Andrew Cuomo got some attention this week for defending bail reform, a measure he signed as governor that critics blamed for rising crime (a claim the data did not actually prove) and for signaling that wrongdoers wouldn’t be held accountable.
But there was another Cuomo action that sticks in the craw of some real estate people even more: his attempt to rein in the title industry.
One person from that field told me that although he’s not impressed with the other mayoral candidates, he won’t be voting for Cuomo because of the battle over Regulation 208.
Cuomo’s Department of Financial Services didn’t think customers should bear any of the cost of title insurance agents’ entertainment of real estate professionals — that is, the folks who can steer homebuyers’ business to them.
In fact, DFS tried to forbid the industry from giving gifts or doing anything resembling “wining and dining.” The agency called out such “unscrupulous practices” as bad for consumers, who tend not to shop around for title insurance.
The regulations followed a DFS investigation that the agency said “revealed that title insurance companies and agents have spent millions of dollars on inducements that the industry has charged back to consumers as ‘marketing costs.’”
But the industry challenged Cuomo’s action in court. The legal battle went on for years but title insurers eventually won — overcoming a ruling in Cuomo’s favor by the Appellate Division, which called the inducements an “ethically dubious scheme.” Regulation 208 remains on the books today.
“Why is it illegal for me to market my services!” the title professional said by email. “Why are we, as an industry, the only people in the real estate sector that are not allowed to entertain our clients? Must we go Dutch when inviting a client or prospective client for lunch or dinner?”
What we’re thinking about: One landlord on X bemoaned the field of mayoral contenders, commenting, “Who would we vote for other than Cuomo? Eric Adams is Trump’s bitch; all the other candidates seem to be looney tunes DSA types.” Do you agree? Send your thoughts to eengquist@therealdeal.com.
A thing we’ve learned: Of all the metro areas in the country, New York had the largest natural growth last year, with 214,000 births and 141,000 deaths.
Elsewhere…
Normally, New York City apartments priced below market rate don’t stay vacant long. But an owner of a 10-building portfolio in the Bronx lost $117,000 in potential rent last year while trying to re-rent affordable units through the city’s Housing Connect lottery system, according to a New York Housing Conference report.
The group’s analysis focused on why it takes so long to match these units with eligible tenants, which should be like selling ice cream cones for a dollar on a 100-degree day.
In the above example, the landlord estimated that it would have missed only $20,000 in rent had it been able to simply list the units. The portfolio’s vacancy rate would have been 0.6 percent instead of 3 percent.
In case you missed it, check out my column about the poorly designed system that produces this result for owners of affordable housing across the city.
Closing time
Residential: The priciest residential sale Thursday was $10.35 million for a 2,695-square-foot, sponsor-sale condominium unit at 500 West 18th Street in Chelsea. Deborah Kern and Steve Gold of the Corcoran Group had the listing.
Commercial: The most expensive commercial closing of the day was $259.5 million for a portion of 333 Schermerhorn Street in Downtown Brooklyn. Steiner NYC purchased the remaining stake from JPMorgan, Crain’s reported.
New to the Market: The highest price for a residential property hitting the market was $12 million for a 3,344-square-foot townhouse at 214 West 11th Street in the West Village. The Eklund Gomes Team at Douglas Elliman has the listing.
Breaking Ground: The largest new building application filed was for a 93,072-square-foot, 12-story community and housing facility at 1546 East New York Avenue in Brownsville. David Kriegel filed the permit on behalf of Xenolith Partners.
— Matthew Elo