On 10/23/19, continuing education requirements for NYS real estate brokers, associate real estate brokers and real estate salespersons were changed by A6082. These changes are effective 7/1/21.

Lieb School has got you covered for your continuing education needs. Because our school's courses are written & taught by Andrew M. Lieb, Esq. we have been teaching the required courses this entire time! We know what topics you need to avoid getting sued while making money.

The new law creates 2 new categories of continuing education: "ethical business practices" & "recent legal matters" plus it eliminates grandfathering for brokers who were licensed 7/1/08.

NOW, all licensees must receive 22.5 hours of continuing education every 2 years to stay licensed. The 22.5 hours must include:

• 3 hours on fair housing &/or discrimination
• 2.5 hours on ethical business practices
• 1 hour on recent legal matters governing the practice of real estate brokers and salespersons in New York, which may include statutes, laws, regulations, rules, codes, Department of State Opinions and Decisions, and Court Decisions 
• 1 hour on the law of agency (2 hours in the initial 2-year cycle)

Amended RPL §441(3)(a) now states (capital is newly added & [] are deleted):

No renewal license shall be issued any licensee under this article for any license period commencing November first, nineteen hundred ninety five unless such licensee shall have within the two year period immediately preceding such renewal attended at least twenty-two and one-half hours which shall include at least three hours of instruction pertaining to fair housing and/or discrimination in the  sale or rental of real property or an interest in real property, AT LEAST TWO AND ONE-HALF HOURS OF INSTRUCTION PERTAINING TO ETHICAL BUSINESS PRACTICES, AT LEAST ONE HOUR OF INSTRUCTION PERTAINING TO RECENT LEGAL MATTERS GOVERNING THE PRACTICE OF REAL ESTATE BROKERS AND SALESPERSONS IN NEW YORK WHICH MAY INCLUDE STATUTES, LAWS, REGULATIONS, RULES, CODES, DEPARTMENT OF STATE OPINIONS AND DECISIONS, AND COURT DECISIONS AND at least one hour of instruction pertaining to the law of agency except in the case of the initial two-year licensing term for real estate salespersons, two hours of agency related instruction must be completed, and successfully completed a continuing education real estate course or courses approved by the secretary of state as to method, content and  supervision, which approval may be withdrawn if in the opinion of the secretary of state such course or courses are not being conducted properly as to method, content and  supervision. For those individuals licensed pursuant to subdivision six of section four hundred forty-two-g of this article, in the individual's initial license term, at least eleven hours of the required twenty-two and one-half hours of continuing education shall be completed during the first year of the term. Of those eleven hours, three hours shall pertain to applicable New York state statutes and regulations governing the practice of real estate brokers and salespersons. To establish compliance with the continuing education requirements imposed by this section, licensees shall provide an affidavit, in a form acceptable to the department of state, establishing the nature of the continuing  education acquired and shall provide such further proof as required by the department of state. [The provisions of this paragraph shall not apply to any licensed real estate broker who is engaged full time in the real estate business and who has been licensed under this article prior to July first, two thousand eight for at least fifteen consecutive years immediately preceding such renewal.]

LLCs still offer many advantages in real estate ownership, but anonymity isn't one of them.

Did you know that if a buyer’s contract of sale is dated within 90 days of the seller’s deed, the buyer may not be able to get a mortgage commitment? Underwriters at mortgage lenders have policies against issuing loans when the dates between the prior deed and the current contract of sale are too close in time.

The Housing Stability and Tenant Protection Act of 2019 is a 74 page Act. Andrew Lieb, Esq. summarizes the list of major changes applicable to general landlord/tenant practitioners.

Read the full article in the Suffolk Lawyer Law Journal here.

On August 12. 2019, Governor Andrew Cuomo signed legislation implementing extensive reforms to the New York State Human Rights Law, which dramatically increases protections for victims of discrimination and harassment in the workplace and makes it exceedingly more difficult for employers to defend against such claims.

