Top 5 Estate Planning Considerations for the Effective Transfer of Real Estate Ownership

Your real estate investment is your legacy. Here are the top five estate planning considerations for keeping your property in the family, in order to produce income for generations to come.

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

Real Estate Brokerage Regulatory Updates - 4/12/17 NYS Board of Real Estate meeting summary

On 4/12/17 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 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 is 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.

While there was no quorum, the following was discussed:

1. An education audit program was conducted from December through March on licensees seeking license renewal where approximately 360 such audits were conducted resulting in a finding of approximately 80% compliance and approximately $27,000 in fines;
2. Many schools are offering classes at 1 and 2 hours in response to the change in regulations;
3. The possibility of changing the Preliminary Statement of Complaint so real estate brokerage firms can make complaints about their salespersons and associate brokers with the Department of State;
4. That the Department of State received a question about clarifying whether property managers must comply with the Corporate Title Opinion Letter from April 26, 2013 and will address such question accordingly; and
5. A public comment that NYS Department of State should coordinate with the Attorney General's Office to enforce unlicensed activities, particularly against auctioneers. 

The next meeting is scheduled for September 13, 2017. 

Lieb at Law is hiring | Associate Attorney | Litigation

Lieb at Law, P.C. 

Fast paced and tech savvy law firm seeks Associate Attorney who can hit the ground running. Ideal candidate is a work product producer with impeccable research, writing and oral advocacy skills. You will be thrown into complex litigation and will quickly learn to thrive while engaging with the leaders of the field.

This role will start off working across all aspects of the firm's litigation practice inclusive of real estate litigation, contractual litigation, premises liability, ownership disputes, plaintiff personal injury, estate litigation and more. You will draft legal memos, pleading, discovery demands, discovery responses and motions. You will negotiate and prosecute personal injury claims against insurance adjusters and then, defend real estate brokerage and title claims while reporting to insurance adjusters. You will also help prepare for depositions, mediations, arbitrations and trials.

Proven competency quickly leads to more challenging and rewarding litigation opportunities such as oral arguments, depositions, trials and appeals. Those that succeed will be charged with developing their own personal niche as their career evolves. Business opportunities exist.

Types of clients include high net worth individuals, start-ups, national real estate brokerage firms and title insurance companies.

The firm offers an environment that supports personal and professional growth without micromanagement or dogmatic resistance to fresh and innovative ideas. Competence trumps experience and career growth is limited only by your own ability, ambition and desire to learn. We will push you to evolve and earn career "wows".

This position is located in Center Moriches, which is in Suffolk County within the Riverhead / Westhampton Area. Clients span across Metro New York area.

Compensation: Commensurate with experience, includes full benefits package.

Requirements:

• Minimum of 1 year Litigation Experience
• Experienced in court appearances, motion writing, legal research with Westlaw, pleadings, discovery, oral arguments a plus, depositions a plus, client management a plus. 

To Apply: Email Cover Letter and Resume to careers@liebatlaw.com or submit your application ONLINE here. 

Foreclosure Considerations When Representing Private Lenders

Foreclosure litigation involves much more than simply enforcing a contract. Follow this top 10 checklist when representing private lenders to successfully navigate the nuances of foreclosure practice.

Read the full article by Andrew Lieb, Esq. and Jay Sheryll, Esq. here. 

NY Department of State Update for License Renewal (Applications and Fees)

This is a direct note from the New York, Department of State.

This notification is to inform you of an increase in Real Estate original and renewal application fees, effective immediately.

The new application fees are as follows: Real Estate Broker Application $155, Real Estate Branch Office Application $155, Real Estate Salesperson Application $55.   

