Housing discrimination is very serious and exposes Landlords and Real Estate Brokers to major lawsuits for big money damages. Attorney Andrew Lieb, Esq. explains to real estate investors and brokers how to minimize exposure and not discriminate to potential tenants. Learn what to say and what not to say when dealing with prospective tenants to avoid getting sued.

50% in 3 Months 

According to the Board of Real Estate Meeting

There were 6,610 exam takers during the period

Lieb School - where the law is followed

248 in 3 months

According to the Board of Real Estate Meeting

Of which DOS:

• 121 closed
• 2 withdrawan
• 2 duplicates
• 19 civil matter
• 9 resolved
• 8 no violation
• 24 no jurisdiction
• 11 insufficient evidence
• 43 were holds placed on licensee's record to address brefore renew
• 6 were referred to counsel for a hearing

Restaurant tips are often illegally withheld from waitstaff. Attorneys Andrew Lieb and Mordy Yankovich discuss employer's liability and exposure to wage and hour disputes plus best practices for restaurants to avoid being named in a class action with astronomical damages.

On December 20, 2019, Public Law No: 116-94 extended 26 USC 108(a)(1)(E) to 1/1/2021. 

According to the IRS, this law "allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualify for this relief."

Short sales, modifications with debt forgiveness, and deeds in lieu of foreclosure are now viable options for many more distressed homeowners for the remainder of 2020.

A highly popular question in the transactional area of law. Does "on or about" or "on or before" mean on that date, around that date, within 30 days of that date? How can a buyer or seller plan for the closing date? Andrew Lieb, Esq explains what these terms mean and how to set expectations for buyers and sellers in this 3 minute clip.

On December 6, 2019, S4777, the Nuisance Call Act, became law and telemarketers must now give specific information to customers starting on March 5, 2020, the effective date of the law, or face heavy fines.

Under the Nuisance Call Act, General Business Law section 399-z now requires that a "telemarketer or seller [] inform[s] the customer that he or she may request that his or her telephone number be added to the seller's entity specific do-not-call list" where the telemarketer must immediately end the call if the customer so elects.

This is serious - fines can be up to $11,000 per violation if you fail to give this information.

Real Estate Brokers must advise all of their associated Real Estate Salespersons immediately and train their teams. In fact, a defense to a fine includes that "the person has trained his or her personnel in the requirements of this section."

Get your training today at Lieb Compliance, LLC.

Andrew Lieb, Esq. shares his greatest professional accomplishment in 2019 in the New York Real Estate Journal. Read the full article here. 

Andrew Lieb shares some highlights of the extraordinary changes in the law that control the sales, rentals and litigation landscape of real estate. This is a must read for real estate professionals, homeowners, landlords and tenants.

Read the full article published in Behind The Hedges here. 

In this “Me Too” era, it is logical that an employer’s reflexive reaction to receiving a complaint of harassment from a female employee is to immediately fire the alleged male harasser. However, while the employer may believe that firing the male employee will protect the employer from a lawsuit by the female employee, such impulsive action without a thorough unbiased investigation may expose the employer to a sex discrimination lawsuit filed by . . . the alleged male perpetrator. 

Read the full article by Mordy Yankovich, Esq. published in the Suffolk Lawyer here. 

Effective December 31, 2019, the minimum wage increased throughout New York State as follows:

1) Nassau, Suffolk and Westchester Counties: $13 per hour.
2) New York City (employers with ten (10) or fewer employees): $15 per hour. 
3) Remainder of New York State: $11.80 per hour.
4) Fast Food Employees Outside of New York City: $13.75 per hour.


In addition, effective December 31, 2019, the salary threshold for employees to qualify under the Executive and Administrative Exemptions (i.e. not entitled to overtime compensation) increased as follows:
1) Nassau, Suffolk and Westchester Counties: $975 per week.


2) New York City (employers with ten (10) or fewer employees): $1,125 per week. 
3) Remainder of New York State: $885 per week. 

For more information, see the following Minimum Wage Orders: Miscellaneous Industries and Occupations; Hospitality Industry. 

