NY Real Estate License Law Index - Article 12-A Real Property Law

Real Estate

License Law

(March 2026)

New York

DEPARTMENT OF STATE https://dos.ny.gov

Kathy Hochul Walter T. Mosley

Governor Secretary of State

Licensing of Real Estate Brokers and Real Estate Salespersons

Article 12-A Real Property Law

Section

440 Definitions 440-a License required for real estate brokers and salespersons 440-b Licenses in Putnam County 441 Application for license 441-a License and pocket card 441-b License fees 441-c Revocation and suspension of licenses 441-d Salesperson's license suspended by revocation or suspension of employer's license 441-e Denial of license; complaints; notice of hearing 441-f Judicial review 442 Splitting commissions 442-a Compensation of salespersons; restrictions 442-b Discontinuance or change of salesperson's association; report 442-c Violations by salespersons; broker's responsibility 442-d Actions for commissions; license prerequisite 442-e Violations 442-f Saving clause 442-g Nonresident licensees 442-h Rules of the Secretary of State 442-i State real estate board 442-j Effect of invalid provision 442-k Powers and duties of the state real estate board 442-l After-the-fact referral fees 443 Disclosure regarding real estate agency relationship; form 443-a Disclosure obligations Related Statutes and Laws

Real Property Law Article 8 Conveyances & Mortgages

Section

242 Disclosure prior to the sale of real property Article 9 Recording Instruments Affecting Real Property

Section

291-i Validity of electronic recording 333-c Lands in agricultural districts; disclosure Article 14 Property Condition Disclosure In The Sale Of Residential Real Property

Section

460 Short title 461 Definitions 462 Property condition disclosure statement 463 Exemptions 464 Revision 465 Remedy 466 Duty of an agent 467 Liability Executive Law

Article 15 Human Rights Law

Section

296(5) Unlawful discriminatory practices United States Code 42 USCA 3604 It shall be unlawful . . . Rules and Regulations Title 19 NYCRR

Subchapter D Real Estate Brokers and Salespersons

Part

175 Regulations Affecting Brokers and Salesperson 176 Approval of Real Estate Courses 177 Continuing Education 178 Nonsolicitation Orders 179 Determination of Real Estate Experience

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ARTICLE 12-A attempts to collect rent for the use of real estate for or in behalf of

such real estate broker, or who, notwithstanding any other provision REAL PROPERTY LAW of law, performs any of the above stated functions with respect to the resale of a condominium property originally sold pursuant to the provisions of the general business law governing real estate §440. Definitions syndication offerings.

1. Whenever used in this article "real estate broker" means any 4. "Tenant relocator" means any person, firm, corporation, person, firm, limited liability company or corporation, who, for partnership, limited liability company or any legal entity whatsoever, another and for a fee, commission or other valuable consideration, which, for another and for a fee, commission or other valuable lists for sale, sells, at auction or otherwise, exchanges, buys or rents, consideration, supervises, organizes, arranges, coordinates, handles or offers or attempts to negotiate a sale, at auction or otherwise, or is otherwise in charge of or responsible for the relocation of exchange, purchase or rental of an estate or interest in real estate, or commercial or residential tenants from buildings or structures that are collects or offers or attempts to collect rent for the use of real estate, to be demolished, rehabilitated, remodeled or otherwise structurally or negotiates or offers or attempts to negotiate, a loan secured or to be altered. secured by a mortgage, other than a residential mortgage loan, as
2. "Association, associated; or associated with" whenever used in defined in section five hundred ninety of the banking law, or other this article shall be deemed to make reference to a salesperson's incumbrance upon or transfer of real estate, or is engaged in the relationship with their broker. Nothing in this article shall be deemed business of a tenant relocator, or who, notwithstanding any other or construed to be indicative or determinative of the legal relationship provision of law, performs any of the above stated functions with of a salesperson to a broker nor shall any provision of this article be respect to the resale of condominium property originally sold deemed or construed to alter or otherwise affect the legal pursuant to the provisions of the general business law governing real responsibility of a real estate broker to third parties for the acts of estate syndication offerings. In the sale of lots pursuant to the anyone associated with such broker pursuant to this article. provisions of article nine-A of this chapter, the term "real estate broker" shall also include any person, partnership, association or 6. "Office manager" means a licensed associate real estate broker corporation employed by or on behalf of the owner or owners of lots who shall by choice elect to work as an office manager under the or other parcels of real estate, at a stated salary, or upon a name and supervision of another individual broker or another broker commission, or upon a salary and commission, or otherwise, to sell who is licensed under a partnership, trade name, limited liability such real estate, or any parts thereof, in lots or other parcels, and who company or corporation. An associate real estate broker shall be shall sell or exchange, or offer or attempt or agree to negotiate the required to have been active as a licensed associate broker for at least sale or exchange, of any such lot or parcel of real estate. For purposes two of the four years preceding appointment as an office manager. of this subdivision the term, "interest in real estate" shall include the Such individual shall retain their license as a real estate broker as sale of a business wherein the value of the real estate transferred as provided for in this article and shall be required to exercise the same part of the business is not merely incidental to the transaction, and duty of supervision over salespersons and associate brokers as a shall not include the assignment of a lease, and further, the licensed real estate broker; provided, however, that the practice of transaction itself is not otherwise subject to regulation under state or real estate sales and brokerage by such individual as an associate federal laws governing the sale of securities. In connection with the broker shall be governed exclusively by the provisions of this article sale of a business the term "real estate broker" shall not include a as they pertain to real estate salespersons. Nothing contained in this person, firm or corporation registered pursuant to the provisions of subdivision shall preclude an individual who is licensed as an article twenty-three-A of the general business law or federal associate broker who elects to work as an office manager from also securities laws. retaining a separate real estate broker's license under an individual, partnership, trade name, limited liability company or corporation. 2. "Associate real estate broker" means a licensed real estate broker who shall by choice elect to work under the name and §440-a. License required for real estate brokers supervision of another individual broker or another broker who is licensed under a partnership, trade name, limited liability company or and salespersons corporation. Such individual shall retain their license as a real estate No person, co-partnership, limited liability company or corporation broker as provided for in this article; provided, however, that the shall engage in or follow the business or occupation of, or hold practice of real estate sales and brokerage by such individual as an themselves or itself out or act temporarily or otherwise as a real estate associate broker shall be governed exclusively by the provisions of broker or real estate salesperson in this state without first procuring a this article as they pertain to real estate salespersons. Nothing license therefor as provided in this article. No person shall be entitled contained herein shall preclude an individual who elects to be to a license as a real estate broker under this article, either as an licensed as an associate broker from also retaining a separate real individual or as a member of a co-partnership, or as a member or estate broker's license under an individual, partnership, trade name, manager of a limited liability company or as an officer of a limited liability company or corporation. corporation, unless they are twenty years of age or over. No person 3. "Real estate salesperson" means a person associated with a shall be entitled to a license as a real estate salesperson under this licensed real estate broker to list for sale, sell or offer for sale, at article unless they are over the age of eighteen years. No person shall auction or otherwise, to buy or offer to buy or to negotiate the be entitled to a license as a real estate broker or real estate purchase or sale or exchange of real estate, or to negotiate a loan on salesperson under this article who has been convicted in this state or real estate other than a mortgage loan as defined in section five elsewhere of a crime, unless the secretary makes a finding in hundred ninety of the banking law, or to lease or rent or offer to conformance with all applicable statutory requirements, including lease, rent or place for rent any real estate, or collects or offers or those contained in article twenty-three-A of the correction law, that

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such business or occupation was engaged in and the name such convictions do not constitute a bar to licensure. No person shall be entitled to a license as a real estate broker or real estate or names of employers, if any. salesperson under this article who does not meet the requirements of (v) The form, information and statement required by section 3-503 of the general obligations law. section 3-503 of the general obligations law. Notwithstanding anything to the contrary in this section, tenant (b) Such further information as the department may reasonably associations and not-for-profit corporations authorized in writing by require shall be furnished by the applicant including the commissioner of the department of the city of New York charged sufficient proof of having taken and passed a written with enforcement of the housing maintenance code of such city to examination and answered such questions as may be manage residential property owned by such city or appointed by a prepared by the department to enable it to determine the court of competent jurisdiction to manage residential property owned trustworthiness of the applicant if an individual, or of each by such city shall be exempt from the licensing provisions of this member of a co-partnership or each member of a limited section with respect to the properties so managed. liability company or each officer of a corporation for whom a license as a broker is asked, and their competency to §440-b. Licenses in Putnam County transact the business of real estate broker in such a manner as to safeguard the interests of the public. In determining On and after the first day of July, 1934, no person, co-partnership or competency, the department shall require proof that the corporation shall engage in or follow the business or occupation of, person being tested to qualify to apply for a broker's or hold himself or itself out temporarily or otherwise as a real estate license has a fair knowledge of the English language, a fair broker or real estate salesperson in the County of Putnam, without understanding of the general purposes and general legal first procuring a license therefor as provided in this article, except effect of deeds, mortgages, land contracts of sale, and that such license in such county shall be granted and issued, without leases, a general and fair understanding of the obligations the written examination provided in this article, to a person, co- between principal and agent, has taken a class on cultural partnership or corporation who was engaged in business as a real competency training, a general and fair understanding of estate broker or real estate salesperson in such county prior to the first the laws, rules and regulations pertaining to fair housing day of January, 1934. and discrimination in the sale or rental of real property or an interest in real property, as well as of the provisions of §441. Application for license this section. The applicant must also furnish proof that they

