Another major federal development affecting real estate professionals was the postponement of FinCEN’s Residential Real Estate Reporting Rule. Originally scheduled to take effect in 2025, the rule was delayed until March 1, 2026.
At the helm is City Council Speaker Julie Menin, who will continue to shape the council’s agenda and legislative priorities.
In connection with Wishnie’s retirement, County Executive Jenkins announced that current Director of Operations Joan McDonald has been promoted to Deputy County Executive.
Another major federal development affecting real estate professionals was the postponement of FinCEN’s Residential Real Estate Reporting Rule. Originally scheduled to take effect in 2025, the rule was delayed until March 1, 2026.
As we close the books on 2025, the real estate industry finds itself navigating one of the most transformative periods in recent memory. Real estate brokers, property managers, attorneys and housing professionals faced sweeping changes at the local, state and federal levels, impacting everything from marketing practices and pricing tools to privacy rights, antitrust exposure and federal and state reporting obligations. This article highlights the most consequential legal developments of 2025, identifies key legislation enacted and proposed during the year, and looks ahead to the issues that will shape the real estate industry in 2026.
One of the most significant compliance reminders in 2025 involved restrictions on cold-calling and telemarketing. New York General Business Law Section 399-z [see NY GBL §399‑z] prohibits unsolicited telemarketing calls during a declared State of Emergency. Violations can carry civil penalties of up to $20,000 per call. These state restrictions operate in parallel with the Federal Trade Commission’s Telemarketing Sales Rule [see FTC Telemarketing Sales Rule], which imposes strict requirements related to disclosures, recordkeeping, calling hours, and internal do-not-call procedures.
These obligations are directly tied to broker supervision requirements under 19 NYCRR Section 175.25 [see Section 19 NYCRR Section 175.25]. Brokers are responsible not only for their own conduct, but also for the actions of affiliated licensees and third-party marketing vendors. In 2025, this convergence of telemarketing law and licensing supervision underscores the need for written policies, vendor audits, training programs and documentation demonstrating active broker oversight.
Another major federal development affecting real estate professionals was the postponement of FinCEN’s Residential Real Estate Reporting Rule. Originally scheduled to take effect in 2025, the rule was delayed until March 1, 2026. Once implemented, it will require reporting of beneficial ownership information for certain non-financed residential real estate transactions involving legal entities [see FinCEN Residential Real Estate Rule].
While the delay provided temporary relief, it also served as a warning. Brokers, attorneys, and settlement professionals must use the additional time to identify covered transactions, determine reporting responsibilities, update engagement agreements and implement internal compliance procedures. The continued use of Geographic Targeting Orders throughout 2025 [see FinCEN Renews Residential Real Estate Geographic Targeting Orders] further emphasized the federal government’s focus on transparency and anti-money laundering enforcement in real estate transactions.
In 2025, New York enacted one of the most consequential antitrust measures impacting the rental housing market by amending the Donnelly Act [see NY Donnelly Act (GBL Article 22)] to prohibit the use of certain algorithmic rent-setting tools. Effective Dec. 15, 2025, the law makes it unlawful for landlords, property managers and software providers to use programs that collect and analyze rental data from multiple owners to recommend pricing or lease terms.
The statute treats these tools as facilitating unlawful coordination among competitors, exposing users and vendors to potential antitrust liability, including treble damages. For real estate professionals, the law necessitated immediate review of property management agreements, technology vendors and pricing practices. It also highlighted a broader trend toward increased scrutiny of artificial intelligence and data-driven tools in housing markets.
Privacy protection also gained momentum in 2025 with the passage of the Homebuyers Privacy Protection Act. The legislation reflects a growing emphasis on safeguarding personal data collected during real estate transactions. Mortgage applications, digital signatures, MLS platforms, and transaction management systems increasingly fall under heightened privacy expectations. [See Homebuyers Privacy Protection Act]. For brokers, this trend reinforces the need to review data retention policies, cybersecurity practices and third-party service provider agreements to ensure compliance with evolving privacy standards.
Throughout 2025, courts and regulators continued to shape the legal landscape governing real estate competition and professional conduct. Antitrust litigation and regulatory actions reinforced that traditional practices can carry significant legal risk if they limit competition or transparency.
At the same time, New York regulators emphasized compliance with licensing rules, including proper use of corporate titles, accurate website disclosures and adherence to supervision obligations. Environmental and property-condition laws also remained a focus, including expanded attention to lead paint registries and disclosure obligations affecting residential properties.
In 2025, New York State implemented a statewide Lead Paint Rental Registry pursuant to New York State Public Health Law § 1377 [See NY Public Health Law § 1377]. The law expands lead hazard regulation beyond traditional disclosure requirements by mandating registration, inspection, and certification of certain older rental properties with the New York State Department of Health [see NYSDOH Lead Rental Registry].
The registry applies to residential rental buildings with two or more units built before 1980 that are located in designated “Communities of Concern.” Property owners must register eligible buildings and arrange for lead hazard inspections conducted by qualified professionals. Units must be certified as lead-safe, meaning that no lead hazards exist or that any identified hazards have been properly remediated.
