True Gotham

The buzz across the Manhattan real estate market is Vivian S. Toy's article in The New York Times Questions Your Broker Can’t Answer, which addresses Fair Housing Laws and the very recent push by brokerages to make sure that their agents are complying with these laws.  Jonathan Miller has posted about it on his blog Matrix.  The Property Grunt chimes in too.  Even The Real Deal couldn't resist passing along the link that covers this controversial topic.  Well I couldn't resist either because the interpretation of these laws has indeed surprised me and many of my colleagues.

The strict interpretation of fair-housing laws prohibits brokers from providing information about people that could be construed as discriminatory in any of 14 protected categories. The categories include familiar ones like race, religion, sex and disabilities and less well-known ones like familial status, marital status, citizenship and occupation.

The challenge for those in my industry is not the obvious discriminatory categories like race, religion, sex, etc. but those like marital status and occupation do present a challenge.  The reason for this is almost solely due to the co-op housing market.  Part of the reason that Manhattan sellers hire a real estate professional is to help them navigate the co-op Board approval process and until some co-op Boards become more accountable for their  discriminatory actions, this navigation is nearly impossible.  Let me elucidate.

I happen to know of several buildings who boldly discriminate based on age, profession, and one that even takes issue with prospective purchasers who are pregnant because the Board assumes that the mother will not go back to work thus forgoing her income...LUDICROUS!!!!  Having said that, I MUST present all prospective purchasers to this Board despite my knowledge of their discriminatory practices even though I know that any of the candidates mentioned aboved will surely be rejected by the Board of Directors.  Can you say "waste of time?" 

“In my mind, it’s so restrictive it takes away part of the job that the public has relied on brokers to do,” Ms. Kleier said. “To be able to tell them: Is this building a place where I’m going to be comfortable? Or if my kids run through the lobby, am I going to be looked at cross-eyed?”

Brokers are often hired for their expertise in a specific neighborhood or building, and not being able to share certain information will make a broker’s job that much harder, she said.

Mr. Garfinkel said that Ms. Kleier is certainly not alone in her apprehension. “A lot of brokers are concerned about the push-back from customers who feel that, ‘You’re my broker — why aren’t you helping me and answering my questions?’ ” he said.

Again, the only way to remedy this situation is to somehow stop the co-op Boards from discriminating.  I sincerely believe that most of my colleagues follow Fair Housing laws to a tee particularly since this latest push by brokerages to point out every letter of the law.  I personally no longer (yes, my entire industry asked these questions of everyone in the very recent past) ask my client's their profession, marital status, or blood line :-D  Keep in mind however that as agents, we often spend large amounts of time with our clients who often share information with us solely as a result of conversation and a comfort level (perhaps a friendship) that develops over time.  Disclosing any of this information during the course of the transaction is what is to be avoided. 

An example of what not to do as a real estate agent:

Yesterday, my wife and I traveled out to Boerum Hill, Brooklyn to take a look at an investment property.  I immediately let the agent know that I was a broker but I was not looking to receive any part of the commission.  Within 30 seconds the agent said the following:

• "The people who live in the projects live in the best apartments they have ever lived in."  Quite presumptious a statement no?
• "If they 'misbehave' they will be evicted and that's a 'great deterrent' for the neighborhood."  My jaw was hanging open at this point.
• He also shared the public school information telling us that we would have to apply to get into the "better of the 2 schools."  I'm sure he would have shared why one was "better" if we asked but I was afraid to hear what would come out of his mouth.

Obviously, he hasn't been briefed on Fair Housing Laws and I suspect he's going to get himself in a lot of trouble hopefully sooner rather than later.

In the meantime, we in the real estate industry ask fewer questions and let buyers make up their own minds about where they should live.  Go figure...a buyer making their own call...what a novel idea!

I have been told twice by brokers that a particular apartment was not available to anyone with children. The first time was in 1998, because the landlord was afraid they would fall off the terrace, and the second in 2006 because "she is difficult to work with and always rejects families, so I won't waste your time."

