S T A T E O F N E W Y O R K
________________________________________________________________________
2131--A
2021-2022 Regular Sessions
I N S E N A T E
January 19, 2021
___________
Introduced by Sens. SKOUFIS, KAVANAGH, THOMAS -- read twice and ordered
printed, and when printed to be committed to the Committee on Judici-
ary -- reported favorably from said committee and committed to the
Committee on Rules -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee
AN ACT to amend the real property law, in relation to requiring the
secretary of state to promulgate regulations requiring real estate
brokers to institute standardized operating procedures for the prereq-
uisites prospective homebuyers shall meet prior to receiving any
services
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 442-h of the real property law is amended by adding
a new subdivision 4 to read as follows:
4. (A) THE SECRETARY OF STATE, UPON NOTICE AND A PUBLIC HEARING, SHALL
PROMULGATE RULES AND REGULATIONS REQUIRING REAL ESTATE BROKERS TO INSTI-
TUTE STANDARDIZED OPERATING PROCEDURES FOR THE PREREQUISITES PROSPECTIVE
HOMEBUYERS MUST MEET PRIOR TO RECEIVING ANY SERVICES. SUCH RULES AND
REGULATIONS SHALL INCLUDE BUT NOT BE LIMITED TO THE FOLLOWING:
(I) WHETHER PROSPECTIVE CLIENTS SHALL SHOW IDENTIFICATION;
(II) WHETHER AN EXCLUSIVE BROKER AGREEMENT IS REQUIRED; AND
(III) WHETHER PRE-APPROVAL FOR A MORTGAGE LOAN IS REQUIRED.
(B) REAL ESTATE BROKERS SHALL SUBMIT SUCH STANDARDIZED OPERATING
PROCEDURES TO THE DEPARTMENT OF STATE AND THE DEPARTMENT OF STATE SHALL
MAINTAIN A FILE OF SUCH STANDARDIZED OPERATING PROCEDURES WHILE THE
BROKER'S LICENSE IS ACTIVE AND FOR AT LEAST FIVE YEARS THEREAFTER. IF
ANY ALTERATIONS ARE MADE TO THE STANDARDIZED OPERATING PROCEDURES SUBSE-
QUENT TO SUCH SUBMISSION, REAL ESTATE BROKERS SHALL NOTIFY AND SUBMIT
SUCH NEW STANDARD OPERATING PROCEDURES WITHIN THIRTY DAYS. ANY SALES-
PERSON OPERATING UNDER A BROKERAGE LICENSE THAT FAILS TO ADHERE TO SUCH
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06380-02-1
S. 2131--A 2
OPERATING PROCEDURES SHALL BE SUBJECT TO THE PENALTIES IMPOSED BY
SECTION FOUR HUNDRED FORTY-ONE-C OF THIS ARTICLE.
§ 2. Paragraph (a) of subdivision 1 of section 441-c of the real prop-
erty law, as amended by chapter 131 of the laws of 2020, is amended to
read as follows:
(a) The department of state may revoke the license of a real estate
broker or salesman or suspend the same, for such period as the depart-
ment may deem proper, or in lieu thereof may impose a fine not exceeding
one thousand dollars payable to the department of state, or a reprimand
upon conviction of the licensee of a violation of any provision of this
article, OR FOR A VIOLATION OF SUBDIVISION FOUR OF SECTION FOUR HUNDRED
FORTY-TWO-H OF THIS ARTICLE, or for a material misstatement in the
application for such license, or if such licensee has been guilty of
fraud or fraudulent practices, or for dishonest or misleading advertis-
ing, or has demonstrated untrustworthiness or incompetency to act as a
real estate broker or salesman, or for a violation of article fifteen of
the executive law committed in his or her capacity as a real estate
broker or salesman, as the case may be. In the case of a real estate
broker engaged in the business of a tenant relocator, untrustworthiness
or incompetency shall include engaging in any course of conduct includ-
ing, but not limited to, the interruption or discontinuance of essential
building service, that interferes with or disturbs the peace, comfort,
repose and quiet enjoyment of a tenant.
§ 3. This act shall take effect immediately.
