So, now Tesla (NASDAQ: TSLA) accepts payment in bitcoin. Now we know for sure the cryptocurrency is cool. But is it practical in more mundane transactions?
Renters’ insurance is a type of insurance policy that protects a renter in the event that something happens at their home, like a fire, flood, or theft. While homeowner insurance policies are designed to protect the property owners from the cost of those losses, renters and their possessions are almost never included. This means if you’re renting, be it a room or a whole house, you’re going to want to have a renters’ insurance policy of your own to cover your belongings in the event the unimaginable happens to your home.
You would think a balcony makes living in a New York City apartment a little bit nicer, right? After all, you get a little bit of private outdoor space, plus you can keep the door open for fresh air—and good ventilation is more important than ever in the Covid era.
On November 3, 2020, Gov. Andrew Cuomo issued Executive Order No. 202.72, which extends the expiration date of numerous previous Executive Orders to December 3, 2020. Importantly, Executive Order 202.55 was among those extended, meaning sponsors and developers may continue to benefit from the tolling of various offering plan-related and other regulatory requirements for the time being.
We have been receiving many inquiries regarding the numerous and multi-faceted effects and ramifications of the COVID-19 pandemic on real estate development projects in New York City and, in particular, the recent policy changes affecting offering plans, required disclosures and sales and marketing procedures. In response to these inquiries, we have drafted the attached article to provide an overview of some of the noteworthy changes. It is important to note that many of these policy changes are in place temporarily and therefore may be revoked or modified in the future.
New York Gov. Andrew Cuomo recently issued Executive Order No. 202.18 (“Executive Order”) to temporarily suspend or modify statutes and local laws thereby tolling important statutory deadlines for the period of time commencing on April 16, 2020 and continuing through May 16, 2020 (“Tolling Period”)
Closing in the time of coronavirus is onerous but not impossible.
Developers are agreeing to a variety of contingencies, attorneys are personally ferrying dossiers between parties, and staid institutions including banks and co-operatives are being surprisingly flexible.
In our continuing effort to keep you apprised of events impacting the ability of our clients to continue doing business during the public health emergency, we attach a new guidance document issued by the Attorney General entitled, “Temporary Submission and Review Policies and Procedures Due to COVID-19 State of Emergency.” This guidance document is effective as of March 25, 2020 until further notice.
In response to the rapidly evolving public health emergency the coronavirus (COVID-19) has produced, Starr Associates LLP is implementing a remote work policy. Effective immediately, the Firm’s lawyers and support staff will be working from home remotely to keep our staff safe and to do our part in the effort to reduce transmission of the virus.
By: Marc Rapport
So, now Tesla (NASDAQ: TSLA) accepts payment in bitcoin. Now we know for sure the cryptocurrency is cool. But is it practical in more mundane transactions?
What got us thinking about this was a Reddit thread that begins, “If a tenant is offering to pay rent in bitcoin, would you accept it?”
The very first respondent gets to the heart of the matter: “I wouldn’t know how to.”
Neither would I. I also would be concerned about the volatility of the currency. I mean, I know the dollar changes in value against other currencies every day, all day long, but not like bitcoin, which on March 11, for example, was trading at more than $57,000 per each computer-mined “coin.”
So, unless your property rents in exact increments of $57,000, or whatever bitcoin is worth at that moment, how do you get a part of it? Do you cut it up like a pirate with a handful of pieces of eight?
Arrgh, with so much to know and cryptocurrency slowly but surely gaining broader use, we figured we’d asked someone who knows a lot about this stuff for a little insight.
In this case, it’s Shaun Pappas, a New York City real estate attorney who works with developers, lenders, and investors in the acquisition, sale, and financing of complex commercial, mixed-use, and luxury residential properties. His firm, Starr Associates, is currently working on more than 175 new construction and rental conversion buildings across 80 development firms around the Big Apple.
We asked him four questions:
What’s involved in accepting cryptocurrency for rent? Is it just bitcoin? Are there others?
