When selling real estate with an executor’s / administrator’s deed or as heirs at law, incident to the death of the owner, seller’s counsel must address both federal and state estate tax liens that automatically attach to real property on the date of death. Importantly, these liens attach and are effective without recorded notice. 

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

A new tax incentive is almost available for purchasing your first home. Legislation has passed both the NYS Senate and Assembly (it is returned to the Assembly before going to the Governor).

The program will work for the purchase or construction of a home, townhome, condominium or unit in a cooperative housing corporation.

Under the account, up to $100,000.00, exclusive of gain, can be invested and withdrawn without state personal income tax if the money is used for purchasing or constructing a first home purchase.

Better yet, parents can create these accounts for their children, where a child would be called a “designated beneficiary” under the statute.

However, to constitute a first time home buyer, whether as a designated beneficiary or on one’s own account, an individual cannot have had any prior “ownership interest in a principal residence at any time” both in the “United States or abroad.”  To clarify, an individual does not have an ownership interest if they expect to inherit property or even if they own the remainder interest under a trust.
 
If the first time purchaser qualifies there is a requirement to utilize the home as a primary residence for “not less than two years after purchase.”

All industries with employees and independent contractors need an inclusive culture through policy and training.

Read NARs article and quotes from Lieb at Law's Managing Attorney Andrew Lieb, Esq.

Mr. Lieb is available for outside compliance counsel, policy drafting and implementation and discrimination trainings. Contact andrew@liebatlaw.com or call 631.878.4455

Uncivil Discourse

Negotiating is first and foremost about preparation.

Fees for licensing have increased by $5 as of April 20, 2017. For real estate brokers the fee is now $155 and for real estate salesman (a/k/a, real estate salespersons) the fee is now $55.

Real Property Law 441-b(1) now reads (words in brackets are the former statute and capitalized words represent the now current statute):

The  fee  for a license issued or reissued under the provisions of
this article  entitling  a  person,  co-partnership,  limited  liability
company  or  corporation  to  act  as a real estate broker shall be [one
hundred fifty] ONE HUNDRED FIFTY-FIVE dollars. The  fee  for  a  license
issued  or  reissued  under  the  provisions of this article entitling a
person to act as a real estate  salesman  shall  be  [fifty]  FIFTY-FIVE
dollars.  Notwithstanding the provisions of subdivision seven of section
four hundred forty-one-a of this article, after January first,  nineteen
hundred  eighty-six, the secretary of state shall assign staggered expi-
ration dates for outstanding licenses that have been previously  renewed
on  October  thirty-first  of  each  year  from the assigned date unless
renewed. If the assigned date results in a term that exceeds twenty-four
months, the  applicant  shall  pay  an  additional  prorated  adjustment
together  with  the  regular  renewal  fee. The secretary of state shall
assign dates to existing licenses in a manner which shall  result  in  a
term of not less than two years.

Here is the video introduction to Lieb School's 1 Hour Agency Disclosure course. Finally the most complicated topic broken down into plain english!

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. 

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. 

• 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 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. 

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.

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).

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.

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

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

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.

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.

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.

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:

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 

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. 

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.

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.

On April 12, 2016, the Department of State was asked:

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.

• 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 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."

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. 

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.

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. 

• 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.