LIEB BLOG

Legal Analysts

Thursday, May 05, 2016

Real Estate Brokerage Regulatory Updates - 5/3/16 NYS Board of Real Estate meeting summary

On 5/3/16 the NYS Board of Real Estate continued its mission of optimizing the regulation of real estate brokers in our state by holding its meeting in NYC, Buffalo and Albany. To remind real estate brokers and salespersons, the public is welcome at these meetings where the public can bring comments from the floor. It's encouraged that Lieb School students attend these meetings to have your voices heard. 

"[T]he Board has general authority to promulgate rules and regulations affecting real estate brokers and salespersons in order to administer and effectuate the purposes of Article 12-A of the Real Property Law."

A complete video of the meeting is available on youtube.

In summary, the following was discussed:

  1. Enforcement activity report;
  2. Equalizing points for salespersons seeking a real estate broker's license for acting on the selling and listing sides of deals;
  3. Updates on the continuing education topics of agency and diversity;
  4. The new broker's curriculum; and
  5. Fair Housing regulations, which were passed.
Most interestingly, the enforcement report claimed that while 317 complaints were fielded by the Department of State from January through April of this year, only 2% were referred to the Administrative Department to pursue charges. Agents should translate that statistic as meaning that while a lot of complaints come into the Department of State, a lot of effort is exerted in weeding out the legitimate complaints from the lot. This is quite reassuring. 

Tuesday, April 26, 2016

10 Secrets to a Perfect Summer Rental

Summer rentals got off to a great start this year, yet there are still people looking to secure that ideal getaway, and there are still East End homeowners who could quickly become landlords for the season. In each issue of Behind the Hedges, I offer insights and information about the legal side of Hamptons real estate. Here’s one that is particularly valuable and bears re-sharing this time of year, when we need to remember: with every great summer rental comes great responsibility. The secret to success for both landlords and tenants is to set clear expectations before the rental period gets underway. If either party has false expectations, the summer can end with anger, arguing and possibly court. Before renting, discuss these topics and then have an attorney draft a lease accordingly.

Read the full article by Andrew Lieb, Esq. in Behind The Hedges.

Mold Licensing Law for Assessment, Remediation, and Abatement

On January 1, 2016 the amended Article 32 of the Labor Law became effective thereby making it “unlawful for any person to engage, advertise or hold themselves out as a mold assessor, remediation contractor, or abatement worker unless they have a valid mold license, issued by the commissioner, for the type of work they will be performing. Individuals who do so may be subject to a civil penalty.”

Read the full article by Andrew Lieb, Esq. in the Suffolk Lawyer.

Wednesday, April 13, 2016

Lieb at Law is expanding and searching for a Real Estate Attorney to join the collaborative team!

Real Estate Attorney

Lieb at Law, P.C., is seeking the next Attorney to help raise the bar and lead our profession in a collaborative, inspiring and technologically advanced setting. The firm offers an environment that supports personal and professional growth without micromanagement or dogmatic resistance to fresh and innovative ideas. Driven attorneys who prove their competence are quickly rewarded with responsibility and opportunities beyond that offered for similarly experienced attorneys at major firms. Competence trumps experience and career growth is limited only by your own ability, ambition and desire to learn and evolve. Career advancement includes partner-track.

We are looking for a potential star that is intellectually driven, who does not cut corners, has a fresh approach, thinks outside-the-box and can provide tangible fact-driven support. Our firm motto is ‘no case; no statute; no talk’. This means that fluff will not get you very far at Lieb at Law, P.C. We challenge you to provide supporting anecdotal evidence of why you would thrive in a collaborative firm that consists of 6 Attorneys, 3 Law Clerks, 2 Business Managers and 1 Paralegal.

This role will start off working across all aspects of the firm’s real estate practice inclusive of foreclosure litigation, mortgage default workouts, real estate transactions, landlord / tenant transactions and evictions, land use and business transactions. Then, the candidate is charged with developing their personal niche as their carrier evolves.

This position is located in Center Moriches, which is in Suffolk County within the Riverhead / Westhampton Area. Clients span across Long Island, New York City and Westchester.

Compensation: Commensurate with experience, includes full benefits package.

About The Firm: Lieb at Law’s mission is to serve as an indispensable strategic advisor to our clients, helping to minimize risk while maximizing profitability, and aggressively litigate with leading solutions. The firm’s transactional team ensures that contractual language is driven by qualitative data from the litigation field. Lieb at Law’s work product is a derivative of embracing education and technology. Lieb at Law is fully committed to our technology-based collaborative approach and believes that this operational model drives our success.

Beyond utilizing legal research platforms to enable immediate access to the most recent case law and publications, the firm’s systems include cloud-based file and time management software with additional proprietary programs. As a result, Lieb Attorneys have instantaneous access to client records anywhere, even on their smartphones in court and at closings.