Thus far, bitcoin has been traditionally the most often accepted cryptocurrency. Generally, the entity or individual accepting payments is receiving the funds in dollars through an exchange company, and there are several exchange companies that will convert bitcoin into dollars.
How do you convert those payments into cash? Will my bank or credit union accept them?
Although acceptance of bitcoin as a form of payment continues to evolve, at this point using an intermediary to convert the funds is the easiest method. The intermediary will accept the bitcoin payment and convert it to dollars for a percentage fee. The cash funds will then be transferred directly to the receiving landlord/owner’s bank.
Do you recommend converting it quickly into cash to avoid that price volatility?
The volatility of bitcoin raises the biggest question when accepting it as a form of payment. The renter/buyer can of course simply sell the bitcoin and convert to dollars on their own. However, in most transactions the third-party intermediary will make the exchange.
The receiving landlord/owner will prepare an invoice through the exchange, and the invoice is sent out over email to the renter/buyer. Typically, the person paying the notice in bitcoin will have 10 to 15 minutes to open the above and make the payment. The price is only locked for that amount of time to avoid volatility concerns. Once the payment is made through the intermediary, the cash exchange is sent to the receiving landlord/owner’s bank within 24 hours.
How widespread is that practice, and how much is it growing?
The practice is certainly becoming more widespread. In 2018 and 2019, we facilitated several apartment and commercial real estate sales in bitcoin on behalf of developers in New York City. Since that time, we have seen major companies shift toward accepting bitcoin payments, and we anticipate the real estate industry will follow.
The trend will continue to grow as the price of bitcoin increases and the ability to either purchase directly with bitcoin or exchange the currency becomes common practice. Many investors look at it as an opportunity to turn their bitcoin investment into a tangible asset in real property. Thus, we wanted to give our clients the opportunity to accept this as an additional type of payment.
The Millionacres bottom line
Because we’re here to help, and we’re all about real estate investing here at Millionacres, we commend for your edification this piece by our own Deidre Woollard: “Should You Invest in Real Estate with Bitcoin?” (Bitcoin was at a mere $23,000 or so when Deidre penned this piece way back in December 2020.)
And, as for actually working with the coin of the cyber realm, we also recommend that you check out this by Millionacres and Motley Fool writer Matt Frankel: “Best Cryptocurrency Exchanges and Apps for March 2021.”
Matt notes that there are brokerage firms that handle cryptocurrencies as an investment, but it’s not for everyone.
That can be said of accepting bitcoin for rent payments, too. Not into it? Hold out as long as you can, I guess, but at least be assured that there are places that will turn it into “real” money for a fee. It’s not so different from the interchange fee charged by credit card processors in that regard. And as more people use cryptocurrency, maybe there’ll be competition for the conversion business that’ll help keep the fees down.
Renters’ insurance is a type of insurance policy that protects a renter in the event that something happens at their home, like a fire, flood, or theft. While homeowner insurance policies are designed to protect the property owners from the cost of those losses, renters and their possessions are almost never included. This means if you’re renting, be it a room or a whole house, you’re going to want to have a renters’ insurance policy of your own to cover your belongings in the event the unimaginable happens to your home.
“Typically renters’ insurance is not very expensive, so the benefits outweigh the costs,” explains Shaun Pappas, partner at Starr Associates. “In case of an incident in the apartment, even if it is not necessarily the fault of the tenant, having renters’ insurance will be useful and will allow the tenant to seek reimbursement.”
Fortunately, because it insures the possessions within the home and not the actual building, a renters’ insurance policy only costs a fraction of what a homeowners insurance policy does. In other words, there’s practically no reason for you not to carry a policy for yourself. No more putting it off — here are five companies that you can get a quote from today.
Lemonade
Starting cost per month: $5
If you’re looking for a quick and easy way to get a quote, look not further than Lemonade. You can have one emailed to you after answering a few quick questions on their website (we clocked our estimate at 70 seconds). And according to their website, filing claims is supposed to be just as fast. Unlike other companies, Lemonade doesn’t have any brick-and-mortar locations, which is probably how they keep the costs so low.
