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S02131 Summary:

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S02131 Committee Votes:

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S02131 Memo:

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S02131 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         2131--A
 
                               2021-2022 Regular Sessions
 
                    IN SENATE
 
                                    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:
 
     1    Section 1. Section 442-h of the real property law is amended by adding
     2  a new subdivision 4 to read as follows:
     3    4. (a) The secretary of state, upon notice and a public hearing, shall
     4  promulgate rules and regulations requiring real estate brokers to insti-
     5  tute standardized operating procedures for the prerequisites prospective
     6  homebuyers  must  meet  prior  to receiving any services. Such rules and
     7  regulations shall include but not be limited to the following:
     8    (i) whether prospective clients shall show identification;
     9    (ii) whether an exclusive broker agreement is required; and
    10    (iii) whether pre-approval for a mortgage loan is required.
    11    (b) Real estate  brokers  shall  submit  such  standardized  operating
    12  procedures  to the department of state and the department of state shall
    13  maintain a file of such  standardized  operating  procedures  while  the
    14  broker's  license  is  active and for at least five years thereafter. If
    15  any alterations are made to the standardized operating procedures subse-
    16  quent to such submission, real estate brokers shall  notify  and  submit
    17  such  new  standard operating procedures within thirty days.  Any sales-
    18  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
 
     1  operating  procedures  shall  be  subject  to  the  penalties imposed by
     2  section four hundred forty-one-c of this article.
     3    § 2. Paragraph (a) of subdivision 1 of section 441-c of the real prop-
     4  erty  law,  as amended by chapter 131 of the laws of 2020, is amended to
     5  read as follows:
     6    (a) The department of state may revoke the license of  a  real  estate
     7  broker  or  salesman or suspend the same, for such period as the depart-
     8  ment may deem proper, or in lieu thereof may impose a fine not exceeding
     9  one thousand dollars payable to the department of state, or a  reprimand
    10  upon  conviction of the licensee of a violation of any provision of this
    11  article, or for a violation of subdivision four of section four  hundred
    12  forty-two-h  of  this  article,  or  for  a material misstatement in the
    13  application for such license, or if such licensee  has  been  guilty  of
    14  fraud  or fraudulent practices, or for dishonest or misleading advertis-
    15  ing, or has demonstrated untrustworthiness or incompetency to act  as  a
    16  real estate broker or salesman, or for a violation of article fifteen of
    17  the  executive  law  committed  in  his or her capacity as a real estate
    18  broker or salesman, as the case may be. In the case  of  a  real  estate
    19  broker  engaged in the business of a tenant relocator, untrustworthiness
    20  or incompetency shall include engaging in any course of conduct  includ-
    21  ing, but not limited to, the interruption or discontinuance of essential
    22  building  service,  that interferes with or disturbs the peace, comfort,
    23  repose and quiet enjoyment of a tenant.
    24    § 3. This act shall take effect immediately.