- Gaining Repossession: Just because the term of the lease (a/k/a duration) is over does not mean that you, the landlord, automatically gets your seasonal rental property back. In many States, such as New York, the tenant must surrender possession of the property prior to the landlord retaking possession regardless if the lease period has ended. In best practice, a written lease agreement will provide not only when the term is over, but also the mechanism of how, when and where the tenant is supposed to surrender possession (e.g., tenant shall surrender possession by way of turning over the keys to the subject premises to the landlord, in-person, at the subject premises at 12:00 p.m. on September 30, 2014 or at such other time, date and manner as is mutually agreed upon by and between the parties in a signed writing). Such a surrender clause is particularly important for landlords because a landlord who engages in a self-help eviction (i.e., going into the property without the tenant’s permission and changing the locks) is exposed to a lawsuit by the tenant for treble damages for the tenant’s lost use and occupancy of the property. Beyond protecting oneself from a self-help claim, landlords should also motivate the tenant to leave on time by utilizing a holdover liquidated damages clause (i.e., predetermined monies due and owing in the case of a holdover tenant – staying after the expiration of the lease). Courts in many States, such as New York, will enforce this type of clause at a level of three times the previous rent due for the duration of the holdover period.
- Damage Inspection: There are 4 steps to a proper damages inspection: (1) Establishing a baseline condition of the property when the tenant takes possession (i.e., countersigned and dated pictures should have been taken); (2) Distinguishing between actual damage and ordinary wear and tear (i.e., definitions should be included in the lease for each category); (3) Determining the condition of the property upon the tenant surrendering possession (i.e., tenant and landlord walk through the property while memorializing the condition in pictures that are countersigned and dated); and (4) Obtaining 2 estimates for repairs from licensed home improvement contractors to establish the cost of repairs.
- Refunding the Security Deposit: A landlord is a trustee for the tenant’s security deposit monies. Where a landlord wrongfully withholds the security deposit, the tenant may be able to sue for those monies on theories such as breach of contract, conversion and breach of fiduciary duty, among others. Additionally, many States, such as New York, provide a tenant with a reciprocal right to sue for attorneys’ fees whenever a lease provides the landlord with such a right (i.e., landlord’s right to attorneys’ fees in the event of breach is standard practice in leases). Consequently, a tenant can frequently hire an attorney, who will be paid for by the landlord, to recover their security deposit.
- Lease Renewal: The best tenants continue to renew season after season. For the landlord, this not only makes your budget for operating the property predictable, but also avoids the landlord from having to continually make yourself or your agent available to show the property to prospective replacement tenants. The protocol for the tenant exercising a lease renewal option should be set forth in the current lease agreement, including how notice to renew should be rendered (i.e., mailing a certified mail return receipt letter to the landlord indicating that the tenant shall exercise its renewal option). Additionally, the lease should provide how the rental fee will be adjusted for future seasons by what is typically referred to as a rent escalation clause, (i.e., either at a percentage increase such as 3% or tied to an index such as the Consumer Price Index). Oral renewals and text messages should be avoided as they often result in litigating.
- Brokerage Agreement: Many real estate brokerage agreements provide for additional monies being due to the broker in the event of a renewal of the lease by the current tenant or a member of the tenant’s family. Additionally, smart brokers put a clause in their agreements that provides for a commission being due should the tenant purchase the rental property from the landlord. Reviewing the brokerage agreement that was applicable when the tenant first let the property is a great first step before lease renewal to know how a landlord’s net profits will be effected in future years.
Tuesday, September 02, 2014
Friday, August 29, 2014
Andrew Lieb Shares Real Estate Tips on 88.3FM today at 5:50pm
Tune into 88.3FM (WPPB Peconic Broadcasting) for Realife with John Cristopher from Brown Harris Stevens.
Today's Line Up of Guests:
5:30pm: Cia Comnas, Executive Managing Director of Brown Harris Stevens discusses the "hot" areas in the Hamptons and what it takes to be a successful agent in the Hamptons.