The registry became operational on Nov. 3, 2025. Inspection and certification requirements are being phased in during 2026, with enforcement timelines varying by locality. In New York City, Local Law 31[see NYC Local Law 31 (Lead Paint)] already requires EPA-certified inspections for many pre-1960 and pre-1978 buildings, creating overlapping compliance obligations.
This new registry represents a shift from reactive lead paint disclosure to proactive hazard prevention. Due diligence in sales and leasing transactions must now account for registry status, inspection documentation and coordination with federal and local lead paint laws.
One of the most widely discussed federal measures in 2025 was the One Big Beautiful Bill Act [see OBBB Act]. Although not exclusively a housing bill, the legislation bundled tax, infrastructure and economic development provisions with meaningful implications for the real estate industry.
The Act expanded and extended federal incentives designed to stimulate development and redevelopment, particularly in supply-constrained markets. Infrastructure funding for transportation, utilities and resiliency projects effectively enhanced development potential and property values by improving site viability and long-term investment stability.
From a capital markets perspective, the legislation signaled a federal commitment to economic growth and development, supporting investor confidence and long-term planning. While the Act did not impose direct affordability mandates, its focus on increasing housing supply reflected a market-driven approach that contrasts with local and state efforts centered on price controls and transactional restrictions.
For brokers, developers and owners, the legislation underscored the importance of understanding how federal incentives interact with state and local regulatory frameworks. The growing tension between federal pro-development policy and local regulatory intervention will continue to influence deal structure, underwriting and site selection in 2026.
Effective Jan. 1, 2026, New York State implemented its own Corporate and LLC Transparency Act [see NY Corporate & LLC Transparency Act], requiring most domestic and foreign corporations and limited liability companies authorized to do business in the state to disclose beneficial ownership information to the New York Department of State. Modeled in part on the federal Corporate Transparency Act [see FinCEN Residential Real Estate Reporting Rule], the New York law expands transparency requirements at the state level and directly impacts many real estate holding entities.
Covered entities must disclose identifying information for beneficial owners, including individuals who exercise substantial control or own at least a 25% interest. Exemptions are limited and largely mirror federal exemptions for heavily regulated entities. Importantly, the New York statute applies even where federal filings have already been made, requiring separate state-level compliance.
Many properties are held in single-purpose LLCs, investment entities or family-owned companies that may now be subject to disclosure. Failure to comply can result in civil penalties and potential restrictions on the entity’s ability to conduct business in New York. This new transparency requirement reinforces a broader trend toward ownership disclosure and regulatory oversight in real estate transactions. Brokers and advisors should encourage clients to review entity structures, confirm filing obligations, and coordinate compliance with both federal FinCEN reporting and New York State requirements.
At the local level, one of the most significant housing policy debates in 2025 centered on New York City’s Community Opportunity to Purchase Act (COPA). The legislation would have required owners of certain multifamily properties to provide qualified nonprofit organizations with a right of first offer or refusal before selling their buildings [see NYC Community Opportunity to Purchase Act].
Mayor Adams vetoed COPA, citing concerns that it would deter investment, complicate transactions, and impose unfunded administrative burdens. Although vetoed, COPA remains politically relevant, as the City Council may revisit the issue or attempt a veto override.
As 2026 begins, real estate professionals face a complex regulatory environment. The upcoming March 1, 2026, FinCEN reporting deadline requires immediate attention. New York’s ban on algorithmic rent-setting tools is already in effect, with enforcement and litigation likely to continue shaping its application.
At the same time, federal housing supply initiatives, state tenant-protection proposals and local affordability measures will continue to evolve. Success in this environment requires proactive compliance, careful monitoring of legislative developments and strategic planning that accounts for overlapping and sometimes conflicting policy goals.
The legal developments of 2025 reshaped the real estate industry in lasting ways. From enhanced compliance obligations and antitrust scrutiny to evolving privacy standards and ambitious housing policy proposals, the year underscored the importance of legal awareness and operational readiness. As the industry moves into 2026, informed and adaptable professionals will be best positioned to navigate the challenges and opportunities ahead.
Legal Corner Column author John Dolgetta, Esq. is the principal of the law firm of Dolgetta Law, PLLC. For information about Dolgetta Law, PLLC and John Dolgetta, Esq., please visit http://www.dolgettalaw.com. The foregoing article is for informational purposes only and does not confer an attorney-client relationship and shall not be considered legal advice. The views and opinions expressed in this article are solely those of the author and do not necessarily reflect the views or positions of HGAR, its affiliates, or any other entity.
At the helm is City Council Speaker Julie Menin, who will continue to shape the council’s agenda and legislative priorities.
The governor emphasized the continued strain rising costs place on households and positioned housing production, regulatory reform and tenant protections as central tools to address those pressures.
This year’s accomplishments reflect HGAR’s continued commitment to advocacy, education and engagement.
New York’s DOS licensing rules treat marketing and communications as part of the regulated brokerage business. Telemarketing compliance therefore connects directly to broker supervision obligations.
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