The New York City real estate market’s unexpectedly fast comeback is making getting divorced here more fraught than usual.

Divorces can take years to conclude but shifts happen fast in the NYC real estate market. Even so, prices here have rebounded to prepandemic levels much quicker than anticipated. This has upended plans for some spouses who wanted to buy their soon-to-be exes out of the marital home but can no longer afford to do so. And for those who need to find a place to rent, it is tougher than ever to track down an apartment near the family home that they can afford.

Sue Moss, a divorce attorney at Chemtob Moss Forman & Beyda, says some owners who worked out property agreements prior to 2020 are very unhappy, or at least that’s the case for one half of these couples.

That’s because some of these clients had their properties valued at what turned out to be a 30 percent discount, thanks to the swing in Manhattan pricing. For the spouse who kept the marital home, it’s a potential windfall when they go to sell—for the other spouse, it’s sheer frustration.

“Some got the short end of the stick, some got the long end of the stick,” she notes.

Even crazier is the Hamptons market, where record high prices have “exploded” deals for some couples who are just in the process of sorting out their property distribution, she says.

In places like Southampton, she says a couple who expected their house to be valued at $2 million received an appraisal in the $4 million range.

“Now they have to come up with new terms, because there’s no way the spouse who planned to buy the other out of the house can come up with the funds,” Moss says.

These high valuations can be problematic for the spouse who keeps the house if there aren’t sufficient funds to tap for closing costs (such as broker fees, as well as transfer and flip taxes), when property is sold later.

In these situations, “making the decision to keep the residence is a really bad idea.” Moss says. “Being ‘house poor’ is a reality for some people. They may say, ‘if things get too bad, I’ll sell it,’” but they may not take into consideration the high cost of selling a property in NYC, she says.

The case for selling
When couples who are negotiating a divorce find out their properties are worth more than they thought, one (or both) spouses may be uncomfortable with a buyout. In that case, selling the property is the only solution.

“The rise in NYC real estate prices happened much quicker than anyone could have predicted,” says Randi L. Karmel, a divorce attorney in private practice.

In New York, dividing the proceeds from the sale of the marital home requires equitable, or fair distribution—couples usually do split the proceeds, but it doesn’t necessarily have to be 50-50, Karmel says.

A combination and a break up
A Brooklynite named Carla (a pseudonym) has been dealing with a nightmare divorce on top of real estate fiasco: Her marriage fell apart just as the couple finished combining their condo with the one next door—a project that was greenlighted by her board but turned out to be unpermitted.

Faced with a very high appraisal for the newly combined unit, plus a dispute with her condo board over $30,000 in fines, she’s now dealing with the challenge of turning the combined apartment back into two units. It’s her only recourse, she says.

She can’t buy out her ex-spouse because she didn’t qualify for a loan to purchase one or both units. And she felt the appraisal was problematic because it used the most expensive apartment in her building, plus a unit in a white-glove building, as comps.

The details of the divorce are painful: Her husband walked out on her and her child and started a new life in a different country. The real estate situation has taken the ordeal to a new low.

“I was married 16 years. No one would have expected this,” Carla says. It’s been very expensive as well: “I’m in debt from the lawyers,” she says. It’s also been quite the real estate education for her and she’s brimming with advice for others who are planning on divorcing and have to make tough decisions concerning property. When you’re deciding what to do with the family home, having an accurate sense of how much the property is worth is crucial.

“Make sure you do your own due diligence and look into what apartments in your building are selling for,” she says. Some large national banks may not be familiar with your NYC building. (This is a problem in particular for co-ops, which are unique to the NYC area.)

If you plan on keeping the marital home, she also recommends negotiating for closing costs for an eventual sale, including fees for brokers and lawyers. And educate yourself on how capital gains change after a divorce, she says.

On that last point—be aware that when a spouse who took ownership of the house eventually sells, they are only able to exclude $250,00 of capital gains, unlike a married couple, who each get to claim a $250,000 deduction, for a total of $500,000, if they sell prior to getting divorced.

“When you’re making a decision, make sure you understand everything. Ask questions again and again until you do,” Carla says.

Third-party appraisals
When two soon-to-be exes don’t agree on an appraisal, going to a third party can help. It did for a client of Dean M. Roberts, an attorney at Norris McLaughlin.

He was involved in a divorce where one client had an appraisal for one amount and the spouse had one for substantially higher amount, both of which did not reflect the true market value. The solution was to use a third appraiser chosen by two other appraisers whose determination was binding.

“We knew we were doing a good job because everyone was equally unhappy,” he says.