1. Form. have attended for at least one hundred fifty-two hours and has successfully completed a real estate course or courses (a) Any person, copartnership, limited liability company or approved by the secretary of state as to method and content corporation desiring to act as a real estate broker or any and supervision which approval may be withdrawn if in the person desiring to act as a real estate salesperson on or after opinion of the secretary of state said course or courses are the first day of October, nineteen hundred twenty-two, not being conducted properly as to method, content and shall file with the department of state at its office in Albany supervision, and that either the applicant has actively an application for the kind of license desired, in such form participated in the general real estate brokerage business as and detail as such department shall prescribe and a licensed real estate salesperson under the supervision of a conforming to the requirements of section 3-503 of the licensed real estate broker for a period of not less than two general obligations law, setting forth the following, if the years or has had the equivalent experience in general real application be for a broker's license: estate business for a period of at least three years, the (i) The name and residence address of the applicant, and if nature of which experience shall be established by affidavit an individual the name under which they intend to conduct duly sworn to under oath and/or other and further proof business. required by the department of state. Computer-based and (ii) If the applicant be a copartnership the name and distance-learning courses may be approved by the residence address of each member thereof and the name department so long as providers demonstrate the ability to under which the business is to be conducted; or, if the monitor and verify participation by the applicant for the applicant be a limited liability company, the name of the specified time period. Notwithstanding the foregoing company, and the name and residence of each of its authority to approve computer-based and distance-learning members; or, if the applicant be a corporation, the name of courses, the department may prescribe that specified the corporation and the name and residence address of each subjects or hours must be presented in a classroom setting. of its officers. For purposes of this section, cultural competency is defined (iii) The place or places, including the city, town or village, as understanding cultural norms, preferences and with the street and number, where the business is to be challenges within our diverse communities. conducted. (c) In the event the applicant shall be a licensed salesperson (iv) The business or occupation theretofore engaged in by under this article and shall have submitted acceptable proof the applicant, or, if a copartnership, by each member pursuant to the provisions of either paragraph (d) of thereof, or, if a limited liability company, by each member subdivision one-A of this section or paragraph (a) of thereof, or, if a corporation, by each officer thereof, for a subdivision three of this section of having attended and period of two years, immediately preceding the date of successfully completed seventy-seven hours of an such application, setting forth the place or places where approved real estate course or courses, six hours of which have been focused on fair housing and discrimination in the

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therein are true under the penalties of perjury. An sale or rental of real property or an interest in real property, application for a license shall be accompanied by the within eight years of the date of the application, the appropriate license fee, as hereinafter prescribed in this department may accept and credit same against the one article. hundred fifty-two hours required hereunder. (d) Anything to the contrary herein notwithstanding, on and (d) The one hundred fifty-two hours of an approved real after the effective date of this paragraph, no salesperson's estate course or courses required by paragraph (b) of this subdivision shall include instruction on fair housing and license or conditional license shall be issued by the department unless the application therefor has been discrimination in the sale or rental of real property or an interest in real property as described in paragraph (e) of accompanied by proof that prior to such application the applicant has attended at least seventy-seven hours and subdivision three of this section and instruction on the licensed real estate broker's responsibility for ensuring that successfully completed a real estate course or courses approved by the secretary of state as to method and content each licensed real estate salesman under such broker's supervision is in compliance with his or her obligations and supervision, which approval may be withdrawn if in the opinion of the secretary of state said course or courses under applicable federal, state, and local laws, rules, and regulations pertaining to fair housing and discrimination in are not properly conducted as to method, content and supervision. Computer-based and distance-learning courses the sale or rental of real property or an interest in real may be approved by the department so long as providers property. demonstrate the ability to monitor and verify participation 1-A. (a) Every application for a real estate salesperson's license by the applicant for the specified time period. shall set forth: Notwithstanding the foregoing authority to approve (i) The name and residence address of the applicant. computer-based and distance-learning courses, the (ii) The name and principal business address of the broker department may prescribe that specified subjects or hours with whom they are to be associated. must be presented in a classroom setting. (iii) The business or occupation engaged in for the two 2. Renewals. Any license granted under the provision hereof may years immediately preceding the date of the application, be renewed by the department upon application therefor by setting forth the place or places where such business or the holder thereof, in such form as the department may occupation was engaged in, and the name or names of prescribe and conforming to the requirements of section 3- employers if any. 503 of the general obligations law, and payment of the fee (iv) The length of time they have been engaged in the real for such license. In case of application for renewal of license, the department may dispense with the requirement estate business. of such statements as it deems unnecessary in view of those (v) The form, information and statement required by contained in the original application for license but may not section 3-503 of the general obligations law. dispense with the requirements of section 3-503 of the (b) Each applicant for a salesperson's license shall provide general obligations law. A renewal period within the such further information as the department may reasonably meaning of this act is considered as being a period of two require, appearing at such time and place as may be years from the date of expiration of a previously issued designated by the department, to take a written examination license. The department shall require any applicant, who and answer such questions as may be prepared by the does not apply for renewal of license within such period, to department to enable it to determine the trustworthiness of qualify by passing the written examination as provided the applicant and the applicant's competence to transact the herein, and may require any licensee who has not yet business of real estate salesperson in such a manner as to passed the written examination, and who cannot reasonably safeguard the interests of the public, including the prove to the satisfaction of the department, that he can meet applicant's working knowledge of the basic concepts of the competency requirements, to pass the written law pertaining to contracts, real property, agency and this examination before a renewal of license shall be granted; article which govern conduct of such business, knowledge provided, however, that a person who failed or was unable of laws, rules, and regulations pertaining to fair housing to renew his license by reason of his induction or and discrimination in the sale or rental of real property or enlistment in the armed forces of the United States shall an interest in real property, mastery of basic skills needed not be required to take or pass such examination. to perform the applicant's duties, working knowledge of

1. (a) No renewal license shall be issued any licensee under this the ethical obligations of a real estate salesperson, and article for any license period commencing November first, knowledge of the provisions of the general obligations law nineteen hundred ninety-five unless such licensee shall pertaining to performance of the applicant's duties. have within the two year period immediately preceding (c) Each application for either a broker's or salesperson's such renewal attended at least twenty-two and one-half license under this article shall be subscribed by the hours which shall include at least two hours of cultural applicant; or if made by a co-partnership it shall be competency training, at least three hours of instruction subscribed by a member thereof, or if made by a pertaining to fair housing and/or discrimination in the sale corporation it shall be subscribed by an officer thereof, and or rental of real property or an interest in real property, at shall conform to the requirements of section 3-503 of the least two hours of instruction pertaining to implicit bias general obligations law. Each application shall contain an awareness and understanding, at least two and one-half affirmation by the person so subscribing that the statements hours of instruction pertaining to ethical business practices,

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at least one hour of instruction pertaining to recent legal shall be maintained of attendance at each session which shall be transmitted to the department at the conclusion of matters governing the practice of real estate brokers and salespersons in New York which may include statutes, the course. Computer-based and distance learning courses may be approved by the department so long as providers laws, regulations, rules, codes, department of state opinions and decisions, and court decisions and at least one hour of demonstrate the ability to monitor and verify participation by the licensee for the specified time period. instruction pertaining to the law of agency except in the case of the initial two-year licensing term for real estate (ii) The secretary of state shall require approved faculty to salespersons, two hours of agency related instruction must sign and affirm, under penalty of perjury, a document, be completed, and successfully completed a continuing approved by and submitted electronically to the department education real estate course or courses approved by the of state, attesting to compliance with all applicable secretary of state as to method, content and supervision, statutory and regulatory requirements pertaining to the which approval may be withdrawn if in the opinion of the instruction of the established curriculum. The secretary of secretary of state such course or courses are not being state shall promulgate penalties for faculty that fail to meet conducted properly as to method, content and supervision. the obligations required under this section and department For those individuals licensed pursuant to subdivision six of state regulations including, but not limited to, the of section four hundred forty-two-g of this article, in the temporary suspension of their instructor certificate for the individual's initial license term, at least eleven hours of the first such failure and the revocation of their instructor required twenty-two and one-half hours of continuing certificate for any subsequent failure. education shall be completed during the first year of the (d) The state real estate board, created pursuant to section four term. Of those eleven hours, three hours shall pertain to hundred forty-two-i of this article, shall not have the power applicable New York state statutes and regulations to promulgate any rule, regulation or guidance requiring governing the practice of real estate brokers and continuing education for real estate brokers or salespeople salespersons. To establish compliance with the continuing except those requirements set forth in subdivisions two and education requirements imposed by this section, licensees three of section four hundred forty-two-k of this article. shall provide an affidavit, in a form acceptable to the (e) The secretary of state shall, upon notice and a public department of state, establishing the nature of the hearing, promulgate rules establishing the content of the continuing education acquired and shall provide such instruction pertaining to fair housing and/or discrimination further proof as required by the department of state. For in the sale or rental of real property or an interest in real purposes of this subdivision, "implicit bias" shall mean the property required by paragraph (a) of this subdivision. attitudes or stereotypes that affect an individual's Such instruction shall include, but not be limited to, understanding, actions and decisions in an unconscious courses on: (1) the legacy of segregation, unequal manner. treatment, and historic lack of access to opportunity in (b) Notwithstanding the provisions of section four hundred one housing; (2) unequal access to amenities and resources on of the state administrative procedure act, except as the basis of race, disability, and other protected provided in this paragraph, no license issued under this characteristics; (3) federal, state, and local fair housing article shall continue in effect beyond the period for which laws; and (4) anti-bias training. it is issued if the proof of attendance required hereunder is

1. The fees provided for by this section shall not be refundable. not submitted and accepted prior to such expiration date.
   The department in its discretion may however issue a §441-a. License and pocket card temporary renewal license for such period of time it deems appropriate to permit the submission of the required proof 1. The Department of State, if satisfied of the competency and of attendance when the failure to submit such proof is not trustworthiness of the applicant, shall issue and deliver to them a due to the fault of the licensee. license in such form and manner as the department shall prescribe, (c) (i) The secretary of state shall promulgate rules establishing but which must set forth the name and principal business address of the method, content, setting and supervision requirements the licensee, and, in the case of a real estate salesperson, the name of the continuing education real estate course or courses and business address of the broker with whom the salesperson is provided for in this section. In establishing the associated. requirements for the continuing education course or 2. Terms. A license issued or reissued under the provisions of this courses, the secretary of state shall permit alternatives with article shall entitle the person, co-partnership, limited liability respect to content and method of presentation in company or corporation to act as a real estate broker, or, if the consideration of the type of brokerage practiced and the application is for a real estate salesperson's license, to act as a real availability of the sources of such course or courses in estate salesperson in this state up to and including the date in which different areas of the state. Each course shall have an the license by its terms expires. established curriculum composed primarily of real estate

