What many consider to be a staple of American homeownership is expected to be on the chopping block as lawmakers in Washington look to trim the nation’s deficit.

The prized mortgage interest tax deduction has been part of the federal tax code since 1913. Currently, it costs the U.S. Treasury an estimated $94 billion a year.

Under existing tax rules, homeowners may deduct the interest accumulated on up to $1 million of their mortgage debt and up to $100,000 of home equity loan debt. Mortgages on both primary residences and second homes qualify for the deduction.

Congress has tossed around several proposals for amending this part of the federal tax code, including lowering the debt limit from $1 million to $500,000 on first mortgages.

According to an analysis from John Burns Real Estate Consulting (JBREC), a reduction in the principal balance of deductible mortgage debt to $500,000 would raise only $5 billion per year for theIRS. The research firm notes that most of the pain from this option would be felt in a few high-priced markets.

Economist William Wheaton at MIT has a higher estimate for the savings. He told CNBC’s Diana Olick that cutting the debt cap in half would return $15 billion a year.

Lawmakers are also considering eliminating the deduction altogether for second homes. Olick cites estimates from Wheaton that this move would bring in another $15 billion for the government.

A separate scenario that was proposed by President Obama’s hand-picked deficit commission would replace the deduction with a 12 percent tax credit, which would also have a $500,000 principal cap.

JBREC concludes that this option would raise $48 billion per year for the IRS. The firm’s analysts say it would significantly increase taxes on those with higher mortgage balances, and would reduce income taxes for those who currently own a home but don’t pay enough mortgage interest to itemize.

According to a survey conducted by the National Association of Home Builders, 71 percent of American voters oppose eliminating the mortgage interest deduction.

FOR MORE INFORMATION ON LANGDON TITLE AGENCY click here. Langdon Title Agency is a title insurance agent located in New York that provides commercial and residential title services, co-op lien searches, ACRIS preparation and other title related services.

Below is the text of the opinion:

Ouestion presented:
May a residential real estate broker refer its clients to a list of "pre-approved" or
"recommended" attorneys if the attorneys have an informal arrangement with the real estate
broker to refer all of their clients to the real estate broker's affiliate title agent?

Conclusion:
No. If the facts are as alleged, and there is a quid pro quo, then a residential real estate
broker may not refer its clients to attorneys on an "approved' or "recommended" list if the
attorneys, in turn, refer those clients to the broker's affiliate title agent.

Facts:
You state that your firm represents a title insurance corporation (the "insurer"). The
insurer uses many title agents for the the sale and distribution of its title insurance policies. One
of those title agents ("ABC Title Agent") is an affiliate of a licensed real estate broker ("DEF
Real Estate"). You state that the insurer has been informed that DEF Real Estate refers its clients
(buyers and sellers of real estate) to attorneys by providing to the clients a list of local
"approved" or "recommended" attorneys. Although there is no formal agreement between DEF Real Estate and the attorneys, you state that the attorneys understand that inclusion on the
"approved" or "recommended" list is subject to the condition that they refer all or substantially
all of their real estate clients' applications for title insurance to ABC Title Agent - even in
instances where the attorneys' clients did not use DEF Real Estate. Furthermore, DEF Real
Estate's clients are not required to use the attorneys that are on the "approved" or
"recommended" list. However, you are uncertain about whether the attorneys derive any fees
from participating in this arrangement. Before investigating further, your client wishes to know
whether such an arrangement would violation Insurance Law § 6409(d).

Analysis:
Insurance Law § 6409(d) is relevant to your inquiry. That provision states:
No title insurance corporation or any other person acting for or on behalf of it,
shall make any rebate of any portion of the fee, premium or charge made, or
pay or give to any applicant for insurance, or to any person, firm, or corpOration
acting as agent, representative, attorney, or employee of the owner, lessee,
mortgagee or the prospective owner, lessee, or mortgagee of the real property
or any interest therein, either directly or indirectly, any commission, any part of
its fees or charges, or any other consideration or valuable thing, as an inducement
for, or as compensation for, any title insurance business. Any person or entity
who accepts or receives such a commission or rebate shall be subject to a penalty
equal to the greater of one thousand dollars or five times the amount thereof.