On 11/17/19 Newsday published "Long Island Divided" a report of the state of housing discrimination on Long Island.

Private discrimination lawsuits are about to flood the courts and suits can result in 6 to 7 figure awards. A discrimination plaintiff bringing a court proceeding will seek actual damages (direct for loss of housing and consequential of emotional distress for loss of dignity), punitive damages, statutory penalties, attorneys' fees and costs.

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

On December 26, 2019, the Appellate Division, First Department, reversed the Supreme Court and dismissed the New York State Land Title Association's challenge to Regulation 208.

Now, title insurance underwriters and their agents may not offer free meals and beverages, tickets to entertainment events, gifts, golf outings, parties, office supplies and the like as we had previously discussed in the November 2019 article, No More Title Insurance Bribes: Compliance Protocol needed at Every Title Insurance Agency. 

The only aspects of Regulation 208 which remain annulled after this decision are the ancillary fees at 228.5 and the closer payment restrictions.

To understand the current title landscape, read our blog from January 19, 2019, Title Insurance Regulation 208 is Back - Soliciting Title Business is Seriously Restricted Yet Again.

Now, after the December 26 decision, the only possibilities that can change the new reality of the title insurance industry in New York are:

• An application for leave to appeal to the Court of Appeals is made and granted, then, the matter is heard and reversed;
• New regulations are issued by DFS; or
• New legislation is enacted. 

On December 23, 2019, S5160 was enacted and "the defense, in a mortgage foreclosure action, of the plaintiff's lack of standing is not waived because of the defendant's failure to raise such defense in his or her responsive pleading."

A standing defense is utilized to argue that the plaintiff is not the right party to sue in that it's not the owner of the mortgage or debt and has not been appointed the power by such owner to pursue the lawsuit. This is one of the most significant changes to the foreclosure litigation practice since the Great Recession and will impact litigation for years to come.

Real Property Actions and Proceedings Law section 1302-a is an early Christmas present to defendants in ongoing litigation as it took effect immediately and appears to apply up until sale even if a Judgment of Foreclosure has already been ordered. Specifically, the new section states that "[a] defendant may not raise an objection or defense of lack of standing following a foreclosure sale." As such, it appears the defense of standing can be raised at any time before the sale.

If you are defending a case that is post-Judgment of Foreclosure and Sale and pre-auction sale, you may want to consider bringing an Order to Show Cause with a Motion to Renew pursuant to Civil Practice Law & Rules Rule 2221-e immediately.

On December 20, 2019, A2554 was enacted to "[p]rohibit[] commercial leases from including a waiver of the right to a declaratory judgment action and states that the inclusion of such a waiver in a commercial lease shall be null and void as against public policy."

New Real Property Law section 235-h took effect immediately on signing.

Welcome back Yellowstone Injunctions - it's like you never left us in the commercial arena. Commercial tenants facing eviction should consult with an attorney to get an injunction immediately before they are evicted.

On December 20, 2019, Senate Bill S3585 became law.

This bill's purpose is that it "[r]equires gas and electric utility companies to make available to any landlord and lessor of residential rental premises, upon the request of a prospective tenant or lessor of a residential unit, information concerning gas and electric charges incurred from prior occupants of the dwelling."

The bill's justification explains that "[p]eople should have the right to inquire from a gas and electric company the amount of the bills being paid for heat and electric service by the prior customer before they move into a residence. They should not have to rely on a landlord or homeowner's word about how much it costs to heat a residence."

This new law, Public Serivce Law section 66-p, is effective on 4/18/2020.

Lieb Compliance is now offering real estate brokerage companies a private online portal with customized video compliance classes and certifications for their agents. Certifications include Fair Housing & Discrimination, Rentals (Tenant Protection Act of 2019), Agency Disclosure, Sexual Harassment Prevention and more.