2. Place of business; business sign required. Except as otherwise practice and professional responsibility and ethics and provided in this article, each licensed real estate broker shall have and properly prepared written materials of the subject matter
   maintain a definite place of business within this state, and shall which shall be distributed as part of the course. It shall be conspicuously post on the outside of the building in which said office taught by a qualified faculty with attorneys presenting legal is conducted a sign of a sufficient size to be readable from the subjects. Credit shall be awarded on the basis of one hour sidewalk indicating the name and the business of the applicant as a for each sixty minutes of actual attendance and records

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decease. There shall be endorsed upon the face of the license, after licensed real estate broker, unless said office shall be located in an the name of the decedent, the words "deceased", the date of death and office, apartment or hotel building, in which event the name and the the name of the administrator or executor under whose authority the words "licensed real estate broker" shall be posted in the space provided for posting of names of occupants of the building, other license is being used. The period of one hundred twenty days may be extended upon application to the secretary of state, for good cause than the mail box. Where the applicant for a real estate broker's license maintains more than one place of business, the broker shall shown, for an additional period not to exceed one hundred twenty days. A license expiring during such period or extension shall be apply for and the department shall issue a supplemental license for each branch office so maintained upon payment to the department of automatically renewed and continued in effect during such period or extension. No fee shall be charged for any such license or renewal state for each supplemental license so issued the same fee prescribed in this article for a license to act as a real estate broker. Each such thereof. branch office shall be under the direct supervision of the broker to 9. Except for changes made on a renewal application, the fee for whom the license is issued, or a representative broker of a changing an address on a license shall be ten dollars. corporation or partnership or manager of a limited liability company 10. Except for changes made on a renewal application, the fee for holding such license, or a duly appointed office manager. Such fee changing a name or for changing the status of a real estate broker's shall accompany such application and shall be non-refundable. For license shall be one hundred fifty dollars. The fee for changing a purposes of this subdivision, the principal residence of a real estate salesperson's name shall be fifty dollars. broker or salesperson shall not be deemed a place of business solely

1. If a real estate salesperson shall leave the service of a real because such broker or salesperson shall have included the residence
   estate broker, the real estate broker shall file a termination of telephone number in their business cards. association notice on such form as secretary may designate. The 4. Display of license. The license of a real estate broker shall be salesperson's license may be endorsed to a new sponsoring broker conspicuously displayed in his principal place of business at all upon the establishment of a new record of association filed with the times. Licenses issued for branch offices shall be conspicuously department of state. The fee for filing a record of association shall be displayed therein. The display of a real estate broker's license, the twenty dollars. term whereof has expired, by any person, partnership, limited liability

2. Whenever any person licensed as a real estate broker or real company or corporation not duly licensed as a real estate broker for
   estate salesperson is convicted in this state or elsewhere of a felony, the current license term is prohibited. of a sex offense, as defined in subdivision two of section one hundred 5. Change of address. Notice in writing in the manner and form sixty-eight-a of the correction law or any offense committed outside prescribed by the department shall be given the department at its of this state which would constitute a sex offense, or a sexually offices in Albany by a licensed real estate broker on their own behalf violent offense, as defined in subdivision three of section one and on behalf of each salesperson associated with them of any change hundred sixty-eight-a of the correction law or any offense committed in their or its principal business address. The filing fee of ten dollars outside this state which would constitute a sexually violent offense, for each licensee named therein shall accompany such notice. Such such real estate broker or real estate salesperson shall within five change by a licensee without such notification shall operate to days of the imposition of sentence, transmit a certified copy of the suspend their license until such suspension shall be vacated by the judgment of conviction to the department of state. department.

3. Pocket card. The department shall prepare, issue and deliver, §441-b. License fees
   with the assistance of the department of motor vehicles, to each

4. The fee for a license issued or reissued under the provisions of licensee a pocket card in such form and manner as the department
   this article entitling a person, co-partnership, limited liability shall prescribe, but which shall contain the photo, name and business company or corporation to act as a real estate broker shall be one address of the licensee, and, in the case of a real estate salesperson, hundred fifty-five dollars plus an additional thirty dollar surcharge. the name and business address of the broker with whom they are Such surcharge shall be collected by the department of state and associated and shall certify that the person whose name appears deposited into the anti-discrimination in housing fund established thereon is a licensed real estate broker or salesperson, as may be. pursuant to section eighty-a of the state finance law to be used for Such cards must be shown on demand. In the case of loss, destruction statewide fair housing testing efforts. The fee for a license issued or or damage, the secretary of state may, upon submission of reissued under the provisions of this article entitling a person to act as satisfactory proof, issue a duplicate pocket card upon payment of a a real estate salesperson shall be fifty-five dollars plus an additional fee of ten dollars. ten dollar surcharge. Such surcharge shall be collected by the 7. License term. From and after the date when this subdivision department of state and deposited into the anti-discrimination in shall take effect, the term for which a license shall be issued or housing fund established pursuant to section eighty-a of the state reissued under this article shall be a period of two years. finance law to be used for statewide fair housing testing efforts.

5. Death of broker. A license issued to a real estate broker who Notwithstanding the provisions of subdivision seven of section four
   was, at the time of their death, the sole proprietor of a brokerage hundred forty-one-a of this article, after January first, nineteen office may be used after the death of such licensee by their duly hundred eighty-six, the secretary of state shall assign staggered appointed administrator or executor in the name of the estate pursuant expiration dates for outstanding licenses that have been previously to authorization granted by the surrogate under the provisions of the renewed on October thirty-first of each year from the assigned date surrogate's court procedure act for a period of not more than one unless renewed. If the assigned date results in a term that exceeds hundred twenty days from the date of death of such licensee in order twenty-four months, the applicant shall pay an additional prorated to complete any unfinished realty transactions in the process of adjustment together with the regular renewal fee. The secretary of negotiation by the broker or their salespersons existing prior to their

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state shall assign dates to existing licenses in a manner which shall fifty percent of all moneys received by the department of result in a term of not less than two years. state for such fines shall be payable to the anti- discrimination in housing fund established pursuant to 1-A. The fee for a person to take an examination offered by the section eighty-a of the state finance law, or a reprimand secretary of state pursuant to this article shall be fifteen dollars. Fees upon conviction of the licensee of a violation of any collected by the department of state pursuant to this article shall be provision of this article, or for a violation of subdivision deposited to the credit of the business and licensing services account four of section four hundred forty-two-h of this article, or established pursuant to section ninety-seven-y of the state finance for a material misstatement in the application for such law. license, or if such licensee has been guilty of fraud or 2. Corporations and co-partnerships. If the licensee be a fraudulent practices, or for dishonest or misleading corporation, the license issued to it shall entitle the president thereof advertising, or has demonstrated untrustworthiness or or such other officer as shall be designated by such corporation, to act incompetency to act as a real estate broker or salesperson, as a real estate broker. For each other officer who shall desire to act or for a violation of article fifteen of the executive law as a real estate broker in behalf of such corporation an additional committed in their capacity as a real estate broker or license expiring on the same date as the license of the corporation salesperson, as the case may be. In the case of a real estate shall be applied for and issued, as hereinbefore provided, the fee for broker engaged in the business of a tenant relocator, which shall be the same as the fee required by this section for the untrustworthiness or incompetency shall include engaging license to the corporation. No license as a real estate salesperson shall in any course of conduct including, but not limited to, the be issued to any officer of a corporation nor to any manager or interruption or discontinuance of essential building service, member of a limited liability company nor to a member of a co- that interferes with or disturbs the peace, comfort, repose partnership licensed as a real estate broker. If the licensee be a co- and quiet enjoyment of a tenant. partnership the license issued to it shall entitle one member thereof to (b)(i) The provisions of this paragraph shall apply in all cases of act as a real estate broker, and for each other member of the firm who licensed broker or licensed salesperson who have failed, desires to act as a real estate broker an additional license expiring on after receiving appropriate notice, to comply with a the same date as the license of the co-partnership shall be applied for summons, subpoena or warrant relating to a paternity or and issued, as hereinbefore provided, the fee for which shall be the child support proceeding or is in arrears in payment of same as the fee required by this section for the license to the co- child support or combined child and spousal support partnership. If the licensee be a limited liability company, the license referred to the department by a court pursuant to the issued to it shall entitle one member thereof or one manager thereof requirements of section two hundred forty-four-c of the to act as a real estate broker, and for each other member or manager domestic relations law or pursuant to section four hundred of the firm who desires to act as a real estate broker an additional fifty-eight-b or five hundred forty-eight-b of the family license expiring on the same date as the license of the limited liability court act. company shall be applied for and issued, as hereinbefore provided, the fee for which shall be the same as the fee required by this section (ii) Upon receipt of an order from the court pursuant to one for the license to the limited liability company. In case a person of the foregoing provisions of law based on arrears in licensed individually as a real estate broker thereafter becomes an payment of child support or combined child and spousal officer of a corporation or a member or manager of a limited liability support, the department, if it finds such person to be so company or a member of a co-partnership an application shall be licensed, shall within thirty days of receipt of such order made in behalf of such corporation, limited liability company or co- from the court, provide notice to the licensee of, and partnership for a broker's license for them as its representative for the initiate, a hearing which shall be held by it at least twenty remainder of the then current license term, provided that the license days and no more than thirty days after the sending of such notice to the licensee. The hearing shall be held solely for and pocket card previously issued to the licensee in their individual capacity shall have been returned to the department whereupon the the purpose of determining whether there exists as of the department shall cause a properly signed endorsement to be made date of the hearing proof that full payment of all arrears of without charge on the face of such license and pocket card as to such support established by the order of the court to be due from change of license status and return the license and pocket card to the the licensee have been paid. Proof of such payment shall be licensee. a certified check showing full payment of established arrears or a notice issued by the court, or the support 3. Disposition of fees. The department of state shall on the first collection unit where the order is payable to the support day of each month make a verified return to the department of collection unit designated by the appropriate social services taxation and finance of all fees received by it under this article during district. Such notice shall state that full payment of all the preceding calendar month, stating from what city or county arrears of support established by the order of the court to be received and by whom and when paid. due have been paid. The licensee shall be given full opportunity to present such proof of payment from the §441-c. Revocation and suspension of licenses court or support collection unit at the hearing in person or

1. Powers of department. by counsel. The only issue to be determined by the department as a result of the hearing is whether the arrears (a) The department of state may revoke the license of a real have been paid. No evidence with respect to the estate broker or salesperson or suspend the same, for such appropriateness of the court order or ability of the period as the department may deem proper, or in lieu respondent party in arrears to comply with such order shall thereof may impose a fine not exceeding two thousand be received or considered by the department. dollars payable to the department of state, provided that

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1. . The display of a real estate broker's license after the (iii) Upon receipt of an order from the court based on revocation or suspension thereof is prohibited. failure to comply with a summons, subpoena, or warrant relating to a paternity or child support proceeding, the 4. Whenever the license of a real estate broker or real estate department, if it finds such person to be so licensed, shall salesperson is revoked by the department, such real estate broker or within thirty days of receipt of such order from the court, real estate salesperson shall be ineligible to be relicensed either as a provide notice to the licensee that his or her license shall be real estate broker or real estate salesperson until after the expiration suspended within sixty days unless the conditions in of a period of one year from the date of such revocation. subparagraph (v) of this section are met.