Accordingly, no title insurance corporation, or any person acting for or on behalf of it,
may pay or give any insurance applicant or a buyer's or seller's representative or attorney, any
commission or any part of its fees or charges, or any other consideration or valuable thing as an
inducement for, or as compensation for, title insurance business. Furthermore, any person or
entity that accepts or receives such a commission or rebate is subject to a penalty equal to the
greater of $1,000 or five times the amount thereof.

An Office of General Counsel ("OGC") Opinion dated October 24, 2004 addressed
similar facts. In that opinion, a seller of real estate provided a monetary inducement to any
purchaser that used the seller's affiliated title insurance agent. Applying Insurance Law
§ 6409(d) to the transaction, the OGC opined that a person or corporation that is affiliated with a
title agent or title abstract company acts for or on behalf of the title insurance corporation that its
title agent or title abstract company represents. See also OGC Opinion dated November 13,
2002. Accordingly, the seller of real estate was prohibited from providing to an applicant for
insurance any consideration or valuable thing as an inducement to, or compensation for, any title
insurance business.

In the scenario you present, DEF Real Estate, by placing attorneys on the "approved" or
"recommended" list, could be providing consideration or other valuable thing by way of client
referrals to the attorneys, who in turn, would refer all of their clients to DEF Real Estate's
affiliate title agent. However, that conclusion assumes that DEF Real Estate and ABC Title Agent are affiliates under common control whereby DEF Real Estate stands to benefit from the
referral and that there is an informal quid pro quo, whereby attorneys that do not make the
referral quota are removed from the list. Accordingly, if the facts are as alleged, and there is a
quid pro quo, then DEF Real Estate may not refer its clients to attorneys on an "approved' or
"recommended" list if the attorneys, in turn, refer those clients to ABC Title Agent.

FOR MORE INFORMATION ON LANGDON TITLE AGENCY click here. Langdon Title Agency is a title insurance agent located in New York that provides commercial and residential title services, co-op lien searches, ACRIS preparation and other title related services.

Ori comes to Langdon Title with valuable title insurance experience. Prior to joining Langdon Title, Ori was Vice President of Marketing & Sales at American Land Services. In addition to his knowledge of title insurance, Ori is the Principal of REaL Networking, a real estate and legal based networking organization that helps its members meet referral partners and industry experts.

“Ori is one of the real estate industry’s brightest young executives and will greatly complement our company,” said Stephen Saler, Principal & Co-Founder at Langdon Title. “We are excited to add Ori to our growing team. Ori will add substantially to the capabilities of Langdon Title by providing additional networking opportunities for our clients, hosting Continuing Legal Educations seminars for attorneys and offering overall strong leadership."

Ori received his Bachelor of Arts degree from the University of Arizona. He is also on the Board of the Ramah Alumni Association and involved with several networking and philanthropic organizations.

About Langdon Title: Langdon Title Agency insures commercial and residential title properties throughout the United States from large, multi-site commercial transactions to residential purchases and mortgage refinances. Langdon Title has become one of the fastest growing title agencies in New York due to its employees’ hard work, experience and ability to handle the most complicated transactions. The Company is built on a foundation of high standards of personal service, a commitment to excellence and a passion for the title business that is unrivaled. Its combination of skilled professionals, legal expertise and innovative technology allows Langdon Title to provide precision to every real estate transaction that it closes. For more information, visit www.langdontitle.com.

Appraisals have posed a major problem for the New York City real estate market over the past two years. With banks treading carefully after the credit crunch and hampered by 2009's strict Home Valuation Code of Conduct, many New York buyers have found their appraisals coming in far lower than expected, jeopardizing otherwise straightforward transactions.

But that is now starting to change, real estate professionals said, in a shift that is giving the industry a much-needed boost. As the economy stabilizes, appraisals have begun to follow suit. Appraisers, mortgage brokers, and agents agree that appraisals in the city are now more accurate than they've been for the past few years, though they say there's still room for improvement.

Lately, "we've been able to get appraisals that are much more on point," said Stewart Grodzitsky, the transaction manager and managing director of the Elaine Clayman group at Brown Harris Stevens, who oversees about 100 transactions a year. "The appraisers are much more cautious now."

