THE Commission Escrow Act Gains More Momentum
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PRESORTED STANDARD U.S. 19101 9 1 0 – 20052 0 0 5 APRIL, 2005 POSTAGE SPECIAL POINTS OF INTEREST PAID LIC NY 11101 • UPDATE ON COMMISSION ESCROW ACT . PAGE 1 PERMIT NO. 808 95 • TSUNAMI RELIEF EFFORT REACHES YEARSY E A R S OFO F GOAL. PAGE 12 EXCELLENCEEXCELLENCE • LIBOR EDUCATION CONFERENCE LongLong IslandIsland JUNE 2ND...REGISTER TODAY. PAGES 14-15 BoardBoard ofof RealtorsRealtors • NOMINATE YOUR CHOICE FOR REALTOR OF THE YEAR . PAGE 23 THE ® CIRCULATION 22,000 The Voice for Real EstateTM OFFICIAL PUBLICATION OF THE LONG ISLAND BOARD OF REALTORS®, INC. www.mlsli.com™ Commission Escrow Act Gains More Momentum By Randy L. Kaplan Hills); Vivian Cook (Jamaica); Tom DiNapoli updated the LIBOR/MLS joint Board of including a list of current sponsors and talking Director of Government Affairs (Great Neck); Pat Eddington (Patchogue); Directors on the recent success of LIBOR and points to use when speaking to your elected Steve Englebright (Setauket); Margaret other downstate boards for officials. In addition, the Our goal of the Commission Escrow Act Markey (Maspeth); Audrey Pheffer (Rockaway getting most of their new website allows REAL- becoming law in New York State is one step Beach); William Scarborough (St. Albans) Bob majority members to TORS® to send their lost closer to reality as more and more state law- Sweeney (Lindenhurst); Harvey Weisenberg cosponsor this bill. commission stories directly makers are signing on as cosponsors of this (Long Beach) and Mark Weprin (Little Neck). NYSAR has committed to to NYSAR for use when much needed bill. The legislation, which The way politics works in the New York help us fight this battle describing the need for was recently reintroduced in both the New State Legislature is clear-cut — a minority until the bill becomes law! commission protections. York State Senate as S.193 and in the New member of the Assembly or the Senate cannot Recently NYSAR The site will also soon give York State Assembly as A.3395, will allow become a cosponsor on a majority member’s launched a new website to REALTOR® members the disputed real estate commissions to be bill. However, many of the legislators who are support efforts to protect ability to email their state placed in an escrow account until the matter not cosponsors have already expressed their earned real estate commis- legislators in support of the can be resolved. support for the bill when it comes up for a vote sions. www.stopcommis Commission Escrow Act. To date a total of fifty majority members on the floor of the Senate and the Assembly. sionripoffs.com contains an Late last year, the Suffolk in the Assembly and twenty one majority Just last month NYSAR CEO Chuck Staro overview of the issues related to protecting County Legislature overwhelmingly passed a members in the Senate have signed on as and President Gary Kenline (pictured here earned commissions; information on the Resolution, introduced by Deputy Presiding sponsors of the Commission Escrow Act. with LIBOR President Marian Fraker-Gutin) NYSAR supported Commission Escrow Act (Continued on page 3) This is the highest level of co-sponsorship in the history of this proposal. Thanks to the efforts of LIBOR’s Opposition to Mortgage Recording Tax Proposal Commission Escrow Act Sub Committee REALTORS® across New York State are financing. Depending on where the borrow- the total mortgage amount. However, if the and our legislator contact team program — opposing the New York State budget legisla- er lives, as many as four separate state and homebuyer pays cash in purchasing the we have had much success locally. The tion that requires the twelve counties com- local taxes may be imposed on the recording home, the mortgage recording tax is not seven State Senators who signed onto the prising the Metropolitan Transportation of a mortgage. imposed. bill from the LIBOR region include: John Authority region to impose an additional One of the most serious consequences of This tax also applies to homeowners seek- Flanagan (Smithtown); Chuck Fuschillo one-tenth percent tax on the recording of a this proposal is that it makes homeowner- ing to refinance their mortgage debt and take (Merrick); Owen Johnson (Babylon); Ken mortgage. If approved, this legislation will ship less affordable to low and middle advantage of lower interest rates. The higher LaValle (Selden); Carl Marcellino (Oyster increase the tax on the recording of a mort- income working New Yorkers. High housing mortgage recording tax will undoubtedly Bay); Dean Skelos (Rockville Centre) and gage in the MTA region to a minimum of costs adversely affect the quality of life that reduce the number of refinancings which, in Caesar Trunzo (Hauppauge). $1.10 per $100 mortgaged. These higher real the New York has to offer the young and turn, will also have a direct and negative In addition to the main Assembly sponsor estate transaction taxes will make home