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Hamptons.com
August 16, 2016

What Is A Real Estate Broker’s Responsibility With Respect To Hamptons Rentals?

John A. Viterittiby John A. Viteritti
in Real Estate
Home Real Estate

In January 2016, Hamptons.com posted an article regarding the rental laws in effect in the towns of Southampton and East Hampton, including a real estate broker’s responsibility as may be viewed by the New York Department of State, the regulatory agency empowered with the authority to license, regulate, and penalize real estate licenses. You can read the article here. The issue has found reality in a case regarding a seasonal rental in the Town of Southampton. The case in point has resulted in an apparent disagreement between the Appellate Division of the Suffolk County Supreme Court and the Department of State.

When the issue was brought before a lower court, it did find that the landlord had failed to acquire a rental permit as required by the Town and therefore the lease was illegal and no rent should have been collected. The issue at hand has to do with the responsibility of the real estate broker who represented the landlord. The court ruled that the broker had no responsibility to know or disclose to the tenant that the landlord did not have a rental permit. It relied on what it called the legal principle in New York of “caveat emptor” – buyer beware. In preparation for this article I consulted S. Anthony Gatto, Esq. General Counsel of the New York State Association of Realtors (NYSAR), and David A. Mossberg, Esq. Counsel of the Department of State. Mr. Gatto provided me with an article he wrote for the current July/August issue of NYSAR’s official publication. In it he states: “NYSAR has always been of the opinion that licensees should verify the legal status of a property before listing or selling it. NYSAR’s opinion is based on a long line of DOS decisions from the past 25 years. This obligation extends to verifying the owners of the property, all of whom must sign the listing agreement for sale or rent. Licensees who once claimed ignorance or ‘put their heads in the sand’ when taking listings that are illegal rentals or sales … are contrary to the licensing law.”

Mr. Gatto provided me with a DOS opinion issued on April 19, 2016 which answers an inquiry, “Does the DOS require a landlord’s agent to investigate/discover the legal status of a rental property or if the status of the property is unknown does this eliminate liability for license law violation?” The DOS opinion included the following statement: “A broker who fails to demonstrate a working knowledge of the property being marketed, fails to demonstrate the level of competency required to transact business as a licensee in violation of NY Real Property Law.” The DOS also stated, in part: “Any broker participating in a transaction involving an illegal rental is prohibited from collecting a commission.”

I also raised the issue of an apparent conflict between the court ruling and the opinion letter issued by the DOS with David Mossberg, the DOS Legal Counsel. His reply, “We disagree with that limited interpretation of the case and will find a broker liable for similar misconduct under a different theory of law which was not specifically litigated in that case.”

Anthony Gatto concludes his article with the following statement: “Failure to verify the legal status of a property may subject the licensee and their broker to discipline by the DOS as well as the return of any commission earned in such a transaction.”

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Senator LaValle And Assemblyman Thiele Pass Three Measures To Benefit Sag Harbor

  • 167 Dune Road, Bridgehampton, NY 11932⁠
Saunders Exclusive: $42,500,000⁠
@jenniferwilsonhamptons 
@edbruehl @leemohlerehamptons 
@hamptonsrealestate 
⁠
Experience extraordinary coastal living with this exquisite oceanfront estate on Dune Road in Bridgehampton. ⁠
⁠
Designed by the renowned architect Francis Fleetwood, this remarkable property boasts 300 feet of private ocean frontage, complete with its own private boardwalk leading directly to the beach, all set on over 3 acres of prime land.⁠
⁠
The charming shingle-style residence encompasses 4,200 +/- sq. ft. of luxurious living space, featuring 5 bedrooms and 5 full bathrooms, plus an additional half bath.⁠
⁠
Read the full article at Hamptons.com (Link in Bio)⁠
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#duneroad #oceanfront #bridgehampton #realestate #hamptons #francisfleetwood ⁠
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  • The Hamptons have seen their fair share of collaborations and takeovers this summer. Still, nothing compares to The h.wood Group and Chase Sapphire Reserve’s transformation of Montauk hotspot Mary Lou’s into Delilah Montauk.⁠
⁠
The four-day takeover combined unforgettable dining experiences with show-stopping live entertainment featuring performances by Zack Bia, Alesso, Gwen Stefani, and DJ Pee.Wee (Anderson Paak). ⁠
⁠
Exclusively for Chase Sapphire Reserve cardholders, diners were treated to white glove hospitality and Delilah’s staples, including the famous chicken tenders and tuna tartare, and bold twists on Hamptons classics like lobster rolls, striped bass crudo, and crab and avocado toast. 