When there is the potential for a substantial delay between the valuation and the completion of the agreement and property transfer, Roberts recommends including a provision in the
agreement that either clearly confirms the valuation as of the date of the agreement or provides for a valuation closer to the actual date of the transfer.

In NYC’s current superheated housing market, not having this adjustment can leave one party feeling they have been treated unfairly because of the substantial increase in the value of the property being divided, he says.

The challenge of finding a place to rent
Typically, the spouse that leaves the marital apartment rents an apartment nearby—but that plan is especially hard to pull off these days, says attorney Shaun Pappas, a partner at Starr Associates.

“If one spouse is staying, and the other relocating, what does that mean if rents have gone up by 30 percent?” Pappas asks. Today’s higher NYC rents impact how much you have available to provide for in alimony and keep the family in the living situation to which they’re accustomed, he says.

Even though you may have owned a place as a married couple, if you’re getting divorced it’s likely that you will need to educate yourself on what rents are in your neighborhood. Some of his clients going through a divorce consult real estate brokers just to get a sense of where the market is headed, he says. They may be negotiating to stay in place for a year and then move
and need to factor an “educated guess” into their agreement.

Property agreements are contracts
When it comes to real estate and divorce, there are no do overs: Property distribution agreements can’t be changed; they are like a contract in that regard.

The reason you can’t renegotiate is “because couples need finality,” Moss says. In divorce, “people want to destroy each other,” she says. The fighting, even though intermediaries, can get ugly. So “once you have a deal, it’s the deal,” Moss says.

Even though one side may feel shortchanged, a deal helps with closure and moving on.

Or as Moss puts it: If you have children, “you need to be able to walk down the aisle and dance at their wedding.”

https://www.brickunderground.com/sell/divorce-couple-spouse-high appraisal-marital-family-ho

When you’re buying a new condo, you can expect that when you take ownership, your apartment will still need some small repairs. Hopefully it won’t need anything major—maybe a paint touch up or light fixture adjustment—or other work that still needs to be completed as you sign your sales contract. These items will be part of a punch list for the sponsor to deal with.

The good news is that condo developers know fixes will be needed when their once-vacant buildings start filling up with residents.

It might be that the flooring is uneven or a closet still needs to be built out and so a few thousand dollars from the sales price is set aside. “We go through this all the time and buyers typically have their lawyers hold something back until the work has been completed,” says Andrew Gerringer, managing director at The Marketing Directors. This generally happens if a buyer is really keen to close because their mortgage rate lock is expiring or their lease term is ending, says attorney Shaun Pappas, a partner at Starr Associates.

However, we aren’t talking about substantial sums. “If it’s a large issue like plumbing or electrics, you’re not closing in the first place,” says Daniel Gershburg, partner at the law firm Konner Gershburg Melnick Darouvar.

Another option is to have the sponsor put money in escrow, but again it’s typically not more than a few thousand dollars, Gershburg says. In hundreds of recent deals, he’s only seen one or two sales that have involved the sponsor putting money in escrow and on those occasions it was for a parking garage that wasn’t yet completed.

The chronology typically works like this: You do an inspection prior to signing the contract, you find items that need fixing, and you tell the sponsor what needs to be done before you close. Then you do a walk through prior to closing.

“The one standard is that prior to the closing, the final punch list will be signed by both sides,” Gershburg says. Either this document will say all the items are taken care of, or it will list items that the sponsor plans to take care of.

“Every contract will usually say—and you can negotiate it—within 30 to 60 days post closing, these items on the punch list will be fixed, provided the sponsor is capable of procuring the materials,” Gershburg says. With the current challenges to the supply chain, it’s not always possible to get items within a 60 day window but most sponsors want to keep their buyers happy.

However, some buildings won’t allow inspections, Gershburg says. Instead, they bring in a third party, which prepares a punch list and makes the fixes on behalf of the sponsor. Gerhsburg says this is a recent change partly because listing agents can get overwhelmed with all the details but also it’s just more efficient for the sponsor—and reduces their liability.

Pappas says up to 20 percent of the sponsors he works with use a construction warranty company like Prohome to complete punch list repairs. Of course, many sponsors still have their contractor on site when you move in so they won’t use a third party but he says an independent contractor can often make repairs go more smoothly. “They are there to make it more efficient—and having that barrier between the sponsor and the buyer is helpful,” Pappas says.

Jade Shenker is director of relations at Prospect Management and was recently asked to oversee punch list repairs at a new development in Brooklyn and says in most cases, it’s the plumbing that’s the problem.

