Author: MOWK

Buying property in New York City requires a lot of work – saving, searching, finding the right broker, and finally taking the plunge and purchasing real estate. This may seem like a dream come true, but in some cases the dream can get even better. Real estate brokers can enter a deal with the purchasers of real estate offering them a commission rebate on the property they purchase.

What Is a New York Commission Rebate?

The concept of a commission rebate, also known as a buyer agent rebate, is simple. The buyer’s broker will give a homebuyer a portion of their commission back in the form of either a refund or rebate. Though it isn’t widely practiced in New York City, commission rebates are legal. Section 442 of the New York Real Property Law on splitting commission does not prevent a broker from rebating part of their commission to the client, though this is not generally known to real estate agents, let alone their clients.

Traditional Broker Commission Structures

Usually, when a listing agent negotiates full-service commissions on the purchase and sale of real estate, they’re dealing with the seller. Sellers usually pay around 6 percent of the property’s sale price in New York City. If a buyer’s broker is involved in the transaction, half the commission goes to the seller’s broker and half to the buyer’s broker – so, 3 percent each. That 3 percent is divided between the real estate agent and their brokerage.

How Do I Get a Commission Rebate?

The answer is simple – ask for it! Though some brokers are known as “flat-fee brokers” and will not agree to the terms, some brokers are amenable to the idea of providing their buyers with a commission rebate. This can help you offset closing costs or simply add money back into your bank account. It’s important to ask and negotiate with your broker as a buyer, and it’s absolutely critical that any agreement made about commission rebates between a buyer and broker is in writing and signed. An experienced real estate attorney can help negotiate for a commission rebate in New York City and make sure it’s honored after the purchase of property.

New York Real Estate Attorney

Buying real estate in New York City is something to celebrate and getting the best deal possible as a buyer only makes the celebration sweeter. It’s important to start your relationship with your broker in the most advantageous position possible, and a buyer securing a commission rebate is a good step in that direction. The experienced New York real estate attorneys at MOWK Law can help you get the best deal possible and make your real estate buying experience go smoothly. Contact us today to get your questions answered and make sure someone is looking out for your best interests. 

In a lease- and rental-centric area like New York City, the importance of the landlord-tenant relationship can’t be overstated. The relationship establishes the rights, obligations, and details for parties involved in renting or leasing property; it should theoretically help avoid tenant lawsuits, eviction actions, and other legal suits. However, conflicts and questions arise when tenants take matters into their own hands and unilaterally decide to stop paying rent as payback for perceived problems on the property.

At the end of February, The New York Post published the story that Lady Gaga’s father Joe Germanotta is refusing to pay a portion of the $40,000 monthly rent and $10,000 monthly fees he owes on his Grand Central Terminal restaurant and bar. Germanotta is withholding rent on the grounds his landlord, the MTA, failed to address the location’s homeless population and other issues including a rodent problem, old seating, and poorly maintained restrooms. The MTA contends Germanotta is improperly withholding $260,000 in rent and fees, refused to sign an agreement to defer rent payments, and will face eviction proceedings if he doesn’t pay by mid-March.

Though the exact terms of the lease agreement between Germanotta and the MTA are not publicly known, the dispute is a powerful reminder for landlords and tenants alike of the importance of negotiating and creating a clear, concise, and legal written rental or lease agreement. This agreement should be a comprehensive examination of all issues and a negotiation and agreement on duties, rights, expectations, and remedies for all parties involved.

This type of commercial landlord-tenant dispute is unfortunately commonplace and takes place in shopping centers, malls, and other commercial plazas all over the country when tenants claim their landlord is not doing things it is agreed to do or is failing to meet its obligations. Germanotta is not alone in his claims in Grand Central Terminal – other restaurant managers have also cited the homeless population as a violation of expected conditions by the MTA and a cause of decreased business. Though the outcome of the situation has yet to be determined, a New York City court will most likely be forced to decide whether landlord or tenant was in the right in this and other similar cases.

New York Real Estate Attorney

Leases and rental agreements in New York City set boundaries, rights, expectations, and remedies that can help landlords and tenants enter a business relationship with no surprises. To make sure someone is looking out for your best interests and addressing all the potential issues that may arise during the course of your agreement, the experienced New York real estate attorneys at MOWK Law can handle negotiations on your behalf and make sure you’re protected. Contact us today to get your questions answered and get started!