Check out more at Hamptons.com (Link in Bio)

#gwenstefani #alesso #djpeewee #chasesapphirereserve #delilahmontauk #montauk #hamptons
  • LVIS thrift shops are open Tuesdays through Saturdays 10 AM through 5 PM

donations are accepted Wednesday through Saturday 10 AM through 1 PM by appointment 

located at 95 Main St East Hampton
  • Check out the Top Hamptons Events This Weekend!⁠
⁠
🚗 The Bridge IX⁠
📅 Sat, Sept 13 | 2–7PM⁠
📍 The Bridge, Bridgehampton⁠
Over 300 rare automobiles showcased across stunning landscapes.⁠
⁠
🎬 23rd Annual Surf Movie Night⁠
📅 Fri, Sept 12 | 5:30–9PM⁠
📍 Southampton Arts Center⁠
Surfboard swap, live music & outdoor film screening. 🌊⁠
⁠
🍝 San Gennaro Feast of the Hamptons⁠
📅 Sat, Sept 13 – Sun, Sept 14 | 10AM⁠
📍 Hampton Bays⁠
Italian pastries, live entertainment & fireworks Sat @ 8:15PM 🎆⁠
⁠
🎭 In Process: Roderick George⁠
📅 Sat, Sept 13 | 7PM⁠
📍 Guild Hall, East Hampton⁠
A special in-process presentation of The Missing Fruit (Part I).⁠
⁠
🎤 Sheena Easton at WHBPAC⁠
📅 Sat, Sept 13 | 8PM⁠
📍 Westhampton Beach PAC⁠
Grammy-winning artist live on stage!⁠
⁠
☕ Cars & Coffee⁠
📅 Sun, Sept 14 | 9–11AM⁠
📍 Bridgehampton Museum⁠
Classic & exotic cars, food, drinks & live music.⁠
⁠
🛍 Hampton Vintage⁠
📅 Sun, Sept 14 | 10AM–5PM⁠
📍 Westhampton Beach Village Green⁠
Shop unique vintage finds!⁠
⁠
🎶 Hamptons Festival of Music Finale⁠
📅 Sun, Sept 14 | 4PM⁠
📍 St. Luke’s Church, East Hampton⁠
Featuring Cimarosa, Berlioz & Beethoven.⁠
⁠
🍷 Wine Dinner with Pradorey at R.AIRE⁠
📅 Tues, Sept 16 | 6:30PM⁠
📍 Hampton Bays⁠
Five-course tasting menu with exquisite wine pairings.⁠
⁠
🎥 Toy Story 30th Anniversary Screening⁠
📅 Sept 12–15 | Various Times⁠
📍 Southampton Playhouse⁠
Celebrate Woody & Buzz’s timeless adventure!⁠
⁠
Check out more events at Hamptons.com (Link in Bio)⁠
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#carshow #hamptons #sangennaro #sangennarofeast #winedinner #bridgeIX
  • The Animal Rescue Fund of the Hamptons (ARF Hamptons) hosted the Bow Wow Meow Ball in East Hampton. The evening’s honorees, Ellen and Chuck Scarborough, were presented with the Champion of Animals Award, recognizing their more than twenty-five years of support to ARF. ⁠
⁠
Over 400 guests celebrated ARF’s remarkable work with cocktails, followed by dinner catered by Olivier Cheng. Peter Marino, accompanied by his daughter and ARF Board Member Isabelle Trapnell Marino, presented the Scarboroughs with their award. ⁠
⁠
📸: Patrick McMullan/PMC⁠
⁠
Check out the full gallery at Hamptons.com (Link in Bio)⁠
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#arf #bowwowmeowball #hamptons #animalrescuefund #animalrescue
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    • Hampton Bays, Ponquogue Beach
    • Hampton Bays, Ponquogue Bridge
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    • Long Island Aquarium | Coral Reef
    • Long Island Aquarium | Penguins
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    • Sag Harbor, Sag Harbor Bay
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    • Shelter Island, South Ferry
    • Southampton, 39A to Montauk Hwy Merge
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