buy- well-educated workforce employers need. impact on the region’s economy. Michael Gianaris (Astoria), who recently ing less affordable and increase costs for The mortgage recording tax is a regressive Homeowners that put off refinancing will not attended and updated the Queens North Shore those who seek to refinance their mortgages. tax. In most cases homebuyers take out a have the capital to reinvest in local business Chapter Meeting on this legislation, the other Homebuyers in New York State are mortgage to purchase their home. These pur- for activities such as building additions, refur- fourteen cosponsors in the Assembly from the among the few nationwide who are taxed for chasers are required to pay a mortgage bishing kitchens and making other improve- LIBOR region are: Jeff Aubry (Corona); Ann the “privilege” of obtaining mortgage recording tax at closing which is based upon ments to existing homes and property. Margaret Carrozza (Bayside); Barbara Clark (Queens Village); Michael Cohen (Forest New Neighborhood Profile Provider on MLSLI.com™ Reaching MLS has switched its provider of neigh- Percent Commuting by Peak Performance borhood information for www.mlsli.com™ Bus, Carpool, Auto and to Sperling’s Best Places. Sperling provides more. Education and detailed neighborhood profiles for every zip School Profiles for public code in the United States and compares and private schools, uni- each zip code to its Metro area and the versities, and special national average. schools plus info the SEESEE PAGE PAGE 14 14 The data available includes Economy, Health, Crime Neighborhood Profiles providing a Rates & Climate Profiles. 17thFORFOR Annual detailed neighborhood snapshot including Dan Ryan, MLS LIBOR Education Conference Population, Percent Male/Female, President says “We are CONFERENCEInside: & Trade Show Median Age, People Per Household, continuously making CONFERENCE• Earn What You’re Worth • Understanding Gen X: Percent Married Versus Single, Median enhancements to our con- Today’s Buyers and Sellers Thursday, June 2, 2005 • Increase Listing and Selling Volume • Gain Balance in Your Life Crest Hollow Country Club Household Income and more. sumer site. The new • Avoid Legal PitfallsDETAILS • Go Wireless: TheDETAILS 24/7 Solution Woodbury, NY • Relieve Stress In addition, Housing Information is pro- neighborhood informa- ier for our consumers to investigate and • Customer Service Goes Hi-Tech • Enhance Your Website • Laugh for the Health of it vided including Median Home Value, Age tion provider, Sperling’s Best Places, make the right choices about the neigh- Special for Brokers and Managers: • Motivating and Retaining Agents of Home, Percent Owning Versus Renting, allows MLSLI.com™ to make it even eas- borhood for their family.” • Lead Tracking: First Contact to Sale • Top 10 steps Revealed to Office Profitability THE REALTOR® G April 2005 G 2 3 G DOs and DON’Ts for Complying with RESPA April 2005 Recent articles in the press indicate that costs. Then, at closing, the borrower and this regulatory program and enforcing its providers. some of those involved in real estate settle- seller receive a settlement sheet (the provisions. Its implementing regulations • Gives examples of permissible and ments may not fully understand their oblig- “HUD-1”), which itemizes the costs paid are at 24 CFR Part 3500. impermissible activities and payments. G ations under the Real Estate Settlement in connection with the purchase of The Long Island Board of REAL- HUD is beefing up its enforcement of THE REALTOR Procedures Act (RESPA). Moreover, HUD the home. RESPA also prohibits TORS®, Inc. (LIBOR) has RESPA, so it is important that all REAL- has stepped up its RESPA enforcement in both giving and receiv- posted a list of RESPA TORS® focus on RESPA and assure that the past 18 months. Attached are some ing anything between DO’s and DON’Ts their activities comply with its require- RESPA DOs and DON’Ts for real estate providers of settle- on the REALTOR ments. brokers and agents. ment for the referral ONLY web site at Before a REALTOR® undertakes any In 1974, Congress enacted RESPA to of business. mlsli.com™. activity with a settlement service provider ® protect consumers during the home pur- Even though the law LIBOR is working to or accepts any payments, goods, or services chase process. The purposes of RESPA has been in place for 30 help educate REALTORS® from a provider, NAR recommends that the include (a) giving consumers better years, there still exists a about RESPA requirements. The Do’s and REALTOR® speak with an attorney famil- advance disclosures of settlement costs, great deal of uncertainty Don’ts posted on the REALTOR ONLY iar with RESPA and also makes sure that and (b) eliminating kickbacks or referral over which fees are permit- site include the following information: the activity complies with state and local fees that unnecessarily increase certain set- ted and which are prohibited. Uncertainty • Describes the types of entities that laws.