Buyers often assume newly build homes, condos, and apartments should be perfect, but even new builds can have defects – design, materials, carpentry, appliance installation and even construction itself can be faulty. If this happens after you move in, buyers often wonder what rights they have in New York to have the problems fixed and what steps to take. Ideally, you discover defects prior to purchase. However, a final inspection may not uncover all defects before closing so it’s important to understand your rights against the builder days, weeks, or even years later. MOWK law can help you in either situation.

Housing Merchant Implied Warranty

New York has laws creating a new construction warranty – the Housing Merchant Implied Warranty. It doesn’t need to be written into the sales contract for single family homes and multi-unit residential building units five stories tall or less on land you didn’t own before construction.

Generally, construction defects are covered for one year after the date the title passed to the first new owner – known as the warranty date. Ventilation, plumbing, heating and cooling, and electrical systems are covered for two years following the warranty date. Material defects are covered for six years. You must notify the builder in writing no later than 30 days after the warranty period expires and before filing a lawsuit. The builder must also be allowed a reasonable opportunity to inspect, test, and repair the defect.  You must notify the builder of the defect before filing suit, but don’t have to allow them the time to inspect, test, and repair. You may also file suit up to one year after the warranty period ends or within four years of the warranty date after you’ve notified the builder in a timely manner.

You may also pursue alternative dispute resolution such a mediation to try and reach a settlement. In New York, however, builders may not require binding arbitration in any limited warranting replacing or modifying the Housing Merchant Implied Warranty and must pay for voluntary arbitration. 

How Do You Recover?

If you sue, whether a defect exists is evaluated by the level of skillful workmanship standard within the community. Expert testimony and local building ordinance standards are helpful evidence to present. If you establish that a defect is present, you may typically recover damages equivalent to the cost of repairing or replacing the defect and the cost to repair any damage to the home the warranty work causes.

New York Real Estate Attorney

Buying property in New York is stressful even without the added headache of dealing with an unexpected defect in your brand-new home. If you’ve discovered an unpleasant surprise, the experienced New York real estate attorneys at MOWK Law can help you pursue remedies to make sure you get what you paid for from your builder. Contact us today to get your questions answered and make sure someone is looking out for your best interests. 

In New York City, nearly every apartment is a co-op which are subject to many more rules than traditional apartment buildings. Due to these additional rules, it’s no wonder buyers in the market for a co-op have more questions than the average purchaser. Though everyone is different, some questions consistently arise when purchasing a co-op in New York City.

• How is a Co-Op Different from a Condominium in New York City?

Co-ops and condominiums differ in the structure of their ownership. Corporations own co-op apartments and so are not technically real property. The purchase of a co-op is really a purchase of shares in the corporation that are allocated to the particular apartment in the building, allowing you an entitlement to a proprietary lease of the unit. With a condominium, you purchase real property when purchasing the unit and will receive an actual deed and separate tax bill.

• Do Co-Ops Have a Required Down Payment Amount?

There is no fixed rule as to how much co-ops can require as a down payment, so each co-op is different. Many in New York City allow 20-25% down, but very prestigious, exclusive co-ops often require 40% or more.

• How Much Should I Expect to Pay in Closing Costs?

Closing costs for co-ops are much cheaper than for condominiums in New York City, because co-op purchasers aren’t required to purchase title insurance or pay a mortgage recording tax. Normally, a co-op buyer should anticipate paying between 1-2% of the purchase price in closing costs. The cost rises to 2-3% of the price for apartments bought for $1 million or more.

• Can I Co-Purchase or Gift a Co-Op?

Due to the high price of real estate in New York City, it’s not uncommon for first time buyers to get financial help from family or friends to make the purchase possible. You should verify with any co-op building you might want to live in if they allow for either co-purchasing or gifting a co-op apartment. If it’s allowed, you will probably need a gift letter to document the fact the apartment is in fact a gift. You should mention this to your broker and real estate attorney early in the purchase process so that you can get the appropriate documents in order if you do end up purchasing the co-op in this manner.

New York Real Estate Attorney

Buying property in New York City is complicated enough, and the additional regulations around co-ops makes the process even harder to navigate. It’s important for prospective buyers to ask the right questions in order to avoid unpleasant surprises further into the purchase process. Having the help of the experienced New York real estate attorneys at MOWK Law can make buying a co-op a seamless transaction and ensure you get what you want and exactly what you pay for. Contact us today to get your questions answered and make sure someone is looking out for your best interests. 

New York City is a metropolis constantly under construction. New buildings are erected, and structures are renovated and remodeled every day. The flurry of activity means the city is also hotbed of disputes between landowners. A common source of disputes between real estate owners comes up when a new structure encroaches onto adjoining property owned by someone else. This could come up, for example, if a neighboring property owner expands their patio or deck so it ends up on your property.

