The group filed the lawsuit in April 2017, alleging that New York City’s property-tax system discriminates against low-income homeowners and landlords. The organization includes the Rent Stabilization Association, prominent landlords and social welfare groups such as the NAACP and the Black Institute.

Justice Gerald Lebovits denied the de Blasio administration’s motion to dismiss, but left the State off the hook, finding the group has standing to bring the suit against the City.

They claimed it violated the equal protection clause, Fair Housing Act, and state property tax laws.

The group is being allowed to move forward with all 16 of their claims against the city, including that its property tax system violates the FHA because it disproportionately affects minority neighborhoods and perpetuates racial discrimination in housing.

In the suit, filed in 2017, Tax Equity NY argues the property tax system tends to undervalue condominiums and cooperatives compared with rental apartments, causing more financial hardship for renters in the form of higher property taxes for landlords that are passed along to the tenants.

In a press release, Martha Stark, director of policy for Tax Equity Now wrote “We filed our suit because the current system unfairly burdens homeowners in lower-income and minority communities, primarily in the outer boroughs.”

The first question I ask is, How much can you afford to spend? This is a two-part question: How much cash do you have available for a down payment and how much of your income can you afford for a monthly house payment.

That payment will generally include the mortgage payment plus taxes and insurance payments. The answer will obviously depend on what your other monthly expenses and obligations may be.

My first piece of advice is to begin by gathering as much relevant information, beginning with determining the cost of borrowing. That is why I recommend you begin by talking to a mortgage broker. He/she can look at your income level, current expenses and give you a good idea of how large a mortgage you can comfortably handle. That is why I suggest you call an independent mortgage broker. One broker I highly recommend is Scott Lanoff. I have known Scott for over twenty (20) years. He is honest, smart and his consultation is free. Give Scott 20 minutes and he will be able to tell you how much house you can afford and what the monthly cost will be. Check out his website at americansuccessmortgage.com.

If you have any further questions, call me 212-693-3737, Jeff Weinstein.

Johnathan was an aspiring magician until his supplies and equipment were stolen and he wound up declaring bankruptcy. His real estate broker brother Drew wound up $100,000 in debt trying to become an actor.

Drew was taking acting classes in Vancouver and as he told People Magazine

We had been doing real estate for some time, but I missed my passion, acting…I went to Vancouver to pursue that, and I was taking acting courses, networking and doing all the things I had to do to make sure that I was being seen. “In the end, that experience was really important because it created the buzz for our first auditions,” he says, “which got us on TV and made it worth it.”

The two say their book is brutally honest and nothing is left out, the the good and the bad are included. The memoir, “It Takes Two: Our Story,” will be released on Sept. 5th and will be accompanied by a book launch in Engelwood, N.J.

The brothers are now two of HGTV’s biggest stars. On their show, Property Brothers, they help people buy and renovate houses that need work, while working within their clients’ budgets.

For example, if after the sale, the buyer finds leaks in the piping, which the seller had not revealed, then the seller would be held liable to cure that defect. Due to this onerous provision in the law, a seller may ‘opt-out’ of the disclosure requirement by agreeing to pay the buyer a one-time waiver fee of $500.

Over the years, people have been trying the expand the scope of the term ‘material defects’. In Stambovsky v. Ackley, 169 A.D.2d 254 (SC New York 1991) the court dealt with the question of duty to disclose that a house was haunted. The buyers claimed a ‘haunted house’ was a material defect and sued for damages.

The court stated that a buyer may not pursue a legal remedy for fraudulent misrepresentation against the seller on the grounds that the premises is haunted. New York law fails to recognize the calculus for placing a value on ‘haunted houses.’ Any remedy for damages incurred as a result of the seller’s mere silence was denied.

However, the court held that reports of hauntings had lowered the resale value of the house, and held that while caveat emptor prevented an action for monetary liability, it did not prevent the equitable remedy of recission.

To conclude, New York law does not recognize a haunted house as a material defect upon the property. But the courts left the squeaking door open, to allow a rescission of the contract because the house was haunted, as a remedy in equity.

If you you have any queries relating to real estate planning, please contact the office of Jeffrey Weinstein at 212-693-3737.

Subsequent to 1996 the law was revised to treat co-ops as real property with respect to co-op apartments.

This means that prior to 1996, there was no presumption that a co-op purchased by married couples was jointly held as tenants-by-the-entirety. If the stock and lease does not specifically state that the property is being held as joint tenants with the right of survivorship, it is deem to be separate property, just like any other personal property.

How does this become an estate issue?