The following provisions of the recently passed New York State law which provide additional protections for victims of harassment/discrimination based on any protected class (sex, race, religion, etc.) go into effect today: 

1)  As of today, the high "severe and pervasive" standard for establishing claims of harassment no longer applies. Rather, any conduct, including isolated incidents, that merely rises above "petty slights" or "trivial inconveniences" may be considered harassment.

2) Whether or not an employee filed an internal complaint prior to filing a lawsuit is no longer determinative of an employer's liability.

3) Non-employees (contractors, vendors, etc.) can now bring claims of harassment against companies based on any protected class.

4) Non-disclosure provisions in agreements settling harassment claims are prohibited unless it is the employee's preference.

5) Mandatory arbitration of harassment claims based on any protected class is now prohibited.

Employers should ensure that these new provisions are included in their annual harassment prevention training.

The Supreme Court of the United States is hearing oral arguments on three high profile cases today which will have a significant impact on LGBTQ rights in the workplace.

In the first two cases, Bostock v. Clayton County, Georgia and Altitude Express, Inc.v. Zarda, the justices will determine whether Federal law prohibits employment discrimination based on sexual orientation. (Federal law generally prohibits discrimination based on "sex"). In the third case, R.G. & G.R. Harris Funeral Homes, Inc. v. Equal Employment Opportunity Commission, the justices will determine whether employment discrimination against transgender people violates Federal law.

The decisions on both of these issues - which will likely be released in early 2020 - will be of great interest to both employers and employees.

New rules for a 20% tax deduction on rental properties published by IRS as 199A Safe Harbor.

What you need to know: 
The Safe Harbor applies to taxpayers who have "an interest in real property held for the production of rents and may consist of an interest in a single property or interests in multiple properties."

KEY - Safe Harbor allows rental real estate enterprises to receive a 20% qualified business income deduction for tax purposes.

If an interest fails to satisfy the requirements of the Safe Harbor, it's still possible to qualify for the 199A deduction by otherwise meeting the definition of a trade or business as set forth in 199A.


Some Notes:

• Multiple Properties - If a taxpayer has an interest in multiple properties, commercial & residential properties can't be combined for the deduction.
• "Mixed Buildings" - In a single building with both residential & commercial purposes (e.g., a storefront with apartments above), property owners have 2 options; 1) treat the property as a single rental real estate enterprise; or 2) separate the interest into both residential & commercial interests. 
• Less Flexibility - Taxpayers also can't change the forms of their interests from year-to-year (i.e., filing multiple properties as a single interest one year, and then filing them as separate interests the next).

Safe Harbor Requirements:

1. Separate books & records are maintained to reflect income for expenses for each rental real estate enterprise;
2. Records should reflect 250+ hours of rental services for each year;
3. Records should also reflect time logs (or similar documents) that show: (i) the amount of hours for all services performed; (ii) descriptions of all services performed; (iii) dates when the services were performed; & (iv) names of persons/companies performing the services; and 
4. A statement attached to a filed original return that outlines the information about the real estate enterprise(s) & why the deduction is being sought by the taxpayer. 

LANDLORDS: Keep logs of rental services and receipts to see if you qualify for the Safe Harbor deduction.

ATTENTION RESIDENTIAL LANDLORDS

On October 3, 2019 Governor Cuomo signed bill A2118 into law, mandating that for all leases moving forward, landlords must accept lease termination notices for tenants living with a "disability" as defined by law, or for the spouse or dependent of a tenant with a disability, should the tenant need to relocate to one of the following:

• An adult care facility;
• A residential health care facility;
• Subsidized low income housing; or 
• A residence of a family member.

More discrimination lawsuits are on the horizon in NYC based upon the City's Commission of Human Rights new enforcement guidelines concerning immigration status and national origin.

Landlords, merchants, and employers now face up to $250,000 in fines for using terms and phrases like "illegal alien", "alien", and "speak english" when used in the context meant to demean, humiliate, or offend.

