At our continuing education course last evening I mentioned a terrific new product, not even yet on the market, by Sonte, called Sonte Film, which appeared on Kickstarter recently. This product makes smart film technology easy to install and operate, with the first ever wi-fi enabled digital shades, as demonstrated below. If you can control natural light, you can save on electricity. Enjoy...

Tonight we teach our continuing education course, "To be Green or not to be Green: That is the question". In honor of the green real estate energy that I am feeling, let me share with you a terrific article about a really awesome robot. This robot will change the face of demolition by mitigating dust from traditional demolition techniques while recycling all of the rebar and concrete on-site.

Business Insider has an article called 11 Clauses to Beware The Next Time You Sign a Lease that I thought was better serving to the first time landlord rather than the first time tenant. You see, so often landlords call their attorneys and say how much do you charge for a lease and my firm's standard answer is; what do you want in it as leases range from $300 to thousands and thousands?

While we could spend 3 hours educating the client, than a lease will not be affordable to most weekend warriors. Instead, its best for a landlord to think about, in English, what they want the functional relationship with their tenant to be and then to see an attorney to make it enforceable and to provide additional suggestions.

I found this article to be a great start for first time landlords to think about their tenants' rights and responsibilities before they see their attorney.

The Consumer Financial Protection Bureau just published its 2013 CFPB Dodd-Frank Mortgage Rules readiness Guide.

This Guide should serve as the basis for banks' / financial institutions' internal compliance system. It includes information concerning the following topics:

1. Ability-to-Repay and Qualified Mortgage Standards (Regulation Z)
2. Escrow Requirements under Truth in Lending Act (Regulation Z)
3. High-Cost Mortgage and Homeownership Counseling (Regulation Z) (Regulation X)
4. Mortgage Servicing Rules (RESPA) (Regulation X) (TILA) (Regulation Z)
5. ECOA Appraisals for Higher-Priced Mortgage Loans (Regulation B)
6. TILA Appraisals for Higher-Priced Mortgage Loans (Regulation Z)
7. Loan Originator Compensation Requirements (Regulation Z)

One of the finest real estate brokerage attorneys in our State, Anthony Gatto, Esq. of NYSAR, presents a free explanation on the new ad regulations that are effective January 2, 2014, which you can watch here.

Its a must watch for licensed real estate agents in New York State. Learn the new regulations by as many sources as possible as they will be enforced and you must be prepared and in compliance.

Have you read Dan's Papers Today? Read about our Storm Front class in Southampton On Tuesday night. http://danspapers.com/2013/06/douglas-elliman-offers-free-real-estate-classes/

As you've surely heard, today, the U.S. Supreme Court declared critical portions of the Defense of Marriage Act (DOMA) unconstitutional.  For those who don't know, although some states (including New York) have recognized same-sex marriage as legal, DOMA defines marriage to exist only between a man and a woman - denying same-sex couples a multitude of federal benefits and rights which heterosexual couples regularly enjoy.

In United States v. Windsor, Edith Windsor was legally married in New York to Thea Spyer but was slapped with $363,000 federal estate tax bill because she was denied use of the spousal exemption to the federal estate tax.  Today, the Supreme Court ruled that DOMA's definition of "spouse" and "marriage" as exclusively heterosexual is in violation of the U.S. Constitution's Fifth Amendment right to equal protection.  You can read the decision here.

But why should you, purely from the point of view of a professional in the real estate industry, care about this decision?  Taxes, taxes, and more taxes.  Real estate holdings are often a couples' most valuable assets.  Left unattended, these assets can create some tax headaches down the road when it comes time to transfer title.


Estate Tax and Gift Tax Spousal Exemption

The Internal Revenue Code ("IRC") has an exemption which allows a spouse to leave their entire estate, regardless of value, to their surviving spouse - tax free.  This exemption was the genesis of Edith Windsor's lawsuit.  She was taxed on the inherited estate of her spouse because DOMA barred her from using the unlimited spousal exemption.  If you prefer to transfer your assets while alive, the IRC also provides for a gift tax exemption.  Normally, each person may only "gift" a certain amount of assets each year, and/or over the course of their lifetime.  However, if you make that gift to your spouse, there are no limits to the amount you transfer.  Now, with the Supreme Court's DOMA decision, same-sex spouses can use the same spousal exemptions that heterosexual couples have been using.


Internal Revenue Code Section 121- Primary Residence Capital Gains Exemption

IRC Section 121 expands the maximum capital gains tax exemption for the sale of a primary residence from $250,000 to $500,000 in the case of married couples filing a joint return.  Even further, this section permits the surviving spouse to claim a $500,000 exemption if the sale is made within two years of the death of their spouse.  Now, same-sex couples have access to the larger capital gains tax exemption for married couples.


Doubling and Splitting of Tax Exemptions

There are a few cases where the IRC permits married couples to double or split exemptions.  For instance, compared to a single individual, a married couple may double the amount gifted each year without reporting the gift to the IRS.  As another example, in 2013, each estate has a blanket $5.25 million exemption from taxes.  However, a surviving spouse may be able to utilize unused portions of their deceased partner's estate tax exemption to expand their own exemption to over $10 million.  With the Supreme Court's DOMA decision, same-sex couples now have more options to play with when planning their estate.


Federal Income Tax

For all the good news the DOMA decision brings, it might not be all sunshine and roses for same-sex couples in terms of tax benefits.  Filing jointly does not necessarily mean lower income tax liability, and in fact, can often lead to greater tax liability.  Every individual case is different and each couple should fully explore what effects a joint filing will have on their tax liability.


GO SEE A TAX PROFESSIONAL!

Every individual is strongly encouraged to seek the advice of a tax and/or estate planning professional if they have any questions regarding the application of these tax benefits.  Whether you are a same-sex couple eager to explore the new options available to you, or a heterosexual couple just now delving into some estate planning for your future, estate planning is an important and extremely nuanced aspect of asset management best left to professionals.  Also, if you have wrongfully been charged a tax like Edith Windsor, see your attorney asap to get a refund!!!

At last evening's continuing education course, Storm Front, I discussed Bill Number S5776-2013, which relates to permitted use of funds of an industrial development agency.

This bill, if enacted, would amend the law "to allow for the approval of Industrial Development Agency projects for property specifically used in making retail sales in areas directly impacted negatively by a natural disaster".

So, I highly suggest that local real estate agents support this Bill as it will benefit your community. At the least, take a read and understand what an IDA is and how it is applicable to your profession.

Also, at the course, I promised to provide a link to the Building Science & Rebuilding branch of FEMA's Building Code Resource, which can be located here. This is a valuable resource when rebuilding in the wake of a storm to enable a more resilient structure for the next one - as I said, we do live on an Island.

Check out Page 12 of The New York Real Estate Journal. Latest Article published by Andrew Lieb, "Brokerage: End of corporate titles ushers in professionalism". In this article, Andrew discusses the latest update in advertising regulations and the practice of Real Estate Professionals in NY.

Attention College Graduates! Take a Year Off Before Law School

Join a thriving law firm that leads our profession through advocacy and advice supported by cutting-edge technology and know-how.  This exciting opportunity is for a 2013 college graduate looking for valuable office and legal experience before heading to law school.  You will be exposed to real estate transactions and litigation, learn the court system and assist in cases from real estate brokerage and mortgage foreclosure litigation through matrimonial, collections and personal injury. The foundation and knowledge obtained in this position will not only get you ready for law school, but will give you an essential competitive edge before starting your legal career. 

Ideal qualities: Self-driven, organized, resourceful, assertive and dynamic. Must strive to be the best.