To Apply:
Email Cover Letter, Resume and Salary Requirements to careers@liebatlaw.com



- See more at: http://lawjobs.com/job/real-estate-attorney-center-moriches-new-york-164526#sthash.EkMA9Mye.dpuf

Monday, April 04, 2016

New HUD Guidance - The Intersection of Disparate Impact Discrimination and Criminal Background Checks

Last year, the Supreme Court ruled that disparate impact discrimination claims are cognizable under the Fair Housing Act. For a refresher, read my blog post about the decision here. In sum, landlords may be liable for discrimination if the effect of a facially neutral housing action has a disproportionate impact on a protected class.

Today, the office of general counsel to the U.S. Department of Housing and Urban Development issued a memorandum offering guidance regarding the potential discriminatory effects of taking an adverse housing action against a tenant based upon their criminal history. A link to the memorandum can be found here. The logline for this memorandum is that HUD believes taking an adverse housing action based upon criminal history may constitute discrimination on the basis of race or national origin because of its disparate impact on those protected classes.

The memorandum examines the three-step burden-shifting test a court would analyze in a claim brought by a tenant who alleges they were discriminated based upon their criminal history. The stated purpose of the memorandum is facially neutral, addressing “how the discriminatory effects and disparate treatment methods of proof apply in Fair Housing Act cases in which a housing provider justifies an adverse housing action… based on an individual’s criminal history.” The practical effect of the memorandum, however, is that HUD has armed plaintiff’s attorneys with a new theory of liability that all landlord’s should understand.

The three-step burden-shifting test requires that a plaintiff first prove that the complained of practice has a discriminatory effect. If the plaintiff is successful, the defendant must then prove that the challenged practice has a legally sufficient justification. Finally, if the defendant proves a legally sufficient justification, a plaintiff must then prove that there is a less discriminatory alternative available. The HUD memorandum examines each question and attempts to offer guidance in turn.

Discriminatory Effect

HUD submits that national statistics stand for the conclusion that “[n]ationally, racial and ethnic minorities face disproportionately high rates of arrest and incarceration. Without drawing its own conclusion, HUD posits that these statistics, along with other evidence, could provide sufficient proof for the legal position that taking an adverse housing action, such as refusing to enter or renew a lease based upon criminal history, has a disparate impact on African Americans or Hispanics.

Legally Sufficient Justification

If a plaintiff is successful in proving that an adverse housing action on the basis of criminal history has a discriminatory effect on racial or ethnic minorities, a defendant would then be compelled to provide a legally sufficient justification for the action. In analyzing this factor, HUD acknowledges that “resident safety and protecting property are often considered to be among the fundamental responsibilities of a housing provider”. However, HUD does push back by requiring that a defendant submit evidence supporting the conclusion that a policy of discriminating on the basis of criminal history furthers the stated purpose of protecting residents and property. That is, a landlord cannot blindly rely upon this justification in every situation. HUD suggests that landlords consider each potential tenant on a case by case basis instead of having a blanket policy of refusing to lease to anyone with a criminal history

For example, HUD submits that the existence of a prior arrest, which does not carry a subsequent conviction, “has very little, if any, probative value in showing that he has engaged in any misconduct. An arrest shows nothing more than that someone probably suspected the person apprehended of an offense.” HUD concludes that “because arrest records do not constitute proof of past unlawful conduct… the fact of an arrest is not a reliable basis upon which to assess the potential risk to resident safety or property posed by a particular individual.”

Moving further, HUD submits that even a criminal conviction does not automatically create a legally sufficient justification. “A housing provider that imposes a blanket prohibition on any person with any conviction record – no matter when the conviction occurred, what the underlying conduct entailed, or what the convicted person has done since then – will be unable to meet this burden [of proving a legally sufficient justification].” HUD suggests that a “housing provider must show that its policy accurately distinguishes between criminal conduct that indicates a demonstrable risk to resident safety and/or property and criminal conduct that does not.”

Less Discriminatory Alternative

If a landlord proves a legally sufficient justification for the challenged policy or act, the plaintiff may still prevail by proving that a less discriminatory alternative exists. Here, HUD offers no substantiated guidance but submits that the analysis must be performed on a case by case basis. The only suggestion proffered by HUD is that a landlord may consider delaying a criminal history investigation until after a tenant has already qualified financially.

Conclusion

In the end, HUD has taken an aggressive position that all landlords must remain cognizant of when making housing decisions. When forming a policy of utilizing criminal background checks, a landlord should ensure that their policy is “tailored to serve the housing provider’s substantial, legitimate, nondiscriminatory interest and take[s] into consideration such factors as the type of the crime and the length of the time since conviction.” A landlord who has no evidence that its policy or action is grounded in nondiscriminatory justification will be vulnerable to complaints. 

