It has taken a while, but most listing brokers now have agency disclosure forms available for homebuyers at open houses.
The forms spell out who is representing whom — namely that the listing broker has only the seller’s best interests in mind. However, rare is the listing broker who complies with a statutory requirement to explain the form in more than a few words before buyers sign the thing.
What some brokers working for sellers apparently don’t understand is Continue reading
(Flickr photo by Metropolitan Police)
Real estate brokers in the state number 52,855, nearly half them in New York City.
Number of complaints filed with New York’s Department of State last year: 952.
Those figures were reported by the Real Deal in a piece about how hard will be enforcement of new advertising rules. (I reported on the changes previously.)
Given what most consumers think of real estate agents and the number of times that I alone have observed violations of state law, those numbers just don’t square with reality.
There’s a simple explanation. Continue reading
Requirements list on typical purchase application
To paraphrase Lloyd Bentsen, when I make a mistake, it’s a doozy. So it was with this post. Please see correction below, now reflected in headline.
A broker friend of mine confided in me her anger at another broker.
It seems that the broker listing an apartment wasn’t happy with the board package. My perfectionist friend, a highly successful broker of close to 30 years, had assembled the thing for her buyer and sent it to the other woman for review.
Without a comprehensively and competently presented package, as most consumers here know, the likelihood of a board’s accepting a prospective shareholder into the building is greatly reduced.
My friend, call her Emily, had painstakingly put together the thick packet, having Continue reading
A new opinion letter from the New York Department of State about the misuse of corporate titles by real estate agents has drawn a muted response from the city’s brokerages.
Peters
The one-and-half-page letter said the use of titles such as “vice president” was dishonest and misleading, amounting to prohibited false advertising unless the holders of real estate licenses actually were corporate officers.
“We’ll wait and see what unfolds,” Continue reading
Approximately 70 individuals attended the SRO hearing on a bill to add consumer protections to the co-op board application process.
A City Council measure intended to provide consumer protection to co-op buyers was alternately praised and vilified at hearing of the Committee on Housing and Buildings across the street from City Hall on Tuesday. More than two dozen witnesses testified.
A handful of shareholders and representatives of the brokerage community who spoke focused on deadlines and transparent purchase requirements in the bill, Intro 188. Opposing the legislation were real estate lawyers and co-op boards, which denounced its provisions aimed at unlawful discrimination against applicants and at speeding up board responses.
Among those in favor of the bill were the Real Estate Board of New York (REBNY); Pamela Liebman, Corcoran’s president and CEO; and Frederick Peters, president of Warburg. Said Liebman, reading from a prepared statement:
The provisions of Intro 188 requiring co-op boards to provide a clearly defined list of purchase requirements and a timeline for board response to an applicant’s submitted purchase package are fair, reasonable and highly worthwhile. . .
They will save time and stress by bringing certainty, transparency and timeliness to all co-op sales and move the process forward at a pace that is reasonable.
Opponents savaged the bill, using the words “chaos,” “havoc” and “onerous.” They said that it benefited mainly the broker community and would cause a vast number of board vacancies.
Prominent real estate lawyer Stuart Saft, chairman of the Council of New York Cooperatives and Condominiums, contended that the bill is intended “to solve a problem that does not exist.” He continued:
What this bill does do is assume that the boards and owners, who elect the boards, are somehow involved in a scheme to discriminate. . .
[T]he City council is going to create more paperwork and more of an opportunity for lawyers to sue co-ops for missing deadlines and failing to act the right way. . .
In a summary of the bill, Habitat magazine noted in part last week that:
The financial penalties were particularly irksome to the bill’s opponents. They cited court decisions approximately eight years ago in which the president of a board found guilty of racial discrimination was fined $250,000, other members were fined $25,000 each and they had to pay the fines personally.
At the outset, Councilman Lewis Fidler acknowledged that the bill he has sponsored “is not perfect” and that certain unspecified technical issues had to be resolved. At the same time, he insisted, to the vocal approbation of many attending the proceedings, that boards frequently reject applicants without owning up to their unlawful reasons.
“I know it happens,” he declared, saying he was aware of buildings that will admit only members of their nationality and those who will reject the same nationality.
When committee Chair Erik Mark Dilan pressed Liebman and Peters whether they categorically knew of any cases of disrimination, they conceded that they could not “definitely” report any.
Yet another witness, Barbara Ford, representing the New York State Association of Realtors, detailed what she described as four examples of discrimination against buyers she had represented in the outer boroughs and on Long Island. “It happens all the time,” she related.
One example was of a board that explicitly wanted to reject a prospective buyer because of her race. Told that she would resign as the building’s property manager if they took that unlawful action, the board relented.
That, said Fidler, was the “best point” of the day.
He made the statement in the face of criticism that buyers who face discrimination already have city, state and federal agencies to which they can complain and find redress. If so, he asked, why does the city’s Commission on Human Rights have only 22 such complaints on file?
“Twenty-two! That’s a sin,” remarked John Doyle, senior vice president of REBNY.
