Friday, March 10, 2017
Thursday, March 09, 2017
This radio segment features Andrew Lieb, Esq. discussing the top 5 legal concepts that can make or break a speculative development real estate project.
Topics Include:
Topics Include:
- Getting Financing
- Structuring the Venture
- Setting a Realistic Vision
- Owning the Plans
- Hiring the Contractor
Wednesday, March 08, 2017
On
Monday, February 27, 2017, Fannie Mae, acting as
administrator of Home Affordable
Modification Program (HAMP), implemented portions of the Supplemental
Directive 16-02
regarding the termination of Making Homes
Affordable Program (MHA).
Now,
borrowers who have applied for a modification on or before the termination of
the MHA on December 31, 2016 under HAMP Tier 1, HAMP Tier 2, Streamline HAMP, Second Lien
Modification Program
(2MP), Treasury Federal
Housing Administration HAMP (Treasury FHA-HAMP), and Rural Development HAMP
(RD-HAMP) must have modification effective dates on or before December 1, 2017.
Additionally, closing dates for a transaction under Home Affordable
Foreclosure Alternatives Program (HAFA) must be on or before December 1, 2017.
In
conjunction with the termination of the MHA on December 31, 2016, Supplemental
Directive 16-02 provides guidance to servicers regarding non-Government Sponsored
Enterprise (GSE) Mortgages of borrowers who have requested assistance prior to
December 31, 2016. Specifically, this Directive applies to: the HAMP, the Home Affordable Unemployment Program (UP), HAFA, 2MP, Treasury
FHA-HAMP, and RD-HAMP. In
addition, this Supplemental Directive provides guidance with respect to the
eligibility of certain GSE HAMP Loans to receive pay-for-performance incentives
through the Troubled Asset
Relief Program
(TARP).
So,
the MHA has ended. However, no need to worry if you have applied on or before
December 31, 2016 for a home loan modification through MHA because you still
have time to receive the benefits of the MHA if you complete the modification
process by December 1, 2017.
Alternatively,
if you have not yet applied for a home loan modification, New Yorkers may
continue seek mortgage modifications under Civil Practice Law
and Rule §3408.
Dr. Ben Carson, former Republican Presidential Candidate and Neurosurgeon, has been confirmed as the new Housing and Urban Development Secretary (HUD).
HUD, formed by an act of Congress in 1965, is tasked
with implementing federal policies directed at the housing market.
As Secretary, Dr. Carson will have vast power in
regards to the organization and structure of the agency, specifically the field
structure at the local level. Nonetheless, Dr.
Carson’s discretion is bound by the confines
of federal mandates.
As real estate industry professionals, we wish Dr. Ben
Carson much success in his new role.
The Financial Crimes Enforcement Network (FinCEN) of the US Department of the Treasury renewed a Geographic Targeting Order (GTO), on February 23, 2017, requiring “U.S. title insurance companies to identify the natural persons behind shell companies used to pay ‘all cash’ for high-end real estate in six major metropolitan areas.” The counties covered in this renewal are: all New York City Burroughs, Miami-Dade County, Broward County (FL), Palm Beach County (FL), Los Angeles County, San Francisco County, San Mateo County (CA), Santa Clara County (CA), San Diego County, and Bexar County (TX).
Each county will have a different monetary
threshold for transactions
covered by this GTO to become applicable. In New York, covered
transactions shall be all cash payments for real property at or above a total
purchase price of $1,500,000 in Brooklyn, Queens, Bronx, Queens, and Staten
Island. In Manhattan, covered transactions are set at or above a purchase price
of $3,000,000.
A title insurance company involved in a covered transaction
will be required to file a FinCEN Form 8300
detailing, inter alia, the identities of any persons representing the purchaser
and any “Beneficial Owners” (an individual who owns 25% or more in equity of
the purchaser) “within 30 days of the closing.” For New York, this GTO will
continue to prevent anonymous high-end purchasers in the five boroughs.
Tuesday, March 07, 2017
The remnants of the Mortgage Debt Forgiveness Relief Act only apply in 2017 to debts that were subject to a written agreement which was entered into in 2016. So, as of today, all new agreements that forgive debt (i.e., short sale, deed-in-lieu or mortgage modification with principal reduction) will expose the debtor to income tax, which tax will be based upon their corresponding debt savings.
H.R.110, the Mortgage Debt Tax Forgiveness Act of 2017, seeks to "amend[] the Internal Revenue Code to make permanent the exclusion from gross income of income attributable to the discharge of qualified principal residence indebtedness."
S.122, the Mortgage Debt Tax Relief Act, seeks to "amend[] the Internal Revenue Code to extend through 2018 the exclusion from gross income of income attributable to the discharge of indebtedness on a principal residence."