At the very least, HUD has made it clear that blanket prohibitions on any person with a criminal history will face legal challenges based upon the Supreme Court’s upholding of the disparate impact theory of discrimination.

Monday, March 28, 2016

Top 10 Real Estate Laws of 2015

Thursday, March 24, 2016

Notice to all Real Estate Brokers and Salespeople from the Department of State, New York

Monday, March 14, 2016

Real Estate Brokerage Regulatory Updates - 2/26/16 NYS Board of Real Estate meeting summary

On 2/26/16 the NYS Board of Real Estate continued its mission of optimizing the regulation of real estate brokers in our state by holding its meeting in NYC, Buffalo and Albany. To remind real estate brokers and salespersons, the public is welcome at these meetings where the public can bring comments from the floor. It’s encouraged that Lieb School students attend these meetings to have your voices heard. 

"[T]he Board has general authority to promulgate rules and regulations affecting real estate brokers and salespersons in order to administer and effectuate the purposes of Article 12-A of the Real Property Law."

A complete video of the meeting is available on YouTube.

In summary, the following was discussed:
The following pending regulations have moved forward and have one more required round of approval prior to being published in the State Register for public comment:


Pending Regulations:
1) Commingling of principal funds
2) Compensation of brokers
3) Additional license safety course
4) Changing the amount of hours from a course from 60 minutes required to 50 minutes required
5) Advertising regulations
6) Updates to the broker approval course

Next, the meeting shifted to a focus on Fair Housing in furtherance of the Governor's Fair Housing Initiative from February of this year. In support thereof, 19 NYCRR 175.17 was proposed to be amended and unanimously approved by vote. The new amended regulation will both broaden the protected classes to include all Federal, State, and Locally Protected Classes and clarify that a violation of Fair Housing, as determined by any local agency or a court of competent jurisdiction, shall be presumptive evidence of untrustworthiness in real estate brokerage wherein the Department of State may revoke a license. 

In all, the meeting's apparent goal was to increase awareness and enforcement of Fair Housing, to alert agents about upcoming educational awareness and outreach planned by the Department of State, and to renew the State's focus and attention onto discrimination through a collaboration between the Department of State and the Department of Human Rights. 

Wednesday, February 24, 2016

Court of Appeals Clarifies Trivial Defect Doctrine

The Court of Appeals in Beltz v. City of Yonkers effectively established the Trivial Defect Doctrine in 1895, a staple in the modern defense attorney’s playbook. Therein, the court recognized that no walkway could be kept so perfectly safe so as to preclude the possibility of an accident and accordingly held that “when … the defect is so slight that no careful or prudent man would reasonably anticipate any danger from its existence … the question of defendant’s responsibility is one of law.” Perhaps shocking to a modern practitioner, the Beltz court found that a two and a half inch deep, 26 inch long and seven inch wide depression in a sidewalk was not an actionable defect. Ever since, New York courts have struggled to define when a defect in a walkway is actionable.

The full article written by Dennis C. Valet, Esq. has been published in The Suffolk Lawyer and can be found here

Lieb at Law Seeks 2016 Law School Graduates To Join Complex Litigation Team

Position: Associate Attorney (Entry Level)

Lieb at Law, P.C., is seeking the next Associate Attorney to help raise the bar and lead our profession in a collaborative, inspiring and technologically advanced setting. 

This position is ideal for an aspiring litigator with a winning attitude.  Gain hands-on litigation experience inclusive of appearances at conferences, oral arguments, depositions, trials, negotiations, mediation, arbitration, motion practice and appeals.  You will be exposed to Complex Commercial, Corporate and Real Estate Litigation; Plaintiff Personal Injury; Outside Counsel Corporate Representation; Real Estate Brokerage Litigation; Foreclosure Defense, Estate Litigation and more.  

The firm offers an educational environment that supports personal and professional growth without micromanagement or dogmatic resistance to fresh and innovative ideas.  Attorneys who prove their competence are quickly rewarded with responsibility and opportunities beyond that offered for similarly experienced attorneys at major firms. Competence trumps experience and career growth is limited only by your own ability, ambition and desire to learn and evolve. Career advancement includes partner track. 

We are looking for a potential star that is intellectually driven, who does not cut corners, fresh approach, outside-the-box thinking, and who can provide tangible fact-driven support. Our firm motto is “no case, no statute, no talk”. This means that fluff will not get you far in our firm. We challenge you to provide supporting anecdotal evidence of why you would thrive in a collaborative litigation firm that consists of 6 Attorneys, 3 Law Clerks, 2 Business Managers and 1 Paralegal.


