Monday, February 06, 2017
Lieb School Facts: Exclusive Right To Sell Agreement
To learn more, Lieb School offers online continuing education classes that are comprised of video's from a live classroom setting that was instructed by premiere lecturer Andrew Lieb, Esq. Content is thereafter broken down in order to simplify the learning experience so that students can absorb our field's complex materials without being overwhelmed.
Thursday, February 02, 2017
Retired Attorneys can engage in real estate brokerage without a brokerage license
On May 5, 2016, the Department of State was asked:
"[W]hether a 'retired' attorney is exempt from the licensing requirements imposed by the NY RPL."
The DOS opined that "licensure as a real estate broker or salesperson is not required if practicing as a 'retired' attorney because there is oversight by the Appellate Division for breaches of trust and confidence."
The takeaway is that attorneys, even retired attorneys, need not be licensed by the DOS to broker transactions for compensation.
"[W]hether a 'retired' attorney is exempt from the licensing requirements imposed by the NY RPL."
The DOS opined that "licensure as a real estate broker or salesperson is not required if practicing as a 'retired' attorney because there is oversight by the Appellate Division for breaches of trust and confidence."
The takeaway is that attorneys, even retired attorneys, need not be licensed by the DOS to broker transactions for compensation.
Real Estate Salespersons MUST comply with zoning laws on their own property
On April 12, 2016, the Department of State was asked:
"As the law states a real estate professional must abide by all laws in the State of New York when a Real Estate Broker is conducting a real estate brokerage at a residential residence, zoned residential and in violation of building codes. In this situation, it is considered breaking the law under Article 12A?"
The Department of State opined that "a broker who violates a local zoning law in relation to his or her own property and transactions demonstrates untrustworthiness pursuant to Section 441-c of the New York Real Property Law ("NY RPL")."
As a takeaway, if you are licensed as a Real Estate Salesperson or Associate Real Estate Broker make sure your home is completely in compliance with local zoning (and your rental properties). By failing to comply with zoning laws, not only can you receive a citation from your City, Town or Village, but you can jeopardize your livelihood.
Moving forward, all agents should hire land use counsel or an expeditor immediately to legalize those basements, dormers and pools. Don't risk your license to save some tax dollars.
Real Estate Broker paying commission to Real Estate Salesperson's corporation
On March 10, 2016, the Department of State was asked:
"[what is] the procedure for a broker's payment to a salesperson or associate broker's corporation rather than to the salesperson or associate broker individually?
In addition, could you tell me whether said corporation can only be in the name of the salesperson or associate broker?
Finally, must the salesperson or associate broker be the only shareholder in the corporation or can several salespersons and/or brokers have a corporation together when, for instance, they are working as a team?”
In reading Real Property Law §442, the DOS opined that it is permissible for a Real Estate Broker to pay commission directly to a Real Estate Salesperson's corporation, but ONLY where all shareholders of the corporation or members of the limited liability company are duly licensed and associated with the paying Real Estate Broker.
The takeaway is Real Estate Brokers are charged with confirming that associated Real Estate Salesperson's entities are solely owned by the Real Estate Salesperson(s) associated with the Real Estate Broker.
Moving forward, Real Estate Brokers should require an ownership affidavit setting forth all owners of the entity from any Real Estate Salesperson who requests direct payment to an entity where such affidavit should also provide an indemnification and hold-harmless coupled with the payment of legal fees and costs to the Real Estate Broker should the information be false and lead to damage to the Real Estate Broker.
"[what is] the procedure for a broker's payment to a salesperson or associate broker's corporation rather than to the salesperson or associate broker individually?
In addition, could you tell me whether said corporation can only be in the name of the salesperson or associate broker?
Finally, must the salesperson or associate broker be the only shareholder in the corporation or can several salespersons and/or brokers have a corporation together when, for instance, they are working as a team?”
In reading Real Property Law §442, the DOS opined that it is permissible for a Real Estate Broker to pay commission directly to a Real Estate Salesperson's corporation, but ONLY where all shareholders of the corporation or members of the limited liability company are duly licensed and associated with the paying Real Estate Broker.
The takeaway is Real Estate Brokers are charged with confirming that associated Real Estate Salesperson's entities are solely owned by the Real Estate Salesperson(s) associated with the Real Estate Broker.
Moving forward, Real Estate Brokers should require an ownership affidavit setting forth all owners of the entity from any Real Estate Salesperson who requests direct payment to an entity where such affidavit should also provide an indemnification and hold-harmless coupled with the payment of legal fees and costs to the Real Estate Broker should the information be false and lead to damage to the Real Estate Broker.
