LIEB BLOG

Legal Analysts

Wednesday, January 28, 2015

An Eruv in the Village of Westhampton Beach May Bring in More Real Estate Sales and Rentals

A public utility company is permitted to enter into an agreement with a private Jewish group to erect displays of religious significance on the utility poles said the courts on January 6, 2015. 

In 2008, there was discussion of putting up an eruv in the Village of Westhampton Beach. An eruv is a religious boundary that permits observant Jews within the enclosed space to carry and push items on the Sabbath, which, under ordinary circumstances, is forbidden. This boundary is usually established by attaching strips of woods to telephone poles around the community, thereby requiring private contracts with telephone companies.

A religious group called the Jewish People for the Betterment of Westhampton Beach (or JPOE) sued the Village of Westhampton Beach to oppose the erection of the eruv, arguing that it was a wrongful exception to Jewish practices on the Sabbath and that the government, which was contracting with private parties to establish the eruv, was overtly endorsing one sect of religion over another.

Courts said on January 6, 2015 that it is lawful for public utility companies to erect eruvs as part of a contract with a private party. LIPA’s contract to erect an eruv using its telephone poles was neutral and did not establish a noticeable and overt display of religion throughout the town. In fact, no reasonable observer would conclude from the strips of wood on the utility poles that the government was endorsing one religion over another. Furthermore, since private parties had agreed to finance, install and maintain the strips on the utility poles, there was no excessive government entanglement with religion.

This decision is a victory for religious freedom as a fundamental First Amendment right but is also a victory for real estate in the area. As the strips of woods on the telephone poles are not very noticeable, they will not in any way diminish the appearance of the community. In fact, real estate sales and rentals may skyrocket in the Village of Westhampton Beach now since observant Jews will seek out the community for its eruv. 

Tuesday, January 27, 2015

What Affluent Renters Consider Before Securing a High-End Summer Home in the Hamptons

It's imperative to realize that the east end of Long Island is a massive place. It's over 30 miles from Westhampton to East Hampton on the south fork and not that much shorter on the north fork between Riverhead and Orient. As a result, the experience of summering on Shelter Island as opposed to staying in Southampton is drastically different. The fact is that each community on the east end has its own unique offering of features that are "fabulous" to some and that represent "shortcomings" to others.

Read the full article in the Huffington Post.

Top 5 New Real Estate Laws Affecting NYers in 2015

Now that 2015 is here, NYers should know the top changes from the past year in real estate laws that affect property owners and tenants in our community. This is not a list about the best events from 2014, but, instead, a list that highlights the new legal landscape that you face in 2015.

Read the full article in The Huffington Post.

Monday, January 26, 2015

10 Questions to Ask Yourself About a Summer Rental

Andrew Lieb's latest article is now available on Dan's Papers.

Keep these tips handy when planning your seasonal rental search.

Wednesday, January 21, 2015

Ocwen Financial May Lose its Mortgage License

By the end of this year, Ocwen Financial, one of the largest mortgage servicers in the U.S., may lose its mortgage license in California.

Ocwen has been subjected to numerous investigations over the years regarding improper foreclosures, misplaced and mislabeled borrower documentation, billing issues, and overall failure to comply with federal and state laws and regulations. In December, Ocwen settled an ongoing investigation by the NYS Department of Financial Services (DFS) by agreeing to pay $100 million, which was to be used to support foreclosure defense programs and other relief and $50 million to Ocwen borrowers who reside in New York. As a result, not only did the company’s chairman step down from his position, but DFS will continue to monitor Ocwen in the upcoming years for further unlawful conduct. Although this settlement greatly impacted borrowers in New York, it was held as a victory for borrowers all over the country because it was supposed to put Ocwen in check and to stop it from continuing its cycle of financial abuse.

Unfortunately, the story does not end there. California now wants to suspend Ocwen’s mortgage license in the state as a result of Ocwen’s failure to provide mandatory documentation to the Department of Business Oversight, which is responsible for determining whether Ocwen is complying with state regulations in California. Ocwen issued a press release on January 13, stating that it is committed to resolving the issues in California, especially since its shares are crashing as a result of the news. It is crucial that Ocwen turns its business practices around and finally provide high quality assistance to its borrowers. Otherwise, it will surely fail.

Settlement conferences will begin in February. If nothing is resolved, Ocwen will not be able to do business in California for at least a year. If that happens, Ocwen may not be able to survive such a huge blow.

Tuesday, January 20, 2015

Enrollment is Now Open for Property Manager Liability: Requirements, Responsibilities and Fair Housing on 2/6/15 in Plainview



Property Manager Liability: Requirements, Responsibilities and Fair Housing


Instructor: Andrew Lieb, Esq., MPH

CE Credits: 3

Price: Free

Date: 02/06/2015 at 1:30pm in

Maximize your client's investment while minimizing your exposure to great liability. Be cautious, property management is a serious business that has many liability landmines for the weary. Do not just dabble in property management. Do not just help out a landlord brokerage client in dealing with their tenants. Learn why the Department of State considers property management to be a licensed activity in this State. Understand how to mitigate exposure to license law liability, premises liability, and fair housing liability. Get real life examples of what can go wrong. Most importantly, learn what must go into your Property Management Agreement and why a top property manager should get paid.
*** THIS COURSE SATISFIES THE ONLY MANDATORY CLASS REQUIREMENT FROM THE DEPARTMENT OF STATE (DOS) FOR AT LEAST 3 HOURS OF INSTRUCTION PERTAINING TO FAIR HOUSING AND / OR DISCRIMINATION ***

Wednesday, January 14, 2015

Lieb School is Back in NYC with Estate Deals CE on 2/12/15




Estate Deals

Instructor: Andrew Lieb, Esq., MPH

CE Credits: 3

Price: Free

Date: February 12th, 2015 at 12:30pm on 51st (between 5th and 6th)

Estate sales offer a unique opportunity to help the grieving by doing your job professionally. Starting with speaking the language of the Surrogate’s Court, this course will empower the real estate broker / salesperson to assist the Executor / Administrator in liquidating real property in order to satisfy debts of the estate. Additionally, disputes between beneficiaries and with the fiduciary, sales forced by the court, and foreclosures incident to the probate process will be discussed. Lastly, the student will be exposed to the overlay of brokerage and executor’s commissions where an Executor / Administrator is expressly exempt from the Real Estate License Law for Brokerage.