Jetty
Starting cost per month: $10
If you have 60 seconds, you can get a quote from Jetty from your phone or computer 24 hours a day, 7 days a week. Unlike other insurance companies, Jetty partners directly with property management groups, which means you can only sign up for a Jetty renters’ policy if you’re renting from one of their affiliated properties. One of the perks of a Jetty policy is that they offer a program that allows renters to avoid making an upfront cash deposit by charging them either a one-time refundable fee or a low (but
non-refundable) monthly payment. The downside is that the site doesn’t make it easy to search out participating properties, so if that upfront deposit has been keeping you from moving, you likely won’t know if the building you’ve been considering is affiliated with Jetty until you’ve spoken with the leasing office.
E Premium Insurance
Starting cost per month: $11 to $22
Similar to Jetty, E Premium Insurance is a renters’ insurance company that is tied to the property management company. So, you won’t be able to take advantage of some of the benefits of E Premium Insurance (like their deposit assistance policy, which is also similar to Jetty’s) if you’re looking to move somewhere unaffiliated with the company.
However, if you haven’t decided on where you’re moving yet, you can check out the E Premium website to see what buildings are affiliated with the company. Their online tool allows you to search by zip code to find participating properties in your area.
GEICO
Starting cost per month: $12
Like other traditional insurance companies that offer multiple product lines, GEICO offers discounts to renters who bundle their rental and auto policies. Plus, they have a handy online tool that will actually help you calculate the value of your items and figure out how much insurance you need, unlike other companies that estimate values for you. This tool can be perfect for renters who have unusually expensive electronics, or unique collections that may require a little more information (like comic books or original artwork) when pricing out policies.
Nationwide
Starting cost per month: $20
If you’re someone who prefers sitting down with your insurance agent in person (or dropping off your payment directly in their office), you’ll love the traditional trappings of Nationwide. Also, because Nationwide offers so many different services — they carry auto, life, and more — you can save money by bundling their services (for example, using them for more than just your renters’ insurance needs).
https://www.apartmenttherapy.com/renters-insurance-companies-36893188
You would think a balcony makes living in a New York City apartment a little bit nicer, right? After all, you get a little bit of private outdoor space, plus you can keep the door open for fresh air—and good ventilation is more important than ever in the Covid era.
But not all balconies are alike and that’s something to keep in mind if you are apartment hunting. You might want a balcony to escape from constant Zoom calls in your apartment, but you may wind up dealing instead with pigeons, leaks, and other maintenance issues.
The first thing you should consider when looking at an apartment with a balcony is the overall condition of the building, says Rowena Dasgupta, a broker at Warburg Realty. “Safety is the first concern and you should ask how strong the balcony is and how much weight it can hold, especially if it’s an older building.”
You also need to be aware of the building’s bylaws and house rules, says Tara King-Brown, a broker at Corcoran. Most buildings have a separate section in the lease or house rules specifically for a balcony, like if you can smoke out there.
Liability is another thing to keep in mind, says Shaun Pappas, a partner at Starr Associates. If the wind blows your outdoor furniture off and it injures someone (it happened to this New Yorker last year), then you would be held liable. So you also have to be smart with what you store out there.
Keep reading for 10 things to consider when living in an apartment with a balcony, and how to make sure it’s the right outdoor space for you.
1. It might be noisy
Obviously, if your balcony faces a busy street, school, bar, or restaurant with outdoor dining, it is going to be noisy out there. What you may not realize is that a balcony—which usually has sliding glass doors, can mean more noise inside your apartment than a regular wall. So think about where the balcony is located and whether it’s noisy inside is going to be a problem.
2. It all depends on the weather (and wind)
Unless it’s a covered or an enclosed balcony, you probably won’t get much use out of it during the colder months. You also need to consider how high up you are. “The higher the floor, the colder it will be,” Dasgupta says. Wind is also an issue: If you’re on the 15th or 20th floor, you will probably use it a lot less.