That's a major change from a year ago at this time. The Federal Housing Finance Agency implemented HVCC as an attempt to prevent lenders and third parties from influencing appraisals. But when the new guidelines went into effect in May 2009, they prompted a slew of complaints from brokers and sellers, who said the increased use of appraisal management companies brought more incompetent and out-of-town appraisers into New York City.

The preponderance of appraisers with scant local knowledge has led to valuations "riddled with errors," said Eric Appelbaum, president of Apple Mortgage. For example, he said one appraiser from Albany valued a one-bedroom apartment on the 50th floor of a building in the West 50s with striking views at $150,000 less than a second-floor apartment in the same building with no views.

Banks and purchasers may not realize there's a problem until too late.

"The random selection process [for appraisers] is like dating in New York: They have a good reputation, and it's not until the next morning that you realize you have a problem," said Steven Knobel, cofounder of the appraisal firm Mitchell, Maxwell & Jackson.

However, the situation is now improving for a number of reasons, industry professionals said.

First, appraisers are now being inundated with information from real estate brokers, who are afraid that their deals will be torpedoed by a low appraisal.

Even the New York City-based Knobel said when he does an appraisal, he's met at the door with reams of papers that include comps and floor plans -- "appraisal for dummies," as he calls it.

It helps that brokers now have more data to offer. When the economy first tanked, slow sales often meant there were few recent comps to provide guidance.

Now, "there's more data, so there are [fewer] surprises," said Jonathan Miller, president and CEO of appraisal firm Miller Samuel.

Meanwhile, according to Knobel, banks have compiled lists of approved appraisers for specific buildings to diminish complaints about out-of-town -- and out-of-touch -- appraisers. These bank-approved appraisers are judged to have ample experience valuing similar apartments and are less likely to dismiss features -- like extra storage space -- that nonlocal appraisers might undervalue.

"The values are not being decimated as they were; it's a little more predictable," said Appelbaum.

One exception is refinancing, said Suzanne Bach, senior vice president of the mortgage company Guardhill Financial.

"Appraisals are not coming in low, except on refinances," she said. "Purchases are fine."

The reason, she posited, is that many homeowners who aren't selling don't realize that their properties have declined in value.

"I think that has a lot to do with owners thinking their apartments are worth more," Bach said.

Professionals emphasized that problems haven't completely disappeared, and all agree that the art of appraisal is still undergoing major renovations. New federal Appraiser Independence Requirements are set to replace HVCC this month, but Miller said the changes are simply "window dressing."

"Structurally, nothing has changed," he said.

While the greater availability of data means appraisers now make fewer errors, "there are still more than there should be, because we haven't fixed anything," he said. "It's still hit or miss."

FOR MORE INFORMATION ON LANGDON TITLE AGENCY click here. Langdon Title Agency is a title insurance agent located in New York that provides commercial and residential title services, co-op lien searches, ACRIS preparation and other title related services.

The next engineering school in New York City could be a satellite campus of a university in Finland, South Korea or California, judging by the responses city officials received to their call for ideas on how to raise New York’s profile in the realm of technological innovation.

On Thursday, the city announced that it had received 18 expressions of interest in establishing a research center from universities and corporations around the world. Struggling to compete with Silicon Valley, Boston and other high-tech hubs, officials charged with developing the city’s economy have identified several city-owned sites that might serve as a home for the research center for applied science and engineering that they hope to establish.

The list of institutions that responded includes the Abo Akademi University in Finland, the Korea Advanced Institute of Science and Technology, and Technion-Israel Institute of Technology, as well as schools in England, India and Switzerland. American schools as far away as California and as close by as Manhattan and Hoboken, N.J., also indicated that they were interested.

A total of 27 schools responded, some teaming up with each other or with corporations to send joint submissions. One joint submission came from New York University, Carnegie Mellon University, the City University of New York, the University of Toronto and I.B.M.

“We received a response that was certainly equal to or exceeded our expectations,” said Robert K. Steel, the deputy mayor for economic development.