While H.R.110 is preferable to forever eliminate a tax on unfortunate homeowners incident to having their debt forgiven, please support either bill by contacting your local congressman and having your voice heard.
H.R.110, the Mortgage Debt Tax Forgiveness Act of 2017, seeks to "amend[] the Internal Revenue Code to make permanent the exclusion from gross income of income attributable to the discharge of qualified principal residence indebtedness."
S.122, the Mortgage Debt Tax Relief Act, seeks to "amend[] the Internal Revenue Code to extend through 2018 the exclusion from gross income of income attributable to the discharge of indebtedness on a principal residence."
While H.R.110 is preferable to forever eliminate a tax on unfortunate homeowners incident to having their debt forgiven, please support either bill by contacting your local congressman and having your voice heard.
Monday, March 06, 2017
Now that 2017 is here it is important to be aware of the changes in the law for our industry. This is not a list about the best events from 2016, but, instead, a list that highlights the new legal landscape that you face as real estate attorneys in 2017. Being familiar with these laws, regulations and opinions may help you to better address your client’s goals and to make you money while helping you to avoid malpractice.
Topics Include:
Topics Include:
- Defaults waived in foreclosures
- Real Estate broker continuing education changes
- Premises liability for neighboring properties to the situs of trip and fall expanded
- Storm in Progress Doctrine includes wintery mix
- Vested right to develop requires reasonable reliance
- Vested right to develop requires legally issued permit
- Justiciability of positive declaration pursuant to SEQRA
- Condominium lien priority
- End of anonymous LLC members in NYC
- Citizenship for real estate investment trusts
Tuesday, February 14, 2017
In DOS v. Fletcher, a real estate broker was charged with incompetency and untrustworthiness for acting as a landlord's agent and failing "to assure that their client provided [the tenant] with the bed bug infestation history" for the unit.
As background, the Administrative Tribunal was addressing New York City's Administrative Code at §27-2018.1(a), which states:
For housing accommodations subject to this code, an owner shall furnish to each tenant signing a vacancy lease, a notice in a form promulgated or approved by the state division of housing and community renewal that sets forth the property's bedbug infestation history for the previous year regarding the premises rented by the tenant and the building in which the premises are located.
According to the Department of State, the "act of omission was a violation of the respondents' obligation to deal fairly and openly with a prospective renter."
Moving forward, all New York City Landlord's Agents MUST assure that their landlords provide the bedbug disclosure to avoid being charged with a license law violation.
As background, the Administrative Tribunal was addressing New York City's Administrative Code at §27-2018.1(a), which states:
For housing accommodations subject to this code, an owner shall furnish to each tenant signing a vacancy lease, a notice in a form promulgated or approved by the state division of housing and community renewal that sets forth the property's bedbug infestation history for the previous year regarding the premises rented by the tenant and the building in which the premises are located.
According to the Department of State, the "act of omission was a violation of the respondents' obligation to deal fairly and openly with a prospective renter."
Moving forward, all New York City Landlord's Agents MUST assure that their landlords provide the bedbug disclosure to avoid being charged with a license law violation.
In DOS v. Paramonov, a licensed real estate salesperson was charged with engaging "in false and or misleading advertising for rental properties" by listing "apartments in the 'no fee' category" of Craigslist because "he did not have enough money to post advertisements in the broker's section of the website."
The respondent was fined for his dishonest and misleading advertisements.
Moving forward, real estate salespersons need to remember that their advertisements must be completely aboveboard. If there is a broker's section of a website, the real estate salesperson must utilize it at all times in order to comply with their license law.
The respondent was fined for his dishonest and misleading advertisements.
Moving forward, real estate salespersons need to remember that their advertisements must be completely aboveboard. If there is a broker's section of a website, the real estate salesperson must utilize it at all times in order to comply with their license law.
A Lieb School student recently took a final exam for our Conflicts of Interest ONLINE course and explained how commission rates are set by the Department of State.
They are NOT.
In fact, the Department of State says the following about commission rates:
They are NOT.
In fact, the Department of State says the following about commission rates:
Commission Rates
The commission or compensation of a real estate broker is not regulated by statute or regulation, therefore the amount and terms are negotiable. A real estate broker shall never offer a property for sale or lease without the authorization of the owner. Therefore, prior to the listing or marketing of a client’s real property, it is incumbent upon the real estate broker and the client to mutually agree on a reasonable rate of compensation.
As a result, real estate salespersons and property owners should carefully negotiate commission rates where they also set the consideration that the real estate brokerage will provide to the property owner in exchange for higher or lower rates. To illustrate, a real estate brokerage that is willing to create a video about the property should be able to demand a higher rate than a real estate brokerage who will not create any digital advertising.