This position is in Center Moriches which is located in Suffolk County in the Riverhead / Westhampton Area. Clients span across Long Island, New York City and Westchester. 

About The Firm: Lieb at Law’s mission is to serve as an indispensable strategic advisor to our clients, helping to minimize risk while maximizing profitability, and aggressively litigating with leading solutions. The firm’s transactional team ensures that contractual language is driven by qualitative data from the litigation field. Lieb at Law’s work product is a derivative of embracing education and technology.  Lieb at Law is fully committed to our technology based collaborative approach and believe that this operational model drives our success.

Beyond utilizing multiple legal research platforms to enable immediate access to the most recent case law and publications, the firm’s systems include cloud-based file and time management software with additional proprietary programs. As a result, Lieb Attorneys have instantaneous access to client records anywhere, even on their smartphones in court. 

Compensation: Commensurate with experience. Full benefits package.


To apply, email your resume and cover letter to careers@liebatlaw.com 

Thursday, February 18, 2016

Fair Housing Act ONLINE | 4 CE Credits | ONLINE Video Class | Instructed by Andrew Lieb, Esq.

We know that you will never want education from anywhere else after you try it!
FINALLY A FAIR HOUSING CLASS THAT IS ENTERTAINING!!!

4 CE Credits
Satisfies DOS Licensing Requirement
Instructed by Andrew Lieb, Esq.
* Works on PCs, MACs, IPADs, Tablets

Summary: Be warned - Discrimination in housing is very serious and exposes real estate agents to immense liability and the potential loss of their license. In fact, discrimination is so serious that the Department of State only requires this topic to be included in the requisite 22.5 hours of continuing education, but requires no other topic. This course is not a general survey course on discrimination, instead it explains a very specific law: The Fair Housing Act, which sets the nationwide standard for anti-discrimination laws in residential housing. The seminar will detail specific cases involving real estate agents who violated the Act. Be prepared for this course to hit home.

The Fair Housing Act ONLINE is an adaptation of the live class The Fair Housing Act offered by Lieb School. This 4 hour distance education course is designed to teach New York real estate brokers and salespersons how to perform their job without exposure to lawsuits.

This course is instructed by premiere lecturer and attorney Andrew M. Lieb, Esq., MPH, who combines video footage of live class segments with visuals, study guides, and quizzes in order to optimize your understanding of the intense materials. It is delivered in an asynchronous model to allow for accessibility whenever and wherever you find convenient while also offering note-taking and in-class comment features to provide opportunities for feedback, questions, and discussions.

Unlike the 3-credit live class, this course accounts for 4 credits of the total 2-year requirement of 22.5 credits for license renewal, thereby allowing you to satisfy more credits with just one class.

*** THIS COURSE SATISFIES THE ONLY MANDATORY CLASS REQUIREMENT FROM THE DEPARTMENT OF STATE OF NY (DOS) FOR AT LEAST 3 HOURS OF INSTRUCTION PERTAINING TO FAIR HOUSING AND / OR DISCRIMINATION ***

Friday, January 15, 2016

Federal Government Investigates All-Cash Luxury Real Estate Deals

The federal government announced this week that it will soon monitor and investigate all-cash purchases of luxury residential real estate in excess of $3 million in Manhattan and in excess of $1 million in Miami-Dade County for money laundering and other illicit activity.

The Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of Treasury, will lead the investigation. The investigation is targeting all-cash luxury real estate purchases because many such purchases are currently being conducted through “shell” companies used to shield the identities of natural persons and hide assets in a transaction. FinCEN’s Geographic Targeting Order (GTO), which is effective from March 1, 2016 through August 27, 2016, will require title insurance companies to identify and report natural persons behind these shell companies so that law enforcement investigators can use that information to weaken the ability of individuals to disguise their identities in money laundering schemes.

Since 2006, FinCEN has worked to establish an accountable mortgage industry by conducting studies regarding suspected mortgage fraud and money laundering and by issuing orders of investigation for certain financial institutions and transactions across the country.

FinCEN Director Jennifer Shasky Calvery declared that “cash purchases present a more complex gap that we seek to address.” The current investigation of luxury residential real estate will assist FinCEN in further establishing a more transparent system to avoid another financial crisis in the future.

Though currently temporary, the GTO may be extended into next year and expanded to include additional cities and counties. 

Wednesday, January 13, 2016

FIRPTA Withholding Tax Rate Increased 5%

On December 18, 2015, the Protecting Americans from Tax Hikes Act (PATH) was signed into law, amending, among other things, the Foreign Investment in Real Property Tax Act (FIRPTA). The most significant change is that there has been an increase in the withholding rate from 10% to 15%. What this means is that the buyer’s attorney will withhold 15% from the purchase price to a foreign seller and submit this amount directly to the IRS. The foreign seller will now walk away with 15% less (rather than 10%) from sales of U.S. real property interests but may be entitled to a refund, at least in part, if its income tax is less than the 15% that was withheld from the purchase price.

