BPI Blog

TRID

April 19, 2018 | By Charles Botensten

Q: I have been hearing a lot about “TRID” lately. Can you tell me what it is and how it will affect the real estate closing process? A: TRID is a new federal consumer disclosure law that goes into effect October 1, 2015. TRID will significantly change the way a mortgage lender discloses to consumers the terms, conditions and closing costs associated with most residential mortgage loans. To assist real estate professionals in understanding what TRID is and how it will aff

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Automatic Renewal Clauses in Exclusive Listing Agreements

February 14, 2018 | By Charles Botensten

Q: I am a New York State licensed real estate broker and I am negotiating an exclusive leasing agreement with an owner who would like us to act as the exclusive leasing agent for a portfolio of apartments. The owner’s form of exclusive leasing agreement contains a provision which provides that that the term of the agreement will automatically renew after the initial term expires. Is this provision legal? A: No, The New York State Rules and Regulations that govern the activities of real estate licensees prohibit automatic renewal clauses in exclusive listing agreements. More speci

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Mechanic’s Lien for Real Estate Brokerage Commission

February 13, 2018 | By Charles Botensten

Q: I am a real estate broker and I was working on a commercial leasing transaction where the landlord had given me an exclusive listing to lease its retail space. I successfully found a tenant and a five year lease was fully signed. The landlord still has not paid me my real estate commission even though our listing agreement stated that I was to be paid a portion of my commission at lease execution. Can I file a mechanic’s lien on the building where the retail space is located in order to ensure or enforce the payment of my commission? A: Yes, a real estate broker who is not paid a co

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Deadbolts, Locks and Peepholes

February 12, 2018 | By Charles Botensten

Q: I am a licensed real estate salesperson and I am representing a tenant who is leasing an apartment in a rental building in New York City. The tenant has requested that the apartment be equipped with a deadbolt and chain on the front door. Is the landlord obligated to provide such locks? A: Yes, according to New York City Administrative Code (the “Code”), Title 27, Section 371, the Owner of a "Class A Multiple Dwelling" must equip the entrance door with: (i) a "heavy duty latch set and a heavy duty dead bolt operable by a key from the outside and a thumb turn from the

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Continuing Education Exemption after 15 Years of Licensing

February 9, 2018 | By Charles Botensten

Q: I am a licensed New York State real estate broker and I have had my license since 1999. Because I am licensed for longer than 15 years, am I exempt from meeting the continuing education requirements for real estate brokers? A: No, you are not exempt from the continuing education requirements for real estate brokers. Section 441 (3) (a) (the “Section”) provides that in order to renew a real estate broker license, the licensee must attend at least 22 ½ hours of continuing education which shall include at least three hours of instruction pertaining to fair housing and/or discriminati

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Broker Price Opinion (“BPO”)

February 8, 2018 | By Charles Botensten

Q: What is a Broker Price Opinion (“BPO”)? A: A Broker Price Opinion, also known as a “BPO,” is prepared by a real estate broker to provide an estimated value of the probable selling price of a subject property where the requesting party does not want to incur the expense of an appraisal of the subject property. The real estate broker determines the probable selling price of the property by analyzing various factors including, but not limited to, comparable properties in the area. Broker Price Opinions are generally prepared for a fee. The Department of State has clarified that o

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Originating Commercial Mortgages and Real Estate Broker Licenses

February 7, 2018 | By Charles Botensten

Q: Is a real estate broker license required to originate or negotiate a commercial mortgage in New York State? A: Yes. Article 12-A of the New York Real Property Law defines a real estate broker, in part, as “anyone who, on behalf of another for a fee, offers or attempts to negotiate a loan secured by a mortgage, other than a residential mortgage.” Accordingly, in order to originate or negotiate a commercial mortgage, New York State law requires the representing party to have a real estate broker’s license.

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