Please stop using the old applications immediately.  The new applications are available on the Department of State website, here are the links:

http://www.dos.ny.gov/forms/licensing/0036-f-a.pdf  (Broker Application)

http://www.dos.ny.gov/forms/licensing/0039-f-a.pdf (Branch Office Application)

http://www.dos.ny.gov/forms/licensing/0022-f-a.pdf  (Sales Application English)

http://www.dos.ny.gov/forms/licensing/0022-a-ES.pdf (Sales Application Spanish)

http://www.dos.ny.gov/forms/licensing/0022-a-HT.pdf  (Sales Application Haitian Creole)

http://www.dos.ny.gov/forms/licensing/0022-a-IT.pdf (Sales Application Italian)

http://www.dos.ny.gov/forms/licensing/0022-a-KO.pdf (Sales Application Korean)

http://www.dos.ny.gov/forms/licensing/0022-a-RU.pdf (Sales Application Russian)

http://www.dos.ny.gov/forms/licensing/0022-a-SC.pdf (Sales Application Chinese)

Also, as a result of an ongoing Real Estate Licensee Qualifying Audit, we are finding that many licensees are noncompliant. The majority of noncompliant licensees state they did not know, and were not told, that prior to applying for a license education, requirements include completion of the 75 hour course, passing the final school exam and receiving a certificate of completion.

It's Fair Housing Month

Lieb School reminds our real estate brokerage students to treat everyone equally in the terms, conditions and privileges of housing during the 2017 Fair Housing Month (and the rest of the year). Remember, you should only discuss the quality of the property, the terms of the offer and the weather when acting in real estate brokerage. Each prospect should be viewed as dancing dollar bills, not by their demographic profile, during real estate negotiations.

Lets make the world a more inclusive place one transaction at a time.

JUST RELEASED | Agency 1 Hour ONLINE | Satisfies DOS Requirement | $5.00

This 1 hour Video CE course instructed by Andrew Lieb, Esq. was designed to be the ultimate refresher course on agency. Students will learn to select the appropriate agency forms for varying scenarios, how to translate agency terms into simple English in order to communicate with transacting parties, and how to properly fill-out the forms in compliance with New York license law.

This is a skills class where students can expect to perfect their agency disclosure abilities. In fact, agency disclosure skills are the most important skill for real estate salespersons today. Learn how to fulfill your license requirement, protect yourself from litigious clients and customers, and most importantly, how to leverage the law by making agency into a value add when offering your services to prospects.

This 1 credit CE course fulfills your NY continuing education requirement on the law of agency (except for new agents who must take 2 hours).

Special Price: $5.00

To register, click here. 

CLE Materials - The Top Real Estate Laws of 2016

Available here are all cases, statutes, and other supporting materials for the CLE, The Top Real Estate Laws of 2016, sponsored by First American Title, presented on Wednesday March 29, 2017 at the The Omni Building.

Lieb School Facts: The Best Way To Protect Yourself, As A Broker, From a Discrimination Claim is to?

Learn more at The Fair Housing Act ONLINE - 4 CE Credits. 

Radio Interview with Andrew Lieb, Esq.: Top 5 Legal Concepts That Can Make or Break a Spec Development

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:

• Getting Financing
• Structuring the Venture
• Setting a Realistic Vision
• Owning the Plans
• Hiring the Contractor

To listen to the radio interview, click here. 

Guidance for Borrowers Seeking Home Loan Modifications Under the Making Homes Affordable Act

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.

New HUD Secretary Confirmed by Senate

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. 

FinCEN Renews Order Requiring Full Disclosure of Persons Behind All Cash Purchases of High-End Real-Estate

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.

Tracking Proposed Legislation to Extend the Mortgage Debt Forgiveness Relief Act into 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.

Top 10 Real Estate Laws of 2016

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:

• 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

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

Important Administrative Decision - Bedbugs in NYC

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.

Important Administrative Decision - Craigslist Advertisements

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.

Commission Rates in Real Estate Brokerage are Discretionary to the Broker and Property Owner

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:

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. 

Real Property Special Edition- The Suffolk Lawyer 2017

2017 is all about change. With a new Republican administration in the White House and a Republican Congress we will experience many changes in statutes, regulations and public policy throughout 2017, which will affect real estate transactions, litigation and our counsel to our clients related thereto. Our clients will have changed perspective and ever-changing needs. While not all change is good, it’s healthy to accept change and embrace it, regardless of one’s personal politics.

