The 2024 changes to New York State law affecting real property introduce significant reforms in various areas, including property condition disclosures, eviction laws, LLC transparency, and deed theft. Below is a detailed overview of these changes:
Property Condition Disclosure Credit (PCDC)
Background: The Property Condition Disclosure Act, enacted in 2001, required sellers of residential real estate to complete a Property Condition Disclosure Statement detailing ownership and known defects of the property. Sellers could previously opt out by providing a $500 credit to buyers at closing in lieu of providing a Property Condition Disclosure Statement.
2024 Change: Effective March 20, 2024, sellers can no longer opt out by offering the $500 credit. They must provide the Property Condition Disclosure Statement to buyers before entering into a contract. This change aims to increase transparency and ensure that buyers are fully informed about the property's condition before purchase.
Good Cause Eviction Law
Implementation Date: April 20, 2024
Overview: This law limits evictions to cases where landlords can demonstrate "good cause" in court. It applies primarily to market-rate housing in New York City and other areas that opt-in.
Good Cause Criteria:
Non-payment of rent (unless deemed unreasonable)
Lease violations
Nuisance or damage to property
Illegal use of premises
Owner occupancy or demolition needs
Impact: The law provides tenants with stronger protections against eviction without valid reasons and allows them to challenge unreasonable rent increases. Landlords must now include a Good Cause Eviction Law Notice in all leases and renewals starting August 18, 2024.
LLC Transparency Law
Amendment Date: March 2024
Requirements: The amended New York LLC Transparency Act mandates that LLCs report beneficial ownership information to the New York Department of State. This aligns with the federal Corporate Transparency Act.
Compliance Deadline: LLCs must begin filing this information by January 1, 2026.
Penalties: There are penalties for non-compliance, emphasizing the importance of transparency in business ownership.
Deed Theft Legislation
Enactment Date: July 2024
Details: New laws classify deed theft as Grand Larceny in the First, Second, and Third Degrees. This legal framework strengthens the ability of law enforcement and prosecutors to address fraudulent activities targeting homeowners.
Purpose: These measures enhance protections for homeowners against fraud and assure victims that there will be legal recourse and justice for such crimes. These legislative changes reflect New York State's efforts to enhance consumer protection, tenant rights, business transparency, and homeowner security.
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These legislative changes significantly impact real estate transactions, property management, and business operations in New York. If you have questions about how these new laws affect your real estate interests or should you require legal assistance with property matters, please do not hesitate to contact our office. We are ready to provide expert guidance and comprehensive legal services to navigate these complex changes in New York's real estate landscape.