On February 20, 2017, our colleagues blogged about Ader v. Guzman, 135 AD3d 668 [2d Dept. 2016] and a guidance letter subsequently issued by the NYS Department of State (NYSDOS). At issue was the responsibility of a real estate broker to have a working knowledge of the property being marketed, including land use and zoning restrictions. The Court held that a broker has no duty to investigate whether there is a valid rental permit for the residential rental property. The NYSDOS, which licenses real estate brokers and salespersons in New York, reached a different conclusion, noting that the failure of a broker to have a working knowledge of the site could violate the broker’s obligations under the Real Property Law §§ 441 and 441-c.

On Wednesday, March 29, 2017, we presented a program to the Commercial Industrial Broker Society of Long Island (CIBS) about Land Use and Environmental Pitfalls for Real Estate Agents and Brokers that dealt with the Ader/NYSDOS issue. We also discussed NYS’s Tenant Notification Law and other potential environmental and land use traps that could adversely impact realtors.  Please click here for a copy of our power point presentation.  We hope you enjoy it!