MMP&S’s real estate attorneys have extensive knowledge and experience in representing borrowers, developers, owners, and financial institutions in a broad array of real estate transactions from commercial and residential closings to leasing and refinancing. Our experience includes other property related matters, such as zoning and planning boards, guaranty agreements and mechanic’s liens.
We provide every client, irrespective of the size of the transaction, the time needed to thoroughly understand the financial impact and potential future risk of the transaction.
In larger and more complex real estate developments, our real estate attorneys work closely with our transactional attorneys to offer a more streamlined and efficient closing and financing processes. A single law firm that can handle the real estate closing while at the same time provide valuable legal experience in structuring corporate ownership and operating agreements.
While most real estate transactions are accomplished without resorting to a lawsuit, litigation is at times an essential means of dispute resolution. As such, in addition to representing clients in all types of commercial and residential real estate transactions, the attorneys at MMP&S have broad experience with litigation arising out of real estate transactions involving claims against real estate brokers/agents/appraisers, mortgage brokers, real estate attorneys, title agents, surveyors and home inspection entities. Additionally, MMP&S attorneys defend clients in federal, state and local housing discrimination matters, as well as in investigations, hearings and special proceedings initiated by, among others, the New York State Attorney General, the New York Department of State and the Long Island Board of Realtors.
MMP&S Obtains Dismissal of Complaint Against Real Estate Appraiser - 2021
In Mave Hotel Investors LLC v. TS Worldwide, LLC, MMP&S obtained a dismissal of a Complaint in the Commercial Division of the Supreme Court, New York County, based upon the principle that a lender’ s consultant does not owe a duty to a borrower. In this regard, the plaintiff hotel owner/borrower commenced an action against a real estate appraiser retained by the special servicer to the master servicer of plaintiff’s lender, based upon the issuance of three allegedly erroneous real estate appraisals of the hotel. Plaintiff alleges that as a result of the issuance of the appraisals, the hotel loan to value ratio was significantly reduced, thus forcing plaintiff to post $2,000,000 in collateral to maintain its funding. Plaintiff’s Complaint set forth claims sounding in negligence, gross negligence, discrimination, breach of contract, unjust enrichment and deceptive business practices pursuant to General Business Law Â§ 349.
Plaintiff alleged that it had the functional equivalent of privity with the appraiser, as the appraiser was a professional firm with knowledge that its appraisals would shape the behavior of the plaintiff by forcing plaintiff to post significant collateral based upon a reduced loan to value ratio. Plaintiff also alleged that the appraisals were discriminatory, in that they assessed the hotel at a reduced value due to the residents of the hotel being members of a legally protected class. MMP&S successfully argued that the Complaint must be dismissed due to the common law principle that consultants of lenders do not owe a duty to borrowers, and, that plaintiff failed to allege facts necessary to establish that any actions taken, or opinions issued by the appraiser were based upon the presence of the protected class hotel residents. As a result, the Commercial Division granted our motion to dismiss and dismissed the Complaint in its entirety.