If you’re renting and want to enclose it, check out your building’s rules, King Brown says. For buyers who want to permanently enclose it, you have to consider the zoning of the building. “You would be turning an exterior space into an interior space, and the square foot of the apartment might already meet the building’s floor-area-ratio,” she says.
3. What and where is it facing?
If you’re expecting some sun for you or your plants, you need to consider which way it’s facing. If it’s facing north, then you will get little sunlight, Dasgupta says. A south-facing balcony is optimal, but you can also get sunlight on an east- or west-facing balcony at certain times during the day. (Pro tip: You can pull out your iPhone and use its compass to figure this out ). King-Brown says you should also consider how far the balcony is from the adjacent building. If it faces south, but it’s close to the building next door, then you might not get optimal sunlight.
4. Upkeep is up to you
Maintaining your balcony is on you. In the fall, you’ll have to keep leaves off the balcony and in the winter, you have to remove any ice and snow. Your lease might even outline what upkeep is required of you.
Another messy issue: If your balcony is larger than those above you, any falling debris from above like cigarette butts might land on your balcony. (Although with a little detective work you can usually find out who the culprit is.)
5. Pigeons and pests
Pigeons are a part of NYC life and they’re really annoying to balcony owners, because of their habit of perching on a balcony and leaving droppings all over it. If it bothers you, you might choose to install spikes along the railing that will prevent pigeons from landing there. However, Dasgupta says she’s never experienced a building take care of this, so the solution would be up to you.
If you’re on a lower floor, or have a terrace on the ground floor, then you should also consider other pests like bugs and mice, especially since the pandemic has led to an increase in pests issues because most people are spending more time at home.
6. Know which grills you can use
It’s very tempting to have a barbecue or fire pit on your balcony, but New York City Fire Code forbids grills that use propane or charcoal, and fire pits are banned as well because of their open flame. But electric grills are allowed, and so are gas-fed grills, as long as they are professionally installed and inspected, but you should check your building’s rules before investing in one.
Another solution is to look for buildings where the developer has included a gas hook-up for a grill on the balcony, King-Brown says. The developers at 100 Barclay, a landmarked building in Tribeca, did this.
7. It’s not a storage unit
A balcony might seem like an ideal storage space, especially one that you can’t really enjoy because of noise or pigeons, but keeping lots of stuff out there it is likely prohibited by your building. Pappas says a good lease will outline that personal items shouldn’t be stored.
When it comes to seasonal outdoor furniture, you might be required to bring it inside, cover it, or make sure it’s properly secured. If you have to bring it inside, consider where you can keep the furniture. You should also aim to buy wind proof and sturdy furniture to prevent any mishaps. Even cushions and planters should be properly secured.
8. Beware the Juliet balcony
When you’re looking online for an apartment with a balcony, some apartments might turn out to have a Juliet balcony. These really don’t give you any outdoor space, Dasgupta says. They are essentially large windows that allow you open to let in fresh air, but have no space for standing or sitting outside.
9. Smoking, noise, and other building rules
Generally, if a building has a hard no smoking policy, then it would also apply to your balcony, Pappas says.
But, in some cases, a building will prohibit you from smoking in common areas, but will allow smoking on your private balcony. However, if the smoke starts to bother a neighbor then you might be asked to stop. And, if you’re subletting in a building that allows smoking, the owner of the unit might decide to prohibit you from smoking out there.
When it comes to noise, you should follow the same rules that pertain to inside your apartment. If you violate any of your building’s policies on the balcony, you can expect the same recourse as if it were inside, which could mean fines or a termination of your lease, Pappas says.
10. Your building has a right to use it for facade work
Buyers need to check to see when the last time the building inspected their facade, King-Brown says. Local Law 11 mandates that all buildings six floors or higher must have their facade inspected every five years.
If the facade work hasn’t been recently inspected or worked on, then your building might have the right to access your balcony to work on the facade, and can even deem the outdoor space not usable for several months, King Brown says.
https://www.brickunderground.com/rent/10-things-to-consider-about-living-in-nyc-apartment-with-balcony-buyers-renters-noise-trash-weather-storage-furniture
On November 3, 2020, Gov. Andrew Cuomo issued Executive Order No. 202.72, which extends the expiration date of numerous previous Executive Orders to December 3, 2020. Importantly, Executive Order 202.55 was among those extended, meaning sponsors and developers may continue to benefit from the tolling of various offering plan-related and other regulatory requirements for the time being.