5:40pm: Greg Heym, Chief Economist for Terra Holdings enlightens us about the recent release of data for the numbers in the City and here in the Hamptons.
5:50pm: Andrew Lieb, Esq., owner of Lieb at Law and Lieb School wraps up Realife as he shares some of his secrets that a buyer should know before they purchase a home in the Hamptons.
http://peconicpublicbroadcasting.org/programs/real-life-wppb
Tune into 88.3FM (WPPB Peconic Broadcasting) for Realife with John Cristopher from Brown Harris Stevens.
Today's Line Up of Guests:
5:30pm: Cia Comnas, Executive Managing Director of Brown Harris Stevens discusses the "hot" areas in the Hamptons and what it takes to be a successful agent in the Hamptons.
5:40pm: Greg Heym, Chief Economist for Terra Holdings enlightens us about the recent release of data for the numbers in the City and here in the Hamptons.
5:50pm: Andrew Lieb, Esq., owner of Lieb at Law and Lieb School wraps up Realife as he shares some of his secrets that a buyer should know before they purchase a home in the Hamptons.
http://peconicpublicbroadcasting.org/programs/real-life-wppb
Tuesday, August 26, 2014
|
Monday, August 25, 2014
On
August 1st, record setting rain doused Long Island causing extensive
flood damage. The Town of Brookhaven has been working with the New York State
Division of Homeland Security and Emergency Services to perform damage
assessments for residents in affected areas. Damage assessments are an effort
to qualify victims for federal or state funding or special programs. Supervisor
Ed Romaine has asked the federal government to provide FEMA assistance to storm
victims and has vowed to push County, State and Federal officials to provide
assistance to storm victims. The Town
has estimated $10-15 million in damage to private homes as a result of the
torrential rain. Additionally, an estimated $15 million in damage to our
roadways has been estimated by the Town Highway Department. Although the South
Shore of Long Island sustained very little damage, some North Shore communities
that were hit hard by Superstorm Sandy, now have another storm to clean up
after. So far, the Building Department has inspected more than 75 homes and
deemed nine uninhabitable.
Residents who
feel that their homes may have sustained structural damage from the storm are
urged to call 631-451-TOWN (8696). An inspector will be sent to their home to
assess the damage and determine if the home is safe to occupy.
For insurance
related issues, residents should call 1-800-339-1759 to speak directly with representatives
from the New York State Department of Financial Services.
As of
Wednesday, August 20th, a “211 Hotline,” originally activated after
Sandy, will be implemented again to assist residents with the clean-up in their
flood damaged homes.
Residents with
large amounts of debris from flood clean-up should call 631-451-TOWN to
schedule pick-up from the Town’s Department of Waste Management.
Transparent solar panels may be here sooner than you think.
Accordingly to Slash Gear, a team at Michigan State University has developed "a transparent luminescent solar concentrator which looks clear to the eye but can still harvest energy from wavelengths of light invisible to humans". Unfortunately, the team has not achieved panels that are efficient enough for use on your home just yet, but it seems that great strides are being achieved relatively quickly.
So, before you say yes to solar panels being placed on your roof, maybe you should just wait a few years to redo your sunroom with transparent solar panels and generate some power in the process.
Accordingly to Slash Gear, a team at Michigan State University has developed "a transparent luminescent solar concentrator which looks clear to the eye but can still harvest energy from wavelengths of light invisible to humans". Unfortunately, the team has not achieved panels that are efficient enough for use on your home just yet, but it seems that great strides are being achieved relatively quickly.
So, before you say yes to solar panels being placed on your roof, maybe you should just wait a few years to redo your sunroom with transparent solar panels and generate some power in the process.
Monday, August 18, 2014
The Nassau County Bar Association and the Nassau Academy of Law Invite You to Attend
Protecting Home & Hearth
Home Insurance Everyone Needs
Monday, September 15, 6:30 p.m.