Mr. Steel said he and other city officials would study the responses, then solicit more concrete proposals in what would amount to a competition for a big — or bigger — presence in the city.

For sheer enthusiasm and ambition, it may prove difficult to match Standford University, which has proposed building its first degree-granting satellite campus away from its home base in Palo Alto, Calif., said Lisa Lapin, a Stanford spokeswoman.

Stanford has suggested that it would revive the Goldwater Hospital campus on Roosevelt Island in the East River as an outpost that could eventually hold as many as 2,200 students and a few hundred faculty and staff members.

Stanford estimates that the initial phase of the campus, which could be completed by the end of 2015, would cost about $250 million. The university expects that its own spending would be supplemented by the city and philanthropists, Ms. Lapin said.

“It’s not about bringing money to the home campus,” Stanford’s president, John L. Hennessy, said in a recent interview. “It will require an investment of institutional resources to be successful.”

City officials did not reveal any more details of the responses, which they said included proposals for “hundreds of millions of dollars” of private investment.

So far, city officials have not said how much they would be willing to spend on the project, but they have identified four sites that the city might be willing to make available to the winning bidder. Along with the old hospital site on the southern end of Roosevelt Island, they include space on Governors Island in New York Harbor and complexes of buildings at the Brooklyn Navy Yard and on Staten Island.

Seth W. Pinsky, the president of the city’s Economic Development Corporation, said that the respondents had expressed interest in all of the sites. Mr. Pinsky said he expected the development corporation to release a request for proposals, the second of two steps in the solicitation process, in the middle of the year. But he said officials had not decided whether bidding would be limited to the first respondents.

“We set a very ambitious goal out there,” Mr. Pinsky said. “And from a preliminary look, it appears that these are serious proposals with sweeping ambitions.”

FOR MORE INFORMATION ON LANGDON TITLE AGENCY click here. Langdon Title Agency is a title insurance agent located in New York that provides commercial and residential title services, co-op lien searches, ACRIS preparation and other title related services.



The glimmer of hope that housing would stage a sustainable comeback this spring has melted with the winter snow.

Even as many await the traditional surge of buyers and sellers in the warmer months, analysts say it will be a year before there's any solid improvement in housing.

"We are going to be disappointed the rest of 2011," says Paul Dales, senior US economist at Capital Economics. "There's still weak demand, too many houses on the market. Things won't get better until 2012."

"2011 will be a real challenge, just like 2010," says Bob Walters, chief economist and vice president at QuickenLoans.com. "The key reason is that the jobs picture is still not bright enough. Plus, more foreclosures are coming. Many homes are still 'under water' or worth less than the loans, so it's going to be rough."

What caused a short-term bounce for housing—and talk of a possible turnaround in 2011—were better numbers for building permits, housing starts and existing home sales for the last months of 2010. Existing home sales were up 5.3 percent overall in 2010, according to the National Association of Realtors.

But new home sales and building permits have recently reversed themselves or remain in a downward trend. In fact, new home sales reached a record 47-year low this past year, with an annual decrease of 14 percent, according to the Department of Housing.

And Mortgage applications continue to fall, even as rates hover around the historic lows of 5 percent.

In spite of improving bread and butter conditions—like declining job losses and increased business activity —the housing market is standing still.

"There are too many vacant homes and excess inventory in the system now to create a stronger housing market," says Lawrence Yun, chief economist at the National Association of Realtors.

According to RealtyTrac, there were a record 2.9 million foreclosures in 2010 An estimated 50,000 new foreclosure actions are initiated every week, according to the Center for Responsible Lending.

And some 2.2 million homes are delinquent in mortgage payments and could be additional victims of the foreclosure mess.

"When realtors sit down and talk, foreclosures are on our mind," says Johnny Martinelli, the broker/owner of LevyMart Real Estate Sales and Investments in Norman, Oklahoma. "We are seeing more of them. People are scared."

Adding to the fears of realtors is a lack of confidence among consumers, says Michael Freed, a managing partner and real estate lawyer in the firm Brennan, Manna & Diamond.

"You see people in the malls and restaurants, but when it comes to a big purchase like a home, there's not much confidence," Freed explains. "Add that with the dynamics of tougher lending restrictions and higher down payments, and homes are not going to sell."