On a related note, the New York State Department of Law (“Attorney General”) amended their Memorandum Re: Temporary Submission and Review Policies and Procedures Due to COVID-19 State of Emergency (“AG Memo”) on September 18, 2020. While previously the AG Memo had tied the Attorney General’s COVID-19 “relief period” to the expiration of Executive Order No. 202, this has been amended such that the AG Memo’s temporary policies and procedures are now effective “until further notice” by the Attorney General. As of the date of this news blast, no such “further notice” has yet been given and therefore sponsors and developers may continue to operate under the AG Memo’s temporary policies and procedures (including without limitation digital submissions and alternative notarizations) for the time being.
Please feel free to contact us to discuss how Executive Order No. 202 and the temporary policies established by the Attorney General may affect your project.
We have been receiving many inquiries regarding the numerous and multi-faceted effects and ramifications of the COVID-19 pandemic on real estate development projects in New York City and, in particular, the recent policy changes affecting offering plans, required disclosures and sales and marketing procedures. In response to these inquiries, we have drafted the attached article to provide an overview of some of the noteworthy changes. It is important to note that many of these policy changes are in place temporarily and therefore may be revoked or modified in the future.
INDUSTRY UPDATE:
Important Reprieve Afforded to Sponsors through Executive Order
Tolling Certain Crucial Deadlines Based on
COVID-19 State of Emergency
New York Gov. Andrew Cuomo recently issued Executive Order No. 202.18 (“Executive Order”) to temporarily suspend or modify statutes and local laws thereby tolling important statutory deadlines for the period of time commencing on April 16, 2020 and continuing through May 16, 2020 (“Tolling Period”)
The Tolling Period impacts the following obligations of sponsors under the Attorney General’s regulations:
The Time Frame to Conduct a First Closing is Tolled. According to the well-established regulations promulgated by the Attorney General governing new construction and substantial rehabilitation condominium and cooperative offerings, a sponsor must offer purchasers the right to rescind their purchase agreements if the first closing does not occur within the first 12 months of the anticipated commencement date of the first year of operation. As a result of the recent “stay at home” directives (essentially putting construction and the ability to procure a temporary certificate of occupancy at a stand-still), the Executive Order provides necessary relief by extending this 12-month deadline for the length of the Tolling Period. Therefore, sponsors are now afforded additional time to conduct their first closings before being required to offer recession to purchasers under contract.
Timing to File an Updated Budget for First Year of Building Operation is Tolled. Similar to the statutory deadline requiring a first closing to occur within the first 12 months from the anticipated commencement date of the first year of building operation, a sponsor is also required to update their projected budget for the first year of operation if the first closing is delayed by more than 6 months. This requirement is likewise suspended for the length of the Tolling Period, now requiring any necessary update to the budget to take place within 30 days from the expiration of the Tolling Period.
The 15-Month Deadline to Declare Effective in a Conversion Plan is Tolled. In a residential conversion offering plan, a sponsor is obligated to declare the offering plan effective within 15 months from the date the offering plan is accepted for filing, failing which sponsor is required to abandon the offering and provide rescission to all purchasers. Such 15-month deadline is also suspended for the length of the Tolling Period, affording sponsors additional time to meet these sales requirements.
Filing Fees. The payment of all filing fees to be made at the time of submission shall also be exempted during the Tolling Period, with the understanding that all such fees shall be remitted to the DOL within 90 days of the expiration of the Tolling Period.
It should also be noted that the Tolling Period may be further extended by an amendment to the Executive Order. A copy of the Executive Order can be found here.
Starr Associates LLP is proud to have worked alongside other industry leaders in an effort to bring the aforementioned relief to our clients and their condominium/cooperative projects affected by Covid-19. Our firm is available to discuss the potential impact of the Tolling Period on your project and help you navigate through these unprecedented times. Additionally, our office will be circulating updated deadlines specifically related to your individual project.
