The New York Attorney General’s Real Estate Finance Bureau (“REF”) has issued a series of guidance memoranda announcing the formal end of COVID-19 relief policies and the reinstatement of pre-COVID enforcement standards, subject to a limited grace period. These changes materially affect sponsors, developers, and sales teams operating in New York.
Below is a summary of the most important developments and compliance deadlines.
End of COVID Relief Period
- Relief period ends: January 7, 2026
- Limited grace period ends: July 1, 2026
While REF will delay certain enforcement actions until July 1, 2026, all statutory and regulatory requirements remain in effect as of January 7, 2026, and early compliance is strongly encouraged.
Sales and Marketing After Plan Expiration
- Sponsors must cease all marketing and sales activity once an offering plan (as may have been amended) expires.
- COVID-era tolerance for “stale sales” is ending.
- Effective July 1, 2026, REF will pursue enforcement for any sales or marketing under an expired plan (as the plan may have been amended).
- To continue sales, sponsors must:
- File a financial update amendment, and
- Obtain REF acceptance before resuming marketing or sales.
Price Changes
- Sponsors may no longer (i) offer or sell units at any higher price other than disclosed in the Offering Plan or amendments, or (ii) publicly advertise or sell units at any price other than disclosed in the Offering Plan or amendments without first filing an amendment.
- Price change amendments must be submitted and accepted prior to use of new pricing.
- Beginning July 1, 2026:
- Failure to file before implementing price changes will constitute a violation of the Martin Act and
- May trigger purchaser rescission rights.
- Price change–only amendments remain deemed accepted upon submission but must be filed in advance.
Executed Documents and Notarization
- REF will now accept:
- Scanned copies instead of original documents,
- Electronic signatures (e.g., DocuSign), and
- Affirmations or remote online notarization.
- Sponsors must retain original documents and provide them upon request.
Key Takeaways
- Stop relying on COVID-era flexibility after January 7, 2026.
- Ensure offering plans are current before marketing or sales resume.
- File price change amendments before using new prices.
- Act well before July 1, 2026 to avoid business interruptions or enforcement exposure.
Reach our Condominium, Cooperative & HOA Practice Group:
Richard Herzbach: rherzbach@certilmanbalin.com, Donna-Marie Korth: dkorth@certilmanbalin.com, Darren Stakey: dstakey@certilmanbalin.com & Christina Simona: csimona@certilmanbalin.com