The lack of sales pretty much covers all income brackets, adds Freed. "It is a buyer's market if you have the money," he says.

It's money—specifically cash—that's keeping housing from sinking even lower, says Julie Reynolds, a vice president at Move, Inc., an online real estate resource.

Cash buyers and investors have driven 70 percent of the increase in existing home sales seen since last July, while first-time buyers have been responsible for just 6 percent, according to Capital Economics.

"Investors who are cash rich are snapping up affordably priced properties," Reynolds says. "They are critical in areas like California, Arizona and Florida that are having problems with distressed homes."

The cash has a foreign flavor, with international buyers from Western Europe, Asia and the Middle East, adds Reynolds.

Those who still need a loan continue to face tougher lending standards—fallout from the housing crash—and gum up the works, say analysts.

"Banks are a problem with the scrutiny for applications," Johnny Martinelli says. "It's slowing up the process. There are a lot of people who can make payments but can't qualify."

Another wrinkle comes at the end of June. A little known portion of the Dodd-Frank financial reform bill ends the so-called 'teaser rates' that misled buyers into deals that turned sour with higher payments. The change, however, may have negative unintended consequences, say experts.

"Starting in April, loan officers won't be paid by the terms of the loan and will get less money," explains real estate attorney Neil Garfinkel of the New York based law firm AGMB. "That might mean they move around looking for better pay. It could also mean fewer loan officers to handle applications."

"Whenever we get momentum something pushes us back," says Alan Rosenbaum, CEO of GuardHill Financial, a mortgage banking and brokerage firm. "The government [with Dodd-Frank] is telling the industry what it can pay and that makes it more expensive for consumers."

Another effect from the housing collapse—and a possible sea change—is a different mind set about how people live, says Freed.

"Americans aren't looking to move like they used to," Freed contends. "It's not necessarily that we've lost our love of owning a home, but I think people are looking at the market differently because of the crash. They're renting, and focusing on a life style they can afford."

So with all the doom and gloom, what will change in 2012 to make housing any better?

"By next year I think you will see stronger demand," says Dale. "The number of foreclosures should peek this year as they flush through the system. I also think the job situation will improve in 2012."

Also helping the market—a wave of refinancing in the adjustable-rate mortgage area, averting additional foreclosures in some cases. About 20 percent of ARMs holders have taken advantage of lower interest rates to refinance; others have been able to pay them them off completely, according to the Mortgage Bankers Assocation.

"I think we are headed in the right direction for next year on inventory and prices," says Walters.

For all the tumult and uncertainty, one thing hasn't changed about the real estate market. Location is key, and parts of the country are having a better 2011 than 2010.

After taking their house off the market last spring, Maria and Michael Treiber of Morris Township, New Jersey sold their three-bedroom, split-level this February after prices had finally climbed to an acceptable level.

"It was much better for us," says Treiber, a local policeman who plans to rent while looking for another home. "There weren't that many homes on the market this time, so that helped." 

Some areas are even seeing an uptick in new construction.

"There's some new construction, and some people are buying homes," Martinelli says of Norman, Okla. "They're downsizing, but at least there's some activity. It's not as bad as it was last year."

Wall Street bonuses are moving some buyers and renters back to the high-end Hamptons section of Long Island, N.Y.

"Fundamentals are improving if not significantly," says Rosenbaum. "People still need to move, whether for a job or bigger home."

And longtime depressed areas are also seeing daylight.

"Areas like Chicago, Detroit, Las Vegas that have a lot of foreclosures are on an upswing with interest in home buying," says Reynolds. "That interest is better than a year ago."

Above all, there's an acceptance of the new normal in housing, says Jim Gillespie, CEO of real estate firm Caldwell Banker.

"Happiness is a new base, but we are going up," Gillespie says. "At the worst, things will stay the same; at best, we'll have a slow recovery. I don't think Americans have lost their love of owning a home. We're just obviously going through a tough time.

FOR MORE INFORMATION ON LANGDON TITLE AGENCY click here. Langdon Title Agency is a title insurance agent located in New York that provides commercial and residential title services, co-op lien searches, ACRIS preparation and other title related services.