As an attorney, change is an opportunity, and those of us who best navigate change will emerge as the leaders of our profession as new laws require new legal leaders. Yet, to leverage change we must first have a firm grasp of the current state of the law. This special section in The Suffolk Lawyer delves into what is, to what will be in real estate law. We address client management, complex niche transactions, litigation incident to transactions, solutions to the foreclosure crisis and we even shed some light on the new administration as it relates to housing.

In this edition Kenneth J. Landau, Esq. sets the tone by giving us a new take on the KISS Principle as it relates to real estate transactions in his article “Give Your Real Estate Clients (A) K.I.S.S.” Then, the team of Jordan Fensterman, Esq., Howard Fensterman, Esq., and Andrew Kasman, Esq. provides instruction to the practitioner on the crossroads of health law and real estate in “Nursing Home Transactions.” Thereafter, Dennis Valet, Esq. sheds some light on claims against real estate brokers that typically result from a case of buyer’s remorse in “Caveat Emptor and Why You Shouldn’t Sue That Real Estate Broker.” Next, past Real Property Committee Chair Irwin Izen, Esq. educates the bar on a recently enacted statute that charges the New York Mortgage Agency to both create and administer the New York Community Restoration Fund in “More Help for Distressed Homeowners.” Lastly, Sabine Franco, Esq. sheds some light on the nominated HUD Secretary, Ben Carson, in “Expectations for HUD.”

These articles are designed to ground us, educate us and inspire us. They are the foundation of what is today because without learning about today we cannot be prepared to leverage tomorrow. In my fifth 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 our writers. I hope that you enjoy this edition.   Andrew Lieb, Esq. 

Click here for the full edition in The Suffolk Lawyer 

Caveat Emptor and Why You Shouldn't Sue That Real Estate Broker

When the discovery of a latent defect in a newly purchased home triggers a severe case of buyer’s remorse, the real estate brokers involved in the transaction often find themselves in the crosshairs. The erroneous expectation is that these licensed professionals hired for the purpose of bringing two parties together in a meeting of the minds are the guarantors of a problem-free transaction. In reality, a real estate broker’s liability is limited to the duties owed to the complaining party. Some of these duties are derived from general common law negligence and agency principles, while others are specific to real estate brokers by way of statutes, regulations and administrative decisions. Because consumers tend to purchase or rent a home only a handful of times in their life, their familiarity with the rules governing these agency relationships is often lacking. 

So, when is it really your real estate broker’s fault? 

Read the full article by Dennis Valet, Esq. in published in The Suffolk Lawyer Here. 

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.

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.

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.

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.

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. 

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". 

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. 

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.

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. 

2016 SURVEY RESULTS ARE IN! Agency Disclosure ONLINE ranked BEST Real Estate CE

AGENCY DISCLOSURE ONLINE BY ANDREW LIEB, ESQ. 

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: 

About The Instructor - Andrew Lieb, Esq. 

• 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.

About The Course

• 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.

Real Estate Brokerage Regulatory Updates - 12/14/16 NYS Board of Real Estate meeting summary

On 12/14/16 the NYS Board of Real Estate continued its mission of optimizing the regulation of real estate brokers in our state by holding its meeting. 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. The collaboration between the Department of State and the Division of Human Rights in investigating claims of discrimination and enforcing the law. To date, the Department of State has referred 5 complaints to the Division of Human Rights. 
2. The Department of State's right, even without subpoena, to request documents from a licensee (including to document requests pertaining to documents that are unrelated to the practice of real estate brokerage) and that a licensee's failure to cooperate may result in a license suspension. 
3. A new licensing requirement of a 1 hour course on licensee safety is being added to curriculum and to make room for such additional hour the property insurance requirement is being reduced from 2 hours to 1 hour.
4. The comments period for regulatory changes, [to 175.1 (commingling money), 175.7 (disclosure to clients before accepting money), 176.3 (1 hour license safety course), 177.3 (minimum instruction time of 1 hour rather than 3 hours), 177.7 (computation of time being 50 minutes for an hour requirement) and 175.25 (licensee disclosure of license type on business cards)], has expired and such regulations are expected to be effective in mid January 2017. 
5. Brokerage firms can utilize cloud storage of their records so long as such cloud technology creates an accurate reproduction of paper records and has technology to permit discovery of any alterations of such records.
6. The Board of Real Estate meeting schedule for 2017 is April 12, 2017, September 13, 2017 and December 6, 2017. 