If the co-op was acquired before 1996, and the stock was not subsequently reissued to the married couple, the decadents interest in the property does not automatically transfer to the surviving spouse. If it was the parties intention to convey the decedent’s share of the co-op to the surviving spouse, this must be:

(1) stated in the Will,
(2) change the stock certificate

to read: Joint tenants with the right of survivorship.

For your protection and to avoid surprises give me a call at 212 693-3737 or call your estate planner.

1. The filing of a bankruptcy petition stops a foreclosure dead in its tracks: The “automatic stay” provision of the bankruptcy code will temporally stop all litigation and any attempt to collect a debt the moment the bankruptcy case is filed with the court. In fact, filing a bankruptcy petition can immediately stop a foreclosure sale. A federal bankruptcy case filing trumps many state rights of creditors to proceed against a debtor, with few exceptions.
2. A bankruptcy case can serve to cure a default and reinstate a mortgage: Most property owners that have fallen behind on mortgage payments have few remedies available to them that do not include either the full payment of their mortgage arrears in one lump-sum or redemption of the property through payment of the entire balance due to the lender. But in this credit-tight market, these options are rarely available. For that reason, a Chapter 11 Bankruptcy or chapter 13 bankruptcy case is often the only solution available to save real estate. These cases enable a property owner to cure a mortgage default by repaying the mortgage arrears through a monthly payment plan. Once the property owner completes the plan, the mortgage is reinstated and the default is cured.
3. Some mortgages can be eliminated or modified in bankruptcy: The bankruptcy code permits a debtor to modify the terms of a mortgage if the property is worth less than the amount due to the lender. A second mortgage on a residence and any mortgage on any other property may be modified or reduced. In some instances, if the first mortgage exceeds the value of the property, a second mortgagee can convert the lien from secured to unsecured status. The second mortgage holder then is treated as a general creditor with no rights against the real estate. This bankruptcy procedure has become a powerful tool for homeowners with no equity in their homes. Relieving homeowners of the burden of paying a second mortgage often provides the additional income needed to save the home.

Thus, bankruptcy can serve as a tool for a homeowner to level the playing field against big banks and assist individuals to get back on the road to financial stability.

Here is a brief summary to changes in the Capital Gains rate, reflected in the new tax law passed in February 2013. Capital Gains is the profit on the sale of real estate. Profit is defined as the difference between the purchase price and net sale price after deducting closing costs. (Commission, taxes and attorneys fees, etc). Capital improvement may also be deducted to reduce the net gains on the property.

For years, until the new tax law that was enacted in February, the tax on capital gains was 15%. This tax rate was fixed for all taxpayers and was not dependent on the adjusted gross income of the seller. Now, under the new law, there are three (3) capital gains rates: 0%, 15% and 20%. Individuals whose income is less than $36,250.00, pay 0% (zero) on capital gains [couples filing jointly, the cap is $72,500.00]. Individuals whose income is between $36,250-$400,000 continue to pay 15% capital gains [Jointly $72,501-$450,000]. Individuals whose income is over $400,000 [Jointly over $450,000] pay 20%.

But, that is not all you pay. There are two additional surtaxes that could (and will likely) increase the capital gains to 24.8%

If an individual has an adjusted gross income of over $200,000 [$250,000 filing jointly]. There is an additional medicare surtax of 3.8%. This tax only applies to “investment income” and not to the sale of a primary residence. Additionally, if an individual has an adjusted gross income of over $250,000, [$300,001 filing jointly] there is a 1% Pease tax on top of the other two taxes.

The adjusted gross income which includes regular salary and earnings of the individual will also include the one-time income from the sale of real property. Thus, if the individual is selling any appreciated property, it will be likely, at least in NYC, that they will be subject to the higher capital gains rates.

The good news is that individuals and couples selling their primary residence will still be able to take advantage of the personal property exemption of $250,000 ($500,000 filing jointly) when calculating their capital gains tax.

The bottom line is, if a seller has a gain of more than $400,000, his capital gains tax could be as high as 24.8% up from 15%. Remember, this is the increase that was only going to impact millionaires.

If the property being sold is not a primary residence, and the seller may be interested in reinvesting the proceeds from the sale, the seller may want to consider a 1031 Like-Kind exchange. This 1031 transaction will allow the seller to postpone paying any capital gains tax by deferring the tax into the future. Now that capital gains tax has increased by 80% (from 15% to 24.8%), 1031 exchanges are more attractive.

Before you sell your property, consult with a real estate attorney who is familiar with the new tax laws.

Snapshot of 2013 Federal Capital Gain Tax Rates