Amd 442-h, RP L; amd 3, Chap of 2021 (as proposed in S.2131-A & A.6186)
Requires real estate brokers to institute standardized operating procedures for the prerequisites prospective homebuyers shall meet prior to receiving any services.
STATE OF NEW YORK
________________________________________________________________________
7729
IN SENATE
January 7, 2022
___________
Introduced by Sen. SKOUFIS -- read twice and ordered printed, and when
printed to be committed to the Committee on Rules
AN ACT to amend the real property law, in relation to requiring real
estate brokers to institute standardized operating procedures for the
prerequisites prospective homebuyers shall meet prior to receiving any
services; and to amend a chapter of the laws of 2021 amending the real
property law relating to requiring the secretary of state to promul-
gate regulations requiring real estate brokers to institute standard-
ized operating procedures for the prerequisites prospective homebuyers
shall meet prior to receiving any services, as proposed in legislative
bills numbers S. 2131-A and A. 6186, in relation to the effectiveness
thereof
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 4 of section 442-h of the real property law, as
2 added by a chapter of the laws of 2021 amending the real property law
3 relating to requiring the secretary of state to promulgate regulations
4 requiring real estate brokers to institute standardized operating proce-
5 dures for the prerequisites prospective homebuyers shall meet prior to
6 receiving any services, as proposed in legislative bills numbers S.
7 2131-A and A. 6186, is amended to read as follows:
8 4. (a) [The secretary of state, upon notice and a public hearing,]
9 Each real estate broker shall [promulgate rules and regulations requir-
10 ing real estate brokers to] institute standardized operating procedures
11 for the prerequisites prospective homebuyers must meet prior to receiv-
12 ing any services. Such [rules and regulations] standardized operating
13 procedures shall include but not be limited to the following:
14 (i) whether prospective clients shall show identification;
15 (ii) whether an exclusive broker agreement is required; [and]
16 (iii) whether pre-approval for a mortgage loan is required; and
17 (iv) any other such standardized operating procedures as the secretary
18 of state shall determine by regulation and upon notice and public hear-
19 ing.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD06380-04-2
S. 7729 2
1 (b) Real estate brokers shall [submit] date stamp, notarize and post
2 such standardized operating procedures [to the department of state and
3 the department of state] on any publicly available website and mobile
4 device application they maintain, shall make a copy of such procedures
5 available to the public upon request at their office locations, and
6 shall maintain a file of such standardized operating procedures while
7 the broker's license is active [and for at least five years thereafter].
8 Any website or mobile device application maintained by a team or a real
9 estate salesperson should also have the brokers' policies posted or have
10 a direct link from such website or mobile device application to the
11 brokers' website or mobile device application. If any alterations are
12 made to the standardized operating procedures subsequent to such
13 [submission] posting, real estate brokers shall [notify and submit] date
14 stamp, notarize and post such new standard operating procedures on any
15 publicly available website or mobile device application they maintain
16 within thirty days, and archive such alterations. Any broker or sales-
17 person operating under a brokerage license that fails to adhere to such
18 operating procedures shall be subject to the penalties imposed by
19 section four hundred forty-one-c of this article.
20 (c) Any time a real estate broker is required to renew their license
21 they must affirm to the department of state that they are in compliance
22 with the requirements of this subdivision related to standardized oper-
23 ating procedures.
24 § 2. Section 3 of a chapter of the laws of 2021 amending the real
25 property law relating to requiring the secretary of state to promulgate
26 regulations requiring real estate brokers to institute standardized
27 operating procedures for the prerequisites prospective homebuyers shall
28 meet prior to receiving any services, as proposed in legislative bills
29 numbers S. 2131-A and A. 6186, is amended to read as follows:
30 § 3. This act shall take effect [immediately] on the one hundred twen-
31 tieth day after it shall have become a law.
32 § 3. This act shall take effect immediately, provided, however, that
33 section one of this act shall take effect on the same date and in the
34 same manner as a chapter of the laws of 2021 amending the real property
35 law relating to requiring the secretary of state to promulgate regu-
36 lations requiring real estate brokers to institute standardized operat-
37 ing procedures for the prerequisites prospective homebuyers shall meet
38 prior to receiving any services, as proposed in legislative bills
39 numbers S. 2131-A and A. 6186, takes effect.