Nassau County Bar Association (Mineola)
Speakers:
Andrew Lerner, CIC, The Lerner Agency
Charles Licht, Public Adjuster
Michael A. Markowitz, Seminar Chair
To Register:
516-747-4070 or email ckatz@nassaubar.org
Friday, August 15, 2014
Andrew Lieb Shares Real Estate Tips on 88.3FM today at 5:50pm
Tune into 88.3FM (WPPB Peconic Broadcasting) today (8/15) for Real Life with John Cristopher from Brown Harris Stevens.
Today's Line Up of Guests:
- 5:30pm: Aspasia Comnas, Executive Managing Director of Brown Harris Stevens discusses the community spirit that exists in the Hamptons and her participation in Escuela de Samba Boom.
- 5:40pm: Jesse Matsuoka, owner of Sen restaurant in Sag Harbor talks about the Hamptons but also his time in Japan and witnessing the greatest Sumo wrestling match of the century.
- 5:50pm: Andrew Lieb, Esq, owner of Lieb at Law and Lieb School discusses broker commissions and how sellers can be responsible for owing more than one commission.
You can listen live on the website too:
Wednesday, August 13, 2014
Please Help Us Win Best Law Firm!
Vote for us by clicking here
We appreciate your time in voting for Lieb!
Sincerely,
Thursday, August 07, 2014
If you are a struggling homeowner and have sought relief via
a loan modification, there may be new pressure on lenders to negotiate a
modification. Last week, New York’s Appellate Division, Second Department,
ruled in US Bank N.A. v Sarmiento that Wells Fargo, a well-known lender, could
not collect interest or fees on a loan that had accrued while a borrower,
Sarmiento, pursued a loan modification. Sarmiento attended 18 settlement
conferences and remained persistent in obtaining a loan modification yet the
decision indicates that Wells “delayed and prevented any possible resolution of
the action.” Wells is cited for various delays and miscommunications which when
considered wholly, led to the determination by the court that Wells failed to
negotiate in good faith. This court decision yielded a long-awaited definition
of “good faith” with regards to negotiations in foreclosure conferences. The court concluded that Wells’ conduct
indicates a “disregard for the settlement negotiation process” which increased
the balance on Sarmiento’s loan.
This decision gives hope to borrowers frustrated with the
often drawn-out process of obtaining a loan modification. If a lender loses
documents, repeatedly requests the same information, fails to review the
application in a timely manner, denies an application without adequate grounds
or deliberately or recklessly delays the process in any way, a borrower now has
the option to demonstrate the lender’s failure to negotiate in good faith. This
could translate to thousands of dollars lost in interest and legal fees for
lenders.
Hopefully, this will put pressure on lenders to remain
timely and organized in their evaluation of a borrower’s loan modification
application for if they don’t comply with good faith guidelines, they could be
at risk to lose a great deal of money. But remember, “good faith” is a double
edged sword, as borrowers must also negotiate in good faith by putting forth a
purposeful and honest effort at a settlement conference to reach a resolution.
Tuesday, August 05, 2014
Read this terrific article - Want to buy some air? Some cities have plenty to sell - to appease your interest in air rights and development.
2 Takeaways:
a) Developing a deck (the platform in the air where development happens) to build upon is quite expensive; &
b) Financing is limited as there are minimal real property rights associated with air rights, which can be foreclosed upon (collateral).
Based upon the expense and lack of collateral, perhaps development for air rights is ripe for crowdfunding to get the job done. In crowdfunding, accredited investors (net worth of more than $1 million or have earned $200,000 in each of the previous 2 years) can provide the requisite funding in consideration of equity stakes in the development company, to get the project funded, built, and ready for tenants.
2 Takeaways:
a) Developing a deck (the platform in the air where development happens) to build upon is quite expensive; &
b) Financing is limited as there are minimal real property rights associated with air rights, which can be foreclosed upon (collateral).
Based upon the expense and lack of collateral, perhaps development for air rights is ripe for crowdfunding to get the job done. In crowdfunding, accredited investors (net worth of more than $1 million or have earned $200,000 in each of the previous 2 years) can provide the requisite funding in consideration of equity stakes in the development company, to get the project funded, built, and ready for tenants.