Register For This Class Here

Monday, January 12, 2015

New NYS Foreclosure Prevention Program is Closing its First Loans

Yesterday, the New York Attorney General, Eric Schneiderman, announced in a press release that the first loans have closed in the New York State Mortgage Assistance Program (NYSMAP) to help homeowners across the state pay off their mortgage arrears and/or liens in order to avoid foreclosure.

This program was launched on Long Island in September and was opened to the rest of the state in mid-October to provide funds to homeowners so that they may apply and be approved for loan modifications. Since one of the most common reasons for loan modification denial is the inability to pay off mortgage arrears, unpaid property taxes, and liens on properties in foreclosure, these NYSMAP loans are specifically designed to help homeowners pay off these types of debt up to $40,000. The program has already received 41 loan applications and approved 9 loans from Long Island alone. Mr. Schneiderman is predicting that hundreds of loans across the state will be approved over the next year, helping homeowners obtain loan modifications and keep their homes into the future.

Click here at nysmap.org or call 855-466-3456 to see if you are eligible for a loan through NYSMAP.

Friday, January 09, 2015

Real Estate Agent Successfully Obtains Permission to Use Drone for Aerial Photography

Want to use a drone to capture aerial photos of your listings? Douglas Trudeau of Tierra Antigua Realty in Tuscon Arizona has become the first Real Estate Agent permitted by the Federal Aviation Administration (FAA) to use a drone in connection with real estate brokerage.

As you may recall, a previous Lieb at Law Blog discussed the FAA rules which requires all sorts of licenses, certificates and flight plans in connection with "commercial" drone flights.  In that blog, we explained that the FAA specifically targeted real estate agents using drones to take aerial photos as an example of regulated commercial flight.  Remember, we are talking about two to three pound quadcopters, not full sized aircraft here.

Douglas Trudeau has waded through the tiresome process of obtaining the necessary approvals for such a commercial flight and amount of red tape is undeniably absurd. First, Mr. Trudeau had to petition the FAA for an exemption.  The FAA's response is a daunting twenty-six page analysis of the various rules, statutes and regulations which much be examined and excused prior to permitting Mr. Trudeau to use his drone.  Read the FAA's response for yourself here.

In granting Mr. Trudeau an exemption, the FAA analyzed each of the following factors:
  1. The type of aircraft used, including: size, speed, payload and weight;
  2. The qualifications of the pilot (Mr. Trudeau has a private pilot's certificate, but not a commercial license);
  3. The operating parameters of the anticipated flights, including: height, duration, range, tracking, interference with regulated airspace, and emergency contingency planning; and
  4. Public Interest
After deciding that it was as basically harmless for Mr. Trudeau to fly a toy, the FAA granted the exemption with a measly thirty-three conditions and limitations on his flights, including the following:
  1. The drone must remain in Mr. Trudeau's unassisted vision at all times;
  2. Mr. Trudeau must utilize a visual observer who also must maintain unassisted vision of the drone at all time;
  3. Mr. Trudeau, as the pilot, must maintain a private pilot certificate and at least a third-class medical certificate;
  4. Mr. Trudeau, before operating the drone to take photos, must log a minimum of twenty-five hours of flight time with a drone and at least five hours with the specific drone he is going to use for the flight.
  5. Prior to any commercial operation, Mr. Trudeau must have successfully executed at least three take-off and landings with the drone within the past ninety days;
  6. No night flights;
  7. Not within 500 feet below or 2,000 feet horizontally from a cloud;
  8. Mr. Trudeau must obtain an Air Traffic Organization issued Certificate of Waiver or Authorization prior to any operation and must request a Notice of Airman not more than seventy-two hours in advance, but not less than forty-eight hours prior to any operation; and
  9. Flights cannot take place within 500 feet of non-participating persons, vessels, vehicle or structures unless it will be "safe" for those non-participants;
Here's to hoping that the FAA changes its stance on small drone operations because the current process is cumbersome, to say the least. 

Wednesday, January 07, 2015

Important Decision on Right of First Refusal in Foreclosure Sale

An important decision came out on December 23, 2014 regarding the right of first refusal—the requirement that a property owner, if and when he is offered to sell his property to a third party, must first present that offer to the party who previously entered into a contract which gave that party the right to purchase the property before others. The right of first refusal is easy to understand if we use a basic example. Let’s say Allison wanted to sell her real estate to Bobby but Carrie had a written right of first refusal for the property in question. Allison would first get an offer from Bobby and then, offer that to Carrie. If Carrie accepts the terms set by Bobby, she can purchase the property. If not, Bobby has a deal to buy the property.

Here, in the case, Centech LLC v. Yippie Holdings LLC, the issue was whether a party who had a right of first refusal could exercise it based upon a foreclosure sale. The Court found that the right of first refusal was not applicable in the foreclosure sale because the language of the right of first refusal did not clearly provide for a foreclosure sale as a trigger to the right of first refusal.

The takeaway is that when you have a right of first refusal, make sure that it clearly sets forth the trigger to our ability to exercise your right. Vagueness can prevent you from having a right that you otherwise believe to be yours.