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Showing posts from April, 2013
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Legal Line Question of the WeekSwitching Electricity 
& Gas Accounts in NYCI have been asked by my purchaser of a condominium unit in 
New York City how to switch the electricity from the seller’s 
account to their own account? How is this done and is 
the purchaser responsible for the seller’s unpaid bills?Once the closing date is established, the purchaser should contact 
Con Edison to inform them that the account should be switched to 
the purchaser’s name on the scheduled closing date.  Con Edison 
may ask for documentation which will indicate that there will be 
a new owner of the unit.  The purchaser will establish a new account 
with Con Edison and a final electric bill will be sent to the seller.  
The purchaser will not be responsible for the seller’s balance.  
It is also prudent for the seller to contact Con Edison so as to verify 
that the account was switched over to the purchaser’s name.
If gas is metered separately in the condominium, then the same 
procedure will apply for switc…
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Legal Line Question of the Week
Can an Exclusive REBNY Broker insist 
that a Co-Broker not accompany 
a Purchaser to visit a listing?I represent a purchaser who is interested in seeing an apartment that is 
listed with a REBNY Exclusive Broker.  Apparently, the Exclusive Broker 
is not allowing me to accompany my purchaser to view the apartment.  
Can the Exclusive Broker do this?No.  The Department of State (“DOS”) has consistently stated that 
(i) “a seller's broker must always honor the buyer's right to be represented 
by his or her own broker,” (ii) “refusal to work with a buyer's agent denies 
the buyer the right to the professional services of the broker of his or her 
choice,” and (iii) “any such denial will be construed as a violation of the 
selling broker's duty to deal honestly, fairly and in good faith with the 
buyer.”  Furthermore, the DOS has specifically stated in an 
opinion letter: “With regard 
to showing the property, the buyer has the right to have the buyer'…

Q1-2013 in the Books -- Buyers Facing Inventory Shortage

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A: Manhattan active inventory stands at 4,826 units, down 30% from this time last year. At the same time Manhattan's Pending Sales, the measure of real-time demand, stands at 3,154 contracts awaiting closing; this is up 24% from this time last year. On a monthly basis, we continue to see 'less new stuff' coming onto the market and 'more listings' than usual going to contract. It seems Manhattan is a tale of two markets; one kind of market for lower quality/higher priced listings that aren't experiencing the activity being discussed here and the other is a fierce market where buyers are competing each other over quality product that is reasonably priced. Either you are priced right or you aren't. This combination is leaving buyers frustrated as they pass over the over-priced stuff and deal with 'best & final situations' for the quality, well priced listings. I'll repeat what I said earlier this year, "I can't think of a better time f…

Legal Question: What is a BPO?

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Legal Line Question of the Week Broker Price OpinionsWhat is a BPO?“BPO” stands for Broker Price Opinion.  A Broker Price Opinion 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.  Recently, 
the Department of State clarified that only a real estate broker 
can collect a fee for preparing a BPO.  Accordingly, real estate 
salespersons and associate real estate brokers cannot receive 
compensation directly for preparing a BPO.  The fee for preparing
 the BPO would be paid to the real estate broker and the real estate 
broker, would, in turn, compensate its salesperson or associate broker.

By: Neil B. …