HGAR LEGAL CORNER: I am Buying a Home and I Lost My Job, Now What? – Real Estate in Depth

The loss of employment can be one of the most stressful events in a person’s life. Purchasing a home, while it is a very exciting time, can also be an extremely stressful event. If one loses his or her job, however, while in contract to purchase a home it can certainly be devastating. A purchaser spends many years to save up enough of a downpayment to purchase a home and, in the end, could potentially forfeit his or her life savings upon the loss of his or her job after a mortgage commitment has been issued by a lender. Recent court decisions highlight the various issues and consequences that could exist when a purchaser loses his or her job, particularly after the lender has issued a mortgage commitment and the mortgage contingency under the contract of sale has been met.

Source: LEGAL CORNER: I am Buying a Home and I Lost My Job, Now What? – Real Estate in Depth

Home Prices Are Falling in One of America’s Richest Suburbs – Bloomberg

This has become a summer of discontent for those trying to sell their homes in New York City’s leafy suburbs — in no small part because of the Trump administration. In affluent enclaves in Westchester County, New Jersey and Connecticut, a federal cap on state and local property tax deductions has begun to bite hard. Longtime homeowners who dreamed of offloading their empty nests are finding their plans complicated by the tax bill, as would-be buyers hold back, expecting sellers to cut their prices. The i

Source: Home Prices Are Falling in One of America’s Richest Suburbs – Bloomberg

Nate Smithson Provides an Update on Tax Reform | Jackson Walker – JDSupra

Jackson Walker partner Nate Smithson has prepared an updated guide to tax reform which reflects the senate’s newly-proposed tax bill. The guide covers tax brackets, deductions, capital gains, and other relevant topics in tax law.

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Buy a co-op at a discount: All about HDFCs and how to snag one

WHAT IS AN HDFC CO-OP? There are plenty of Housing Development Fund Corporation (hence the shorthand, HDFCs) buildings across the city—including rentals—but co-ops are usually what garner interest. The original, best-known types were created several decades ago when the city allowed tenants in buildings with derelict landlords to form co-operatives, take over their buildings, and buy their apartments for $250 apiece, as the New York Times reported last summer (yes, that’s the correct number of zeroes.)

Source: Buy a co-op at a discount: All about HDFCs and how to snag one

10 Secrets First-Time Home Buyers Should Know | The Family Handyman

Buying your first house can be intimidating, but there is a lot of information to help you sort out the process and make good decisions. On that note, here are 10 secrets first-time home buyers should know that you may not have heard of yet.

Source: 10 Secrets First-Time Home Buyers Should Know | The Family Handyman

10 Things to Look for in a Residential or Commercial Lease (LegalZoom)

Signing a new lease is always exciting—and a little nerve-wracking. On the one hand, a new space means new possibilities. On the other, a lease is a legal document, and who knows what might be lurking there? If you’re about to sign a lease, don’t let the legalese trip you up. Whether it’s a residential lease for your home or apartment, or a commercial lease for your business, these 10 common lease terms explain your responsibilities and tell you what your lease will cost. Read them carefully, and you’ll kn

Source: 10 Things to Look for in a Residential or Commercial Lease

A Buyer’s Guide to Reading Financial Statements – Consider a Building’s Fiscal Health

One of the most important issues in deciding if a cooperative or condominium apartment is a wise investment is the financial status of the building itself. The key document that potential buyers should review is the annual financial statement. This review, commonly known as due diligence, should b…

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Radon | US EPA

Radon is a naturally occurring radioactive gas that can cause lung cancer. You can’t see or smell radon. Testing is the only way to know your level of exposure. Radon can have a big impact on indoor air quality.

Read more here: Radon | US EPA website

Cleaning and Repairs a Landlord Can Deduct From a Security Deposit

Typically, landlords may charge tenants for any cleaning or repairs necessary to restore the rental unit to its condition at the beginning of the tenancy. Landlords may not, however, use the tenant’s security deposit to cover the costs of ordinary wear and tear. Here are examples of wear and tear versus damage or excessive filth:

Read more here: Cleaning and Repairs a Landlord Can Deduct From a Security Deposit | Nolo.com

TRANSFER TAX CONVEYANCES PURSUANT TO DIVORCE DECREE OR SEPARATION

Conveyances for no consideration made between spouses are a common occurrence. Such conveyances may be made for a host of purposes, such as the making of a gift, estate planning, and loan eligibility.

In all of these instances, no money is being exchanged. The transfer is without consideration and is not in connection with a sale. As a consequence, gift transfers or transfers made without consideration are not subject to transfer tax. Both the NYS real estate transfer tax return (TP-584) and the NYC RPT real property tax return (NYC-RPT) list no consideration transfers among the types of conveyances that are exempt from transfer tax.

But what of conveyances made pursuant to divorce decree or separation agreement? In such instances, no money is being exchanged. Is the transfer without consideration and not in connection with a sale?

At first glance, one might assume that because no money is actually being paid, the conveyance is without consideration and not in connection with a sale. Schedule I of the NYC-RPT addresses this issue. It asks for four pieces of information: the fair market value, the existence of any unpaid mortgages, the percentage of ownership interest being transferred to the other spouse, and any alternate value assigned to the transferred interest that is recited in the settlement agreement, separation agreement or divorce decree. The basis for taxation is found in Section 23-03(d)(3) of Title 19 of the Rules of the City of New York (“RCNY”). This section states that “a conveyance of realty from one spouse to the other pursuant to the terms of a separation agreement” is subject to tax.

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