Wishing each of you and your families continued health and safety during these very difficult times.
Co-ops are bending rules, lawyers are personally messengering documents.
Closing in the time of coronavirus is onerous but not impossible.
Developers are agreeing to a variety of contingencies, attorneys are personally ferrying dossiers between parties, and staid institutions including banks and co-operatives are being surprisingly flexible.
“I’ve become a $650 [per hour] messenger, but, you know, whatever it takes to get it done we’re trying to do,” said Jeffrey Schwartz, managing partner and head of the real estate practice at Schwartz Sladkus Reich Greenberg Atlas. “We’re pulling out all the stops.”
Schwartz said he’s spent hours driving around to drop off and pick up original signed documents.
Though listing inventory and contract signings have dropped off dramatically since the pandemic brought in-person work to halt, closings are still happening — mostly on properties that went into contract weeks if not months ago.
Replacing the customary in-person closings is a challenge, but the desire to close a deal is proving strong enough to overcome barriers related to the pandemic. What’s more, some would like to see virtual closings become the new norm — though some attorneys seem to shudder at the thought.
Sellers’ urgency to close underscores the strong headwinds they were already facing in New York and concern over how long the pandemic could last.
“The fear for the seller is if they lose a deal now, and the buyer walks away, the odds of a new buyer [coming in] are essentially impossible,” said Pierre Debbas, partner at Romer Debbas. He was working on his firm’s first set of entirely remote deals late last week.
Starr Associates, which specializes in representing new development projects, has closed 15 deals remotely over the past two weeks, according to managing partner Samantha Sheeber.
That included the final sponsor unit — for a cool $19.5 million — at World Wide Group and Rose Associates’ 252 East 57th Street. Starr represented the developers, while Douglas Elliman’s Tal Alexander brokered the deal.
“It was a completely virtual closing,” said Alexander. “I’ve never been part of something like that.”
How it’s done
The way deals are getting done despite the state’s stay-home order isn’t new: It’s closing in escrow.
Shaun Pappas, a partner at Starr, said the firm has established best practices of how to do that.
About a week before the scheduled closing date, Starr will initiate an email thread with all parties involved. Virtual copies of documents, messages and questions are all sent and answered on that thread.
Meanwhile, the physical documents with the seller and buyer’s ink signatures will travel back and forth via FedEx, or courtesy of the parties’ various lawyers when messenger services aren’t available or fast enough.
After every signature notarized with the buyer and sellers’ attorneys on a video call, a scan is made and sent to the thread. Once physical copies are sent and received, confirmation messages are emailed.
For the final walkthrough, in many cases a worker on site will use a video call to guide a buyer through their unit. Construction sites in New York were open until last week, so at new developments someone was on site to film. In many cases, Pappas said, the buyer and sponsor would also sign a “post-closing survival agreement,” which allows buyers to do a physical walkthrough later.
Developer Michael Stern said he has been using a similar approach at The Fitzroy to move forward with closings.
On the actual closing day, Pappas said “the faster ones are a few hours. The longer ones are five to six hours.” He recalled one $6 million deal that ran until nearly midnight and resumed at 8:30 a.m.
“Our office hours are now 24/7,” he said. “You’re going to have to be available throughout the day.”
Dorian Lam, a principal at title company Cornerstone Land Abstract, said closing in escrow has become the way 95 percent of his firm’s residential deals are closing now. That said, he noted that deal volume has dropped about 50 percent over the past two weeks.
The remaining 5 percent of Cornerstone’s residential deals are continuing to close in-person, which is legal because financial services were deemed essential under Gov. Andrew Cuomo’s stay-at-home order.
In those cases, Lam said, closings occur with each party in a different room. Each party uses their own pens, and wears gloves and masks. He attributed those cases largely to attorneys who are uncomfortable with technology.
