Real estate laws differ from state to state.  Landlords, tenants, homeowners, and investors alike should understand some of the complexities of NY real estate law when evaluating real estate opportunities. The following will some of the more important components on a high level.

Forms of Property Ownership

There are more ways than one to own property; each has different rights attached.  Forms of property ownership include:

• Sole Ownership: when a single person or other entity holds the title to the property.
• Joint Tenancy: at times called “joint tenancy with right of survivorship”, this applies when multiple owners share equal property rights. If a joint owner passes away, the property is then owned by the surviving joint tenant(s).
• Tenancy in Common (“TiC”): when multiple owners have distinct shares of the property.  In this case, if an individual TiC owner dies, their share is passed down to their heirs or successors.
• Co-ops and Condominiums: A co-op is owning shares in a corporation that owns the building and the co-op owner receives a “proprietary lease” for the particular unit coupled with the shares.  For condominiums, there is individual fee ownership of a unit and shared ownership of the common areas of the building.

Real Estate Purchase and Sale Transactions

Buying and selling real property can be overwhelming and stressful.  It’s not as easy as buying a car or another mass-produced asset.  Each piece of real property is unique, with many legal items to review and draft, such as

• Title Search and Survey: A title search should be done to verify that the property is free of any legal claim and that the seller has a clear title.  A survey in simple terms is a drawing of the property with buildings and improvements (and any easements or other impediments). If issues are revealed, they must be resolved before the transaction is finalized.
• Purchase Agreements: Buyers and sellers enter purchase and sale agreements when acquiring property.  These agreements contain specific terms that include the description of the real property being purchased, the price, and various deadlines and conditions.  Any items revealed in the diligence process should be addressed as well.  This contract should be carefully drafted and reviewed by a New York real estate lawyer to protect the respective party’s interests.
• Closing Process: Closing involves finalizing the transaction which includes obtaining title insurance, paying the balance of the purchase price, transferring the title, paying closing costs, and signing all of the necessary documents including loan agreement(s) and mortgage(s).

Financing Transactions

Financing plays an important role in the majority of real estate transactions, but especially so in a location such as New York, where real estate prices are higher than in most other locations.  It is common for real estate transactions to be contingent upon the buyer’s financing the purchase and obtaining a mortgage on the real property.  Your monthly mortgage repayment amount can greatly impact the overall cost of homeownership.

Landlords and Tenants

In the case of residential landlords and tenants, New York has numerous laws in place to protect both parties while minimizing possible conflict(s).

• Lease Agreements: These contracts outline the responsibilities and rights of both landlords and tenants.  This includes the cost of rent, security deposits, and additional possible fees for things such as maintenance and pets.
• Eviction Procedures: When conflict appears to be unavoidable, evictions in New York require judicial proceedings.  This involves clear-cut steps to follow for both tenants and landlords.  For example, proper notice must be provided by landlords. Additionally, tenants have the right to contest the eviction.
• Rent Stabilization: New York City is well-known for its rent stabilization laws.  These laws control rent increases while protecting tenants from unwarranted evictions.

Zoning Laws and Use of Land

The ways in which the land in question is used and zoning laws are applicable to most all commercial real estate transactions.  In a location such as New York, these are important details to examine. They dictate how the property can be used and/or developed.

• Building Codes: To ensure public safety and to maintain quality standards, New York has strict building codes that must be adhered to for all properties regardless of whether they are new, old, or if they will be undergoing renovations/construction.
• Land Use Regulations: Generally, these regulations provide clarity for whether the land can be used for residential, commercial, or industrial purposes and what and how much real estate can be developed.  Changes or variances in zoning often require approvals from city or state planning boards.

Environmental Regulations

Similar to being strict with land use regulations, real estate law in New York involves implementing and supporting environmental policies such as the Clean Water and Air Acts.  The main goal of having such policies in place is to protect natural resources.  Therefore, property owners may need to assess how the property has (or will have) an impact on the environment. 

Buyer (and Seller) Beware

As noted, there are a plethora of issues relating to New York real estate law that all buyers, sellers, owners, landlords, and tenants should be familiar with prior to entering into a specific transaction.  While this article provides some basic knowledge, a NYC real estate attorney can guide you through a more comprehensive understanding of the associated rights and regulations. 

To speak to a New York real estate lawyer at no cost or obligation, call (212) 688-8944, or complete the form on this page.