The increase to 15% also applies to distributions by certain domestic corporations to foreign shareholders and distributions by domestic or foreign partnerships, trusts, or estates. However, the 10% withholding rate still applies to personal residences that have a purchase price of less than $1 million.

The increased withholding tax rate ensures tax compliance by a foreign person or entity by offsetting any tax owed on a sale of real property. Planning ahead can allow a foreign seller to either reduce the time that the withheld funds are held in escrow, or eliminate the requirement to withhold any sale proceeds.

The seller’s attorney can make an application to the IRS for a Withholding Certificate, requesting a reduction in the percentage withheld from the sale, based upon a showing that the seller’s maximum tax liability is below 15% of the purchase price. If this Withholding Certificate is approved, the buyer’s attorney, instead of the IRS, holds the funds in escrow; which can greatly expedite the seller’s access to the funds. Alternatively, a foreign seller may be exempt from withholding all together. This determination depends upon a list of reasons; a common reason is if the property is a personal residence and the purchase price is $300,000 or less.

The increased withholding tax rate is effective for dispositions occurring on or about February 16, 2016, which is 60 days after PATH was signed into law.

Why Lieb School's Online Classes Are The Best On The Market

If you are looking for the best education available, we suggest you try our first online class which is Divorce Deals. Additional classes will be added throughout the year. We are in the process of getting all of our online courses licensed. The next course that will be available within the month is The Fair Housing Act ONLINE which will satisfy the DOS requirement of Fair Housing & / or Discrimination.
We partnered with the leading online technology platform to deliver the best in-class user experience that includes audio, video and interactivity. The material is provided by Andrew Lieb, Esq. who combines the latest case law with practice management. Not only is our delivery method entertaining, but you will walk away with the greatest understanding of each topic. Our goal is to help you make money in practicing real estate while staying compliant with your license law.

Here is a 30% off coupon: LIEBSCHOOL30 (expires 2/1/16)

We hope that you will give our education a chance to benefit your career!





Friday, January 08, 2016

NYREJ - Q & A with Lieb, managing attorney at Lieb at Law

The New York Real Estate Journal recently interviewed Andrew Lieb, Esq on technology and legislative trends.

Read the full article here.

Direct Negotiations in Co-Brokered Flat Fee MLS Real Estate Impermissible by Regulation

Flat fee MLS is a trend where a homeowner can pay a small fee (typically around $300), to list their For Sale By Owner home (referred to herein as “FSBO”), on the Multiple Listing Service (referred to herein as “MLS”). As a result, the homeowner can enjoy the best of both worlds in avoiding an approximate 4 to 6 percent commission, while nonetheless exposing their property to all of the clients and customers of licensed real estate brokers/brokerage firms throughout the region. However, the FSBO homeowner cannot directly place their home on the MLS on Long Island, but instead must pay a flat fee MLS vendor, who is also a real estate broker/brokerage firm (referred to herein as “MLS vendor”) for the privilege of using the MLS because only licensees of the service can list on the MLS.

Read the full article, written by Andrew Lieb, Esq. published in The Suffolk Lawyer

Wednesday, January 06, 2016

Making Home Affordable - New Handbook Available - Version 5

To access the new Handbook for MHA, inclusive of HAMP and HAFA, click here. While reviewing the Handbook you should be aware of the case of US Bank v. Sarmiento wherein the Court held that the statutory good faith standard for a CPLR 3408 Foreclosure Settlement Conference is whether the "totality of the circumstances demonstrates that the party's conduct did not constitute a meaningful effort at reaching a resolution", including compliance with the Handbook. To review the case, click here.

This Handbook is the rules for banks / servicers to modify mortgages, so pay careful attention to detail and make sure that they comply.

Wednesday, December 30, 2015

Income Tax Relief after a Short Sale for 2015 & 2016

The President has extended the Mortgage Forgiveness Debt Relief Act through the end of 2016 by signing Congress’ Spending Bill into law. As a result, the amount of money from a mortgage loan that is forgiven incident to a short sale, foreclosure or deed-in-lieu of foreclosure will not be taxable as income.

In the last week of 2014, the extension was passed and then applied to all transactions that occurred in 2014, retroactively. Homeowners closed transactions assuming that they were paying income tax on the forgiven debt. As a result, homeowners elected not to pursue a short sale or deed-in-lieu when it turned out to be their best strategic option.