“There are still people with AOL accounts and insist on us faxing,” he said, but he argued that closing in escrow should become the industry norm for residential deals. “We’ve been doing it this way for years.”
Stern agreed. “A lot of the residential buyers like a physical closing, or they’re just used to it, but it’s not actually necessary,” the developer said.
Banking on the future
Debbas said some banks and mortgage brokers have also been slow to adjust.
“Most of the banks are box checkers and if it doesn’t fit the box, they can’t do it,” he said. However, he is optimistic that most will figure it out shortly because “it doesn’t seem like this situation is going away anytime soon.”
Pappas admitted that the process is “trickier” when lenders are involved, but noted that about a third of Starr’s remote closings had financing.
When Debbas is negotiating for buyers who need to borrow, he reverts to strategies he relied on following the 2008 crash, notably what he calls a “funding contingency.”
“[The deal]’s contingent upon the bank having the money on the day of the closing to show up with the funds,” he explained. “We’re trying to protect buyers from an absolute worst-case scenario of a total economic collapse.”
He said one developer agreed to a funding contingency last week on a $3 million unit in Brooklyn Heights.
Some lenders have adapted to virtual closings, though. Samantha Gordon of Wexler & Kaufman represented Citibank on two remote closings at Magnum’s 196 Orchard Street.
Now, Gordon is working on five other remote closings for lenders, sellers and buyers — and reports seeing “a lot of flexibility” as they prepare to close. She recounted one deal where the buyer and seller agreed to close but keep payment in escrow until the final walkthrough could be completed in-person.
Schwartz reported similar accommodation from an unexpected source: co-op boards.
Co-ops are known for particularities. Alan Rosenbaum, the head of mortgage lender Guardhill Financial, and Citizen Bank’s Ace Watanasuparp, both recalled in a TRD Talks webinar experiencing challenges when working with co-op boards on remote deals during the pandemic.
Schwartz said his firm has sometimes gotten around this by taking on the tasks usually performed by managing agents. As of last week he had closed two co-op deals in escrow.
In one, involving financing, his firm took over the managing agent’s duties. In the second, the managing agent decided to scan board minutes and upload them to a Dropbox folder for a 12-hour window to allow Schwartz’s team to do due diligence. Usually, co-ops require that minutes be read while physically at the building. The Dropbox method is the only part of the remote closing process that Schwartz said he hopes will stick around, and some lawyers seem to agree.
Even Lam, from title insurer Cornerstone, admitted that the remote closings can have drawbacks. For instance, if a last-minute adjustment is made to any terms, initializing won’t suffice; all documents must be reissued and signed.
“It’s just a much more tedious process,” said Schwartz. “Unless we can perfect it a little bit better, I don’t see it continuing.”
Write to Erin Hudson at ekh@therealdeal.com
SOURCE: TheRealDeal.com
Temporary Submission and Review Policies & Procedures
Due to COVID-19 State of Emergency
We hope this memo finds you and your families healthy and safe.
In our continuing effort to keep you apprised of events impacting the ability of our clients to continue doing business during the public health emergency, we attach a new guidance document issued by the Attorney General entitled, “Temporary Submission and Review Policies and Procedures Due to COVID-19 State of Emergency.” This guidance document is effective as of March 25, 2020 until further notice.
These new guidance document is available at the following web address:
We urge you to review these temporary policies carefully. The guidance document covers, among other topics, sales made after the expiration of an offering plan, price change amendments, broker-dealer registration statements, changed policies concerning the submission of original signatures and notarized documents and revisions to submission requirements. Clients should note that the Attorney General has reserved the right to modify or rescind the temporary policies and procedures detailed in the guidance document at any time, and will do so by updating the guidance document.
We will continue to provide our clients with status updates as events warrant. Please do not hesitate to call us with any questions or concerns.
Please Note: This email is intended solely to alert readers to issues of general interest and should not be construed as legal advice. For advice about particular facts and legal issues, readers should consult legal counsel. This material may constitute “Attorney Advertising” under New York State court rules.
March 16, 2020
To our clients, colleagues and friends:
We hope this message finds you and your families safe.