“It’s very likely there will be some kind of plumbing issue—from a six-unit multi-family to a $100 million building—it’s very common,” she says. Once residents are in place, that’s when you find out the shower drain isn’t pitched correctly or the fifth-floor apartments aren’t getting the same water pressure as the ones on the first floor.

This was the case in a new development recently. When a pump was installed to increase the water pressure on the upper floors, it then became clear the pipes couldn’t handle the new pressure. The result was a major leak.

That’s why your due diligence on the reputation of the sponsor is so important, Gerringer says. The sponsor often stays on board for up to five years after the closings begin so if something goes wrong shortly after closing they are usually responsive to repairs, especially if they still have apartments to sell. “They don’t want anything negative to get out about them being non-responsive to buyer issues,” he says.

And if you’re not getting timely or effective repairs you may need to share your experience with your social networks, if necessary, tagging the developer. “Social media is very powerful and scary for developers not willing to do the right thing,” he says.

Tips for repairs post closing

Shenker’s advice to buyers is to get the specifications (or specs) of the unit when you close—for example, you should know the type of tile used in the bathroom, the flooring in the kitchen, and the paint throughout.

“If there’s a leak one or two years in—regardless of whether the sponsor covers it or not—you are going to want to match what is there rather than repaint the entire apartment or redo the whole flooring,” she says. If you have all these details, the repairs can be done more efficiently. Pappas points out, this information should be outlined in the offering plan.

Another tip is to know the warranties of the appliances in your new apartment. If your stove has a one year warranty and you notice the control panel is giving an error code or the light isn’t functioning after a few months, don’t be slow about reporting it.

Of course, major construction defects that become evident months after closing are more complicated and could result in a lawsuit or complaints to the Attorney General’s office.

Starr Associates LLP, one of New York’s preeminent boutique real estate law firms, is pleased to announce that Evelyn D’Angelo has been named partner.

“We are thrilled to have named Evelyn as a partner at Starr Associates,” said Samantha Sheeber, Managing Partner of Starr Associates, LLP.  “We have had the pleasure to watch Evelyn grow from a young associate straight out of law school to an accomplished attorney who possesses the rare combination of intelligence and practicality and the ability to use both to solve problems.”

Ms. D’Angelo practices in the firm’s development and offering plan group, boasting nearly 10 years of experience handling complex residential, commercial, and mixed-use developments, including the preparation and filing of offering plans; the creation of condominiums, co-ops, and HOAs; contract negotiations; and other related real estate transactions.  She joined the firm in 2013.

“Starr Associates’ best-in-class real estate practice has allowed me to work directly with many of the City’s foremost developers, brokers and architects; I am honored to become a partner at the firm,” said D’Angelo.  “I look forward to supporting and expanding the firm’s extensive real estate platform while continuing to assist and support our clients.” “

Prior to joining Starr Associates LLP, D’Angelo interned at the Real Estate Finance Bureau of the New York State Office of the Attorney General, where she assisted with the review of amendments to offering plans to ensure compliance with applicable regulations.

Ms. D’Angelo graduated with honors from Brooklyn Law School, where she was published in the prestigious Brooklyn Law Review and was a member of the esteemed Moot Court Honor Society.  In addition, Ms. D’Angelo holds a B.A. from the University of Notre Dame and an M.A. from Bowling Green State University.

The litigation department at Starr Associates has successfully resolved a dispute between a commercial landlord and our clients, a tenant that allegedly owed rental arrears, and the personal guarantor under the lease. The matter was referred to our office with a summary judgment motion pending and the clients’ opposition deadline already expired. Starr defeated summary judgment and succeeded in amending the pleadings to add counterclaims against the landlord who claimed that the commercial lease tenants owed years of rent plus attorney fees and other relief. After effective motion practice, Starr obtained a highly beneficial settlement on behalf of our clients. It is safe to say that this is not the result plaintiff anticipated when filing suit.

Bitcoin, Ethereum, and other cryptocurrencies are beginning to change, well, just about everything. Over the last few years, “crypto” has infiltrated countless industries, including finance, real estate, energy, social media, art, sports, and many others.

While it certainly has its skeptics, it’s beginning to seem as though crypto is here to stay. Indeed, just last year, El Salvador passed a law to recognize Bitcoin as legal tender in the country. In January, Senator Wendy Rogers introduced a bill to add Bitcoin to the list of accepted legal tender in the state of Arizona. Numerous members of Congress and other Federal, State, and local officials have been outspoken advocates of Bitcoin, Ethereum, crypto, and blockchain technology. Perhaps most notable here at home, New York City Mayor Eric Adams received his first paycheck (and vowed to receive others) in the form of Bitcoin and Ethereum, and has made it clear that he wants New York City to be the center of cryptocurrency and other financial innovations.