In their press release, the NYC Commission of Human Rights provided hypothetical examples of discriminatory behavior, including:

• Harassing a restaurant patron because of their accent;
• Refusing repairs on a unit occupied by an immigrant family and threatening to call ICE if they complain;
• Paying a lower wage or withholding wages to workers because of their immigration status; and
• Harassing a store customer by telling them to stop speaking their language and demanding they speak English.

*ATTENTION LANDLORDS AND EMPLOYERS* - your teams must be trained in the different forms of discrimination and harassment to avoid fines, lawsuits, and bad publicity.

Super Lawyers Recognized 4 Attorneys from Lieb at Law, P.C. for 2019 Honors. Only 2.5 percent of the lawyers in the state are named to Super Lawyers Rising Stars. Congratulations to Dennis Valet, Andrew Matthew Lieb, Steven M Siliato and Mordechai Yankovich.

https://www.superlawyers.com/about/selection_process.html

NYC COMMERCIAL LANDLORDS BEWARE! 

Discrimination lawsuits are coming if your teams are not trained to comply with the new NYC commercial tenant harassment laws. 

On 9/25/19, the New York City Council increased commercial tenant harassment fines to a minimum of $10,000 a maximum of $50,000—a ten fold increase from the previous fines that ranged from $1,000 to $10,000. 

The bill passed by the Council also expands on the definition of "tenant harassment" to include: 

• Requesting identifying documents that would disclose the citizen status of a tenant;
• Threatening a tenant based on factors including age, race, gender, disability status, or sexual orientation; and 
• Unreasonably refusing to cooperate with a tenant's permitted repairs or construction activities. 

This expands on the prior prohibitions of denying utility services, removing tenant property, limiting a tenant's access to space, or repeatedly engaging in frivolous lawsuits against tenants. 

Landlords, before taking action in tenant disputes, you should have your teams trained on the different forms of discrimination and harassment to avoid hefty fines.

ATTENTION LLC Owners

LLC sellers & buyers of residential property (1-4 family houses) will no longer be able to hide their identities.

Transfer tax returns submitted by LLCs, as required when transferring real estate, will no longer be accepted by the clerk's office unless submitted with the names and addresses of all members, managers, shareholders, directors, officers, partners, and other authorized agents.

Check out the full bill here and understand that you can no longer hide your identity in a residential real estate deal in the State of New York.

Televisions in an area of public accommodation that have a closed captioning feature must be enabled upon request. However, business owners will not be penalized if the television does not have a closed captioning feature.

The specific law S1650 signed by Governor Cuomo states:

“A place of public accommodation, resort or amusement. . . shall upon request be required to have closed captioning enabled on all televisions that are located in the public area . . . during regular business hours.”

Owners/Managers of public accommodations should train staff on this new requirement to avoid potential exposure to costly lawsuits.

If you missed Eye on Real Estate this weekend you can listen to the Podcast. Topics include - how to evaluate your insurance coverage and questions to ask to make sure your assets are protected in the event of a storm, understanding what happens when you list property without a broker and more general real estate tips.

Listen Here to the Podcast

Attention all employers / HR managers - you have 1 month left to complete your sexual harassment prevention training of all employees as required by Labor Law 201-g.

Failure to train = misdemeanor and exposure to lots of fines by the DOL.

Get your employees trained at sexualharassmenttrainingny.com

Just because someone passed the bar exam and is licensed by the state doesn’t mean that person is good at their job. Here are five ways to know if your lawyer is simply terrible, which you can tell even if you aren’t a lawyer with the know-how to evaluate legal work.

Read the full article by Andrew Lieb, Esq in Dan's Papers here. 

Hour 1

Hour 2

Attention Employers in New York State: Governor Cuomo signed bill S1040 into law extending protections against discrimination in the workplace to victims of domestic violence.

The new law prohibits an employer from hiring or firing an employee or otherwise discriminating against an employee in compensation, terms, conditions or privileges of employment because of such employee's status as a victim of domestic violence. The law also requires employers to provide a reasonable accommodations to an employee who is known by the employer to be a victim of domestic violence, unless providing an accommodation would cause an "undue hardship" to the employer.