In response to the rapidly evolving public health emergency the coronavirus (COVID-19) has produced, Starr Associates LLP is implementing a remote work policy. Effective immediately, the Firm’s lawyers and support staff will be working from home remotely to keep our staff safe and to do our part in the effort to reduce transmission of the virus. While our physical office is closed, we are working at close to full capacity and have implemented procedures to continue to conduct business, maintain productivity and serve our clients’ needs. Please feel free to reach out to us via phone and email so that we can continue to attend to your matters.
We will update you further as matters evolve.
Our team has had the pleasure of working with Starr Associates on our project at 150 Rivington Street. The entire Starr team was a tremendous asset to the success of our project. Through very challenging times, Starr Associates came through time and time again. It is an honor to work with everyone at Starr!
I have known Allan Starr for many years and worked with him on many projects. He has always exceeded my expectations. He not only knows the ins and outs of the law, but knows how to make the whole process easy and quick. I’ve found him to possess an incredibly astute legal mind, combined with a common sense approach that always accomplishes my goals. He’s not only a gentleman and a friend, but a brilliant lawyer.
It has been an absolute pleasure working with Allan Starr and Samantha Sheeber over the past twelve years. They are not only the utmost professionals, but also wonderful people who I have grown to love like family. I trust them with all of my new development projects and private clients, and we support each other in our business and personal lives. Starr Associates LLP has always been there for me and my clients and I would recommend them as highly as I recommend anyone.
Allan and I have worked together for decades; along the way, I have worked with Samantha Sheeber, Andrea Roschelle, John Rodriguez and Erica Starr and have always been pleased with their quick and accurate responses. They have worked with us on closings (with great and efficient results), restatements of stale plans, amendments and other assorted AG requirements, always on a timely and cost-effective basis.
“Working with Starr has been great on three condo projects in Manhattan to date. The accessibility and direct attention of the partners is unsurpassed. Allan and Sam have the interests of the owner at heart and make every effort to protect our interests in a responsible and defensible manner. Their practical approach and deep knowledge of the offering plan process and requirements of the AG office combine to make a highly effective and efficient package. At the associate level they have good support as well. The closing office has to be the best in NY – never a failed closing in 15 years. We are repeat customers and will be going forward.”
“Samantha Sheeber is a partner in making transactions successful. She’s resourceful, respected, smart, funny as hell, and is swift to constantly embarrass us (and clients) because she sees the end while we all muddle in the middle. She saves time. She is selfless and fast and conscientious. She’s loyal to the notion of selflessly getting stuff done. She cultivates great talent. And she makes the process fun, even when she is mad at us for asking the same impossible question 11 times hoping for a new result (a solution for which — by the way — she often discovers).”
“As an active developer in New York City, Magnum Real Estate Group is proud to have partnered with Starr Associates, LLP as our legal counsel in 5 significant projects valued at approximately $800 million. Over the last 5 years, Starr has provided us with exceptional advice on condominium Offering Plans and related transactions. Partner Samantha Sheeber, Esq. and her team have professionally guided us, and provided creative and effective solutions when needed.”
“I have had the fortunate opportunity, over the past 16 years, to work with Allan Starr and Samantha Sheeber who I consider to be experts in the field of real estate law. They, together with their team, have a deep understanding of Attorney General Offering Plan registrations and continually seek to identify creative solutions to complicated issues. Their level of integrity and commitment are unwavering no matter how large or small a project. I completely endorse Starr Associates LLP and look forward to our mutual continued success.”
“Starr Associates’ specialty in the creation and representation of condominiums is unmatched. Their knowledge, experience and professionalism in the office condominium sector is best-in-class. Starr Associates’ hard work and expertise has been critical to the success of our firm’s office condominium projects.”
“Starr Associates have been our condominium attorneys for many years. Their counsel goes well beyond just drafting the condominium documents, which of course they do extremely well. They also represent us and our brand with condominium unit purchasers, and with our lenders and partners on condominium related matters. We have always found Starr’s attorneys to be professional, responsive and cost-conscious.”