Now that the law proactively extends throughout 2016, homeowners in financial distress can list their homes for short sale, or work out a deed-in-lieu with their lender, without the fear of being hit with a severe income tax bill.

Another important provision of the Spending Bill, beyond the Mortgage Forgiveness Debt Relief Act extension, concerns mortgage insurance premiums, which are required for mortgage loans that exceed 80% of the purchase price of a home (and is required to be paid until the loan balance goes below 80% of the purchase price). Pursuant to the new law, premium payments can now be deducted from borrower’s income tax, in the same manner as mortgage interest, through 2016. This will continue to encourage homeowners who may not have the funds for a 20% deposit to still be able to purchase a home. 

Wednesday, December 23, 2015

4.5 CE Credits | Online Video Class | Divorce Deals (Lieb School Just Released!)

We know that you will never want education from anywhere else after you try it!

Lieb School's leading distance education combines the latest interactive technology, license law education and continuing edutainment. Take Lieb School online courses on-the-go on PCs, Macs, iPads or Tablets.

The first class offering is Divorce Deals ONLINE worth 4.5 Credits (having taken a live class on a topic does NOT prevent earning credits from the online class).

 HOW TO SIGN UP FOR LIEB SCHOOL ONLINE CLASSES
  1. Click here to create a new Online Classes Account
    (a new online classes account is required for first time users)
  2.  Login, click "CATALOG" (on the upper right hand side of page)
  3. Add course to shopping card: Divorce Deals ONLINE 



Watch out! Divorce Deals are terrific fun, but full of challenging obstacles that can cause you headaches and expose you to liability if you aren’t prepared. Ever work with divorcing spouses before? Then you know. Good luck getting them to agree on anything.

Divorce Deals ONLINE is an adaptation of the live class Divorce Deals offered by Lieb School. This 4.5-hour distance education course is designed to teach New York real estate brokers and salespersons how to navigate through all the complexities of divorce deals.

This course is instructed by premiere lecturer and attorney Andrew M. Lieb, Esq., MPH, who combines video footage of live class segments with visuals, study guides, and quizzes in order to optimize your understanding of the intense materials. It is delivered in an asynchronous model to allow for accessibility whenever and wherever you find convenient while also offering note-taking and in-class comment features to provide opportunities for feedback, questions, and discussions.

Unlike the 3-credit live class, this course accounts for 4.5 credits of the total 2-year requirement of 22.5 credits for license renewal, thereby allowing you to satisfy more credits with just one class. A divorce can pull everyone and everything into its grasp. This course will offer the tools that you need to handle those intricacies while earning your commission.  

Monday, December 14, 2015

Real Estate Brokerage Regulatory Updates - 11/7/15 NYS Board of Real Estate meeting summary

On 11/7/15 the NYS Board of Real Estate continued its mission of optimizing the regulation of real estate brokers in our state by holding its meeting in NYC, Buffalo and Albany. To remind real estate brokers and salespersons, the public is welcome at these meetings where the public can bring comments from the floor. It’s encouraged that Lieb School students attend these meetings to have your voices heard. 
"[T]he Board has general authority to promulgate rules and regulations affecting real estate brokers and salespersons in order to administer and effectuate the purposes of Article 12-A of the Real Property Law."

A complete video of the meeting is available on YouTube.

In summary, the following was discussed:
1.      New Rules: A rule making package for new regulations in the field is going through the regulatory process concerning the following topics:
a.      Setting a specific timeframe to deposit escrow monies rather than a reasonable time as the rule currently requires;
b.      Rules concerning brokers who accept money from their client as opposed to the existing rule concerning a broker accepts money from all clients;
c.      Including a 1 hour safety training course in the curriculum;
d.      Modifying continuing education from a required minimum of 3 hours to 1 hour;
e.      Changing 1 credit of continuing education from constituting 1 hour of study to only constituting 50 minutes of study; and
f.       Revising the advertising regulations to require business cards to include the actual title of the cardholder on the card.
2.      Clarification of School Regulations: It was clarified that online schools and brick and mortar schools are regulated equally with regard to having a brokerage NOT control or own the school.  
3.      Continuing Education Credits: In the distant horizon the Department of State is implementing an online continuing education credit system so agents will not need to keep their original certificates at such time.
4.      Brokerage Curriculum:
a.      Changes to the broker’s curriculum were voted and approved as published. Such changes are not effective yet as there is a long regulatory process.
b.      The Board discussed updating the salesperson’s curriculum next and possibly updating the test to make it more difficult. However, it was pointed out that only approximately 60% pass the salesperson’s exam, as currently written, so making it harder may be too large of a barrier to entry into the field.

c.      The Board clarified that the legislature would have to make a high school diploma or GED a requirement of licensing because the statute, as written, does not give the Department of State the power to implement such regulations. 

