This is a preview of the full Fall 2024 Quarterly Newsletter. For in-depth analysis and further insights into these topics, Click Here to read the full newsletter.
Treasury’s New Reporting Requirements for Real Estate Transactions
By Joshua A. Sycoff and Zachary C. Rozycki
Joshua A. Sycoff and Zachary C. Rozycki detail the Treasury’s new regulations effective December 2025, which mandate electronic reporting for all-cash residential real estate transactions involving legal entities like LLCs. These requirements aim to enhance transparency in the real estate market and prevent financial crimes. The report must disclose information about beneficial ownership and transaction details, with significant penalties for noncompliance.
Cooling Requirements for NYC Landlords: A Legal Update
Paul Alessandri discusses proposed NYC legislation, Int. 0994-2024, which would require landlords to maintain indoor temperatures below 78 degrees during the summer months to protect tenant health and safety. The legislation outlines fines for noncompliance and mandates that landlords install cooling systems where needed, ensuring compliance with NYC housing codes.
Spooked by the Deal: Navigating Haunted House Disclosure Requirements
By Craig L. Price and Lauren K. Tobin
This article dives into the nuances of the Property Condition Disclosure Act (PCDA) and its implications for haunted house disclosure in New York real estate transactions. The March 2024 amendment to the PCDA now mandates that sellers complete a Property Condition Disclosure Statement (PCDS) rather than offering a $500 credit. While the PCDS doesn’t explicitly require sellers to disclose paranormal activities, the Stambovsky v. Ackley case provides a legal precedent for buyers to rescind contracts based on haunted house claims. Buyers must conduct thorough due diligence before finalizing real estate contracts to protect their investment. BBG recommends consulting with transactional attorneys to navigate these unique issues.
Real Estate Contract Defaults: Enforcement and Risks
Israel A. Katz provides a detailed exploration of enforcing default provisions in real estate contracts in New York, with a focus on the complexities of “Time of the Essence” (TOE) clauses. Understanding how to properly issue a TOE notice is crucial, as improperly done, it may result in unintended contract breaches and significant financial risks for buyers or sellers. The article emphasizes the importance of being “ready, willing, and able” to close, as failure to meet these criteria could lead to litigation. Mr. Katz advises seeking experienced legal counsel to navigate the intricacies of contract enforcement and protect both buyer and seller rights.
The Curious Case of Common-Law Ejectment
Mark N. Antar explores the lesser-known common-law ejectment action as an alternative to summary proceedings under RPAPL Article 7 for landlords dealing with month-to-month tenancies. The article discusses recent interpretations, such as the Kosa v. Legg decision, which clarified that a six-month notice period may be required under common law. This contrasts with the shorter notice periods found in the Housing Stability and Tenant Protection Act (HSTPA) of 2019. With conflicting court interpretations, landlords and their legal counsel must stay updated on appellate rulings to effectively manage tenant evictions and comply with evolving New York real estate laws.
Important Rent Regulation Issues Pending in Court
By Magda L. Cruz and Aris E. L. Dutka
Magda L. Cruz and Aris E. L. Dutka review the pending Burrows v. 75-25 153rd St. LLC case before the New York Court of Appeals, which challenges rent overcharge claims in properties under the Real Property Tax Law §421-a program. The Appellate Division’s decision emphasized that tenants could not establish fraud without demonstrating reliance on inflated legal rents. Recent legislative amendments, however, aim to counter this precedent. The case outcome could redefine how fraud claims and rent regulations are enforced in New York’s rent-controlled housing market, making it essential for landlords and tenants to monitor developments closely.
BBG Continues to Expand and Welcomes New Hires
BBG is pleased to welcome the following new members to the team:
Ryan Matthews, Associate, Administrative Law Department.
Joseph Verga, Associate, Construction Transactional Law Department.
Awards and Accolades
Congratulations to the following attorneys recognized by The Best Lawyers in America® for 2025 in Real Estate Law: Jeffrey Goldman, Magda Cruz, Kara Rakowski, and Aaron Shmulewitz.
We also congratulate Benjamin Margolin and Michael Nesheiwat, recognized as Best Lawyers: Ones to Watch.
Considerations for Property Owners
Sherwin Belkin, Founding Partner at Belkin Burden Goldman, LLP, shared insights on the evolving landscape for New York property owners. Notable changes include the HSTPA’s impact on rent increases and limitations on free-market units due to good cause eviction. Belkin suggests exploring demolition as a legal avenue to regain control of rent-stabilized units, emphasizing the DHCR’s process to non-renew leases with intent to demolish.
Notable Transactions – Fall 2024
BBG’s Transactional Department achieved significant successes this season, including the $69 million sale of a dormitory building to New York University and multiple high-value commercial leases in NYC. Partners such as Daniel T. Altman and Craig L. Price led these major real estate transactions, involving complex property acquisition, office leasing, and refinancing deals across New York City. The team also handled important land use projects, securing variances and navigating zoning regulations for large-scale developments.
Co-op/Condo Corner: Legal Updates for Fall 2024
Aaron Shmulewitz provides an extensive review of recent court rulings affecting co-op and condo owners, emphasizing cases involving the enforcement of pet bans, shareholder disputes, and building maintenance issues. The article highlights how the business judgment rule protects co-op boards but also illustrates scenarios where courts sided with unit owners, such as noise complaints and election disputes. For co-op boards and condo associations, understanding these precedents is crucial for maintaining proper governance and avoiding litigation.
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