With respect to real estate, crypto has already made a meaningful impact in New York City. Over the last several years, crypto started being used as consideration for various real estate transactions, and there has been a noticeable uptick in interest recently from developers, investors, and purchasers. Starr Associates LLP is proud to have facilitated the purchase and sale of residential and commercial units using crypto as the form of payment. In total, our firm has consummated tens of millions of dollars of crypto transactions via BitPay, a United States-based cryptocurrency payment service company. Starr Associates LLP’s verified Tier Four account with BitPay permits unlimited daily and annual transaction volume. Whether our firm is representing the purchaser or the seller, the process of exchanging real estate for crypto generally works as follows:

1. Within 24-48 hours of when the down payment or balance is due, our firm would coordinate with
BitPay to generate an invoice for the amount due.

2. The invoice is sent to the purchaser via email along with instructions for effectuating the payment. The amount due is denominated in the requested form of cryptocurrency and has a price-locked conversion rate in United States Dollars (“USD”). In addition to Bitcoin (BTC), BitPay also accepts the following other cryptocurrencies: Ethereum (ETH), Wrapped Bitcoin (WBTC), Dogecoin (DOGE), Litecoin (LTC), Bitcoin Cash (BCH), and five (5) different USD-pegged “stablecoins” (GUSD, USDC, USDP, DAI, and BUSD).

3. The purchaser has fifteen (15) minutes from the time purchaser opens the invoice payment flow to lock-in the conversion rate and effectuate the payment of the invoiced amount in cryptocurrency. Purchasers are, of course, advised to verify the legitimacy of the email and invoice prior to accessing any links and remitting the requested payment.

4. Upon receipt of the cryptocurrency, BitPay sends the corresponding USD value to our firm’s escrow account to be held until the USD funds are released to the applicable parties at the agreed- upon time.

Note: the above process may vary (both in substance and time), as BitPay performs additional layers of due diligence depending upon the size of the transaction.

Aside from real estate transactions, there are numerous projects seeking to disrupt the real estate industry and change how owners, operators, occupants, and investors interact with real estate. These projects are nascent and exciting, but they have an arduous road ahead as they must navigate Federal and State securities, banking, privacy, anti-money laundering, and other laws. But it is interesting to consider the potential impacts of crypto and blockchain technology on real estate ownership and chain of title, condominium and cooperative governance/voting, source of funds disclosures, and alternative methods of purchasing, selling, financing, and investing in real estate.

Starr Associates LLP has its finger on the pulse of this quickly-blossoming industry and is ready to assist clients incorporate crypto into their real estate transactions and ventures. For more information, please do not hesitate to contact Shaun Pappas and Benjamin Siegel at crypto@starr-lawfirm.com .

DISCLAIMER
Nothing herein should be considered or construed as financial, investment, legal, tax, or other advice. Readers should conduct their own due diligence, and consult with an attorney, accountant, and/or other trusted industry professional(s) before purchasing, utilizing, or otherwise interacting with
cryptocurrencies, tokens, or blockchain technology. Starr Associates LLP does not make any representations or warranties regarding Bitcoin, Ethereum, any other cryptocurrency or token, or blockchain technology, including, without limitation, their security, usability, reliability, fitness for any particular purpose, or legality within any particular jurisdiction. Transacting cryptocurrencies or tokens on a blockchain involves risk, volatility, and the payment of fees. Participate and interact with cryptocurrencies, tokens, and blockchain technology at your own risk.

When you’re buying a condo or co-op in New York City, an important part of your due diligence is to look at a building’s financial health. Your starting point will be the building’s financial statement—of course it’s not the most fascinating read, so you may be relieved to know that the responsibility for making sense of it will fall largely on your attorney once you’ve put in an offer.

Still, you can take a look at financial statement any point in the process and understanding what you’re seeing can help inform how much you bid and might also give you an indication of whether a lender will be comfortable with your purchase.

Recent changes to borrowing guidelines by Fannie Mae mean banks are increasingly less likely to lend if the building you want to buy in has low reserve funds to pay for structural repairs, among other risky scenarios.

What you’re looking for in the financial statement includes consistency year over year, a healthy reserve fund, and whether or not there is any major work planned. What you find will tell you whether or not you might get hit with a large assessment in the near future. For additional reassurance you might also want to get your accountant or financial planner to look at the numbers.

What is the ratio of assets to liabilities?
A building’s financial statement typically opens with a list of assets, followed by a list of liabilities. You want to focus on current assets and current liabilities, says Michael Esposito, a certified public accountant with Wilkin Guttenplan, who has years of experience working with condos and co-ops in New York.

