NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A3474
SPONSOR: Fahy TITLE OF BILL:
An act to amend the real property law, in relation to increasing the
period of supervision required for certain real estate license applica-
tions
PURPOSE:
To increase the total number of hours required in the real estate
broker's qualifying course from 45 to 75, the number of consecutive
years as a licensed salesperson prior to becoming a broker from 2 to 5,
and the number of fair housing course hours in the real estate
salesperson's qualifying course from 4 to 6
SUMMARY OF PROVISIONS:
Section 1 amends subdivision one of section 441 of the real property law
to increase the total number of hours required to obtain a real estate
broker's license from 120 to 150 hours and increase the number of
consecutive years licensed as a real estate agent prior to becoming a
broker from 2 to 5.
Section 2 amends paragraph (d) of subdivision 1-A of section 441 of the
real property law to require 6 hours of fair housing course hours needed
to obtain licensure as a real estate agent. Currently, there is a 4-hour
fair housing course requirement provided for within state regulations
for real estate licensees,l9 NYCRR 176.3.
Section 3 establishes the effective date.
JUSTIFICATION:
Currently a licensed real estate salesperson in New York can take an
additional 45 hours of continuing education, and after two years of
licensure, is eligible to become a real estate broker. New York's
requirements to become a licensed real estate broker are lower than that
of similar states, including California, New Jersey, and Pennsylvania.
Furthermore, investigations in recent years into housing discrimination
have revealed a lack of knowledge and understanding among inexperienced
brokers that undermine the public's trust of real estate licensees.
The fair housing investigations and the comparably lower standards to
become a real estate broker underscore the need to increase the educa-
tional and experience requirements for new brokers. This legislation
seeks to address the issue of inadequate broker education and experience
by increasing the total number of course hours to become a broker from
120 to 150 and increasing the number of required years as a licensed
real estate salesperson prior to becoming a broker from 2 to 5. The bill
would also increase the number of fair housing course hours required to
become a real estate salesperson from 4 to 6, thereby furthering efforts
to enhance understanding of local, state, and federal fair housing and
anti-discrimination laws.
LEGISLATIVE HISTORY:
A7350 of 2021-22
FISCAL IMPLICATIONS:
None
EFFECTIVE DATE:
This act shall take effect on the 180th day after becoming a law.
STATE OF NEW YORK
________________________________________________________________________
3474
2023-2024 Regular Sessions
IN ASSEMBLY
February 3, 2023
___________
Introduced by M. of A. FAHY -- read once and referred to the Committee
on Judiciary
AN ACT to amend the real property law, in relation to increasing the
period of supervision required for certain real estate license appli-
cations
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraph (b) of subdivision 1 of section 441 of the real
2 property law, as separately amended by sections 6 and 7 of chapter 529
3 of the laws of 2022, is amended to read as follows:
4 (b) Such further information as the department may reasonably require
5 shall be furnished by the applicant including sufficient proof of having
6 taken and passed a written examination and answered such questions as
7 may be prepared by the department to enable it to determine the trust-
8 worthiness of the applicant if an individual, or of each member of a
9 co-partnership or each member of a limited liability company or each
10 officer of a corporation for whom a license as a broker is asked, and
11 their competency to transact the business of real estate broker in such
12 a manner as to safeguard the interests of the public. In determining
13 competency, the department shall require proof that the person being
14 tested to qualify to apply for a broker's license has a fair knowledge
15 of the English language, a fair understanding of the general purposes
16 and general legal effect of deeds, mortgages, land contracts of sale,
17 and leases, a general and fair understanding of the obligations between
18 principal and agent, has taken a class on cultural competency training,
19 a general and fair understanding of the laws, rules and regulations
20 pertaining to fair housing and discrimination in the sale or rental of
21 real property or an interest in real property, as well as of the
22 provisions of this section. The applicant must also furnish proof that
23 they have attended for at least one hundred fifty-two hours and has
24 successfully completed a real estate course or courses approved by the
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD04161-01-3
A. 3474 2
1 secretary of state as to method and content and supervision which
2 approval may be withdrawn if in the opinion of the secretary of state
3 said course or courses are not being conducted properly as to method,
4 content and supervision, and that either the applicant has actively
5 participated in the general real estate brokerage business as a licensed
6 real estate salesperson under the supervision of a licensed real estate
7 broker for a period of not less than [two] five consecutive years or has
8 had the equivalent experience in general real estate business for a
9 period of at least three years, the nature of which experience shall be
10 established by affidavit duly sworn to under oath and/or other and
11 further proof required by the department of state. Computer-based and
12 distance-learning courses may be approved by the department so long as
13 providers demonstrate the ability to monitor and verify participation by
14 the applicant for the specified time period. Notwithstanding the forego-
15 ing authority to approve computer-based and distance-learning courses,
16 the department may prescribe that specified subjects or hours must be
17 presented in a classroom setting. For purposes of this section, cultural
18 competency is defined as understanding cultural norms, preferences and
19 challenges within our diverse communities.
20 § 2. This act shall take effect on the one hundred eightieth day after
21 it shall have become a law.
