USA – NEW YORK Law and Practice Contributed by: Lindsey E. Haubenreich, Joseph P. Heins, Timothy P. Moriarty and Kimberly R. Nason, Phillips Lytle LLP
• new one-family residential buildings of any height beginning 31 December 2025; • new multi-family residential buildings not more than three stories in height beginning 31 December 2025; • new multi-family residential buildings more than three stories in height beginning 31 December 2028; and • new commercial buildings beginning 31 December 2028. Hesitation on future new commercial develop - ment projects has already begun, with develop - ers wary of unanticipated utility costs associated with an outdated electrical grid that will need improving to handle the new requirements. The most prevalent forms of ownership are indi - vidual and joint ownership through legal enti - ties, such as limited liability companies, limited partnerships, corporations, or trusts. Currently, these legal entities remain the primary owners of commercial real estate, especially limited liability companies due to their flexibility with tax treat - ment and structuring the company. Typically, investors in commercial real estate take title through an entity, or series of entities, owned and controlled by the individual owners. Residential real estate owned by more than one person may take title as tenants-in-common, joint tenancy with the right of survivorship, or tenancy by the entirety for married couples. 2.2 Laws Applicable to Transfer of Title Generally, parties are able to buy and sell real estate without complying with any jurisdictional requirements. Only certain types of parties or 2. Sale and Purchase 2.1 Categories of Property Rights
real property are subjected to state or local regu - lation: eg, certain charitable corporations must obtain the permission of the Supreme Court of the State of New York or the New York State Attorney General before transferring real prop - erty. Similarly, a party seeking to purchase a residen - tial home that is in default on a mortgage loan must comply with the New York State Home Equity Theft Prevention Act. Properties that are suffering from environmental contamination may require the selling party to notify the New York State Department of Environmental Conserva - tion or subsequent parties in title of the exist - ence of the contamination or any restrictions placed upon the real property. 2.3 Effecting Lawful and Proper Transfer of Title Transfer of title is effectuated by the delivery and acceptance of a deed, in recordable form, to the subject real property. To be in recordable form, a deed must be signed, be acknowledged by a notary, and contain an adequate description of the property. While delivery and acceptance of a deed is sufficient to transfer title to real property, the deed must be recorded in the county clerk’s office and the applicable taxes and fees paid to perfect the transfer. This final step is important because New York State is “race-notice” jurisdiction. This means a party can simultaneously issue two deeds to two separate parties for the same real property. The party that wins the “race” to the applicable county clerk’s office and has their deed recorded first will be the owner of the real property, pro - vided that such party had no knowledge of the other deed.
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