{"id":44258,"date":"2024-12-17T16:52:08","date_gmt":"2024-12-17T14:52:08","guid":{"rendered":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/?p=44258"},"modified":"2025-05-22T13:10:53","modified_gmt":"2025-05-22T10:10:53","slug":"2024-real-estate-law-market-recap","status":"publish","type":"post","link":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/2024\/12\/17\/2024-real-estate-law-market-recap\/","title":{"rendered":"2024 Real Estate Law & Market Recap"},"content":{"rendered":"\n

NYC-based boutique law firm\u202f<\/em><\/strong>Pardalis & <\/strong><\/em><\/a>Nohavicka<\/a>\u202fbrings the latest legal updates from the world of <\/em><\/strong>real estate. Pardalis & Nohavicka handles an eclectic array of matters, representing individuals and business owners in civil litigation, criminal cases and business transactions, currently litigating and representing clients throughout the United States and around the world.<\/strong> <\/em><\/p>\n\n\n\n

The real estate industry has had quite a few significant developments this year. Below are some of the key events of 2024:<\/p>\n\n\n\n

<\/span>1. Settlement Agreement & Practice Changes <\/span><\/h3>\n\n\n\n

In March, the National Association of Realtors settled a lawsuit by agreeing to pay $418 million in damages and revising longstanding rules regarding broker commissions. These changes were implemented in August and aim to increase transparency in commission practices. The settlement is expected to prompt other real estate associations to adopt similar practices, particularly regarding clear disclosures about commissions<\/a>.<\/p>\n\n\n\n

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<\/span>2. PCDA Changes <\/span><\/h3>\n\n\n\n

As of March, a new law requires homeowners to provide prospective buyers with a completed property disclosure form<\/a>. This is due before signing a purchase contract for residential real estate, although it excludes co-ops, condos and properties in HOAs that aren\u2019t owned in fee simple by the seller. Sellers are also no longer permitted to waive this requirement by offering a $500 credit at closing. Disclosures must reflect the seller\u2019s actual knowledge, but do not require further investigation of the property.<\/p>\n\n\n\n

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<\/span>3. Transfer on Death Deeds (TODDs) <\/span><\/h3>\n\n\n\n

As of July 2024, Section 424 was added to the Real Property Law, introducing the Transfer on Death Deeds<\/a> in New York. This new provision allows property owners to designate a beneficiary who will inherit their real property automatically upon the owner\u2019s death, thereby bypassing the probate process. This simplifies estate planning, reduces costs and provides certainty for individuals whose primary residence is their main asset.<\/p>\n\n\n\n

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<\/span>4. Challenging Housing Market Conditions <\/span><\/h3>\n\n\n\n

The 2024 housing market has been difficult for real estate market participants looking for affordable housing due to high interest rates, which appears to have kept home prices elevated and housing inventory low. <\/p>\n\n\n\n

Housing demand remains strong, particularly for affordable units, yet there\u2019s an inadequate supply. This is made worse by high interest rates, which have made once-affordable housing now out of reach for many due to increasing borrowing costs.<\/p>\n\n\n\n

The lower housing supply is due, in part, to existing homeowners experiencing the \u201clock-in mortgage effect,\u201d in which they\u2019re hesitant to sell their homes and trade their sub-5% mortgage rates for rates exceeding 7%. According to various studies, most current homeowners hold mortgage rates below 5%. In fact, one Realtor.com study revealed that 74.6% of homeowners had rates below 5% and 84.2% had rates of less than 6%. This dynamic significantly restricts housing supply despite strong demand for affordable housing.<\/p>\n\n\n\n

Developers are similarly constrained by high borrowing costs, which have contributed to the lower housing supply. Specifically, high interest rates have suppressed new real estate developments because developers rely heavily on financing.<\/p>\n\n\n\n

<\/span>5. \u201cCity of Yes\u201d Approved <\/span><\/h3>\n\n\n\n

On December 5, the New York City Council passed the modified \u201cCity of Yes\u201d<\/a> proposal from New York City Mayor, Eric Adams\u2019, which is aimed at addressing the city\u2019s housing crisis.<\/p>\n\n\n\n

This zoning reform is expected to lead to the construction of up to 80,000 new housing units throughout the next 15 years (down from the 109,000 new housing units envision in the original plan). It also includes $5 billion in investments in housing infrastructure, such as sewers and flood mitigation and public spaces. <\/p>\n\n\n\n

Notable aspects of the updated plan include:<\/p>\n\n\n\n