AGMB Professional Brokers Bulletin: Volume I, Issue 1

Planning Guide for Foreign Investors

By: Michael C. Xylas, Esq.

Foreign ownership of U.S. Real Estate continues to grow because of its allure as a strong, stable investment with steady appreciation potential. The linked article provides ownership planning alternatives, and  introduces tax rules that real estate professionals must know to properly assist  foreign investors interested in acquiring U.S. real estate. Click here to read the full article.

Broker Affidavit - Disclosure as to Agency Relationship

By: David Koshers, Esq. and Neil B. Garfinkel, Esq.

New York Real Property Law § 443(4) requires real estate licensees acting as agents of  buyers/sellers/landlords and tenants  (“clients”)  of property to advise their potential clients of the nature of their agency relationship, including the rights and obligations it creates.  In addition, each individual agent involved in the transaction is required to present the client with the RPL § 443(4) disclosure form and subsequently memorialize the client’s  acknowledged receipt of the agent’s disclosure form by signature. The purpose is to ensure that the client is informed of the fiduciary duties and rights owed to him by the agent. Importantly, though, the signed disclosure form allows the agent to protect himself against potential claims by the client alleging lack of disclosure by the agent.

What if the client refuses to sign?   The Broker Affidavit created by AGMB provides a way for the agent to prove, through the agent’s own written declaration, that a client refused to sign the  disclosure form presented by the agent.

Click here to download a copy of the form as a Word document.

AGMB ALERT: Judge Grants Fraud Trial Against Dunkin’ Donuts

Click here to read an article regarding an AGMB victory in a case against Dunkin Donuts.

AGMB ALERT: AGMB Obtains Major Court of Appeals Victory and Reversal for Coop Client

AGMB scores a major victory before the New York Court of Appeals for a Manhattan cooperative that has potentially far reaching and positive financial implications for cooperatives throughout New York State.

Barry G. Margolis, co-chair of the firm's litigation department, fashioned an appellate strategy and argument convincing the Court of Appeals to reverse a First Department decision effectively permitting a sponsor/commercial tenant calcluating rent escalations under a commerical lease to derive the benefit of tax abatements and exemptions specifically mandated for residential tenant-shareholders.

This dramatic reversal decision not only materially improved our client’s bottom line, but it also sets a precedent by which similarly situated cooperatives may benefit.

To read the full text of the decision click here.

To watch video of the oral argument click here. (Requires Windows Media Player)

To discuss how your cooperative may benefit from this decision, contact Mr. Margolis directly at bmargolis@agmblaw.com or 212-201-1174.

AGMB ALERT: New Lead-Paint Rules Applicable to Renovators and Maintenance Professionals

After approximately twenty years of delays, the Environmental Protection Agency (EPA) has instituted a new regulation mandating renovation and remodeling contractors to be certified in techniques for containing lead dust resulting from interior work. The EPA ‘s new guidelines are being established to protect children during renovation, repair and painting activities that disturb Lead-Based Paint. In addition to being certified and trained in required “lead safe” work practices, the guidelines also require contractors and other maintenance professionals to follow protective work practice and testing standards.

The rule applies to work done by renovators and maintenance professionals working in any residential housing built prior to 1978. This includes coops, condos, child care facilities and schools. Failure to comply with the new regulations can lead to fines over $24,000 per day of non-compliance. Tenants and purchasers of residential properties built before 1978 are already required to be provided with the EPA pamphlet “Protect your Family from Lead in Your Home.” Contractors must now also provide the additional lead hazard information guide “Renovate Right: Important Lead Hazard Information for Families, Child Care Providers and Schools.”

For more detailed information on the new lead paint regulations, consult the EPA’s website by clicking here. For all of the purchase and sale needs of your clients generally, please contact Neil B. Garfinkel, Esq. and Michael C. Xylas, Esq. of Abrams Garfinkel Margolis Bergson, LLP at ngarfinkel@agmblaw.com and mxylas@agmblaw.com and (212) 201-1170.

AGMB ALERT: MAJOR CHANGES TO RESPA EFFECTIVE JANUARY 1, 2010

Effective January 1, 2010, major changes will be made to alter the existing Real Estate Settlement Procedures Act (RESPA).

To read a more detailed summary of these changes and some suggestions for an easier transition please click here .

To view the new form of Good Faith Estimate (GFE) click here . To view the HUD-1 Settlement Statement please click here .

If you have any further questions regarding this subject matter please contact Neil Garfinkel at (212) 201-1173 or ngarfinkel@agmblaw.com, Michael Xylas at (646) 473-7567 or mxylas@agmblaw.com, or David Koshers at (646) 473-7561 or dkoshers@agmblaw.com.