Top Real Estate Laws Affecting New Yorker’s in 2016

Top Real Estate Laws Affecting New Yorker’s in 2016

Real estate is an area that is subject to an increasingly complicated web of federal, state and local regulations. During 2015 a number of new and revised rules took effect in New York City and other parts of the state which may have a profound impact on the real estate market for years to come. Here is a look at just a few of the new laws that were enacted in 2015 and will impact this year.

New York Real Estate Law Firm

Attorney General Encourages Broker Commission Rebates

In December 2014, the New York State legislature approved an amendment to the state’s Real Property Law which authorizes real estate brokers to “pass through or rebate” part of their commission to their client. As anyone who has bought or sold a house probably knows, the broker representing the seller typically receives a commission stated as a percentage of the final sales price. The broker representing the buyer then receives part of the seller’s commission. Many buyer-side brokers then offer a rebate to their client as a means of competing for business.

Although this practice was already commonplace in the New York real estate industry, there were some concerns about its legality under prior law, which prohibited a real estate broker from “sharing” his/her commission with a non-broker (which may be interpreted as including his own client). The legislature’s amendment removed this uncertainty. As New York Attorney General Eric T. Schneiderman noted in April of this year, “As of December’s legislative fix, there is no room for debate: commission rebating in New York State is legal.” Schneiderman further encouraged brokers to take advantage of the law and offer rebates to their customers.

NYC Imposes New Restrictions on Tenant Buyout Offers

In September, New York City Mayor Bill de Blasio signed into a law a new measure limiting the ability of landlords who operate rent-stabilized units to try and buy out established tenants. As Crain’s New York Business noted, “vacant rent-stabilized apartments often can be renovated, deregulated and re-rented at triple the price or more.” This provides landlords with incentives to buy out rent controlled tenants.

Under the City’s new rule, a landlord may not make repeated buyout offers within a six-month period. Mayor de Blasio said this “blackout” rule will “protect tenants from harassment and aggressive buyout schemes, and simultaneously help the City keep neighborhoods affordable.” But a lawyer who represents New York City landlords told Crain’s the blackout rule “prohibits what can be purely benign, non-threatening, non-intimidating—what should be protected free speech.” While this law may be challenged, for now, it remains in effect.

Estate Tax Reforms

New York State recently revised its estate tax laws. The estate tax is assessed against the total value of a person’s assets upon their death. Previously, the first $1 million in assets was exempt from tax. Under reforms which took effect earlier this year, this exemption amount will continue to progressively increase. As of December 2015, the exemption is $3.125 million, which will increase to just over $4.1 million next March. Also note the estate includes any gifts made by a person in the three years preceding death to be part of his or her estate.

Obviously, real estate is often the most valuable part of a person’s estate, and a single property can eat up most, if not all, of the state’s exemption. This makes it incumbent upon all property owners to seek competent legal advice to help minimize potential estate tax consequences.

If you need help from a New York real estate attorney on any of these issues, contact the offices of Menicucci Villa Cilmi today.

New York Real Estate Attorney. If you have legal questions regarding Real Estate, Mortgage or are in need of a Real Estate Lawyer in Staten Island, Brooklyn or New York contact the Law Firm of Menicucci, Villa, Cilmi PLLC for a no cost case evaluation.  We are a Real Estate Law Firm with offices in Staten Island, Brooklyn and New York City.

Staten Island Real Estate Lawyer – Staten Island Mortgage Lawyer – Staten Island Land Use Attorney – Brooklyn Real Estate Lawyer – Brooklyn Mortgage Attorney – Brooklyn Land Use Lawyer – New York City Real Estate Attorney- New York City Mortgage Attorney – New York City Land Use Lawyer.

This website includes general information about legal issues and developments in the law. The content of this website is provided for informational purposes only, and is not intended to be legal advice, and should not be relied upon by any reader. You should not take, or refrain from taking, any legal action in reliance upon the contents of this website. Legal websites and blogs cannot and do not replace or substitute in place of a consultation with a knowledgeable attorney who may offer legal advice based upon the specific circumstances of your situation, and the laws in effect in your geographical location and jurisdiction. Laws vary by jurisdiction, and the contents of this blog may not apply to you. The jurisdictions in which each of the firm’s lawyers are licensed to practice are noted on this website. The ability of any firm lawyer to engage in any activities for a client outside of that lawyer’s state(s) of licensure is subject to state statutes, professional standards and court rules. The Firm does not seek, and this website is not intended to solicit, legal engagements in jurisdictions outside of our lawyers’ states of licensure when such engagements would constitute the unauthorized practice of law in any jurisdiction, or be a violation of any ethical rules in effect. This website/ blog is not intended to be a solicitation of business or any client. Your viewing or use of this website/ blog does not create an attorney-client relationship between you and this firm. Any information supplied by you to this firm in an unsolicited manner, without a retainer agreement, will not be deemed confidential or attorney-client privileged. To the extent permitted by law, this firm hereby disclaims liability to any person for any loss which may arise from relying on or by using information contained on this blog. Although the information on this blog is intended to be current, accurate and complete, it is not guaranteed to be. Further, this blog may contain links to other web sites or other blogs. This firm can make no representation or guaranty that the content of any such websites or blogs are current, accurate or complete, and does not necessarily endorse, approve, or support the content thereof.

IRS Circular 230 Notice. In accordance with Internal Revenue Service requirements, this is to inform you that any information on this website that could be construed as United States tax advice is not written or intended to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed on this website. See IRS Circular 230.

, ,

Comments are closed.