Barbara Ford said she had unsuccessfully urged her clients to go to the U.S. Department of Housing and Urban Development, which hears complaints about violations of the Fair Housing Act. One problem is that it is not the seller who is accused of discrimination; it is the board, a third party not covered by any anti-discrimination laws.
“They can come up with any cockamamie reason they want,” she said of boards who want to mask discriminatory actions.
Among Council members who attended the hearing was Mark Weprin, who expressed doubt about the need for the discrimination component of the bill, and Brad Lander, who said it didn’t go far enough. Lander is sponsor of Intro 126, which requires boards to give a reason for any rejection.
The requirement to certify the absence of discrimination proved to be a sticking point for the bill’s foes. “How can an individual know what other board members are thinking when they must certify for the entire board?” Stuart Saft asked. “You’re opening the door to more litigation,” he went on. “Every rejection is going to be followed by a lawsuit.”
Perhaps the certification language is not as clear as it should be, Councilman Fidler allowed, saying it is meant to deal with “overt discrimination” such as, in his words, “I’m not going to let a Jew into this building.”
To the contention of those who argued that the timeframes would unduly burden buildings both large and small, especially those without property managers, Fidler implied that the bill would need to be fine-tuned to permit a range of standards.
As for deadlines, Warburg’s Peters got a smattering of applause from, it seemed, shareholders, when he said that “everyone benefits from those timeline considerations.” The current “lengthy, lengthy process,” Peters added, always is an economic disaster to someone.
But Saft and others maintained that rather than risk failure to meet the deadlines, boards may well just reject applicants who might have been accepted with enough time for additional research.
“The last thing they want to do is let a sale fall through for no good reason at all,” Saft said.
Aside from other lawyers — for example, Andrew Brucker, whose firm is general counsel to 200 co-ops and condos, and Geoffrey Mazel, whose firm represents Coop Board and its more than 9,000 units of housing — testimony also was given by the Council of New York Cooperatives and Condominiums, Federation of New York Housing Cooperatives and Condominiums, and the Alliance of Condo & Co-op Owners.
The hearing lasted for close to four hours.
Tomorrow: Titles talk
To take your own bite out of the Big Apple, you have the option here to search all available properties privately.
Malcolm Carter
Licensed Associate Real Estate Broker
Senior Vice President
Charles Rutenberg Realty
127 E. 56th Street
New York, NY 10022
M: 347-886-0248
F: 347-438-3201
Malcolm@ServiceYouCanTrust.com
Web site
The New York Department of State says in a stunning opinion letter distributed Monday by the Real Estate Board of New York (REBNY) that many of us real estate salespersons and associate real estate brokers, including me, are violating the law.
Associate Attorney Whitney A. Clark states in the letter that those of us who adopt or receive corporate titles such as vice president on upward are in violation of the real property law if we are not actually officers of the corporation — for example, any incorporated brokerage.
In the one-and-a-half-page missive, which amounts to a bombshell, Clark declared: Continue reading
When brokers act like the two I recently encountered and no one complains, we who sell real estate should expect our collective reputation to persist at a low level.
So do I occasionally write about certain unnamed brokers under the “High Road” heading (as well other questionable behavior).
Blogging about the incidents always has been enough at least to stem my anger and mitigate my contempt of bad brokers, even though I undoubtedly delude myself into thinking that my writing could lead to improvement.
Consequently, I don’t report bad behavior to the ethics committee of the Real Estate Board of New York (REBNY) , the Department of State (which regulates licensees) or executives of the firms that supervise sales personnel. As I draft this post, however, I have yet to make a decision whether writing about a recent situation is sufficient.
It begins with an e-mail from my client, Continue reading
New York State Capitol in Albany (Flickr photo by Jimmy Emerson)
Although there was little doubt that lawmakers would act, it is nice to know that the New York State Assembly finally passed an Omnibus Housing Bill on Monday following Senate action last week.
The legislation restores for three years the expired tax abatement that was created to equalize the tax burdens between single-family homeowners and owners of co-ops and condos.
It also extends for the same period the J-51 program, which provides a tax benefit for the renovation of existing housing.
However, the legislation eliminates benefits for the conversion of commercial space to residential use and limits the eligibility for condominium and cooperative buildings with units that have an average assessed value per unit is greater than $30,000. Excepted are projects that receive “substantial” government assistance.
Certain provisions of the 421a program were amended as well so as to encourage new residential development in some high-density areas of Midtown and Downtown Manhattan. Continue reading
(Flickr photo by David Ip)
Co-op boards don’t like to come up empty-handed when pursuing residents who are behind in the monthly payments or otherwise need to be held accountable for their actions.
That’s a key reason that they demand so much information and an interview when someone applies to buy an apartment in their building.
That also is why so rarely will co-op boards Continue reading
Garfinkel
Ethical real estate brokers who are members of the Real Estate board of New York (REBNY) have a requirement that is not in New York State law, notes Neil B. Garfinkel, the organization’s residential counsel.
If representing a member of her/his immediate family, according to REBNY’s Code of Ethics and Professional Practices, a broker must disclose that relationship in writing to other parties to a transaction.
Although the state doesn’t require that disclosure, Continue reading
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