§441-d. Salesperson's license suspended by (iv) Notwithstanding any inconsistent provision of this

article or of any other provision of law to the contrary, the revocation or suspension of employer's license license of a real estate broker or salesperson shall be The revocation or suspension of a broker's license shall operate to suspended if at the hearing, provided for by subparagraph suspend the license of each real estate salesperson associated with (ii) of this paragraph, the licensee fails to present proof of such broker, pending a change of association of the salesperson or the payment as required by such subdivision. Such suspension expiration of the period of suspension of the broker's license. Such shall not be lifted unless the court or the support collection suspension of the salesperson's license shall be deemed to be a unit, where the court order is payable to the support discontinuance of association with the broker being suspended. collection unit designated by the appropriate social services district, issues notice to the department that full payment of

§441-e. Denial of license; complaints; notice of all arrears of support established by the order of the court

to be due have been paid. hearing (v) Notwithstanding any inconsistent provision of this

1. Denial of license. The Department of State shall, before making article or of any other provision of law to the contrary, the
   a final determination to deny an application for a license, notify the license of a real estate broker or a salesperson shall be applicant in writing of the reasons for such proposed denial and shall suspended in accordance with the provisions of afford the applicant an opportunity to be heard in person or by subparagraph (iii) of this paragraph unless the court counsel prior to denial of the application. Such notification shall be terminates its order to commence suspension proceedings. served personally or by certified mail or in any manner authorized by Such suspension shall not be lifted unless the court issues the Civil Practice Law and Rules. If the applicant is a salesperson or an order to the department terminating its order to has applied to become a salesperson, the department shall also notify commence suspension proceedings. the broker with whom such salesperson is associated, or with whom (vi) The department shall inform the court of all actions such salesperson or applicant is about to become associated, of such taken hereunder as required by law. proposed denial. If a hearing is requested, such hearing shall be held (vii) This paragraph applies to paternity and child support at such time and place as the department shall prescribe. If the proceedings commenced under, and support obligations applicant fails to make a written request for a hearing within 30 days paid pursuant to any order of child support or child and after receipt of such notification, then the notification of denial shall spousal support issued under provisions of section two become the final determination of the department. The department, hundred thirty-six or two hundred forty of the domestic acting by such officer or person in the department as the Secretary of relations law, or article four, five, five-A or five-B of the State may designate, shall have the power to subpoena and bring family court act. before the officer or person so designated any person in this state, and administer an oath to and take testimony of any person or cause his (viii) Notwithstanding any inconsistent provision of this deposition to be taken. A subpoena issued under this section shall be article or of any other provision of law to the contrary, the regulated by the Civil Practice Law and Rules. If, after such hearing, provisions of this paragraph shall apply to the exclusion of the application is denied, written notice of such denial shall be served any other requirements of this article and to the exclusion upon the applicant personally or by certified mail or in any manner of any other requirement of law to the contrary. authorized by the Civil Practice Law and Rules, and if the applicant 2. Determination of department. In the event that the department is a salesperson, or has applied to become a salesperson, the shall revoke or suspend any such license, or impose any fine or department shall notify the broker with whom such applicant is reprimand on the holder thereof, its determination shall be in writing associated. and officially signed. The original of such determination, when so

2. Revocation, suspension, reprimands, fines. The Department of signed, shall be filed in the office of the department and copies
   State shall, before revoking or suspending any license or imposing thereof shall be served personally or by registered mail upon the any fine or reprimand on the holder thereof or before imposing any broker or salesperson and addressed to the principal place of business fine upon any person not licensed pursuant to this article who is of such broker or salesperson, and to the complainant. All brokers' deemed to be in violation of §442-h of this article, and at least 10 and salespersons' licenses and pocket cards shall be returned to the days prior to the date set for the hearing, notify in writing the holder department of state within five days after the receipt of notice of a of such license or such unlicensed person of any charges made and revocation or suspension, or in lieu thereof, the broker or salesperson shall afford such licensee or unlicensed person an opportunity to be whose license has been revoked or suspended shall make and file an heard in person or by counsel in reference thereto. Such written affidavit in form prescribed by the department of state, showing that notice may be served by delivery of same personally to the licensee, the failure to return such license and pocket card is due either to loss or by mailing same by certified mail to the last known business or destruction thereof. address of such licensee or unlicensed person, or by any method

NYS Department of State Division of Licensing Services Real Estate License Law / Page 9

authorized by the Civil Practice Law and Rules. If said licensee be a due, or to become due to the broker to any person, firm or salesperson, the department shall also notify the broker with whom corporation who or which is or is to be a party to the transaction in which such fee, commission or other compensation shall be or he is associated of the charges by mailing notice by certified mail to the broker's last known business address. The hearing on such become due to the broker; provided, however, that nothing in this section shall prohibit a real estate broker from offering any part of a charges shall be at such time and place as the department shall prescribe. fee, commission, or other compensation received by the broker to the seller, buyer, landlord or tenant who is buying, selling, exchanging, 3. Power to suspend a license. The department, acting by such leasing, renting or negotiating a loan upon any real estate including officer or person in the department as the Secretary of State may the resale of a condominium or cooperative apartment. Such fee, designate, shall have the power to suspend a license pending a commission, or other compensation must not be made to the seller, hearing and to subpoena and bring before the officer or person so buyer, landlord or tenant for performing any activity requiring a designated any person in this state, and administer an oath to and take license under this article. testimony of any person or cause his deposition to be taken. A subpoena issued under this section shall be regulated by the Civil §442-a. Compensation of salespersons; Practice Law and Rules.

restrictions §441-f. Judicial review No real estate salesperson in any place in which this article is

The action of the Department of State in granting or refusing to grant applicable shall receive or demand compensation of any kind from or to renew a license under this article or in revoking or suspending any person, other than a duly licensed real estate broker with whom such a license or imposing any fine or reprimand on the holder he associated, for any service rendered or work done by such thereof or refusing to revoke or suspend such a license or impose any salesperson in the appraising, buying, selling, exchanging, leasing, fine or reprimand shall be subject to review by a proceeding brought renting or negotiating of a loan upon any real estate. under and pursuant to article 78 of the Civil Practice Law and Rules at the instance of the applicant for such license, the holder of a §442-b. Discontinuance or change of license so revoked, suspended, fined or reprimanded or the person salesperson's association; report aggrieved. When the association of any real estate salesperson shall have been

§442. Splitting commissions terminated for any reason whatsoever, his broker shall forthwith

notify the Department of State thereof in such manner as the 1. No real estate broker shall pay any part of a fee, commission or department shall prescribe. Where change of such salesperson's other compensation received by the broker to any person for any association is the basis for such termination, the salesperson's service, help or aid rendered in any place in which this article is successor broker shall forthwith notify the department of such change applicable, by such person to the broker in buying, selling, in such manner as the department shall prescribe, such notice to be exchanging, leasing, renting or negotiating a loan upon any real estate accompanied by a fee of one dollar. No real estate salesperson shall including the resale of a condominium or cooperative apartment perform any act within any of the prohibitions of this article from and unless such a person be a duly licensed real estate salesperson after the termination for any cause of his association until he regularly associated with such broker or a duly licensed real estate thereafter shall have become associated with a licensed real estate broker or a person regularly engaged in the real estate brokerage broker. business in a state outside of New York; provided, however, that notwithstanding any other provision of this section, it shall be §442-c. Violations by salespersons; broker's permissible for a real estate broker to pay any part of a fee, responsibility commission, or other compensation received to an unlicensed corporation or an unlicensed limited liability company if each of its No violation of a provision of this article by a real estate salesperson shareholders or members, respectively, is associated as an individual or employee of a real estate broker shall be deemed to be cause for with the broker as a duly licensed associate broker or salesman. the revocation or suspension of the license of the broker, unless it

1. Furthermore, notwithstanding any other provision of law, it shall appear that the broker had actual knowledge of such violation or shall be permissible for a broker properly registered pursuant to the retains the benefits, profits or proceeds of a transaction wrongfully provisions of article 23-A of the General Business Law who earns a negotiated by their salesperson or employee after notice of the commission on the original sale of a cooperative or homeowners salesperson's or employee's misconduct. A broker shall be guilty of a association interest in real estate, including condominium units to pay misdemeanor for having any salesperson associated with their firm any part of a fee, commission or other compensation received for who has not secured the required license authorizing such bringing about such sale to a person whose principal business is not employment. the sale or offering of cooperatives or homeowners association interests in real property, including condominium units in this state §442-d. Actions for commissions; license but who is either: (i) a real estate salesperson duly licensed under this prerequisite article who is regularly associated with such broker; (ii) a broker duly licensed under this article; or a person regularly engaged in the real No person, co-partnership, limited liability company or corporation estate brokerage business in a state outside of New York. shall bring or maintain an action in any court of this State for the recovery of compensation for services rendered, in any place in Except when permitted pursuant to the foregoing provisions of which this article is applicable, in the buying, selling, exchanging, this section no real estate broker shall pay or agree to pay any part of leasing, renting or negotiating a loan upon any real estate without a fee, commission, or other compensation received by the broker, or

