LIEB BLOG

Legal Analysts

Wednesday, March 13, 2013

ALERT - Village of Quogue, New Real Estate Transactional Requirement

Buyers and Sellers of real estate should always hire a real estate agent who is familiar with the local municipal Code concerning their property.

Guess what?

In the Village of Quogue, as of July 2013, transacting parties will be required to have a new Certificate of Occupancy issued within 3 months either before or after the change of ownership.

This rules is a result of the Village of Quogue amending its Village Code, which happens all too often in many municipalities to be able to keep track of them all. Now, Chapter 196 of the Village Code has been amended by adding new subsection "F" to section 196-61, which can be read by clicking here.

So, the reason that you need a real estate agent familiar with the local municipal Code is evidenced by the fact that I only learned about this new Code section from my friend, Ed Kurosz, of the Corcoran Group.

Thanks Ed from all of the Real Estate Professionals who read this blog to stay in the loop about real estate happenings within Downstate New York.

Thursday, March 07, 2013

Do I have to pay my unlicensed plumber?

It depends where your pipes are clogged.

In Manhattan and the Bronx you have to pay.

In Brooklyn, Queens, Staten Island, Long Island, as well as Dutchess, Orange, Putnam, Rockland and Westchester Counties you don't have to pay.

We live in a crazy world, don't we?

Wednesday, March 06, 2013

Title Waves - Advanced Payoff Authorization Sample

At our class last evening in East Hampton, Title Waves, our sponsor, Aquebogue Abstract Corp. offered to provide the students with a sample authorization for mortgage payoff figures. As Ken Zahler from Aquebogue Abstract explained, having advance authority can expedite the closing by way of avoiding waiting for the payoff figures from all outstanding loans while everyone is prepared to close. 

Ken's contact information is on the form should our students wish to reach out to him with further questions about his company or title insurance, in general. 



Wednesday, February 27, 2013

Is My Broker Required to Release My License?

Yes and the broker must do so immediately says the Department of State in Department of State v. Gill, Vassel and Heritage Realty, Inc. at 2283 DOS 07 where it was held that: "The failure to make such a filing until some one or two months after the termination of association with their brokerage, Respondents Vassel and Heritage violated RPL §442-b, and demonstrated incompetency. DLS v James, 10 DOS 93."

Specifically, the Department of State referred to Real Property Law 442-b when it made its decision. The statute states:


Discontinuance or change of salesperson’s association; report: When the association of any real estate salesperson shall have been terminated for any reason whatsoever, his broker shall forthwith notify the Department of State thereof in such manner as the department shall prescribe. Where change of such salesperson’s association is the basis for such termination, the salesperson’s successor broker shall forthwith notify the department of such change in such manner as the department shall

Therefore, the broker has the duty to release a license forthwith.

To learn more about brokerage statutes and regulations in NY and how the actually effect your life and livelihood  register for Lieb School today.

Does the Department of State hear Brokerage Commission Claims?

Generally no.

Real Property Law 442-e(5) provides the Secretary of State with the power to enforce the provisions of Real Property Law Article 12-A, which is the statute applicable to Real Estate Agents in the State of New York. Section 442-e is the basis under which the Department of State hears Administrative Complaints.

With respect to commission disputes, Section 442-e(3) provides as follows:

Penalty recoverable by person aggrieved. In case the offender shall 
have received any sum of money as commission, compensation or profit by 
or in consequence of his violation of any provision of this article, he shall 
also be liable to a penalty of not less than the amount of the sum of money 
received by him as such commission, compensation or profit and not more 
than four times the sum so received by him, as may be determined by the 
court, which penalty may be sued for and recovered by any person aggrieved 
and for his use and benefit, in any court of competent jurisdiction.

Therefore, it appears that commission disputes could be heard by the Department of State, at first glance. Yet, the Courts have also spoken on this issue in Matter of Gouiran v. Department of State of State of N.Y., at 82 AD2d 832. 

In this case, the Appellate Division adopted the Dissent from Partridge v. Lomenzo when it states: "it is ”improper for the Secretary of State to interfere with pending civil actions relative to brokerage claims and such actions ought to be left to judicial determination "“. 

Consequently, while commission can be addressed by the Department of State, it should not serve as the primary basis for the complaint, but instead for violations of license law, whereas the Courts or arbitration are the best forum for commission disputes. 

To learn about this and other commission topics, register for Lieb School's continuing education course, Deal Killers, Don't Let Your Deal Die, this Friday at Chase Plaza in NYC by clicking here