Often the building value of a co-op that was converted many years ago will be calculated in the low millions—this can be misleading because it is based on historical cost and depreciation that bears no resemblance to current market value.

Comparing current assets versus current liabilities gives you a better sense of the building’s cash flow—so that would be cash, receivables, and prepaid expenses versus accounts payable, any real estate tax abatements due, and accrued wages.

“You should have at least a 1:1 ratio, meaning you have enough current assets to meet your current liabilities,” Esposito says. This is typically called the working capital ratio.

“Anything better is great, but I would accept 1:1,” says Steven Wagner, an attorney and partner at Wagner, Berkow & Brandt (and a Brick Underground sponsor).

Is there a reserve fund?
A reserve fund is a co-op or condo’s rainy day fund—it’s the money the building has in the bank if a structural issue is uncovered, such as the roof starts leaking. It’s typically itemized on a financial statement as “other assets” and the industry standard is to have three months of carrying costs in reserve or a quarter of the annual operating costs.

While reserve funds have always been important in signifying a well-run building, the collapse of the Surfside condo tower in Miami has sharpened lenders’ focus on the aging infrastructure of buildings and the importance of having money available to address any issues that arise. A recent rule change by Fannie Mae prevents buyers from purchasing in buildings with reserve funds under 10 percent of the operating budget or where repairs have been deferred or unsafe conditions have been identified.

Previously condos were allowed to show lenders a reserve study for a building but now that’s not going to be enough to satisfy the requirements for conforming loans. As a result buildings may start increasing their maintenance or common charges in order to meet the new minimum reserve fund level.

To the untrained eye, details about the reserve fund might not be obvious in a financial statement. Sometimes it is rolled into the working capital fund. Attorney Shaun Pappas, partner at Starr Associates, says depending on the statement, you might not see anything. That’s when your attorney will need to take a look and figure out what the balance is.

“The buildings are really not generating income so the balance should be what the condo holds year to year, which sometimes gets increased by the fact that there’s additional contributions over the years or monies held over from one year to the next,” Pappas says.

Are operating costs consistent year over year?
Ideally, you’ll see financials for the two most recent years. (If not, which could happen depending on when in the calendar year you’re buying, you can request a projected budget.)

How specifically expenses are itemized in this section of the statement will vary (some documents get into the nitty gritty in the notes section), but you’ll see line items for things like administrative expenses, operating expenses, and repairs and maintenance.

The main thing you’re looking for is consistency year over year. Obviously budgets increase and costs can increase but Wagner says the numbers from one year to the next should be fairly similar, within 2 percent. “It’s a hallmark of good management and reflects planning,” he says.

Pappas says boards spend a lot of time negotiating their service contracts and their insurance costs to keep finances consistent. As a prospective buyer, that’s what you want to see in the financial statement.

If there’s a significant increase in operating costs between one year and the next you’ll want to determine why, Pappas says. “Maybe there was a big capital improvement that was done, maybe there was an assessment made.”

What are the maintenance and repairs itemized?
Under the cash flow analysis, you’ll find details of the money being spent on capital repairs. This will typically identify the capital projects that are being worked on as well as repairs and upgrades carried out in the recent past.

Tara Brown King is an agent with Corcoran and says one of the biggest expenses for a co-op or condo is complying with Local Law 11, which deals with the facade. Finding out about repairs—including Local Law 11—is important.

“You need to know if you’ll be paying for that through an assessment or was it just done a year ago, in which case—hallelujah!—that’s a nice bonus for you as an incoming buyer,” she says.

If you see commitments, you’ll want to see how they will be funded. “Is the building going to refinance and increase the debt on the building?” Esposito asks.

A financial statement is a look at the past but it will also account for everything through to the date the statement is issued. “If they enter into a contract or a commitment for capital work by that date, like say an elevator, we have to disclose it,” he says.

How to interpret losses
It’s not uncommon for a building’s financial statement to identify losses. This isn’t necessarily a red flag but is one reason you’ll want your attorney or accountant to take a look at the books.

For example, the building may be characterizing an expense as a loss for tax purposes. The biggest thing, Esposito says, is seeing whether the maintenance is efficient.

“If you look at the financial statement and you are generating large losses, that means your maintenance is not enough. The next year expenses go up but the maintenance is already short—you are going to see huge increases in maintenance,” he says.

What do the notes tell you?
The notes are what Brown King calls a “gold mine” of information. The notes will explain some of the numbers you’re trying to make sense of and also add some color about the building. For starters, the notes tell you the year the co op or condo was founded. If it’s young, you’ll want to figure out if the board is used to running a building. Has the building settled and construction quirks been worked out?