Tuesday, January 31, 2017
ALERT - Amended Real Estate Brokerage Regulations
The Real Estate License Law regulations at 19 NYCRR 175.1, 175.7, 176.3, 177.3, 177.7 & 175.25 have been amended.
The industry now has new understandings of escrow requirements, compensation, advertising, qualifying education and continuing education as of January 4, 2017.
Summary of New Understandings:
- As to escrow, we now know that we must deposit all escrow money within 3 business days and hold it in a secure place like a safe until such time as its deposited in the bank.
- As to compensation, we have learned that if we are paid by more than one source, we no longer have to receive consent from all parties, just our client.
- As to advertising, we understand that business cards must include our license type.
- As to qualifying education, we know that we now need to learn 1 hour on the new topic of License Safety, but the topic of Property Insurance has been reduced to only 1 hour from 2.
- Finally, with respect to continuing education, we no longer have to take a minimum of 3 hours in a course module, but can take only 1 hour when such a course is available (Lieb School is launching a 1 hour Agency Disclosure course very soon) and each hour is now only 50 minutes long (for bathroom breaks, etc.) whereas it used to be a 60 minute requirement.
The full amended regulations are as follows:
Section 175.1 of Title 19 NYCRR is
amended to read as follows:
Section
175.1. Commingling money of principal.
A real estate broker shall not commingle the money or other property of
his principal with his own and shall at all times maintain a separate, special
bank account to be used exclusively for the deposit of said monies and which
deposit shall be made [as promptly as practicable] within three business
days. Until such time as the
money is deposited into a separate, special bank account, it shall be
safeguarded in a secure location so as to prevent loss or misappropriation. Said monies shall not be placed in any
depository, fund or investment other than a federally insured bank
account. Accrued interest, if any, shall
not be retained by, or for the benefit of, the broker except to the extent that
it is applied to, and deducted from, earned commission, with the consent of all
parties.
Section
175.7 of Title 19 NYCRR is amended to read as follows:
Section 175.7. Compensation.
A real estate broker shall
make it clear for which party he is acting and he shall not receive
compensation from more than one party except with the full knowledge and
consent of [all parties] the broker’s client.
Section 176.3
(a) of Title 19 NYCRR is amended to read as follows:
Section 176.3. Subjects for study--real estate
salespersons.
(a)
The following are the required subjects to be included in the course of study
in real estate for licensure as a real estate salesperson, and the required
number of hours to be devoted to each subject:
Salesperson's
Course
Subject
Matter: Hours:
License
Law and Regulations ................................... 3
Law
of Agency ................................................. 11
Legal
Issues .................................................. 10
The
Contract of Sales and Leases .............................. 3
Real
Estate Finance ........................................... 5
Land
Use Regulations .......................................... 3
Construction
and Environmental Issues ......................... 5
Valuation
Process and Pricing Properties ...................... 3
Human
Rights and Fair Housing ................................. 4
Real
Estate Mathematics ....................................... 1
Municipal
Agencies ............................................ 2
Property
Insurance ........................................... [2] 1
License
Safety ........................................... 1
Taxes
and Assessments ......................................... 3
Condominiums
and Cooperatives ................................. 4
Commercial
and Investment Properties .......................... 10
Income
Tax Issues in Real Estate Transactions ................. 3
Mortgage
Brokerage ............................................ 1
Property
Management ........................................... 2
Instruction
................................................... 75
Final
Examination ............................................. 3
TOTAL
..................................................... 78
Section 177.3
(g) of Title 19 NYCRR is amended to read as follows:
(g) a detailed outline of the subject matter
of each course or seminar containing at least 22½ hours of instruction, or of
each course module containing at least [three hours] one hour of
instruction, together with the time sequence of each segment thereof, the
faculty for each segment, and teaching techniques used in each segment;
Section 177.7
of Title 19 NYCRR is amended to read as follows:
Section 177.7. Computation of instruction time.
To
meet the minimum statutory requirement, attendance shall be computed on the
basis of an hour equaling [60] 50 minutes.
Section 175.25
(d)(2) of Title 19 NYCRR is amended to read as follows:
Section 175.25. Business cards.
(2) Notwithstanding subdivision (c) of this section, business
cards must contain the business address of the licensee, license type,
and the name of the real estate broker or real estate brokerage with whom the
associate real estate broker or real estate salesperson is associated. All
business cards must also contain the office telephone number for the associate
real estate broker, real estate salesperson or team.
Friday, January 20, 2017
HUD Suspends Planned 25 Basis Point Reduction of FHA Mortgage Insurance Premiums
The Trump Administration has suspended a planned fee reduction of the annual mortgage insurance premiums required on FHA loans. In a letter released just hours after Donald Trump was sworn into office, the U.S. Department of Housing and Urban Development announced that "Mortgagee Letter 2017-01, reducing Mortgage Insurance Premiums for loans with Closing/Disbursement date on or after January 27, 2017, has been suspended indefinitely."
