Category: John Dolgetta

On June 14, 2019, Governor Cuomo signed into law the controversial Statewide Housing Security and Tenant Protection Act of 2019 (the “2019 Act” or “Act”) [see https://bit.ly/2xA6lth]. The Act went into effect immediately and it significantly modifies and expands the existing rent
regulations. The Act changes both the legal and business landscape in the New York real estate market in significant ways.

Rent Control v. Rent Stabilization

In New York, there are two rent regulation programs currently in effect: “Rent Control” and “Rent Stabilization.” These laws were enacted to protect tenants from excessive rent increases and to deal with housing shortages. At the same time, these regulations were intended to allow owners to realize a reasonable profit and allow for reasonable increases so that owners could recuperate certain operating expenses and improvement costs.
Continue reading “Major Changes to the New York Rent Regulation Laws: The Statewide Housing Security and Tenant Protection Act of 2019”

On March 4, 2019, the 2nd Circuit Court of Appeals in New York in Francis v. Kings Park Manor, Inc. (see https://bit.ly/2Kd38bo) found that a landlord can be held liable under the Federal Fair Housing Act (“FHA”) (see https://bit.ly/2WBzEdH) and the New York State Human Rights Law (“NYSHRL”) (see https://dhr.ny.gov/law) for failing to protect a tenant from harassment and discrimination by another tenant. While the Court’s holding may seem an obvious result, especially in light of the egregious behavior of the defendants, the issue decided in this case is a novel one and it is only the second time that a similar issue has been reviewed by the courts (see Wetzel v. Glen St. Andrew Living Community, LLC (U.S. Dist. Ct. Northern Dist. Ill. (July 27, 2016) at https://bit.ly/2MEXocA). It is important for landlords and property managers to know that their exposure to liability under the FHA has been expanded. Real estate professionals should also be aware of the decision in Francis, as it could significantly impact their landlord and property management clients.
Continue reading “Francis v. Kings Park Manor, Inc.: The Landlord’s Obligation to Protect Other Tenants from Harassment”

On April 10, 2019, the Appellate Division for the Second Judicial Department issued a decision in Comora v. Franklin (see https://bit.ly/2H90yk4) holding that the defendants in the case, the seller and seller’s agent, had no duty to disclose to the buyer, based on the doctrine of “Caveat Emptor” (i.e., “Buyer Beware”), the existence of humidity and mold in an indoor pool area of the home they purchased. This may seem like a simple and straightforward decision reiterating that the doctrine of “Buyer Beware” is still the law in New York; however, it is important to note that the rationale the Appellate Court applied in Comora in overturning the decision of the lower court was primarily based on the existence of specific disclaimers contained in the contract of sale.
Continue reading “Comora v. Franklin: The Doctrine of “Buyer Beware” Is Still Alive – But One Must Still Beware”

The filing of the Charge of Discrimination (“Charge”) on March 28, 2019 (see https://bit.ly/2OxXTCC) against Facebook, Inc. by the Secretary for Fair Housing and Equal Opportunity with the Department of Housing and Urban Development (“HUD”) comes at a time of the year when the real estate industry’s focus is on Fair Housing, particularly because it commemorates the enactment of the Fair Housing Act (“FHA”) (see https://bit.ly/2OXTbOK) in April, 1968 and the assassination of Martin Luther, King Jr. which occurred on April 4th, the same day the Senate voted on the legislation. According to HUD it is “…a time when we celebrate the Fair Housing Act and recommit ourselves to ensuring every American has access to housing that is free from discrimination.”
Continue reading “HUD v. Facebook: Battling Discrimination on the Internet”

