Currently, the state's commercial lien law only covers brokered leases of three years or more. NYSAR officials complain that the state's lien law, which was enacted more than 20 years ago, needs to be modernized to cover sales transactions and leases of less than three years.
NYSAR Director of Government Affairs Duncan MacKenzie says, "The bill provides that following performance of brokerage services involving the sale or lease of a commercial property subject to a written contract, the broker may file a lien. Many lease agreements involve options for further tenancy, and these agreements also provide for future commissions based upon the the exercise of these options. The bill provides a mechanism for the attachment of a lien for failure to pay these agreed upon future commissions."
Another key piece of legislation that is once again being debated in Albany is the Sellers' Property Conditions Disclosure Bill, which last year passed both the Assembly and Senate, but was vetoed by Governor George Pataki. Bill Sponsor Assemblyman Richard Brodsky spoke to the Realtors about the status of negotiations between the governor's office and the bill's sponsors. While Realtors have been in favor of the bill that would require sellers of one-to-four family residential housing to inform purchasers about mechanical, structural and environmental aspects of their home, the legal community in New York State has been lobbying against the proposal that is also sponsored by State Senator Thomas Libous.
Brodsky told the Realtor contingent, "The negotiations are word by word, line by line, comma by comma," he said. "And we will continue to press it. We had hoped frankly to have concluded by today and stand up here and have you throw rose pedals at us. But we are not there. We will have an answer for you by the end of the session." While Brodsky added that the Assembly was willing to compromise some on its proposal, a bill will be forwarded once again and brought before Governor Pataki for approval.
Other proposals that Realtors were pressing state lawmakers to support this session included: a provision for a First Time Home Buyer's Savings Account, a Commission Protection Act that would provide a mechanism to resolve residential sales commission disputes; and a bill that would Prohibit "After the Fact" Commissions. The "After the Fact" Commission is an issue that has arisen in recent times, according to NYSAR officials, where unlicensed employees, usually affiliated with relocation companies, are demanding commissions on the sale of a home even though they had not performed any work to earn the commission payment. NYSAR officials note that a number of states, including neighboring Connecticut, have laws on the books that prohibit the demand of "After the Fact" commissions.
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