Thursday, December 03, 2015

Zoning Ordinances Banning the Sale of Medical Marijuana Likely Discriminate Against People With Disabilities

Jessica Vogele, the number one ranked law student in the 2L class at Touro Law Center who is also a Law Clerk at Lieb at Law, P.C. addresses the most hot-button issue on Long Island today by delving into the zoning of medical marijuana facilities within her article published in The Suffolk Lawyer.

In July 2015, the New York State Department of Health licensed five companies to manufacture and sell medical marijuana in compliance with the Compassionate Care Act of 2014. Although no manufacturing plants will be located on Long Island, there are plans to build two dispensaries – one in Nassau County and the other in Suffolk County. The proposed site for Suffolk County is located in the Town of Riverhead and has met considerable resistance from town residents due to its proximity to a high school and the risks of increased violent crime and traffic generally associated with medical marijuana dispensaries. This backlash against the proposed site has prompted the Village of Islandia to preemptively amend its zoning ordinance in order to ensure that no dispensaries will be placed
within the village’s boundaries in the future.

The issue here is whether the village’s new zoning ordinance, which prohibits the sale of medical marijuana dispensaries within its boundaries, discriminates against people with disabilities.

Reasons to Involve an Attorney in the Rental of an Accessory Apartment

There is a strong temptation for homeowners to rent out the extra space in their home for a few quick bucks on the side, but long gone are the days where being a part time landlord was as easy as posting a classified ad in the newspaper and watching the monthly rent checks roll in. 

With the continuing evolution and advancement of tenant protection laws, it is critical that a landlord runs the rental of their accessory apartment in the same way that they would run a business. One of the biggest differences between a professional and someone who dabbles in a field is the thorough understanding and appreciation of the risks their business faces. 

This article focuses on a few key developments in landlord-tenant law that all mom-and-pop landlords should be conscious of in order to avoid turning their part-time supplemental income into a big time hole in their pocket.

Wednesday, December 02, 2015

Profiting From Real Property

Income producing real estate in Suffolk County is the backbone of our local economy. We have our weekend warriors who rent out their second homes, merchants who operate and lease our mixed use downtowns, REITs, public companies and national brands who manage our industrial parks and shopping centers, hospitals and their doctors, lawyers, architects and accountants who inhabit our professional spaces and every other category of property owners imaginable. Yet, the business of owning and/or managing an income producing property is truly a business, and should not be thought of as a passive investment afterthought. It’s a business that requires a lawyer to serve as counselor, negotiator, scrivener and litigator. In fact, best in class legal services can transform a poor real estate investor into the next great American tycoon.

In this issue of The Suffolk Lawyer, we not only focus on Real Property, but also focus on the business of profiting from real property with all of its associated risks and blue ocean opportunities. Regardless of your individual legal practice focus, knowing the basic pitfalls of real estate ownership is a necessary knowledgebase for every Suffolk County attorney. 

In this edition Dennis Valet, Esq. discusses the need to preemptively mitigate leasing risks in “Reasons to Involve an Attorney in the Rental of an Accessory Apartment,” and Alicia Menechino, Esq. addresses the need to respect the judicial process for evictions in her article, “Self-Help: Vigilante Justice or Legal Re-Entry?” Next, Jordan Fensterman, Esq. addresses the unique risks inherent with renting medical space in his article, “Leasing Medical Office Space in New York.” 
 
Then, we are thrilled to have Jessica Vogele, the number one ranked law student in the 2L class at Touro Law Center, address the most hot-button issue on Long Island today by delving into the zoning of medical marijuana facilities within her article, “Zoning Ordinances That Ban the Sale of Medical Marijuana Likely Discriminate Against People With Disabilities.” 
 
Lastly, but perhaps most importantly, Michael S. Brady, Esq. addresses inspired capital gains tax deferral strategies, which transform the income producing property owner into a true income producer, in his article “Bending Over Backward to Defer Taxes: Reverse 1031 Exchanges.”
 
In my fourth year as the Special Section Editor for Real Property, I need to thank our Editor-in-Chief, Laura Lane, who has made this all possible. Thank you to Ms. Lane and to all of our writers. I hope that you enjoy this edition.

Friday, November 20, 2015

Bans Against Smoking May Discriminate Against the Elderly and Disabled

The Department of Housing and Urban Development (HUD) is proposing a ban on smoking in public housing units nationwide to protect residents from the dangers of secondhand smoke. Citing to the higher risks of cancer and other diseases associated with secondhand smoking, HUD Secretary Julian Castro stated that this policy would protect millions of Americans from preventable diseases every year. Additionally, it would save public housing agencies millions of dollars in repairs from fire and smoke damage caused by lit tobacco products.

