Fed Raises Interest Rates–Market Remains Steady

Congratulations to all of the brokers who recently completed a 3.75 credit hour course on the subject of Real Estate Due Diligence. The course, which was taught by Firm Partner Jack Harari and Associate Caroline Malapero, was presented in cooperation with TitleVest, Inc., and took place at their corporate offices on February 28th. We appreciate all who attended, as their input helps us to gauge the educational needs of the Real Estate community. We hope to be able to give many more similar courses in the future.

In the attached article, the New York Times answers common questions that prospective purchasers may have. The first part discusses lead paint, which is a common feature of many older apartments. Though there are associated hazards, especially in houses with small children, there also ways that those risks can be easily recognized and mitigated.

In the second part, the article discusses the laws and ethics of renting out apartments short-term through sharing services such as AirBnB, which in some cases can be illegal. Prospective users of these services should always be aware of local laws concerning apartment use, as well as their building’s policy on temporary sublets, before hosting.

Details such as these can sometimes appear daunting to prospective purchasers, but remember that your real estate team is here to help–keeping actively involved during the due diligence stage of any purchase is the first step to staying educated about the rules and risks of purchasing a particular condo or coop.

The huge presence of cooperative apartments in New York City is one of the many things that makes the local Real Estate market truly unique. However, the complex nature of coop ownership can sometimes be daunting to would-be purchasers–or even present owners. Since each coop is in essence its own independent corporation, individual buildings can distribute communal responsibilities quite differently.

This article, from the New York Times, explores the relationship between a coop board and the rest of its residents. First, how much control do residents who are not on their coop board have over renovations and other potentially costly decisions? And secondly, how can a coop determine who serves on the board and who does not–especially if no one wants to?

It is always important for a prospective purchaser to have a good sense of the workings of the building into which they hope to purchase, so don’t be afraid to ask questions and discuss any due diligence with your Real Estate Broker and Attorney.

On October 1st, a change in New York Mortgage Tax law went into effect. Mortgages guaranteed by or participated in by an IDA, or Industrial Development Agency, are no longer exempt from all mortgage taxes, but will now have to pay New York’s special additional mortgage tax.

The special additional mortgage tax applies to New York City, as well as all other counties in New York which make up metropolitan commuter transportation districts. Outside of these counties, however, the tax is not applicable. Depending on the Transportation district, the tax consists of .25-.3 percent of the mortgage amount. You can find the information promulgated by the NYS Department of Taxation and Finance here.