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department as the Secretary of State may designate, shall have the alleging and proving that such person was a duly licensed real estate power to subpoena and bring before the officer or person so broker or real estate salesperson on the date when the alleged cause designated any person in this State and require the production of any of action arose. books or papers which he deems relevant to the inquiry and

§442-e. Violations administer an oath to and take testimony of any person or cause his

deposition to be taken with the same fees and mileage and in the 1. Misdemeanors; triable in court of special sessions. Any person same manner as prescribed by law for civil cases in a court of record, who violates any provision of this article shall be guilty of a except that any applicant or licensee or officer or agent thereof shall misdemeanor. The commission of a single act prohibited by this not be entitled to such fees and/or mileage. Any person, duly article shall constitute a violation hereof. All courts of special subpoenaed, who fails to obey such subpoena without reasonable sessions, within their respective territorial jurisdictions, are hereby cause or without such cause refuses to be examined or to answer any empowered to hear, try and determine such crimes, without legal or pertinent question as to the character or qualification of such indictment, and to impose the punishments prescribed by law applicant or licensee or such applicant's or licensee's business, therefor. business practices and methods or such violations, shall be guilty of a

1. Attorney General to prosecute. Criminal actions for violations misdemeanor.
   of this article shall be prosecuted by the Attorney General, or his 7. In any criminal proceeding before any court or grand jury, or deputy, in the name of the people of the State, and in any such upon any investigation before the Department of State for a violation prosecution the Attorney General, or his deputy, shall exercise all the of any of the provisions of this section, the court or grand jury, or the powers and perform all the duties which the district attorney would Secretary of State, his deputy or other officer conducting the otherwise be authorized to exercise or to perform therein. The investigation, may confer immunity, in accordance with the Attorney General shall, upon a conviction for a violation of any provisions of §50.20 or 190.40 of the Criminal Procedure Law. provision of this article, and within 10 days thereafter, make and file

2. Notwithstanding any inconsistent provision of law, with respect with the Department of State a detailed report showing the date of
   to violations of §442-h of this article, the Secretary of State is such conviction, the name of the person convicted and the exact authorized, upon the complaint of any person or on his or her own nature of the charge. initiative, to investigate and prosecute violations of the provisions of 3. Penalty recoverable by person aggrieved. In case the offender such section by persons not licensed pursuant to this article and may shall have received any sum of money as commission, compensation impose a fine not exceeding $150 for the first violation, not or profit by or in consequence of his violation of any provision of this exceeding $500 for a second violation, and not exceeding $1,000 for article, he shall also be liable to a penalty of not less than the amount a third and each subsequent violation. The Attorney General, acting of the sum of money received by him as such commission, on behalf of the Secretary of State, may commence an action or compensation or profit and not more than four times the sum so proceeding in a court of competent jurisdiction to obtain a judgment received by him, as may be determined by the court, which penalty against such unlicensed person in an amount equal to that imposed as may be sued for and recovered by any person aggrieved and for his a fine. use and benefit, in any court of competent jurisdiction.

3. In any prosecution under this article, any person, firm or §442-f. Saving clause
   corporation who, for another, performs or offers to perform or The provisions of this article shall not apply to receivers, referees, attempts or offers to attempt, the performance of any one of the acts administrators, executors, guardians or other persons appointed by or set forth in section 440 of this article, shall be presumed to do so for a acting under the judgment or order of any court; or public officers fee, commission or other valuable consideration, but such while performing their official duties, or attorneys at law. presumption shall not arise out of a single transaction, except upon proof of repeated and successive acts, offers or attempts of a like §442-g. Nonresident licensees nature.

4. The Secretary of State shall have the power to enforce the 1. A nonresident of this State may become a real estate broker or a
   provisions of this article and upon complaint of any person, or on his real estate salesperson by conforming to all of the provisions of this own initiative, to investigate any violation thereof or to investigate article, except that a nonresident broker regularly engaged in the real the business, business practices and business methods of any person, estate business as a vocation who is licensed and maintains a definite firm or corporation applying for or holding a license as a real estate place of business in another state, which offers the same privileges to broker or salesperson, if in the opinion of the Secretary of State such the licensed brokers of this State, shall not be required to maintain a investigation is warranted. Each such applicant or licensee shall be place of business within this State. Anything to the contrary herein obliged, on request of the Secretary of State, to supply such notwithstanding, if any state prohibits or restricts the right of a information as may be required concerning his or its business, resident of this State to become a licensed nonresident real estate business practices or business methods, or proposed business broker or salesperson, then the issuance of such a license to an practices or methods. applicant resident in such state shall be similarly restricted. The Department of State shall recognize the license issued to a real estate 6. For the purpose of enforcing the provisions of this article and in broker or salesperson by another state as satisfactorily qualifying him making investigations relating to any violation thereof, and for the for license as broker or salesperson, as the case may be, under this purpose of investigating the character, competency and integrity of section; provided that the laws of the state of which he is a resident the applicants or licensees hereunder, and for the purpose of require that applicants for licenses as real estate brokers and investigating the business, business practices and business methods salespersons shall establish their competency by written examinations of any applicant or licensee, or of the officers or agents thereof, the but permit licenses to be issued to residents of the State of New York Department of State, acting by such officer or person in the

NYS Department of State Division of Licensing Services Real Estate License Law / Page 11

duly licensed under this article, without examination. If the applicant certification or registration are deemed by the secretary to be less rigorous than those required for licensure in New York, the secretary is a resident of a state which has not such requirement then the applicant must meet the examination requirement as provided herein shall permit an applicant to submit evidence in a form acceptable to the Department of State to demonstrate the applicant's competency and the Department of State shall issue a license to such nonresident broker or salesperson upon payment of the license fee and the filing and trushworthiness. If such evidence is sufficient in the judgment of the secretary, the secretary shall grant a real estate broker or real by the applicant with the department of a certified copy of the applicant's license issued by such other state. estate salesperson license.

1. Every nonresident applicant shall file with his application or §442-h. Rules of the Secretary of State renewal application an irrevocable consent on a form prescribed by
   the Department of State submitting himself to the jurisdiction of the 1. The Secretary of State, and not the State real estate board courts of this State and designating the Secretary of State of the State established under §442-i of this article, shall adopt such rules and of New York as his agent upon whom may be served any summons, regulations as the Secretary of State may determine are necessary for subpoena or other process against him in any action or special the administration and enforcement of this section. proceeding. Such process may issue in any court in this State having 2. (a) If, after a public hearing and a reasonable investigation, the jurisdiction of the subject matter, and the process shall set forth that Secretary of State determines that the owners of residential the action or special proceeding is within the jurisdiction of the court. real property within a defined geographic area are subject

2. Service of such process upon the Secretary of State shall be to intense and repeated solicitations by real estate brokers
   made by personally delivering to and leaving with him or his deputy and salespersons or others to place their property for sale or with any person authorized by the Secretary of State to receive with such real estate brokers or salespersons, or otherwise such service, at the office of the Department of State in the City of to sell their property, and that such solicitations have Albany, duplicate copies of such process together with a fee of $5 if caused owners to reasonably believe that property values the action is solely for the recovery of a sum of money not in excess may decrease because persons of different race, ethnic, of $200 and the process is so endorsed, and a fee of $10 in any other social, or religious backgrounds are moving or are about to action or proceeding, which fee shall be a taxable disbursement. If move into the neighborhood or geographic area, the such process is served upon behalf of a county, city, town or village, Secretary of State may adopt a rule, to be known as a or other political subdivision of the State, the fee to be paid to the nonsolicitation order, directing all real estate brokers, Secretary of State shall be $5, irrespective of the amount involved or salespersons and other persons regularly engaged in the the nature of the action on account of which such service of process trade or business of buying and selling real estate to refrain is made. If the cost of registered mail for transmitting a copy of the from soliciting residential real estate listings or otherwise process shall exceed $2, an additional fee equal to such excess shall soliciting the sale of residential real estate within the be paid at the time of service of such process. Proof of service shall subject area. Each area subject to such an order shall be be by affidavit of compliance with this subdivision filed by or on bounded or otherwise specifically defined in the order. The behalf of the plaintiff together with the process, within 10 days after nonsolicitation order shall be subject to such terms and such service, with the clerk of the court in which the action or special conditions as the Secretary of State may determine are, on proceeding is pending. Service made as provided in this section shall balance, in the best interest of the public, including but not be complete 10 days after such papers are filed with the clerk of the limited to the affected owners and licensees. A court and shall have the same force and validity as if served on him nonsolicitation order may prohibit any or all types of personally within the state and within the territorial jurisdiction of the solicitation directed towards particular home-owners, court from which the process issues. including but not limited to letters, postcards, telephone

3. The Secretary of State shall promptly send one of such copies calls, door-to-door calls and handbills. Every
   by registered mail, return receipt requested, to the nonresident broker nonsolicitation order shall contain a provision setting forth or nonresident salesperson at the post office address of his main the day, month and year that the order shall become office as set forth in the last application filed by him. effective, as well as the day, month and year that the order shall expire. A nonsolicitation order shall not be effective 5. Nothing in this section shall effect the right to serve process in for more than five years. However, a nonsolicitation order any other manner permitted by law. and the boundaries of the area where it applies may be re- 6. Notwithstanding any other provisions of this article, the adopted or amended from time to time in accordance with Department of State shall grant a real estate broker or a real estate the procedures set forth herein. salesman license to an applicant who is a member of the household of (b) No real estate broker shall establish a new principal office a member of the armed forces of the United States, National Guard or or branch office within any geographic area which is the Reserves and was a member of such household before such member subject of a nonsolicitation order without prior approval of the armed forces relocated to the state who submits satisfactory from the Secretary of State. The Secretary of State may evidence of licensure, certification or registration to practice an deny any application for the establishment or relocation of equivalent occupation issued by a state, territory, protectorate or a principal office or branch office if approval of the dependency of the United States, provided that such license, application would cause the total number of principal and certification or certificate of registration was current and effective branch offices within the subject area to exceed the total within one year of the date of the individual's application for number of principal and branch offices that were licensed licensure in New York, was granted in compliance with standards within the area on the date the nonsolicitation order became that are, in the judgment of the secretary, no less rigorous than those effective. required for licensure in New York. If such standards for licensure,