The next meeting is expected on April 12, 2017. 

Real Estate Transactions and Notary Public Exposure

In a real estate practice the act of notarizing documents is a matter of course for attorneys, paralegals and title closers alike. Often the stamps come out without even a first concern or a break for analysis because a real estate transaction is far too often undertaken while the professionals are on autopilot. Typically, a title closer will stamp documents, collect them and file them at the County Clerk’s Office with minimal oversight and scant quality control measures being in place to avoid forgery or the like. The courts remind us, from time-to-time, that this is a bad idea.

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

Lieb at Law seeks Associate Attorney for Complex Litigation

Lieb at Law, P.C. is seeking an Associate Attorney who can hit the ground running in a technologically advanced and collaborative environment. Ideal candidate is a top producer with impeccable research and writing skills. 

This role will start off working across all aspects of the firm’s litigation practice inclusive of real estate litigation, contractual litigation, premises liability, ownership disputes, plaintiff personal injury, estate litigation and more. You will draft legal memos, motions, pleading, discovery demands and responses. You will negotiate and prosecute personal injury claims against insurance adjusters. You will also help prepare for depositions, trials, mediations, arbitrations and expert consultations.  

Proven competency quickly leads to more challenging and rewarding litigation opportunities such as oral arguments, depositions, appeals, arbitrations, mediations and trials. Throughout every step you will be mentored. Those that succeed will be charged with developing their own personal niche as their career evolves.

The firm offers an environment that supports personal and professional growth without micromanagement or dogmatic resistance to fresh and innovative ideas.  Competence trumps experience and career growth is limited only by your own ability, ambition and desire to learn, evolve and earn career “wows”. 

This position is located in Center Moriches, which is in Suffolk County within the Riverhead / Westhampton Area. Clients span across Metro New York area.

Compensation: Commensurate with experience, includes full benefits package. 

To apply submit Cover Letter and Resume here. 

Ben Carson is nominated to be the next HUD Secretary

Media is reporting that Trump's HUD pick, Ben Carson, will undo Obama's fair housing legacy (e.g., Obama's rule on local communities assessing patterns of racial & income discrimination existing in housing, amongst others).


They cite to what Ben Carson wrote in the Washing Times:

These government-engineered attempts to legislate racial equality create consequences that often make matters worse. There are reasonable ways to use housing policy to enhance the opportunities available to lower-income citizens, but based on the history of failed socialist experiments in this country, entrusting the government to get it right can prove downright dangerous.


Yet, remember fair housing is enforced on the local level of government and the federal government provides merely a floor of rights, not a ceiling. As stated in the Fair Housing Act, at 42 USC 3615:

Nothing in this subchapter shall be construed to invalidate or limit any law of a State or political subdivision of a State, or of any other jurisdiction in which this subchapter shall be effective, that grants, guarantees, or protects the same rights as are granted by this subchapter; but any law of a State, a political subdivision, or other such jurisdiction that purports to require or permit any action that would be a discriminatory housing practice under this subchapter shall to that extent be invalid.


So, states like New York, who provide additional protections to the federal government, will continue to protect society's most vulnerable irrespective of what the federal government does. As Governor Cuomo said in a speech on February 14, 2016:
This state is about acceptance of all by all; discrimination of none by none. Those are the rules that we live by in this state,  ... if you are looking for the progressive future and you want to know how to deal with tough problems, like racial unrest and cultural diversity, you look to the great state of new york.