An Overview of the 2024 Updates Effecting New York Real Estate

The Property Condition Disclosure Statement:

The Property Condition Disclosure Act, originally signed into New York law in 2001, provided that every seller of residential real estate complete a Property Condition Disclosure Statement detailing ownership and known defects of the property and provide it to a potential buyer before the parties entered into contract. The Property Condition Disclosure Act includes several exceptions. As a penalty for not making such disclosures, sellers of residential real estate were required to provide buyers with a $500 credit before the closing. For years, sellers in New York City and Long Island chose to “opt out” of providing a Property Condition Disclosure Statement and credit buyers $500 toward the purchase price. However, effective March 20, 2024, sellers can no longer choose to “opt out” of providing buyers with a Property Condition Disclosure Statement by providing them with the $500 credit.  

Good Cause Eviction Law:

As of April 20, 2024, landlords in New York City are limited to evicting a tenant when they have “good cause” to do so. This rule, subject to certain exemptions, requires landlords to show a court that they have good cause to evict a tenant before obtaining a court order that they may do so. 

LLC Transparency Law:

The New York LLC Transparency Act was amended and signed by Governor Kathy Hochul in March 2024. This Act is modeled after the federal Corporate Transparency Act, and will require Limited Liability Companies formed or qualified to do business in New York State to report certain information of beneficial owners to the New York Department of State. The earliest date an LLC will be able to file their information with the New York Department of State to comply with the LLC Transparency Act is January 1, 2026. Under the law, there are penalties associated with not filing such disclosures.

Deed Theft:

In July 2024, new laws were passed that criminalize deed theft, treating deed theft as a crime of Grand Larceny in the First, Second, and Third Degrees. This provides law enforcement and prosecutors with added tools to punish those targeting homeowners, often by means of fraud. Adding to the civil protections already in place to protect New York Homeowners, this new legislation assures those impacted that there will be justice. 

Be advised that you should always consult with a Real Estate Attorney for legal advice. An attorney would be able to assess your circumstances and advise on how these laws effect you and your particular case. This brief overview was merely for educational purposes, and should not be construed as legal advice. Contact Sabrina Rabban, Esq. PLLC if you have any questions as to how these laws effect you.

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