First and foremost, the agent who chooses to work with a landlord or seller that makes such ridiculous demands is more of a fool than the landlord/seller themselves. The interesting thing this brings up for me is who do you report this type of landlord/seller to? The answer: Contact a Fair Housing Enforcement Center for New York State @ 1-800-496-4294. The agent should also be reported to the Department of State and The Real Estate Board of New York assuming they are members.

The first time, in 1998, I thought it was so blatant that I did contact a lawyer, who agreed with me. Eventually we did file a complaint with the Fair Housing office, although the person who took my claim told me that it was unlikely that any disciplinary action would result.

About a year later there was a preliminary meeting of some sort at their office, to which the broker was apparently not invited. Thus the landlord's lawyer claimed that the broker made it all up. The broker had even suggested to me that I should offer to pay for higher railings on the terrace in order to get the apartment, and I had balked without an estimate from a contractor. We had discussed this extensively.

My lawyer contacted me soon after saying that (the company) had offered to settle for one free apartment brokers' fee, to be used within one year. I offered this to my soon-to-be-ex-husband, as I had recently moved and could not use it but he was planning to move soon, and gave her his address and phone number. However, she apparently never contacted him.

I later got a call from the housing office asking about the claim, and I said that I thought it had been settled but wasn't sure, and that they should contact my lawyer. I then called her, and she reminded me of the apparently verbal agreement that she never relayed to my ex. I can't believe it, re-reading those emails now. The possibility that a lawyer would consider something settled with not one word in writing, and no signature from either my ex or me, astonishes me. Of course it's partly my fault for not speaking to my ex at the time, but still...

I called the housing office back and they told me that my case had been closed after that phone call where I had expressed a "lack of interest." My lawyer then apparently tried to get it re-opened but failed. She even tried to bill me for her time! The nerve.

The government guy called me back and said that (the company) would agree to post a notice reminding brokers about the fair Housing Act of 1968, but he became angry at me when I asked for reimbursement of my $1500-ish attorney's fees as well and accused me of "just wanting money."

So, complaining cost me a decent chunk of change and changed nothing...not even at (this company), whose brokers probably would have done a bang-up job for me on that freebie they offered, presenting me as a tenant who had won a settlement in housing court.

The worst part? I got a referral from that idiot lawyer for a lawyer for my divorce. As he was no better than she was, I just spent about $50,000 last year (reimbursed by my ex) straightening out my child support and lost forever any hope of the alimony a decent lawyer would have gotten me.

Sorry for the whining. But, anyway, it happens. Today, even to white Upper West Siders with excellent credit. I kid you not.

Shamhat,

I apologize for redacting the name of the brokerage and the attorney with whom you worked and had these miserable experiences. There are obvious liability issues with naming a company on this site. Having said that, your comment is quite powerful as I would imagine more than one agent/broker has engaged in this type of behavior with not even a slap on the wrist. The Department of State makes claims constantly that so few complaints are made about real estate brokers. Perhaps it's because the process to complain is so inefficient.

Is false advertising legal in the housing market? About a month ago I had enquired about some apartments that were being renovated at the time, was told that they would be ready mid november. I received an email from them today with a price list advertising "brand new interiors", listing the renovations. I replied to them with the apartments I was interested in, one of which was a 1 bedroom listed at $2,600. The sales representative later called me, when I mentioned the apartment I was interested in, she proceeded to tell me that $2,600 is the price of the apartment before the renovation, the current price is $3,600. They are getting back to me with an email that links me to all of these new renovated apartments, so obviously the site has been updated, but the price list remains the same. Is this legal? Is this not false advertising? I am so tired of being swindled by these management companies/brokers, they all seem to be crooks.

I totally appreciate what you're saying Sonya. This seems a lot like a bait and switch tactic but without seeing the web site I couldn't make that call. Fortunately they informed you of the difference in price between the renovated properties and others that weren't renovated. Imagine if they had gotten you on the hook for one at $2600 and then told you they weren't renovating?

I started in 1992 renting apartments and quickly left that market for sales because it was so sleazy. there are some reputable agents and management companies out there but "renter beware" seems to be more prominent in that industry than any other. Ask your friends and family for referrals to buildings, landlords, and/or agents. That's usually the safest bet.