Reasonable accommodations for victims of domestic violence are limited to: seeking medical attention; obtaining services from a domestic violence shelter, program or rape crisis center; obtaining psychological counseling or legal services; and, taking safety measures to increase protections against future incidents of domestic violence (e.g. relocation). Time off as a result of such accommodation may be charged against the employee's paid time-off (per law and/or employer's policy). If paid time off is unavailable, an employer may treat such absence as leave without pay.

Employers should immediately update their handbooks, policies, and discrimination prevention trainings to comply with this new law.

Attention Victims of Child Sexual Abuse: You have an opportunity for the next year to seek damages for physical and emotional injuries regardless how long ago the abuse took place.

The Child Victims Act, which went into effect this week, allows any victims of child sexual abuse in New York State to file a civil lawsuit against their abuser or a negligent institution within the next year.

Following the one year period, any victim can file a lawsuit against their abuser or a negligent institution until their 55th birthday (the age limitation was previously 23 years old).

The rationale behind the law is that victims of child sex abuse should not be penalized for not timely disclosing what occurred because of shame or fear.

Attention Employees - Have you faced inferior terms, conditions or privileges of employment because of your age, race, creed, color, national original, sexual orientation, gender identity or expression, military status, sex, disability, predisposing genetic characteristics, familial status, marital status, domestic violence victim status, or because you have opposed discrimination at work?

Did you know that you only need to prove that this discrimination rises above what a reasonable victim of discrimination with the same protected characteristic would consider petty slights or trivial inconveniences to win your claim?

Did you know that you can recover lost wages?
Are you aware that you can be reinstated into your job?
Better yet, did you know that your employer could be required to pay you punitive damages (punishment)?

Guess what? Courts have been directed to award you reasonable attorney's fees if you win. This means that your employer's exposure goes up the entire time that they are defending the claim - it's a huge motivation for your employer to settle with you quickly.

Yesterday, 8/12/19, you were given a voice by the Governor - it's time for you to use that voice and speak up to end discrimination in the workplace.

Effective October 1, 2019, Employers in Connecticut have new sexual harassment prevention obligations.

By way of Public Act No. 19-16, which amends General Statutes 46a-54(1)(15), now employers, with three or more employees, must:

• Within three months of start date, provide information concerning illegality of sexual harassment and remedies available by email or posting;
• Provide two hours of training and education between October 1, 2019 and 2020; and
• Provide such training to new hires within six months of start date.

Attention Employers and HR!!!!

Cuomo signs sexual harassment law- as we first reported on June 19, 2019, A08421 passed both houses and now Cuomo has made it the law of the State of New York.

• Changes the severe or pervasive standard of harassment to a very low standard of more than petty slights or trivial inconveniences;
• Eliminates part of the Faragher/Ellerth affirmative defense to a lawsuit by making the fact that the employee did not make a complaint about the harassment to the employer not determinative as to liability;
• Extends protection for non-employees in the workplace to all protected classes;
• Allows courts to award attorney's fees on all claims of employment discrimination, and allow for punitive damages in employment discrimination cases against private employers;
• Provide that the Human Rights Law is to be construed liberally for remedial purposes, regardless of how federal laws have been construed;
• Prohibit mandatory arbitration clauses for discrimination claims;
• Prohibit non-disclosure agreements in any settlement for a claim of discrimination, unless it's the complainant's preference;
• Provide that any term or condition in a non-disclosure agreement is void if it prohibits the complainant from initiating or participating in an agency investigation or disclosing facts necessary to receive public benefits;
• Require that employees be notified that non-disclosure agreements in employment contracts cannot prevent them from talking to the police, the Equal Employment Opportunity Commission (EEOC), the State Division of Human Rights or a similar local entity, or a lawyer;
• Extend the authority of the Attorney General to prosecute certain civil and criminal cases of discrimination against all protected classes;
• Require the Department of Labor and the Division of Human Rights to evaluate the impact of the model sexual harassment prevention policy every four years and update the policy as needed;
• Require any term or condition in a non-disclosure agreement be provided in writing to all parties, in plain English and the primary language of the complainant;
• Require the commissioner of the Labor Department to prepare templates of the model policy in languages other than English;
• Require every employer to provide employees with their sexual harassment policy in English or their primary language when they are hired and during training; and
• Extend the statute of limitations to file a sexual harassment complaint with the Division of Human Rights from one year to three years.