The notes can also tell you if the building is involved in any litigation. This might not necessarily be a deal breaker, but you’ll want to know what it’s about and the amounts involved. For example Brown King asks, “Has someone slipped and fallen and is suing the building? If so, is there proper insurance for that?”

Other information in the notes might relate to commercial space owned by a co-op. Brown King says if retail space is owned by a co-op, it means the shareholders are getting the income from the lease.

“If that lease is Chase and they just renewed at market rate that’s probably having a very positive impact to the financial health of the building so you might have less carrying costs as an owner,” she says.

Other times you might have someone who is not paying rent and you’ll want to know that.

An audited financial statement is the highest level of service and would give you the highest comfort level. Esposito says most bylaws require audited financial statements, however, he works with an eight-unit co-op in Brooklyn that didn’t have a mortgage for years, and didn’t necessarily see the need for an audited statement.

On the other hand, he also works with a four-unit condo where the owners have known each other for years and ask for an audited financial statement every year.

https://www.brickunderground.com/buy/how-to-read-co-op-or-condo-financial-statement

Slowly but surely, Bitcoin (BTC-USD) is being used to purchase everyday items like coffee and cars — and now, real estate is also joining the party.

The first commercial property in New York is being put on the market for digital coin. Magnum Real Estate Group is selling three retail condos complete with a fully rented-out retail bottom floor in Manhattan’s upper East side for $29 million — but will only accept Bitcoin.

Located at 385 First Avenue in a new construction luxury residential building in Gramercy Park, the condos cover 9,000 square feet, and the bottom floor is fully leased by ProHealth, Mighty Pita and M&T Bank.

“There’s a demand for real estate and there’s nothing being offered to the holders of crypto,” Ben Shaoul, managing partner of Magnum Real Estate Group, told Yahoo Finance.

“Our idea is to offer something that’s unique and try to pair the holders of crypto with those who want to sell real estate,” he added.

This isn’t the first crypto transaction for Shaoul. He did three residential deals in 2018, including the sale of an Upper East Side retail condo for $15.3 million in Bitcoin. And Shaoul expects real estate transactions using crypto to grow.

“I see the runway for transactions with crypto increasing exponentially,” said Shaoul.

“The fact that bitcoin is at record highs helps, but I also think investors have done very well owning bitcoin and now they’re looking for cash flow in assets and [real estate] gives someone the ability to buy a long-term real property with cash flow so they can take some chips off the table or transact and sell the asset in a few years as it’s appreciated in value to another buyer of crypto,” he added.

Shaun Pappas, Partner at real estate law firm Starr Associates LLP, likens acquiring real estate using crypto to backward diversification with dividends.

“Commercial sales with crypto were the logical next move as this section of the market matures,” Pappas explained. “Commercial real estate in NYC, especially in this location, will be there forever. The owner will always have access to tenants.”

Yet real estate transactions dealing in crypto aren’t all that new. Bill Zielke, CMO of BitPay — a cryptocurrency payment processor that’s processing the real estate transaction for Magnum — says that the payment processor has been handling crypto real estate transactions the past few years for international buyers, and more recently ski homes in the Western U.S. and properties in New York.

How it works
Transacting in bitcoin has some efficiencies and advantages. It means the process settles the next business day, instead of the typical 30 to 90 days, and the buyer sends their cryptocurrency from a digital wallet to Bitpay’s wallet.

Magnum Real Estate doesn’t have to touch the crypto. The one day settlement is processed through the U.S. automated clearing house for electronic funds network, which handles financial transactions for consumers, businesses and governments, and Magnum receives U.S. dollars.

Then, BitPay takes the cryptocurrency, Magnum is paid in dollars, and the buyer’s sale is complete and settled in a day. The transaction could be done 24/7 from anywhere in the world — and because it’s bitcoin and done on the blockchain no banks or traditional pay wires are involved and it’s secure.

If the transaction is financed, BitPay settles the crypto portion of the transaction and the portion that’s financed would be handled by the real estate company through normal financial lending channels.

As the price of bitcoin and other cryptocurrencies have run to record highs, investors are looking to cash out and buy something with that crypto whether it’s real estate, cars, electronics or jewelry.

“There’s a correlation with our volumes and the price,” Zielke said. “As the price goes up people tend to spend…I fully expect that trend will continue. More people are buying and holding crypto than ever before. So as that increases so will the spending.”

Luxury purchases using crypto are growing. BitPay, which has relationships with global yacht broker Denison and luxury car dealers, including Ferrari and Lamborghini, is seeing strong growth. About 32% of BitPay’s October processed volume was from purchases of luxury goods including jewelry, gold, yachts and real estate.