Should I Do Nothing?

One option for a New York property owner whose land is encroached on is to do nothing – there is no legal downside to this until they want to sell their property. At that point the seller must disclose the encroachment to every potential buyer for consideration. It’s wise, though, to give the encroaching party written permission to use that part of your property to avoid a future adverse possession claim. If, however, the owner wants to act on the encroachment there are a few options they can exercise to remedy the situation.

Can I Sell the Property to the Adjoining Property Owner?

Another option is giving the adjoining property owner the option to buy the property they encroached upon. If the other owner accepts, you’ll receive financial compensation and they can continue to use the land without consequence. When selling the property, it’s important to contact your lender and a real estate lawyer to make sure land records are updated and accurate.

Is There Clear Title?

Sometimes an encroachment dispute happens because the parties dispute who owns the land at issue. If you and the other owner can’t agree on the boundaries of your respective properties, an action for quiet title can be brought by the person who claims encroachment to settle the issue. After filing a complaint, the plaintiff must serve a copy on everyone they know has claimed a property interest. Once the other parties have presented evidence supporting their property interest claims, the court will evaluate the evidence and determine the valid title holder when it issues a judgment.

Once the plaintiff has established clear title to the property, they can file an ejectment action. If the plaintiff proves they own the property and the neighbor is using it improperly and should be removed, they can also seek an injunction compelling the encroaching, adjoining property owner to get rid of the structure. The plaintiff may also be awarded damages by a court instead of an injunction.

New York Real Estate Lawyer

Property is a valuable investment, so it’s important to do everything in your power to protect what you own. If your neighbor is encroaching on your property, don’t wait until it’s too late to take action – speak to an experienced New York real estate lawyer at MOWK Law. We will fight for the integrity of your property and help you pursue whatever remedies make sense for your situation. Contact us today – we look forward to hearing from you!

Selling property in New York is a complex, multi-step process between buyer and seller. Real estate laws have given both parties legal responsibilities during the transaction and failure to comply with mandatory procedures and disclosures can result in costly legal penalties. One major responsibility of the seller is complying with mandatory disclosures New York sellers must make during the process, which we will examine in more detail.

General Housing Defect Disclosures

A New York seller is required to disclose known housing defects to the buyer in a real estate transaction. Omitting material facts about defects or knowingly making false statements to a buyer results in liability for damages if the omission or falsehood materially affects a buyer’s decision to purchase the property.

Even if the buyer doesn’t request the information, the seller must disclose it. The seller is not legally required to hire a home inspector, so the buyer has a duty to hire a home inspector when deciding whether to purchase the property. The disclosure statement reminds buyers it does not act as a guarantee or a warranty from the seller regarding the property’s condition.

A standard disclosure statement required by the Property Condition Disclosure Act (PCDA) typically addresses:

• General information including age and ownership;
• Mechanical systems and services such as water source, drainage, and utilities;
• Environmental information which covers issues including whether a property is located in a flood plain, if the property contains asbestos or fuel storage tanks, and whether there is knowledge that toxic substances were spilled, leaked, or released on the property; and
• Structural information including roof condition and whether smoke, fire, water, or insect damage are present.

Additional Lead Disclosure

In addition to general disclosure, an additional federal law requires a disclosure regarding lead paint. When selling a house constructed prior to 1978, a seller must comply with the Residential Lead-Based Pain Hazard Reduction Act of 1992, known as Title X. A seller must:

• Disclose all known lead-based paint and hazards on the property;
• Give buyers a designated EPA pamphlet;
• Give buyers a 10-day opportunity to test the home for lead;
• Include warning language in the contract and signed statements from all parties to the transaction verifying the proscribed requirements were met; and
• For compliance, keep signed acknowledgements for three years.

Failure to Disclose

If a seller fails to submit disclosure statements to the buyer, they buyer is owed a statutory fee of $500. Additionally, a seller can still be liable for failure to disclose to the buyer. If a willful failure to perform the disclosures required by the PCDA is found, a seller may be liable to the buyer for actual damages resulting from the defect.

New York Real Estate Attorney

Selling a home can be a complicated process, and to avoid liability and smoothly complete the transaction it’s critical to make sure every step is followed to the letter. Having the help of the experienced New York real estate attorneys at MOWK Law can make the process an easy one and ensure you are not left with any unpleasant (and costly) surprises when selling your home. Contact us today to get your questions answered and make sure the transaction goes exactly as planned.