True Crimes in Real Estate is back with the case of: It’s my house. I can do whatever I want.
How many times have you as a tenant heard this? And how many times have you–Mister and or Misses owner said this when you want to make a point? “It’s my house and I can do whatever I want?”
Let’s look at this and see how true or untrue it is.
It’s my house…
It’s your house in so much as you bought it. You take care of it. It’s your biggest investment. Unlike your car, your house will likely increase in value. So, it’s yours to do with as you wish.
Reality Check
Well not so fast. State and Federal laws dictate that if your house is older than 1978 it is considered to have lead. Therefore you can’t renovate anyway you want. You must remove the lead in a prescribed manner. The same applies if you have asbestos.
Is your house on a landmark block? You want to change the features of the house, you can’t. Not without the landmark preservation board’s agreement. Don’t believe this? Try and rent a landmark house designated as a one–family as a two-family. The amount of hell coming your way cannot be quantified.
True Story: Renovation in Virginia
A family friend owns a home in Virginia. The house is in a landmark area. She wanted to replace the windows. The fence needed to be replaced also. Problems arose when she went to purchase the replacements. She was told that the fence could only be replaced with one that resembled the old one. She wanted a modern fence. The windows had to look like the old ones. Even though they would be modern in construction. She would also have to receive permission to make the renovation. The cost was more than double what she expected. Her decision: leave it as it was for now.
So, what do we have here? Simple answer. It’s your home to live in and enjoy. So long as you obey the laws of your state and the federal government. Eminent Domain can change all of that. We’re not going to touch that one.
Where’s the real estate crime here?
See if you can spot it before I reveal it to you.
Recently I was renting a 2 bedroom in Brooklyn New York. A young lady came to see the apartment. She explained that she had a great place but she needed to move immediately. Normally I would not have questioned this but something was wrong here.
I asked one question, “Why did she have to move?”
She stated that the owner wanted to sell the property. He told all the tenants that they had to move immediately. The new owner wanted the house empty.
A quick note here: In New York, upon sale, the new owner has to keep any tenant (s) that has a valid lease. That new owner must also get the security and other deposits the tenants paid from the previous owner. The new owner must place them in an escrow account. The exception, the tenants agree to move on their own.
Continuing
When she questioned the need to move, the owner’s response was “it’s my house and I can do what I want”. I asked if she had a lease, she said yes. It still had 2 years on it. She was current with the rent and was never late.
I asked if the owner had given her 30 days notice. She said no. He told her a few weeks earlier. In addition, he told her that if she didn’t move the Marshals would be there to put her and her kids on the street. They would also put her furniture on the street.
Ok now I’m pissed but it gets worst. The real estate agent working with the owner told the tenant the same thing. The agent re-enforced what the owner said about not moving.
Cash for keys option
They, yes they, said if she moved within a certain time the owner would pay for her moving expense. The owner would also pay her first-month rent and security.
The owner was using his version of Cash for Keys. Cash For Keys is a procedure used by banks during foreclosure of a property where tenants live. There are no laws enforcing this bank procedure. It is not enforceable.
In Cash For Keys, all terms are in writing. A time frame is chosen for the tenant to move. All parties sign the agreement.
Note: Cash for Keys cannot be forced on anyone.
Problem With This Cash For Keys
So what’s the problem?
- Nothing is in writing. There would be no proof that such an offer existed. The offer can be withdrawn at any time.
- No dollar amount mentioned just a promise to pay the rent and security.
- No time frame stated.
- The tenants are being forced to agree.
- Tenant rights violated.
If you are a follower of mine then you know what else is wrong here. Thus the crime has been revealed. For those that are new here let me break it down.
No 30 And Out
New York has the absolute toughest tenant-landlord courts in the country. Our rules and judges favor the tenant. Most importantly, there is no such thing as 30 days and out. In other parts of the country, you can be evicted in 30 days for non-payment of rent. Not here.
We have a very deliberate and detailed process. Mess up one thing and your eviction can take forever. On the other hand, be a tenant that lies to a judge and things can be just as difficult for you. For the owner in this story, this means he is already on the losing end. Read on.
No due process
The owner did not give the 30-day notice required by law. Not only must you give the tenant 30-day notice but you must file that same notice in court. Legal evictions can only be handed out by the court.
Note: Give 29 days instead of 30 days; the eviction is invalid. You have to start over.
Fact and Myths
Myth: You can go to the Marshal’s office to evict a tenant that refuses to move.
Fact: The Marshal’s office doesn’t do anything without a court order. It can take at least a year to remove a tenant in New York. There is no way that an owner can get the Marshal’s to remove a tenant within 30 days or any other time without a court order.
Myth: The Marshals physically remove you from your apartment.
Fact: Marshals execute vacate orders. They can escort you from the apartment. Should you be defiant the police are called to assist. A locksmith changes the locks, not the Marshal’s office.
Myth: The Marshal’s will put your belongings on the street.
Fact: Should the Marshal designate your things as salvage the owner can dispose of them, as he/she deems fit. If they are not designated as salvage the owner must put them in storage for one month. The owner tells you where your belongings are. You are given the key to the storage unit. If you do not pick up your things or keep up with the storage fees then you, not the owner have lost your items.
Myth: You can use threats to evict a tenant.
Fact: Harassment against a tenant is also against New York State law.
The owner’s threat to use the Marshal’s office as a means of coercion. His use of threats and intimidation violates the law.
The Agent
As for the agent, her only concern seemed to be the anticipated commission on the sale. It is because of agents like this, new agents go through longer training.
Violation of the Agency Disclosure
Agency Disclosure has a section says we must deal with the person who is not our client with honesty and fairness. The agent failed to do this. She backed what the owner said about the Marshal’s office. Meaning she lied to the tenant. She joined in the harassment of the tenant.
The agent did not inform the tenant of her rights. She did not violate undivided loyalty. But did violate the fairness and honesty are part of the fiduciary duties.
Final Outcome
I advised this young mother to contact 311 to get the Tenant Landlord Court’s number. She did and I’m happy to report she confirmed all that I said. She learned about her rights and options.
In our last conversation, she stated that she was going to take the Cash for Keys offer and move out. She is getting the deal in writing including an actual dollar amount. She now knows exactly how Cash for Keys works. The move should go smoothly.
To rent or not to rent
Even though it’s your house you can’t screw people over. If you believe it’s your house and you can do anything you want, then don’t rent.
If you are a tenant that thinks because you pay rent you can do anything you want. Don’t rent, get your own house and again don’t rent.
One Final Word Of Advice
This following goes for both tenants and owners. I can’t tell you how many times owners and tenants make simple yet devastating mistakes. Mistakes that could easily be avoided.
- For tenant or landlord issues check the laws of your state. Confer with a lawyer versed in real estate laws.
- Note: All lawyers know real estate law, its part of their training to become a lawyer. Not all lawyers are real estate lawyers.
- Seek out a real estate lawyer. They know the court system. As well as any changes in the real estate law.
- Check to see if there is a tenant-landlord hotline or other such services you can call for advice.
- For Internet users, check multiple websites for advice. Make sure to visit sites in your city, county or state.
- Certain real estate laws change from one location to another. Know the laws of your location.
Disclaimer
Disclaimer: I am not a lawyer and nothing stated here is legal advice. This article applies to the five boroughs of New York. All information deemed accurate but not guaranteed. Always check the real estate laws in your part of the country.
Comments, Questions, Suggestions?
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