In the third quarter, BitPay saw similar amounts with about 30% of volume (dollar amount of sales) from the luxury goods category. The cryptocurrency of choice was bitcoin, which made up 60% of the volume.

https://finance.yahoo.com/news/crypto-comes-to-ny-real-estate-as-commercial-property-gets-offered-in-bitcoin-170623843.html

With roughly 500,000 New Yorkers still without internet access, momentum is gaining for action

A law requiring free internet for every apartment in New York City? If some city officials have their way, it will be a reality sooner rather than later. Council member Ben Kallos proposed a new bill on Thursday that would require landlords who own buildings with ten or more units to provide tenants with internet or “its functional equivalent,” as the proposal stated. “Such dwellings would be subject to additional technical requirements,” the bill reads, “including the installation of Ethernet ports and wiring to facilitate internet access. Violations would be punished under the Housing Maintenance Code.”

The news site Patch reported that Kallos wanted the bill passed to help underprivileged New Yorkers—there are around 500,000 of them who don’t have internet access. Living without it means that applying for food benefits, working remotely, and even reserving COVID-19 vaccine appointments is a challenge, to say the least.

Internet, Kallos believes, needs to be a utility in the same way that electricity, heat, hot water, and phone service are. Landlords who can’t afford to provide it can apply for aid, although he says that they’re looking at an investment that starts as low as $14.95 a month to buy internet in bulk.

The digital gap among New Yorkers and the need for internet became glaring during the pandemic. With remote work and schooling as a way of life and Zoom as a mainstay, New Yorkers who had to live without it faced roadblock after roadblock: Students couldn’t keep up with school, and employees couldn’t do their jobs. Kallos’s proposal is the first of its kind, according to Shaun Pappas, a real estate lawyer at Starr Associates in New York.

However, this isn’t the first time that the city has tried to help New Yorkers get access to internet. In January 2020—just a few months before the pandemic Mayor Bill de Blasio and chief technology officer John Paul Farmer announced the Internet Master Plan, which aims to provide all New Yorkers with easy, affordable, and fast internet service. In May, the administration announced that the plan had achieved a milestone by bringing internet connection to 13 low-income developments, three of which will receive free WiFi on public grounds.

Shaun Pappas believes that this new proposal is likely to get passed. “The city thinks that internet is an essential service for everyone, and it’s in their interest to serve underprivileged residents and give them whatever they need to live their basic lives,” he said. “Internet is definitely part of that.” Pappas thinks that the free internet landlords offer will be tiered. “They’ll probably provide a basic plan, but you’ll have to pay to upgrade to a higher speed,” he says.

If the bill doesn’t get passed, Tara King-Brown, a real estate broker with the Corcoran Group, says that the landlords who do offer it for free will have a competitive edge. “They will attract more buyers and renters and can build its cost into the monthly rental or maintenance fees,” she says. “Internet today goes beyond being an amenity. It’s the great equalizer that every New Yorker needs and deserves.”

https://www.architecturaldigest.com/story/free-internet-coming-every-new-york-city-home

Recent Uniform Rule amendments are intended to bring Commercial Division Rules more broadly into general civil practice before the courts of New York State. While creating efficiencies, these also include potential traps for the unwary, such as new motion and discovery requirements. The Chief Administrative Judge December 29, 2000 Administrative Order implementing these changes, recognizes the Commercial Division as an “efficient, sophisticated, up-to-date court, dealing with challenging commercial cases, and has had as its primary goal the cost-effective, predictable and fair adjudication of complex commercial cases”. In this posting, we provide certain highlights of these Uniform Rule amendments.

Counsel Appearances: Current Rule 202.1 is amended to provide that appearing counsel must be familiar with their case and fully prepared and authorized to discuss and resolve issues regarding the appearance. Failure to comply may be treated as a default for purposes of Rule 202.27 and/or may be treated as a failure to appear for purposes of Rule 130.2.1. While counsel should always be prepared for court appearances, attorneys should take heed of potential consequences of non-compliance.

Adherence to discovery schedule: New Rule 202.20-e requires parties to strictly comply with discovery obligations by dates set in case scheduling orders. Non-compliance may result in sanctions under CPLR § 3126. This rule strengthens court scheduling orders, straightforward discovery deadlines, relief for adversary noncompliance.

Interrogatories: New Rule 202.20 limits interrogatories to 25, including subparts, unless the court orders otherwise.

