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Those involved in New York’s real estate market should constantly keep an eye on the Real Estate Board of New York – also known simply as the “REBNY.” This organization exerts a considerable degree of influence over the real estate sector in the Big Apple – and it has the power to implement new regulations on a wide scale. Shrewd real estate professionals should not only be aware of these new changes, but they should also adapt to them quickly. A recent change involves commission fees.
The New Commission Rules Summarized
The new rules specifically target commission fees associated with real estate transactions. Although these fees involve real estate agents, they also have the potential to affect many other participants in the real estate world – including buyers, brokers, and sellers. Here is a brief summary of the new rules:
Brokers can no longer pay buyers’ agents
Sellers must pay buyers’ agents directly
Listing agreements must clearly outline offers of compensation made by the seller to the buyers’ agents
So what exactly is this “backlash” that apparently sparked such changes? Concerns over fees have been continuing for years. However, it is only within the past few months that lawsuits over these fees have truly gathered momentum. Real estate brokerages have faced class-action lawsuits in some jurisdictions, and several people have been targeted by law enforcement after apparently concocting schemes to avoid these fees. Generally speaking, there is a marked concern that these fees are too high.
There is no guarantee that the changes to New York’s commission system will lower fees, however. In fact, some argue that it will increase such commission fees by providing buyers’ agents. Critics have pointed out that these agents could theoretically delay real estate deals and “hold out” for higher fees until the last minute. On the other hand, supporters of the change insist that it will lead to greater transparency and confidence within the real estate sector. Regardless of these opinions, real estate professionals will need to carefully adhere to the new changes. If they fail to do so, they may face legal and regulatory consequences.
New York Property Manager Sues Airbnb in Groundbreaking Case
Other aspects of New York’s real estate system are changing as well – perhaps most notably those that deal with Airbnb. New regulations are much more strict, making it much more difficult for homeowners to invest in this short-term rental scheme. These new regulations have allowed a property manager on the Upper West Side to sue one of their tenants for advertising an Airbnb. This represents an industry first for New York’s real estate world – and it could cause what Insider refers to as “ripple effects” across the entire nation.
Where Can I Find a Qualified Real Estate Attorney in New York?
Whether you are encountering issues with commission fees, Airbnb regulations, or any other aspect of real estate law, it may be beneficial to get in touch with a real estate attorney in New York. Choose the Glassman Law Group, and we can help you approach these issues with confidence and efficiency. Book a consultation today to discuss the most appropriate course of action based on your unique situation.