To learn more visit www.realestatecompliancetraining.com 

• Notification of Fair Housing laws: All prospective buyers, renters, sellers, and landlords receive the disclosure on fair housing and New York State Human Rights Law as furnished by the Department of State (similar to agency disclosure form, but with broader application). It must also be available at every open house or real estate showing conducted by a real estate professional. This will be known as 19 NYCRR 175.28.
•  Posting of Fair Housing laws: Real estate brokers must also display and maintain at every office a notice highlighting the Human Rights Law’s protections and how complaints may be filed. It must be visible from the sidewalk or another conspicuous place and must also be displayed on all websites created and maintained by real estate brokers, salespersons and teams. The notice must also be posted at every open house conducted by a real estate professional. This will be known as 19 NYCRR 175.29. 
• Video recording and record preservation: All entities approved to provide fair housing and/or discrimination training must record video and audio of every course in its entirety and must keep the recording for 1 year following the date the course was provided. This will be known as 19 NYCRR 177.9.

The proposed regulations will be published on the New York State Register and will be available for a public comment period of 60 days. Lieb Blog will post the proposed regulations once they are available. Stay tuned.

On December 12, 2019, Governor Andrew Cuomo signed into law Senate Bill S5372 which amends Real Property Law § 291. Effective March 11, 2020, upon receiving a request to record a new conveyance, the county clerk or city registrar shall mail a written notice of the conveyance of real property to the current owner of record. Such notice must have the heading printed in 20-point bold type and read as follows:

NOTICE OF SALE OR TRANSFER OF OWNERSHIP OF YOUR RESIDENTIAL PROPERTY.
To:______________________________
Name of owner of record
Our records show that you are listed as the current owner of record for residential property:
Block # __________ Lot # ________
Located At: ___________________________ street address
in the county of __________________ New York
On ____________, documents were filed at this
date

office to change ownership and transfer title of your property.

To: ______________________________
name of new owner
If you have any questions regarding the validity of the documents, and wish to dispute the recording of the transfer, you should obtain legal counsel. If you believe you are a victim of a crime related to this recording, contact your local law enforcement agency or, if in the City of New York, the office of the sheriff.

Employment law experts Andrew Lieb, Esq. and Mordy Yankovich, Esq advise employers how to put policies in place and respond to requests by employees to take additional time off for religious reasons.

Tonight, 12.11.19, I am teaching the CLE Course Ethics for Real Estate Attorneys as sponsored by my good friends at First American.

The supporting materials for the course can be found here.

On December 6, 2019, A5626 was signed into law to regulate reverse mortgages. The new law takes effect on March 5, 2020. 

A reverse mortgage means "[a] loan which is secured by a first mortgage on real property improved by a one- to four-family residence or condominium that is the residence of the mortgagor(s) the proceeds of which are advanced to the mortgagor(s) during the term of the loan in equal installments, in advances through a line of credit or otherwise, in lump sums, or through a combination thereof."

The new law has the following features at new Real Property Law section 280-b:

1. Marketing & offering of reverse mortgage loans are regulated to avoid unfair or deceptive practices;
2. Consumer protection materials are required to be included in marketing such loans & the Superintendent is authorized to promulgate rules & regulations to protect consumers;
3. Loans that pay taxes, mortgage insurance, homeowners insurance, or other property obligations must provide the borrower with periodic account statements & a required warning notice;
4. When the escrowed money for payments of obligations are depleted to 10% or less, the borrower will get a telephone & mailed notice about the borrowers obligations; 
5. Restricts lenders from paying borrowers obligations on the property (taxes, mortgage insurance, homeowners insurance, etc.) as advance payments & only permits lenders to pay when there are arrears;
6. Restricts foreclosures based on primary residence restrictions; 
7. Requires both the lender & the borrower to be represented by an attorney at the closing of the loan; 
8. Borrowers who are injured from a violation by a lender have a private right of action for treble damages & reasonable attorneys' fees; & 
9. Violating this statute by a lender works a complete defense for a borrower in a foreclosure action.

Licensees just received this notice on Fair Housing. Remember - discriminating in real estate can result in fines, license revocation, and huge judgment awards in lawsuits.

Lieb School is committed to ending discrimination in housing by educating licensees about behaviors that constitute inadvertent discrimination. Lieb School - Where the Law is Followed.


Dear Licensee:

Please see attached Fair Housing Guidance Document. This email is a reminder notification of your obligation as a Real Estate Licensee to adhere to the laws prohibiting discriminatory practices.