The “castle doctrine” is a long-standing legal doctrine allowing individuals certain protections in his or own home. However, if HUD’s proposed ban is enacted, public housing will no longer be a castle for those residents who want to smoke in the privacy of their own homes. By conducting public health studies and hearing public comments, HUD is within its rights to create such a ban.
Many public housing agencies across the country have already implemented anti-smoking policies due to the HUD’s vigorous campaign to adopt such policies since 2009. However, this proposed ban would require all public housing agencies to conform to a non-smoking policy in not only the residences but also the indoor common areas, administrative offices, and within 25 feet outdoors of these units.

It is unclear how the rule will be enforced and what kinds of accommodations will be offered to smokers who already reside in these public housing units. Though the act of smoking lit tobacco products does not fall under a protected class, this policy may have a disparate impact on elderly and disabled smokers who cannot easily leave their homes every time they want a cigarette. If the elderly and disabled are unable to conform to the rule, they be forced out of their residences without any other place to go.


Secondhand smoke is a public health issue, but HUD must tread lightly to offer reasonable accommodations to those who already reside in public housing and who may not be able to abide by the new rule.  Otherwise, HUD may face a flood of discrimination lawsuits.

Monday, November 16, 2015

Fair Housing Act - FREE CE in NYC on 1/7/16

We just opened enrollment for The Fair Housing Act CE class which will be held at St. John's University Manhattan Campus, located at 101 Astor Place. Limited Seating. Online Registration Only. 

Date: 01/07/16 at 12:30pm

Instructor: Andrew Lieb, Esq. 

Credits: 3

Summary: Be warned - Discrimination in housing is very serious and exposes real estate agents to liability and the potential loss of their license. In fact, discrimination is so serious that the Department of State only requires that this course be included in the requisite 22.5 hours of continuing education and requires no other topic. This course is not a general survey course on discrimination, instead it explains a very specific law: The Fair Housing Act, which regulates our entire industry. The seminar will detail specific cases involving real estate agents and mortgage lenders who violated the Act. Be prepared for this course to hit home.
*** 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 ***

Click Here To Enroll

Wednesday, November 04, 2015

Neighbor Warning: Don't Sign Out of Possession Title Affidavits

When your neighbors list their house for sale, proceed with caution and see an attorney immediately if you are presented with an out of possession title affidavit or a boundary line agreement.

This affidavit or agreement is a writing wherein you, as a neighbor, swears, under the penalties of perjury, that you do not assert an ownership claim to real estate which has been used by you as if it were your own. Meaning, part of the property owned by your neighbor in their deed, such as a driveway, fence, shrubs, bulkheading, wood chopping area, boat storage, or the like, may have been used by you for a period of time sufficient to transfer the ownership to you through legal concepts called either adverse possession or a prescriptive easement. However, the new purchaser wants this affidavit or agreement so you disclaim your ownership rights.

Read the complete article in full by Andrew Lieb, Esq. here.

Friday, October 30, 2015

Lieb at Law won Dan's Papers - Best Law Firm 2015

We are thrilled to announce that Lieb at Law is the platinum winner of Dan's Papers Best of the Best 2015 - Law Firm.

Thank you for all of the support!


Thursday, October 29, 2015

Upcoming Lieb School CE: Mortgage Mania in Melville

Mortgage Mania

Instructor: Andrew Lieb, Esq., MPH
Credits: 3.0 CE Hours
Price: Free
Location: Newsday Training Center (Melville)
It’s time to learn the secrets in order to qualify for a mortgage. This seminar will begin with the basics, discussing everything from the definition of a mortgage to types of mortgages. You will learn who the players are at the bank and how their respective roles impact your deal. We will discuss the differences between a prequalification and a commitment and how to close your deal smoothly under the Real Estate Settlement Procedures Act. You will learn secrets that occur behind the scenes at the banks and how to navigate through issues with income, assets, credit scores, CO's, and open permits. This course will enable you to weed-out high-risk clients and to advise average credit score clients on structuring their applications to get approved. Let’s prevent mortgage contingency clauses from killing our deals.

Thursday, October 15, 2015

Top 5 Home Inspection Issues in Real Estate

At or about the time of contract execution in a residential transaction, the condition of the heating, cooling, plumbing and electrical systems coupled with that of the structural components becomes the foremost issue in the transaction and such conditions, when negative, typically give rise to contentious negotiations for adjustments to the initially accepted purchase price. In such, the home inspection not only offers lay purchasers ammunition for offsets, but when mismanaged the inspection can kill the deal completely.

To save your deal while leveraging proper due diligence, it is important to understand these top five home inspection issues in residential real estate transactions.

Read the full article, written by Andrew Lieb, Esq. here.