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1. (a) If the Secretary of State determines that some owners of desist zone for additional periods not to exceed five years each. Whenever a rule establishing a cease and desist zone residential real property within a defined geographic area are subject to intense and repeated solicitation by real shall have expired or shall have been repealed, all owner's statements filed with the Secretary of State pursuant to that estate brokers and salespersons to place their property for sale with such real estate brokers or salespersons, or are rule shall also expire. However, an owner may file a new statement with the Secretary of State if a new rule is subject to intense and repeated solicitation by other persons adopted establishing a cease and desist zone containing the regularly engaged in the trade or business of buying and selling real estate to sell their real estate, the Secretary of owner's property. Once the boundaries of a cease and desist zone have been established by rule of the Secretary State may adopt a rule establishing a cease and desist zone, which zone shall be bounded or otherwise specifically of State, the boundaries may not be changed except by repeal of the existing rule and adoption of a new rule defined in the rule. After the Secretary of State has established a cease and desist zone, the owners of establishing the new boundaries. residential real property located within the zone may file an

§442-i. State real estate board owner's statement with the Secretary of State expressing

their wish not to be solicited by real estate brokers, 1. There is hereby established within the Department of State a salespersons or other persons regularly engaged in the trade State real estate board which shall consist of the Secretary of State, or business of buying and selling real estate. The form and Superintendent of Financial Services, and 13 additional members. At content of the statement shall be prescribed by the least five of these members shall be "real estate brokers," each of Secretary of State. After a cease and desist zone has been whom, at the time of appointment, shall be licensed and qualified as a established by the Secretary of State, no real estate broker, real estate broker under the laws of New York State and shall have salesperson or other person regularly engaged in the trade been engaged in the real estate business in this State for a period of or business of buying and selling real estate shall solicit a not less than 10 years prior to appointment. The remaining members listing from any owner who has filed a statement with the shall be "public members" who shall not be real estate licensees. Secretary of State if such owner's name appears on the

1. The 13 members shall be appointed as follows: seven members current cease and desist list prepared by the Secretary of
   shall be appointed by the Governor, three of whom shall be real State. estate brokers and four of whom shall be public members; two (b) The prohibition on solicitation shall apply to direct forms members shall be appointed by the temporary President of the Senate, of solicitation such as the use of the telephone, the mail, one of whom shall be a real estate broker and one of whom shall be a personal contact and other forms of direct solicitation as public member; two members shall be appointed by the Speaker of may be specified by the Secretary of State. Secretary of the Assembly, one of whom shall be a real estate broker and one of State shall compile a cease and desist list for each zone whom shall be a public member; one member shall be appointed by established pursuant to paragraph (a) of this subdivision. In the Minority Leader of the Senate, who shall be either a real estate addition to such other information as the Secretary of State broker or a public member; and one member shall be appointed by may deem appropriate, each cease and desist list shall the Minority Leader of the Assembly, who shall be either a real estate contain the name of each owner who has filed an owner's broker or a public member. statement with the Secretary, as well as the address of the

2. Each appointed member shall serve for a term of two years; at property within the zone to which the owner's statement
   any point during such term the appointed member may be removed applies. The Secretary of State shall send to each owner by the person who appointed such member. In the event that any of who has filed an owner's statement a written said members shall die or resign during the term of office, the acknowledgement of the Secretary of State's receipt successor shall be appointed in the same way and with the same thereof and a pamphlet explaining to the owner his or her qualifications as set forth above. A member may be reappointed for rights in connection therewith and the procedures and time successive terms but no member shall serve more than 10 years in his limits applicable to the filing of complaints for violations. or her lifetime. The Secretary of State shall allow an owner who files, or on behalf of whom is filed, a complaint or other report of a 4. A majority of members currently serving on the board shall be violation of a cease and desist rule 90 days in which to required in order to pass any resolution or to approve any matter perfect a complaint by submitting such other or further before the board. The Secretary of State shall be chairperson of the information or documents as the Secretary of State may board. The vice-chairperson and a secretary shall be elected from require. The Secretary of State shall print a list for each among the members. A board member who fails to attend three zone. Each list shall be revised and reprinted at least consecutive meetings shall forfeit the seat unless the Secretary of annually on or before December 31st and shall be made State, upon written request from the member, finds that the member available to the public and to real estate brokers at a should have been excused from a meeting because of illness or death reasonable price to be set by the Secretary of State and of a family member. approved by the Director of the Division of the Budget. 5. Each member of the board shall receive no compensation other Additions or deletions shall be made to each list only at the than reimbursement for actual and necessary expenses. time the list is reprinted, and the Secretary of State shall

3. The board shall meet no fewer than three times per year and at not issue amendments or addenda to any printed list. the call of the Secretary of State or a majority of the board. In
   (c) No rule establishing a cease and desist zone shall be addition to regularly scheduled meetings of the board, there shall be effective for longer than five years. However, the Secretary at least one public hearing each year in New York City, one public of State may re-adopt the rule to continue the cease and hearing each year in Buffalo, and one public hearing each year in

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real estate for which licensing is required under this article and to Albany. At least 15 days prior to the holding of any of these public hearings pursuant to this subdivision, the board shall give public instruct and require its agents to bring prosecutions for unauthorized and unlawful practice. notice of the hearing in a newspaper of general circulation in each area where the public meeting is to be held. The purpose of these 7. Reports to legislative committees. The board shall submit hearings shall be to solicit from members of the public, suggestions, annually a report to the judiciary committee of the State Assembly comments, and observations about real estate practice in New York and the judiciary committee of the State Senate, containing a State. description of the types of complaints received, status of cases, and the length of time from the initial complaint to any final disposition. §442-j. Effect of invalid provision

§442-l. After-the-fact referral fees Should the courts of this State declare any provision of this article

unconstitutional, or unauthorized, or in conflict with any other 1. No real estate broker or salesperson, in any place in which this section or provision of this article, then such decision shall affect article is applicable, shall demand or receive a referral fee or only the section or provision so declared to be unconstitutional or compensation of any kind for (i) a referral from any person or other unauthorized and shall not affect any other section or part of this entity relative to finding a seller after a bona fide listing agreement article. has been signed, (ii) a referral from any person or other entity relative to finding a buyer after a bona fide offer to purchase is accepted, or §442-k. Powers and duties of the State real (iii) a referral from any person or other entity relative to finding a property after a bona fide buyer's agency agreement has been signed, estate board unless reasonable cause for payment of such compensation exists.

1. The State real estate board shall have the power to promulgate 2. A violation of this section shall be a violation of this article and rules or regulations affecting brokers and salespersons in order to shall constitute a deceptive act or practice within the meaning of administer and effectuate the purposes of this article, except that section three hundred forty-nine of the general business law. matters pertaining to commingling money of a principal, rendering accounts for a client, managing property for a client, broker's purchase of property listed with him or her, inducing breach of

§443. Disclosure regarding real estate agency contract of sale or lease, and records of transactions to be maintained

are reserved for the exclusive regulatory authority of the Secretary of relationship; form State. The Secretary of State, and not the State real estate board, shall

1. Definitions. As used in this section, the following terms shall promulgate rules and regulations to administer or implement the
   have the following meanings: provisions of §§441 and 442-h of this article. In addition, the Secretary of State shall have exclusive regulatory authority to a. "Agent" means a person who is licensed as a real estate promulgate rules regarding the duties and responsibilities of real broker, associate real estate broker or real estate estate brokers and salespersons with regard to the changing of clients' salesperson under section four hundred forty-A of this funds. article and is acting in a fiduciary capacity.

2. Authority to examine applicants. The board is empowered to b. "Buyer" means a transferee in a residential real property
   prescribe the content for the courses of study for the examination and transaction and includes a person who executes an offer to education of persons licensed under this article. The board shall purchase residential real property from a seller through an advise the Secretary of State on policies governing the administration agent, or who has engaged the services of an agent with the of the examinations. object of entering into a residential real property transaction as a transferee. 3. Approval of schools. The board shall establish the rules and regulations governing the approval by the Secretary of State of c. "Buyer's agent" means an agent who contracts to locate schools to offer or conduct courses required either for licensure under residential real property for a buyer or who finds a buyer this article or for the satisfaction of the continuing education for a property and presents an offer to purchase to the seller requirements contained in paragraph (a) of subdivision three of §441 or seller's agent and negotiates on behalf of the buyer. of this article. d. "Listing agent" means a person who has entered into a

3. Study of laws and regulations. The board shall study the listing agreement to act as an agent of the seller or landlord
   operation of laws and regulations with respect to the rights, for compensation. responsibilities and liabilities of real estate licensees arising out of the e. "Listing agreement" means a contract between an owner or transfer of interests in real property and shall make recommendation owners of residential real property and an agent, by which on pending or proposed legislation affecting the same, with the the agent has been authorized to sell or lease the residential exception of legislation affecting §442-h of this article. real property or to find or obtain a buyer or lessee therefor.