If you have any questions pertaining to this topic, please contact us at eAccessNY@dos.ny.gov.

Division of Licensing Services
NYS Department of State

On December 3, 2019, the NY State crime of harassing a rent regulated tenant was expanded by way of the tenant protection act of 2019.

New Penal Law section 241.02 and amended Penal Law 241.05 have created the crimes of harassment of a rent regulated tenant in the first and second degree with the second degree being chargeable with a misdemeanor and the first degree with a felony.

These laws are effective on May 31, 2020.

Be very careful when evicting a regulated tenant - they have rights!

On November 25, 2019, General Municipal Law 239-o was amended to have local Commissions on Human Rights take into account all of the NYS protected classes when seeking to foster mutual respect and understanding in the community.

The protected classes are:

1. ages
2. races
3. sexual orientation
4. gender identity or expression
5. military status
6. sex
7. disability
8. predisposing genetic characteristics
9. familial status
10. marital status
11. domestic violence victim status 
12. creed
13. color
14. national origin

On November 21 - we posted the blog Dear LIBOR - Lieb School has a question about your Fair Housing Courses where we advised that the statute requires that real estate licensees only be taught with "attorneys presenting legal subjects".

Now, Newsday is reporting a quote from NYSAR's CEO - "We are requiring all of our instructors that want to teach fair housing to go through a training course that will be run by an independent fair housing group before they can teach for us again,” MacKenzie said.

What?

You can't have them go through a training to become attorneys - they have to pass the Bar Exam.

Can't you all just follow the law?


Liebschool.com - where the law is followed

Newsday is reporting that "Sen. James Gaughran (D-Huntington) and Assemb. Kimberly Jean-Pierre (D-Babylon) introduced a bill that would expand the state’s authority to suspend or revoke a real estate agent’s license."

Did you know that a law already exists that provides for discrimination = license revocation?

19 NYCRR 175.17(b) states:
No real estate broker or salesperson shall engage in an unlawful discriminatory practice, as proscribed by any federal, state or local law applicable to the activities of real estate licensees in New York State. A finding by any federal, state or local agency or court of competent jurisdiction that a real estate broker or salesperson has engaged in unlawful discriminatory practice in the performance of licensed real estate activities shall be presumptive evidence of untrustworthiness and will subject such licensee to discipline, including a proceeding for revocation. Nothing herein shall limit or restrict the Department from otherwise exercising its authority pursuant to section 441-c of the Real Property Law.

Yes, codifying the law makes sense, but unless DOS prosecutes, what's the point?



Just remember, not every charge of discrimination is legitimate.

Let us know your thoughts in comments.

Co-ops sales may be subject to the Housing Stability and Tenant Protection Act. Forget what "our attorneys" have said - here is the go to analysis for prospective litigation on the issue. 

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

Employers need to quickly fire an employee to reduce exposure. Employment experts Mordy Yankovich and Andrew Lieb share tips in this short clip.

NYS' new hotline is 844.862.8703

That being said, discrimination laws provide that the defendant pays your attorneys' fees - so just call any attorney who practices in the field and get representation now!!!

Did you know that the statute, Real Property Law §441(3)(c), requires that fair housing courses be taught by attorneys only?

The statute states: It shall be taught by a qualified faculty with attorneys presenting legal subjects.

We are just wondering how Newsday's Long Island Divided reported on real estate licensees deficiencies in teaching fair housing when they aren't legally allowed to teach these courses in the first place.

Please let us know.

Liebschool.com - where the law is followed

If you missed Eye on Real Estate on 11/16 you can listen to the podcast. Real Estate panel includes:

• Andrew Lieb - Lieb at Law Managing Attorney
• Dottie Herman - Douglas Elliman CEO
• Bradley Inman - Inman Founder
• Thomas Drew - Citizen Bank Executive
• Michael Conte - Insurance Expert

Mordy Yankovich and Andrew Lieb discuss employers duty to offer reasonable accommodations to pregnant employees if there is a condition related to the pregnancy that affects how the employee can perform their job duties.

Watch this short clip here.