The planned fee reduction, announced by the Obama Administration earlier this month, was set to reduce the annual fee by twenty-five (25) basis points, or one quarter of one (1) percent, from 0.85% to 0.60% for loans less than or equal to Six Hundred Twenty-Five Thousand Dollars ($625,000.00). The planned reduction corresponded to a savings of approximately Five Hundred Dollars ($500.00) in the first year of a Two Hundred Thousand Dollar ($200,000.00) loan.
The FHA mortgage insurance premium rate has varied between 0.55% and 1.35% during the Obama Administration as a reflection of changing market and credit risk.
The FHA mortgage insurance premium rate has varied between 0.55% and 1.35% during the Obama Administration as a reflection of changing market and credit risk.
Explaining the decision to suspend the planned fee reduction, the letter stated that "FHA is committed to ensuring its mortgage insurance programs remains viable and effective in the long term for all parties involved, especially our taxpayers. As such, more analysis and research are deemed necessary to assess future adjustments while also considering potential market conditions in an ever-changing global economy that could impact our efforts".
By Litigation Team at Lieb at Law, P.C., &
Anonymous
Thursday, January 19, 2017
Skills That Set Apart Luxury Real Estate Brokers In New York
From due diligence to principled negotiations and more, learn how the leading Real Estate Brokers thrive in luxury markets.
Read the full article by Andrew Lieb, Esq. here.
Read the full article by Andrew Lieb, Esq. here.
Wednesday, January 18, 2017
Newsday - "Long Island home prices rise as listings dwindle, report says"
Check out Newsday's front page for the article.
For real estate brokers that sounds like a mixed bag; higher numbers, but less listings.
For individual salespersons, this is the time where the top associate brokers will shine and separate themselves from the rest. Its time to roll up your sleeves and bring your A-Game.
For real estate brokers that sounds like a mixed bag; higher numbers, but less listings.
For individual salespersons, this is the time where the top associate brokers will shine and separate themselves from the rest. Its time to roll up your sleeves and bring your A-Game.
Monday, January 09, 2017
Enforcing a Commercial Lease Against a Guarantor
Landlords cannot sue a guarantor in a Summary Proceeding because there is “no relationship of landlord and tenant … [where guarantor] was not a primary or joint obligor but assumed a secondary liability which accrued only upon default by the principal.” See Marburt Holding Corp. v. Picto Corp.,(1st Dept., 1958). Therefore, to enforce a guarantee, a landlord must pursue a Plenary Action against the guarantor following the conclusion of the Summary Proceeding. Nonetheless, landlords need not fret about the difficulty and cost incident to instituting a Plenary Action against a guarantor because landlords can proceed pursuant to CPLR §3213 and utilize the Doctrine of Collateral Estoppel in order to avoid the protracted litigation that is typical of a Plenary Action.
Read the full article by Andrew Lieb, Esq. published in The Suffolk Lawyer here.
Read the full article by Andrew Lieb, Esq. published in The Suffolk Lawyer here.
Friday, January 06, 2017
2016 SURVEY RESULTS ARE IN! Agency Disclosure ONLINE ranked BEST Real Estate CE
Nearly 100 NY Real Estate Agents concluded that Lieb School’s Agency Disclosure ONLINE CE course is the best real estate course on the market.
Surveys were conducted after each student completed the course. Below are some highlights:
- Best Instructor Ever.
- Andrew is riveting and brilliant. A joy to watch and learn from.
- Andrew can take a difficult to understand topic and make it easy to follow and comprehend.
- Andrew Lieb is the only instructor that can keep me interested and awake when the content becomes boring. He is intelligent, well prepared, & entertaining. He is the only instructor for me.
- I think Andrew Lieb is passionate and extremely knowledgeable. He makes an otherwise confusing subject easy to interpret and absorb!!!!
- I loved the live interactions. Great sense of humor and outgoing personality made it interesting.
- THEEEEE BEST!!!!! Enough said. Period.
- The best overall experience I've had. Thanks!
- He breaks it into parts that makes so much sense, and keep you on your toes. No sleeping in this class@ :-) Even online, he makes it very interesting!
- I have had the opportunity to take this course in person and online and felt that this online format allowed me to better understand the subject. Particularly the section where you go through each possible way of filling out the form and what type of agency makes sense for what type of consumer. I feel more knowledgeable and confident with agency after completing this online course.
- Was in the dark, now I see the light!!!!!!
- This course exceeded my expectations and gave me a fresh perspective on the use of the Agency Disclosure form. I will be amending the way I present the form given the information I received and my improved understanding of the document.
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