New Real Estate Laws in 2026 — What Buyers, Sellers, and Investors in WNY Should Know
As the calendar flips to 2026, several new laws and legal requirements have taken effect in New York that could influence your real estate plans — whether you’re buying, selling, investing, or managing property here in Western New York.
From greater accountability for property ownership to shifts in how large investors participate in the market, these changes are both practical and strategic. Understanding them now can save you uncertainty later — and help you make informed decisions.
Greater Ownership Transparency Through the NY LLC Transparency Act
Effective January 1, 2026, New York’s LLC Transparency Act requires most foreign LLCs doing business in the state — including those that own residential or commercial real estate — to disclose their beneficial owners to state authorities.
What this means for you:
- Buyers and Sellers: You can expect greater transparency about who really owns properties, which matters in negotiations and due diligence.
- Investors: LLCs that hold investment properties will need to be compliant, which could streamline title research or risk assessment.
- Commercial Clients: This change improves visibility into ownership structures for office buildings, retail centers, and mixed-use properties.
Local real estate professionals and attorneys can help interpret exactly how this transparency requirement applies to specific transactions, but the bottom line is clear: New York wants real estate ownership to be more transparent.
New Restrictions and Incentives Aimed at Institutional Investors
As part of the broader housing strategy enacted in New York’s FY26 budget and regulations taking hold as the year begins, institutional investors — those entities buying large portfolios of single-family and two-family homes — face new limitations and disincentives.
Key takeaways:
- Waiting Periods: Entities owning 10 or more one- and two-family homes must observe waiting periods before purchasing additional properties, designed to slow investor competition for entry-level homes.
- Investment Rules: Some tax deductions tied to depreciation and interest on such homes are being reconsidered or limited to encourage homeownership for individuals and families.
- Fair Housing Protections: New state law also prohibits discriminatory practices in appraisal services and allows for stronger enforcement remedies to protect buyers from biased valuation practices.
For buyers and sellers in WNY, these changes may alter the dynamics of investor competition — especially in entry-level price bands where local owner-occupants have previously been priced out.
Short-Term Rentals and Local Tax/Registration Considerations
Although many state shortlisted bills are still under committee review, local short-term rental laws and reporting requirements have gained traction across multiple New York counties and cities. Some regional trends include:
- Short-term rental reporting and occupancy tax requirements for platforms and hosts — designed to give counties clearer data and tax collections on rentals.
- In places like Erie County, short-term rental operators are already subject to occupancy taxes, putting them on equal footing with hotels and motels.
For Western New York homeowners and investors considering Airbnbs or vacation rentals, the implications are clear:
- Compliance matters — and the cost structure (taxes and reporting) is now part of owning and operating an STR.
- Unregistered or noncompliant listings can expose owners to fines or other enforcement actions.
- Understanding local regulations before you buy or convert a property makes the difference between success and a regulatory headache.
Fairness in Apartment Rental Expenses (FARE) Act
Although it took effect in mid-2025, the FARE Act — which prohibits brokers representing landlords from charging broker fees to tenants — continues shaping rental transactions across the state and will increasingly affect leasing practices in 2026.
What renters and investors should know:
- Landlords and their agents cannot pass B2B (broker-to-broker) fees onto tenants directly.
- Listings must disclose all fees upfront.
- Buyers purchasing an investment property should factor in tenant expectations and cost structures into cash-flow modeling.
Other Emerging Legal Themes to Watch in 2026
In addition to the above active changes, several legislative movements are worth monitoring:
- Proposed short-term rental transparency requirements may soon require platforms to report monthly rental inventory and usage data across counties.
- Environmental and housing supply bills signed in 2025 promise more pro-housing infrastructure funding and advocacy tools — potentially affecting zoning, development, and long-term growth in communities across New York.
- While not formally active on January 1, proposed legislation to prohibit sales of certain properties to foreign countries of concern is being discussed and could impact commercial and residential ownership patterns if enacted.
What This Means for Western New York
For buyers, sellers, and investors in Erie and Niagara counties:
• Transparency matters more — know who you’re dealing with • Institutional competition may ease in certain home segments • Short-term rental compliance is a real cost and regulatory factor to evaluate before purchase or conversion • Tenants benefit from fee protections that can shape investor decisions
At Great Lakes Real Estate, we track not just market trends but legal environments too. Understanding how new laws intersect with your goals — whether buying your first home, selling an inherited property, or expanding an investment portfolio — helps prevent surprises and maximize opportunities.
If you want a local legal and strategic overview tailored to your situation, call (716) 754-2550 and let’s talk about your goals in 2026.