October 9th, 2019 is the deadline for all employees to complete the sexual harassment prevention training. Newsday recently interviewed Andrew Lieb, Esq. of Lieb Compliance discussing the requirements and solution.

Click here to read the full article. 

When you shoot the messenger, don’t miss.

One month ago, the Legally Speaking column “The End of Prepaid Seasonal Rentals” hit, and real estate brokers have been reaching out ever since. The article explained that the Housing Stability and Tenant Protection Act of 2019 prohibits prepaid seasonal rentals and requires that tenants be billed monthly for rent. After reading the headline, brokers instantly jumped on it. They questioned the veracity of the story, the applicability of the law and everything in between. Now I respond while detailing five false assertions made in response to the article.

Today, August, 9, 2019, Governor Cuomo signed A4204 into law.

A new residential rental law exposes landlords to suit for checking their prospective tenant’s eviction history. This new law provides, at Real Property Law §227-f, that “[n]o landlord of a residential premises shall refuse to rent or offer a lease to a potential tenant on the basis that the potential tenant was involved in a past or pending landlord tenant action or summary proceeding…” In fact, the law contains a rebuttable presumption that a violation has occurred, which presumption arises when a landlord requests such “information from a tenant screening bureau… or otherwise inspect[s] court records.” Furthermore, the law expressly authorizes the attorney general to prosecute landlords for violations of the law and provides for statutory penalties to be recovered against violating landlords. Landlords—don’t check your prospective tenant’s eviction history if you don’t want to get sued by the attorney general.

Read the full article by Andrew Lieb, Esq. published in Dan's Papers here. 

Landlords in the Hamptons have traditionally demanded prepaid rent from tenants on seasonal rentals. If you rented your property for a three-month term, say from July to October, on lease signing, you’d traditionally demand that the tenant provide you with a check for the entire period’s rental fees together with an executed lease or you’d refuse to rent your property to that tenant for that period. So, at lease signing, a tenant would traditionally need to have enough money for the entire rental period plus an additional month’s worth of rent for the security deposit. That tradition, of receiving prepaid rent for the entirety of the rental period plus the security deposit at lease signing, was ended on June 14, 2019.

Read the full article on Dan's Papers here. 

If you missed Eye on Real Estate this weekend, Attorney Andrew Lieb, Esq. joins the show.

Topics include: New rental laws, final walk through & how to handle it as the buyers / sellers, #1 investment isn't multi family houses in real estate, the end of prepaid seasonal rentals.

Listen to the podcasts below:

Click here for Hour 1 

Click here for Hour 2

On July 10, 2019, Governor Cuomo signed two pieces of legislation into law aimed at curbing wage discrimination in the workplace. As a result, all employers in New York State must train managers, and human resources employees and immediately modify hiring, promotion and pay practices to ensure compliance with these new laws and avoid substantial exposure.

The first law, S5248B, amends the Labor Law to prohibit employers from paying an employee a lower wage based on any protected class (The Labor Law previously only prohibited differential pay based on sex). The new law also makes it easier for an employee to prove wage discrimination. Employers were previously only required to provide employees equal pay for "equal work" performed under "similar working conditions." The new lower standard requires the employer to pay employees for "substantially similar work when viewed as a composite of skill, effort and responsibility, and performed under similar working conditions."

The second law, S6549, prohibits employers from asking a job applicant or employee about their salary history and considering salary history in hiring or other employment decision even if the individual voluntarily discloses his or her salary history. An employer may only confirm an applicant or employee's salary history if in response to an offer, the individual discloses his or her salary history to negotiate a higher salary.