. 

Mediate Your Hurricane Sandy Homeowners' Insurance Claims

Yesterday, Governor Andrew M. Cuomo announced the creation of a voluntary mediation process for homeowners disputing their insurance claims from Hurricane Sandy.

To read the press release, click here.

Under the program, which is regulated by the Department of Financial Services, insurers must offer and pay for the mediation. So, homeowners, take their offer and go mediate your claims.

Remember, mediation is not binding and if you don't like the results, you can simply not make a deal and start a lawsuit.

However, these programs have been utilized in other States after similar natural disasters and, to illustrate, the Florida Department of Insurance had a 92% settlement rate utilizing such a program. So, homeowners seem to feel positive about mediating their homeowners' insurance claims.

Also, homeowners, don't be shy about utilizing the services of an attorney at a mediation. Being represented in a negotiation concerning the technicalities of your insurance policy is always a good idea. To find an attorney who is competent on a given topic, its always a good starting place to contact your local Bar Association.

Good luck.

Suffolk County Minimum Lease Term = 1 Year

Did you know that the Suffolk County Code has a minimum lease term of 1 year?

Did you know that the lease term has to be in writing?

Well these rules are the default rules, at least, and are applicable unless the tenant waives the provision, which also must be in writing pursuant to section 696-3. So, don't simply use a form lease or go month-to-month as you will clearly violate the Code. Instead, write a formal lease and if its for a term of less than 1 year, make sure to include the applicable waiver language.

If you don't, section 696-5 provides that you can be charged with a misdemeanor with a fine of up to $500, plus a private right of action exists that enables the damaged party (tenant) to get attorneys fees and up to $500 by way of the Code.

Technology of Building Tickets in NYC

While reading the NY Times at the gym this morning, a habit I have to avoid engaging in small talk with strangers in between reps, I was struck by the article SimCity, for Real: Measuring an Untidy Metropolis, which gives a glimpse into the future of buildings, urban planning and enforcement.

The article talks about the future of cities employing science to generate efficiency in terms of water use and energy by analyzing sources of waste through computerized sensors. It discusses a needed future in terms of creating an optimal urban environment with more effective policies for the enforcement of noise ordinances coupled with just plain old common sense of better scheduling of garbage pickup times.

The article focuses on New York University’s Center for Urban Science and Progress and its use of sensors, research and statistics to optimize New York City as its living laboratory. In all, its a great article by Steve Lohr and a must read for anyone who works in real estate.

Yet, what real estate professionals must really focus on is not just the future, but the current state of things. Thankfully, the article also discusses how these technologies are employed today. It explains that in 2010 under Mayor Michael R. Bloomberg, New York City set up a team of data scientists for special projects and focused on zoning issues by mining data to predict where to send the City's building inspectors resulting in more than 20,000 complaints. So, landlords and property owners be ware; now you not only have to worry about your neighbors / tenants complaints to the City, but the City is also taking a proactive approach to enforcement. And, yes, the City is correct. Zoning rules are in place to create a safe environment for building occupants. Its time to get to know your Code, understand your tenants rights or SimCity (NYC) will find you and ticket you.