Depositions: Under new Rule 202.20-b, depositions are limited to seven hours per deponent, which limit the court may adjust for good cause shown. Rule 202.20-d creates additional requirements for corporate entity depositions. These changes further align more general New York civil practice with the New York Commercial Division and Federal Rules of Civil Procedure.

Disclosure disputes: New Rule 202.20-f, provides that to the “maximum extent possible”, discovery disputes should be resolved through informal procedures, such as conferences, rather than motion practice, Absent exigent circumstances, counsel must consult in good faith either by “in-person or telephonic conference” in an effort to resolve disclosure disputes before contacting the Court. In the event a discovery dispute cannot be resolved other than through motion practice, the discovery motion shall be supported by an affidavit or affirmation from counsel attesting o (i) the date(s), time(s), persons participating, and duration of the conference(s) or (ii) if the moving party was unable to conduct a conference due to the unreasonable failure or refusal of an adverse party to participate, then the moving party shall, in an affidavit or affirmation, detail the efforts made to obtain such a conference and set forth the responses received. Unreasonable failure or refusal to participate in a conference requested by another party may (i) relieve the requesting party of the obligation to comply with this paragraph and (ii) be result in sanctions pursuant to Part 130. Prior practice of limiting pre-motion communications to writing are no longer sufficient.

Motion Procedure: Under Rule 202.8, the exact relief sought shall be specified in the (i) notice of motion or order to show cause, and (ii) concluding section of the memorandum of law. Counsel must submit as part of the motion papers, copies of all pleadings and other documents required by the CPLR “and as necessary for an informed decision on the motion (especially on motions pursuant to CPLR 3211 and 3212).” Tabs should be used for exhibits to hard or working copies of motion papers. Copies must be legible. If an exhibit is voluminous and only discrete portions are relevant to the motion, counsel shall attach excerpts and submit the full exhibit separately. Foreign language documents must be translated as required by CPLR 2101(b). When reliance is placed on a decision or other authority not readily available to the court, a copy of the case or of pertinent portions of the authority shall be submitted with the motion papers, “When appropriate,” proposed orders should be submitted with motions, for example motions to be relieved, pro hac vice admissions, and open commissions. No proposed order should be submitted with a dispositive motion. Unless the court orders otherwise, no motion may be adjourned on consent more than three times or for a cumulative total of more than 60 days.

Motion Paper Word Limits and Certification: Under new Rule 202.8-b, moving affidavits, affirmations, briefs, and memoranda of law shall be limited to 7,000 words. Reply affidavits, affirmations, and memoranda are limited to 4,200 words and shall not contain any arguments that do not respond or relate to those made in the memoranda in chief. Every brief, memorandum, affirmation, and affidavit shall include on a page attached to the end of the applicable document, a certification by the counsel setting forth the number of words in the document and certifying that the document complies with the word count limit. Of course, counsel should also be cognizant of Judges’ part rules in this regard as well. Electronically-submitted memoranda of law, affidavits and affirmations exceeding 4500 words, shall include bookmarks providing a listing of the document’s contents and facilitating easy navigation by the reader.

Statements of Material Facts: Under new Rule 202.8-g, summary judgment motions shall include a separate, short and concise statement, in numbered paragraphs, of the material facts as to which the moving party contends there is no genuine issue to be tried. The opposing party shall submit a correspondingly numbered paragraph responding to each numbered paragraph in the moving party’s statement, if necessary, additional paragraphs containing a separate short and concise statement of the material facts as to which it is contended that there exists a genuine issue to be tried. Each numbered paragraph of the movant’s statement of material facts will be deemed admitted unless specifically controverted by a correspondingly numbered paragraph in the statement required to be served by the opposing party. Each statement of material fact, including each statement controverting any statement of material fact, must be followed by citation to evidence submitted therewith.

Print Type, Margins and Bookmark: Rule 202.5(a) requires print no smaller than 12-point, 8½ x 11-inch paper bearing margins no smaller than one inch, and footnote print size no smaller than 10 points.  Electronically-submitted memoranda of law, affidavits and affirmations exceeding 4500 words, shall include bookmarks providing a listing of the document’s contents and facilitating easy navigation by the reader within the document.

Motion Oral Argument: Rule 202.8-f provides that each court or court part shall adopt a procedure governing requests for oral argument, provided that, in the absence of such an adopted procedure, any party may request oral argument of a motion by letter accompanying the motion papers. Notice of the date selected by the court shall be given, if practicable, at least 14 days before the scheduled oral argument.  At that time, counsel shall be prepared to argue the motion, discuss resolution of the issue(s) presented and/or schedule a trial or hearing. Oral arguments may be conducted by the court by electronic means.