4. Enforcement programs and activities. The board shall advise f. "Residential real property" means real property used or
   and assist the Secretary of State in carrying out the provisions and occupied, or intended to be used or occupied, wholly or purposes of this article and make recommendations concerning the partly, as the home or residence of one or more persons programs and activities of the department in connection with the improved by (i) a one-to-four family dwelling or (ii) enforcement of this article. condominium or cooperative apartments but shall not refer

5. Administration and enforcement. The Department of State shall to unimproved real property upon which such dwellings are
   have the power and its duty shall be to administer and enforce the to be constructed. laws and regulations of the State relating to those activities involving

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residential real property which is the subject of a listing g. "Seller" means the transferor in a residential real property transaction, and includes an owner who lists residential real agreement. property for sale with an agent, whether or not a transfer q. "Advance consent to dual agency with designated sales results, or who receives an offer to purchase residential real agents" means written informed consent signed by the property. seller/landlord or buyer/tenant that indicates the name of

1. "Seller's agent" means a listing agent who acts alone, or an the agent appointed to represent the seller/landlord or
   buyer/tenant as a designated sales agent for residential real agent who acts in cooperation with a listing agent, acts as a property which is the subject of a listing agreement. seller's subagent or acts as a broker's agent to find or obtain a buyer for residential real property. 2. This section shall apply only to transactions involving

2. "Dual agent" means an agent who is acting as a buyer's residential real property.
   agent and a seller's agent or a tenant's agent and a 3. a. A listing agent shall provide the disclosure form set forth in landlord's agent in the same transaction. subdivision four of this section to a seller or landlord prior

3. "Designated sales agent" means a licensed real estate to entering into a listing agreement with the seller or
   salesman or associate broker, working under the landlord and shall obtain a signed acknowledgment from supervision of a real estate broker, who has been assigned the seller or landlord, except as provided in paragraph e of to represent a client when a different client is also this subdivision. represented by such real estate broker in the same b. A seller's agent or landlord's agent shall provide the transaction. disclosure form set forth in subdivision four of this section

4. "Broker's agent" means an agent that cooperates or is to a buyer, buyer's agent, tenant or tenant's agent at the
   engaged by a listing agent, buyer's agent or tenant's agent time of the first substantive contact with the buyer or tenant (but does not work for the same firm as the listing agent, and shall obtain a signed acknowledgment from the buyer buyer's agent or tenant's agent) to assist the listing agent, or tenant, except as provided in paragraph e of this buyer's agent or tenant's agent in locating a property to subdivision. sell, buy or lease respectively, for the listing agent's seller c. A buyer's agent or tenant's agent shall provide the or landlord, the buyer agent's buyer or the tenant's agent disclosure form to the buyer or tenant prior to entering into tenant. The broker's agent does not have a direct an agreement to act as the buyer's agent or tenant's agent relationship with the seller, buyer, landlord or tenant and and shall obtain a signed acknowledgment from the buyer the seller, buyer, landlord or tenant can not provide or tenant, except as provided in paragraph e of this instructions or direction directly to the broker's agent. subdivision. A buyer's agent or tenant's agent shall provide Therefore, the seller, buyer, landlord or tenant do not have the form to the seller, seller's agent, landlord or landlord's vicarious liability for the acts of the broker's agent. The agent at the time of the first substantive contact with the listing agent, buyer's agent or tenant's agent do provide seller or landlord and shall obtain a signed direction and instruction to the broker's agent and therefore acknowledgment from the seller, landlord or the listing the listing agent, buyer's agent or tenant's agent will have agent, except as provided in paragraph e of this liability for the broker's agent. subdivision.

5. "Tenant" means a lessee in a residential real property d. The agent shall provide to the buyer, seller, tenant or transaction and includes a person who executes an offer to landlord a copy of the signed acknowledgment and shall lease residential real property from a landlord through an maintain a copy of the signed acknowledgment for not less agent, or who has engaged the services of an agent with the than three years. object of entering into a residential real property

6. If the seller, buyer, landlord or tenant refuses to sign an transaction as a lessee.
   acknowledgment of receipt pursuant to this subdivision, the m. "Landlord" means the lessor in a residential real property agent shall set forth under oath or affirmation a written transaction, and includes an owner who lists residential real declaration of the facts of the refusal and shall maintain a property for lease with an agent, whether or not a lease copy of the declaration for not less than three years. results, or who receives an offer to lease residential real

7. A seller/landlord or buyer/tenant may provide advance property.
   informed consent to dual agency and dual agency with n. "Tenant's agent" means an agent who contracts to locate designated sales agents by indicating the same on the form residential real property for a tenant or who finds a tenant set forth in subdivision four of this section. for a property and presents an offer to lease to the landlord

8. a. For buyer-seller transactions, the following shall be the or landlord's agent and negotiates on behalf of the tenant.
   disclosure form: o. "Landlord's agent" means a listing agent who acts alone, or an agent who acts in cooperation with a listing agent, acts NEW YORK STATE DISCLOSURE as a landlord's subagent or acts as a broker's agent to find FORM or obtain a tenant for residential real property.

9. "Advance consent to dual agency" means written informed FOR BUYER AND SELLER
   consent signed by the seller/landlord or buyer/tenant that THIS IS NOT A CONTRACT the listing agent and/or buyer's agent may act as a dual agent for that seller/landlord and a buyer/tenant for

NYS Department of State Division of Licensing Services Real Estate License Law / Page 15

New York state law requires real estate licensees who are acting or buyer's agent do provide direction and instruction to the broker's as agents of buyers or sellers of property to advise the potential agent and therefore the listing agent or buyer's agent will have buyers or sellers with whom they work of the nature of their agency liability for the acts of the broker's agent. relationship and the rights and obligations it creates. This disclosure DUAL AGENT will help you to make informed choices about your relationship with the real estate broker and its sales agents. A real estate broker may represent both the buyer and the seller if Throughout the transaction you may receive more than one both the buyer and seller give their informed consent in writing. In disclosure form. The law may require each agent assisting in the such a dual agency situation, the agent will not be able to provide the transaction to present you with this disclosure form. A real estate full range of fiduciary duties to the buyer and seller. The obligations agent is a person qualified to advise about real estate. of an agent are also subject to any specific provisions set forth in an If you need legal, tax or other advice, consult with a professional agreement between the agent, and the buyer and seller. An agent in that field. acting as a dual agent must explain carefully to both the buyer and seller that the agent is acting for the other party as well. The agent DISCLOSURE REGARDING should also explain the possible effects of dual representation, REAL ESTATE AGENCY including that by consenting to the dual agency relationship the buyer and seller are giving up their right to undivided loyalty. A buyer or RELATIONSHIPS SELLER'S AGENT seller should carefully consider the possible consequences of a dual agency relationship before agreeing to such representation. A seller A seller's agent is an agent who is engaged by a seller to represent or buyer may provide advance informed consent to dual agency by the seller's interests. The seller's agent does this by securing a buyer indicating the same on this form. for the seller's home at a price and on terms acceptable to the seller. A seller's agent has, without limitation, the following fiduciary duties to the seller: reasonable care, undivided loyalty, confidentiality, full disclosure, obedience and duty to account. A seller's agent does not DUAL AGENT WITH represent the interests of the buyer. The obligations of a seller's agent are also subject to any specific provisions set forth in an agreement DESIGNATED SALES AGENTS between the agent and the seller. In dealings with the buyer, a seller's agent should (a) exercise reasonable skill and care in performance of If the buyer and the seller provide their informed consent in the agent's duties; (b) deal honestly, fairly and in good faith; and (c) writing, the principals and the real estate broker who represents both disclose all facts known to the agent materially affecting the value or parties as a dual agent may designate a sales agent to represent the desirability of property, except as otherwise provided by law. buyer and another sales agent to represent the seller to negotiate the purchase and sale of real estate. A sales agent works under the BUYER'S AGENT supervision of the real estate broker. With the informed consent of the buyer and the seller in writing, the designated sales agent for the A buyer's agent is an agent who is engaged by a buyer to buyer will function as the buyer's agent representing the interests of represent the buyer's interests. The buyer's agent does this by and advocating on behalf of the buyer and the designated sales agent negotiating the purchase of a home at a price and on terms acceptable for the seller will function as the seller's agent representing the to the buyer. A buyer's agent has, without limitation, the following interests of and advocating on behalf of the seller in the negotiations fiduciary duties to the buyer: reasonable care, undivided loyalty, between the buyer and seller. A designated sales agent cannot confidentiality, full disclosure, obedience and duty to account. A provide the full range of fiduciary duties to the buyer or seller. The buyer's agent does not represent the interests of the seller. The designated sales agent must explain that like the dual agent under obligations of a buyer's agent are also subject to any specific whose supervision they function, they cannot provide undivided provisions set forth in an agreement between the agent and the buyer. loyalty. A buyer or seller should carefully consider the possible In dealings with the seller, a buyer's agent should (a) exercise consequences of a dual agency relationship with designated sales reasonable skill and care in performance of the agent's duties; (b) agents before agreeing to such representation. A seller or buyer may deal honestly, fairly and in good faith; and (c) disclose all facts provide advance informed consent to dual agency with designated known to the agent materially affecting the buyer's ability and/or sales agents by indicating the same on this form. willingness to perform a contract to acquire seller's property that are not inconsistent with the agent's fiduciary duties to the buyer. This form was provided to me by print name of licensee) of BROKER'S AGENTS (print name of company, firm or brokerage), a licensed real estate A broker's agent is an agent that cooperates or is engaged by a broker acting in the interest of the: listing agent or a buyer's agent (but does not work for the same firm ( ) Seller as a (check relationship below) as the listing agent or buyer's agent) to assist the listing agent or ( ) Seller's agent buyer's agent in locating a property to sell or buy, respectively, for ( ) Broker's agent the listing agent's seller or the buyer agent's buyer. The broker's agent does not have a direct relationship with the buyer or seller and ( ) Dual agent the buyer or seller can not provide instructions or direction directly to ( ) Buyer as a (check relationship below) the broker's agent. The buyer and the seller therefore do not have ( ) Buyer's agent vicarious liability for the acts of the broker's agent. The listing agent ( ) Broker's agent

Page 16 / Real Estate License Law NYS Department of State Division of Licensing Services

agent's duties; (b) deal honestly, fairly and in good faith; and (c) ( ) Dual agent with designated sales agents disclose all facts known to the agent materially affecting the value or For advance informed consent to either dual agency or dual agency desirability of property, except as otherwise provided by law. with designated sales agents complete section below: ( ) Advance informed consent dual agency. TENANT'S AGENT ( ) Advance informed consent to dual agency with designated sales agents. A tenant's agent is an agent who is engaged by a tenant to If dual agent with designated sales agents is indicated above: represent the tenant's interest. The tenant's agent does this by is appointed to represent the buyer; and; negotiating the rental or lease of an apartment or house at a rent and on terms acceptable to the tenant. A tenant's agent has, without is appointed to represent the seller in this limitation, the following fiduciary duties to the tenant: reasonable transaction. care, undivided loyalty, confidentiality, full disclosure, obedience and (I)(We) acknowledge receipt of a copy of this disclosure form: duty to account. A tenant's agent does not represent the interest of the Signature of { } Buyer(s) and/or { } Seller(s): landlord. The obligations of a tenant's agent are also subject to any specific provisions set forth in an agreement between the agent and the tenant. In dealings with the landlord, a tenant's agent should (a) exercise reasonable skill and care in performance of the agent's duties; (b) deal honestly, fairly and in good faith; and (c) disclose all Date: Date: facts known to the tenant's ability and/or willingness to perform a

1. For landlord-tenant transactions, the following shall be the contract to rent or lease landlord's property that are not inconsistent disclosure form: with the agents fiduciary duties to the buyer.