NEW YORK CITY-The launch of work on key components of the World Trade Center helped buoy the local construction industry to a 15% increase in new starts for 2010 compared to 2009, the New York Building Congress reported Friday. An analysis of McGraw-Hill Construction Dodge construction data found that $19.5 billion worth of construction projects started last year, compared to the$16.9 billion in projects that began in ’09. However, the total is still 5% less than 2008’s tally of $20.6 billion.

The year-over-year increase was due solely to gains in the non-residential building sector including offices, hotels, schools, hospitals and other institutional structures, according to the Building Congress report. Residential projects continued declining last year, managing just $2.2 billion compared to $6 billion in ’08, a year in which many developers sought to get projects started in advance of the expiration of the 421a tax incentive for much of the city.

The public works sector declined 9% from $4.6 billion in ‘09 to $4.2 billion in ‘10. Yet both the year-over-year and two-year drops are smaller than those for residential, and the Building Congress says infrastructure spending is still the largest source of construction activity in New York City.

That being said, the two largest construction starts counted in the tally for ’10 were non-residential buildings, oth at Ground Zero: the WTC Transportation Hub valued at $3 billion and 3 World Trade Center at $1.2 billion. These were followed by the redevelopment of Madison Square Garden and the start of construction on the Barclays Arena at Atlantic Yards, valued at $850 million and $800 million, respectively.

“The ongoing redevelopment of the World Trade Center, which was bolstered by last year’s development agreement between Silverstein Properties and the Port Authority, has been vital to the overall well-being of the construction industry,” Building Congress president Richard T. Anderson says in the report. “That agreement, which established a clear and rational approach to construction scheduling and financing on the east side of the WTC site, helped unlock thousands of jobs for our industry.”

An encouraging trend seen in the ’10 results was a greater emphasis on new building starts. While construction starts in the city for ’09 were split 50/50 between new construction and alterations/renovations to existing buildings, starts on brand-new building projects accounted for 63% of the total this past year.

FOR MORE INFORMATION ON LANGDON TITLE AGENCY click here. Langdon Title Agency is a title insurance agent located in New York that provides commercial and residential title services, co-op lien searches, ACRIS preparation and other title related services.

Connecticut and New Jersey residents with a Hamptons summer cottage or a Manhattan pied-a-terre are about to get a nasty surprise: New York state wants more taxes from them.

A New York court ruled last month that all income earned by a New Canaan, Conn., couple is subject to New York state taxes because they own a summer home on Long Island they used only a few times a year. They have been hit with an additional tax bill of $1.06 million.

Tax experts and real estate brokers say this ruling could boost the tax bill for thousands of business executives who own New York City apartments they use only occasionally. It could also hurt sales in the Hamptons and New York's other vacation-home communities.

"People will think twice about spending any summer time in New York," says Robert Willens, a New York-based tax consultant. "The amount of tax they could be subjected to is likely to outweigh the benefit."

A spokesman for the state Taxation Department issued a written statement that said it was "pleased" with the decision. "However, these cases are fact-intensive and as such each case stands on its own specific fact pattern," it said.

The new ruling applies only to people who spend more than 183 days in New York, which would include many out-of-state commuters to the city. For years, New York law stated that these people have to pay taxes on any income they make in this state. But they generally haven't had to pay New York taxes on income they make outside of the state or on their spouses' income if they work elsewhere.

Under the recent ruling, this might change for many out-of-state residents who own vacation homes or apartments here. In effect, it reinterprets what counts as a permanent residence.

In defining a "permanent place of abode," New York tax code specifically excludes "a mere camp or cottage, which is suitable and used only for vacations." New York tax experts say the new ruling is the first they recall that counts summer homes as permanent residences.

"This is going to open up a Pandora's box," says Eric Kramer, a tax attorney in Uniondale, N.Y. "I don't think anyone previously thought vacation homes would count as a permanent residence."

Income that now could be taxed by New York includes capital gains, dividends and securities, attorneys said. In the event of an audit, these homeowners would also be responsible for back taxes, plus interest and penalties, as a result of their New York property.

