BMNAR
Over the next several months, members of the Bronx Manhattan North Association of Realtors (BMNAR) will join Realtors from across the state in encouraging our elected officials to join us in preserving the American dream of home ownership. We owe it to our neighbors to make it easier for first time home buyers to own a home or purchase a coop. We also owe it to our Realtors to allow them to work efficiently as a team by finally defining what a real estate “team” is under Real Property Law.
Stronger support is needed to create a New York State First-Time Homebuyer Savings Account Program. Currently, the New York State Association of Realtors (NYSAR) is fighting for a program that provides for a state income tax deduction/subtraction of up to $5,000 per year ($10,000 per year for couples) to help New Yorkers save for the purchase of a first home. NYSAR will continue to work with legislators and state agencies to advance the program and introduce new legislation to fully implement a first-time homebuyer savings account. A recent polling showed that 84% and 80% of New Yorker voters, respectively, support the NY First Home program and agree the governor and state Legislature should make it a priority to incentivize New Yorkers to save for a first home. An independent economic study found that the state and counties would see a 5:1 return on the state’s investment in the program, resulting from increased tax revenue and economic development from participation in the program.
Transparency and disclosure in cooperative housing is a topic worthy of considerable consideration. NYSAR strongly supports legislation bringing greater transparency to the process of buying and selling cooperative apartments by setting up a mandatory timeline for the review, acceptance and/or rejection of a prospective purchaser’s application. If passed, these bills would significantly improve the transparency of the cooperative purchase by adding uniformity and predictability to the application process. Creating a timeline, as provided in S.7523/A.10084 would help all parties involved without imposing an undue burden on cooperative boards, or inhibiting the boards’ right to legally deny applications, nor diminish its fiduciary responsibilities to its shareholders. Similar legislation exists in Suffolk and Rockland Counties, and is being considered in Westchester County. In the sale of fee-simple residential housing, a buyer negotiates with the seller for the transfer of real property between the two parties. In the process to purchase a cooperative apartment, however, the purchaser does not deal directly with the seller as the final arbiter to the transaction, but rather must apply to a cooperative board or committee for ultimate approval. The nature of cooperative boards’ application and review processes can have an injurious effect on the buyer and the seller, while also allowing cooperative boards the ability to unfairly deny housing opportunities to prospective buyers. The result can be that potential buyers will meet all reasonable financial criteria for ownership, but they are illegally denied or rejected from purchasing shares in the coop.
In recent years, “teams” have become a popular business model for real estate professionals. A real estate team will often consist of one member of the team might handle showings, another may work on staging and open houses, while another may take care of obtaining and handling new listings, etc. In other words, several individuals working together to provide services to the public as a group. This differs from the standard practice where an individual broker/salesperson will handle the entire transaction from listing to closing. The team model offers great benefits to the public and is a consumer-friendly method of handling the real estate transaction.
In April of 2013, the State Board of Real Estate recognized the “team” concept. However, New York Real Property Law does not yet define “teams” like it does real estate broker, salesperson, associate broker etc. NYSAR strongly supports legislation to bridge the gap and create continuity between agency regulation and law by defining what a real estate “team” is under Real Property Law.
Realtors are in favor of creating a New York State First-Time Homebuyer Savings Account, transparency and disclosure in cooperative housing, and legally defining a “team.” Realtors will also continue to fight against attempts to increase the mortgage recording tax as it is a regressive tax. Homeowners who are able to pays cash for the property are spared the mortgage recording tax. The vast majority of purchasers who cannot afford to pay cash for their home are then penalized and forced to pay additional state and local mortgage recording taxes. New York State consistently ranks at or near the top of states with the highest real estate closing costs in the nation. Further increases to the tax burden imposed on the real estate transaction will prevent prospective purchasers from being able to achieve the American dream of homeownership throughout the state.
Before closing this piece, I want to remind you that our 94th Annual Banquet is on April 25, 2018. I am extremely elated with our slate of honorees: Vincent Buccieri, Today Realty, Realtor of the Year; Hellen Fiske, Laujel Realty Corp., Realtor Associate of the Year; Michael & Matthew Schmelzer, Tryax Realty Management Inc., Heritage Award; Raul Hiraldo, senior VP Citibank, Institutional Member of the Year; Andy Bowden and Michael Harbater, CS Brown Co., Affiliate Member of the Year; hon. Marcos Crespo, assemblyman-dist. 85, Distinguished Service Award; and, Raul Russi, CEO, Acacia Network, Community Leadership Award.
If you are interested in being a banquet sponsor, taking out an ad in the commemorative journal saluting our honorees, and/or purchasing a ticket/s or table/s, please call 718-892-3000.
Eliezer Rodriguez, Esq. is the chief executive officer of The Bronx-Manhattan North Association of Realtors, Bronx, N.Y.
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