It is the middle of the tax season and it important to highlight some of the major provisions of the Tax Cuts and Jobs Act (“TCJA”) (see http://bit.ly/2jZX47p) passed in December, 2017, affecting the real estate industry. The TCJA includes many new provisions, and retained some previous provisions, with both positive and negative effects on the real estate industry and real estate professionals in particular. As indicated in a previous article (see https://bit.ly/2G6txCj), there will continue to be a debate as to what effect the Tax Cuts Act will have on the general real estate market and the economy overall.
Continue reading “Revisiting Key Aspects of the Tax Cuts and Jobs Act and Important 2019 Guidance from the IRS that Affect The Real Estate Industry”

On January 15, 2019, the Ninth Circuit Court of Appeals issued its decision in Robles v. Domino’s Pizza, LLC (see https://bit.ly/2SDzfF7), which sheds some additional light on the requirements “places of public accommodation” (which include real estate brokerage firms, Realtor associations, and other businesses) are subject to under the Americans with Disabilities Act (“ADA”) (see https://bit.ly/2dXuamI) with respect to the websites they operate, but still does not provide the much needed and long awaited guidance.
Continue reading “Still No Clarity: The ADA Revisited in Light of the Ninth Circuit’s Decision in Robles v. Domino’s Pizza, LLC”

On December 21, 2018, the Federal Government partially shutdown all non-essential services. This is now the longest government shutdown in U.S. history. As a result, some federal loan programs have been affected. The shutdown is also affecting conventional loans, causing delays and even cancellations of transactions.

Real estate professionals should understand how this may impact transactions already in contract and those currently being negotiated. The shutdown may also affect clients contemplating financing options, such as FHA (Federal Housing Administration) loan, VA (Veteran’s Administration) loans and SBA (Small Business Administration) loans. It is also critical for attorneys representing both residential and commercial clients to be aware of these issues when negotiating and finalizing contracts on behalf of their clients. The experience gained from handling these issues will be useful for real estate professionals in connection with future shutdowns as well.
Continue reading “The Shutdown and its Effect on Real Estate Transactions”

At the National Association of Realtors® (“NAR”) Legal Conference recently held in Boston one of the topics discussed included the increased use of “Pocket Listings” and “Coming Soon” listings on behalf of clients when listing properties for sale. These types of listings are utilized by Realtors® and real estate licensees in certain instances and many times Realtors® and licensees are not fully aware of the risks involved when deciding to employ these techniques. While these types of listings have been around for many years, recently they have become more common as a result of the low inventory and high demand in the real estate market.
Continue reading “Recent NAR Legal Conference: A Focus on “Pocket Listings” and “Coming Soon” Listings”

On August 8, 2018, the Appellate Division, Second Department, affirmed the right of the plaintiff, Gluck & Co. Realtors, LLC [see Gluck & Co. Realtors, LLC v Burger King Corp.,164 AD3d 562 (2nd Dept, 2018), at https://bit.ly/2C1SdfE] to receive a commission in connection with the lease of commercial space where the plaintiff introduced a tenant to the defendants, the owners of the property ultimately leased by the tenant. The plaintiff commenced the action to recover the commission alleging that it performed brokerage services for the defendants.
Continue reading “Commissions: Procuring Cause Standard of “Amicable Atmosphere” and Unjust Enrichment Affirmed Once Again”

On April 12, 2018, Governor Andrew Cuomo signed into law the New York State Budget Bill for Fiscal Year 2019 [see https://bit.ly/2MgdWC6] (the “2019 Budget Act”) which enacts several key legislative initiatives that address sexual harassment in the workplace (hereinafter referred to collectively as the “NYS Sexual Harassment Law”). It is critical for every employer in New York State to be aware of the requirements of these new laws. This article will focus on the elements of the NYS Sexual Harassment Law that go into effect on October 9, 2018, which apply to all employers regardless of the number of employees employed, and apply to all employees, paid or unpaid interns, and non-employees, regardless of their immigration status. Therefore, all real estate brokers and brokerage firms also need to comply with the requirements of the new law.
Continue reading “The New NYS Sexual Harassment Laws: Requirements as of October 9, 2018”