Judge Joseph Pinto, a New York administrative law judge, made the novel ruling in a 2009 case that was affirmed last month on appeal by the New York state tax appeals tribunal. Mr. Pinto seized on what is meant by a permanent residence, which is the benchmark for whether all, or just the in-state portion, of an individual's income is subject to New York state tax.

Mr. Pinto ruled that the couple's Long Island vacation home qualifies under the law as a permanent abode because it was suitable for living year-round—whether or not the couple actually stayed in the home wasn't relevant. Under the ruling, if an owner doesn't spend a single a day in a home it could still count toward a permanent residence.

The Napeague, Long Island, house was purchased by John and Laura Barker for $260,000 in 1997, according to court documents. Mr. Barker works in New York City. From 2002 to 2004, the period that was assessed for back taxes, the Barkers said they spent only a few days a year at the Long Island home, usually during the summer.

The appeals court upheld the ruling that it's not the owners' intended use of the house that matters, but whether the home could be used all year long. The court said that the house is approximately 1,122 square feet with heat, electricity, and internet service "making it very habitable and comfortable year round," according to court documents.

The court also said that Mrs. Barker's parents, who sometimes stayed at the home throughout the colder months, were evidence that it was a permanent residence even though the Barkers never used it that way.

The Barkers countered that they used the home only a few days a year, adding that the refrigerator was usually empty, court documents showed. They cited clothing not being stored there as evidence that it was a part-time residence.

"We think the decision is wrong. We are evaluating our options including a continuation of appeals," Mr. Barker said. "We imagine this decision will have a chilling effect on New Your tourism and real estate values among other second and third order effects."

Tax attorneys said they were unlikely to get the ruling overturned.

FOR MORE INFORMATION ON LANGDON TITLE AGENCY click here. Langdon Title Agency is a title insurance agent located in New York that provides commercial and residential title services, co-op lien searches, ACRIS preparation and other title related services.



In another sign that the city's battered real-estate market is on the way back, prices of apartments and townhouses all around Manhattan are shooting up.

The median price of a co-op or condo in the borough is now $880,000 -- 3.5 percent more than it was in 2009, according to an encouraging new report from the realty firm Prudential Douglas Elliman.

Manhattan hasn't yet turned from a buyers' into a sellers' market, but it's at least stable, according to Jonathan Miller, president of Miller Samuel Real Estate Appraisers, which conducted the research for the report. The average time an apartment spent on the market decreased from 179 days in 2009 to 119 in 2010.

Meanwhile, the average discount on a pad for sale dropped to 7.1 percent, from 10.2 percent the prior year. People are buying and selling more apartments as well.

The number of apartment sales jumped 35.4 percent -- from 7,430 in 2009 to 10,060 units in 2010.

"We're seeing a reasonably normal pace of activity, far better than the dark days of 2009, but below the peak," said Miller. The median price for an apartment in prerecession 2008 was $955,000. The city's most expensive residences -- townhouses -- are also attracting well-heeled buyers more quickly.

And more than half of the ones sold in 2010 are occupied by single families, according to Douglas Elliman's Townhouse Market report, which tracks that gold-plated market.

A Fifth Avenue townhouse across from the Metropolitant Museum of Art was bought by Mexican mogul Carlos Slim for $44 million.

The median price of a townhouse skyrocketed 13.2 percent in 2010 -- jumping from $3.4 million to $3.85 million. And that was 114.5 percent more than a townhouse cost at the beginning of the decade.

Like apartments, more townhouses are selling, and they're on the market for less time. Some 197 townhouses were sold in 2010, compared to 149 in 2009. And they were purchased after 117 days on the market. In 2009, the figure was 142 days.

As far as apartments go, the average price per square foot was $1,203 last year, an 8.3 percent increase from $1,111 in 2009. The areas where condos and co-ops showed the biggest increases in price per square foot in 2010 were Midtown East, Chelsea and SoHo/TriBeCa.

FOR MORE INFORMATION ON LANGDON TITLE AGENCY click here. Langdon Title Agency is a title insurance agent located in New York that provides commercial and residential title services, co-op lien searches, ACRIS preparation and other title related services.