NEW YORK STATE DISCLOSURE BROKER'S AGENTS FORM

A broker's agent is an agent that cooperates or is engaged by a FOR LANDLORD AND TENANT listing agent or a tenant's agent (but does not work for the same firm THIS IS NOT A CONTRACT as the listing agent or tenant's agent) to assist the listing agent or tenant's agent in locating a property to rent or lease for the listing New York state law requires real estate licensees who are acting agent's landlord or the tenant agent's tenant. The broker's agent does as agents of landlords and tenants of real property to advise the not have a direct relationship with the tenant or landlord and the potential landlords and tenants with whom they work of the nature of tenant or landlord can not provide instructions or direction directly to their agency relationship and the rights and obligations it creates. the broker's agent. The tenant and the landlord therefore do not have This disclosure will help you to make informed choices about your vicarious liability for the acts of the broker's agent. The listing agent relationship with the real estate broker and its sales agents. or tenant's agent do provide direction and instruction to the broker's Throughout the transaction you may receive more than one agent and therefore the listing agent or tenant's agent will have disclosure form. The law may require each agent assisting in the liability for the acts of the broker's agent. transaction to present you with this disclosure form. A real estate DUAL AGENT agent is a person qualified to advise about real estate. If you need legal, tax or other advice, consult with a professional in that field. A real estate broker may represent both the tenant and the landlord if both the tenant and landlord give their informed consent in DISCLOSURE REGARDING writing. In such a dual agency situation, the agent will not be able to provide the full range of fiduciary duties to the landlord and the REAL ESTATE AGENCY tenant. The obligations of an agent are also subject to any specific RELATIONSHIPS LANDLORD'S provisions set forth in an agreement between the agent, and the tenant and landlord. An agent acting as a dual agent must explain carefully AGENT to both the landlord and tenant that the agent is acting for the other party as well. The agent should also explain the possible effects of A landlord's agent is an agent who is engaged by a landlord to dual representation, including that by consenting to the dual agency represent the landlord's interest. The landlord's agent does this by relationship the landlord and tenant are giving up their right to securing a tenant for the landlord's apartment or house at a rent and undivided loyalty. A landlord and tenant should carefully consider on terms acceptable to the landlord. A landlord's agent has, without the possible consequences of a dual agency relationship before limitation, the following fiduciary duties to the landlord: reasonable agreeing to such representation. A landlord or tenant may provide care, undivided loyalty, confidentiality, full disclosure, obedience and advance informed consent to dual agency by indicating the same on duty to account. A landlord's agent does not represent the interests of this form. the tenant. The obligations of a landlord's agent are also subject to any specific provisions set forth in an agreement between the agent DUAL AGENT WITH and the landlord. In dealings with the tenant, a landlord's agent DESIGNATED SALES AGENTS should (a) exercise reasonable skill and care in performance of the

NYS Department of State Division of Licensing Services Real Estate License Law / Page 17

If the tenant and the landlord provide their informed consent in 6. Nothing in this section shall be construed to limit or alter the writing, the principals and the real estate broker who represents both application of the common law of agency with respect to residential parties as a dual agent may designate a sales agent to represent the real estate transactions. tenant and another sales agent to represent the landlord. A sales agent

§443-a. Disclosure obligations works under the supervision of the real estate broker. With the

informed consent in writing of the tenant and the landlord, the 1. Notwithstanding any other provision of law, it is not a material designated sales agent for the tenant will function as the tenant's defect or fact relating to property offered for sale or lease, including agent representing the interests of and advocating on behalf of the residential property regardless of the number of units contained tenant and the designated sales agent for the landlord will function as therein, that: the landlord's agent representing the interests of and advocating on (a) an owner or occupant of the property is, or was at any time behalf of the landlord in the negotiations between the tenant and the suspected to be, infected with human immunodeficiency landlord. A designated sales agent cannot provide the full range of virus or diagnosed with acquired immune deficiency fiduciary duties to the landlord or tenant. The designated sales agent syndrome or any other disease which has been determined must explain that like the dual agent under whose supervision they by medical evidence to be highly unlikely to be transmitted function, they cannot provide undivided loyalty. A landlord or tenant through occupancy of a dwelling place; or should carefully consider the possible consequences of a dual agency relationship with designated sales agents before agreeing to such (b) the property is, or is suspected to have been, the site of a representation. A landlord or tenant may provide advance informed homicide, suicide or other death by accidental or natural consent to dual agency with designated sales agents by indicating the causes, or any crime punishable as a felony. same on this form. 2. (a) No cause of action shall arise against an owner or occupant This form was provided to me by of real property, or the agent of such owner or occupant, or the agent of a seller or buyer of real property, for failure to print name of licensee) of disclose in any real estate transaction a fact or suspicion (print name of company, firm or brokerage), a licensed real estate contained in subdivision one of this section. broker acting in the interest of the: (b) Failure to disclose a fact contained in subdivision one of ( ) Landlord as a (check relationship below) this section to a transferee shall not be grounds for a ( ) Landlord's agent disciplinary action against a real estate agent or broker ( ) Broker's agent licensed pursuant to this article. ( ) Dual agent (c) As used in this section, the terms "agent," "buyer" and "seller" shall have the same meanings as such terms are ( ) Tenant as a (check relationship below) defined in §443 of this article. ( ) Tenant's agent

1. Notwithstanding the fact that this information is not a material ( ) Broker's agent defect or fact, if such information is important to the decision of the ( ) Dual agent with designated sales agents buyer to purchase or lease the property, the buyer may, when For advance informed consent to either dual agency or dual agency negotiating or making a bona fide offer, submit a written inquiry for with designated sales agents complete section below: such information. The buyer or the agent of the buyer shall provide the written request to the seller's agent or to the seller if there is no ( ) Advance informed consent dual agency. seller's agent. The seller may choose whether or not to respond to the ( ) Advance informed consent to dual agency with inquiry. The seller's agent, with the consent of the seller and subject designated to applicable laws regarding privacy, shall report any response and sales agents. information to the buyer's agent or to the buyer if there is no buyer's If dual agent with designated sales agents is indicated above: agent. If there is no seller's agent, the seller shall inform the buyer's is appointed to represent the tenant; and agent, or the buyer if there is no buyer's agent, whether or not the is appointed to represent the landlord seller in seller chooses to provide a response. this transaction. 4. This section shall preempt any local law inconsistent with the (I)(We) acknowledge receipt of a copy of this disclosure form: provisions of this section. Signature of { } Landlord(s) and/or { } Tenant(s): RELATED STATUTES AND LAWS

ARTICLE 8 Date: Date:

CONVEYANCES & MORTGAGES 5. This section shall not apply to a real estate licensee who works

with a buyer or a seller in accordance with terms agreed to by the licensee and buyer or seller and in a capacity other than as an agent, as such term is defined in paragraph a of subdivision one of this section.

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§242. Disclosure prior to the sale of real writing, the requirement is satisfied by a digitized paper

document or an electronic record of such instrument; property (b) where a law, rule or regulation requires, as a condition for

1. (a) Any person, firm, company, partnership or corporation recording, that an instrument affecting real property be
   offering to sell real property to which no utility electric signed, the requirement is satisfied, where the instrument service is provided shall provide written notice to the exists as a digitized paper document, if the digitized image prospective purchaser or to the prospective purchaser's of a wet signature of the person executing such instrument agent, clearly indicating this fact. Such notice shall be appears on such digitized paper document or, where the provided prior to accepting a purchase offer. instrument exists as an electronic record, if the instrument (b) Any prospective or actual purchaser who has suffered a is signed by use of an electronic signature; loss due to a violation of this section is entitled to recover (c) where a law, rule or regulation requires, as a condition of any actual damages incurred from the person offering to recording, that an instrument affecting real property or a sell said real property. signature associated with such an instrument be notarized, (c) The provisions of this subdivision shall not apply in acknowledged, verified, witnessed or made under oath, the instances where the real property being sold lies within the signature requirement is satisfied if: applicable free footage allowance or service lateral (i) the digitized image of a wet signature of the person specified by the Public Service Commission in rule, authorized to perform that act and any stamp, impression or regulation or public utility tariff. seal required by law to be included, appears on a digitized

2. Disclosure prior to the sale of real property to which utility paper document of such instrument; or
   surcharge payments attach. (ii) the electronic signature of the person authorized to (a) Any person, firm, company, partnership or corporation perform that act, and all other information required to be offering to sell real property against which an electric or included, is attached to or logically associated with an gas utility surcharge is assessed for the purpose of electronic record of such instrument, provided, however defraying the costs associated with an electric or gas line that no physical or electronic image of a stamp, impression extension, or for the purpose of defraying the costs or seal shall be required to accompany such electronic associated with related facilities, shall provide written signature. notice to the prospective purchaser or the prospective (d) where a law, rule or regulation requires, as a condition of purchaser's agent, stating as follows: "This property is recording an instrument affecting real property, that any subject to an electric and/or gas utility surcharge". In accompanying document be filed therewith, the addition, such notice shall also state, the type and purpose requirement is satisfied if, in the case of recording by of the surcharge, the amount of the surcharge and whether electronic means, a digitized paper document or electronic such surcharge is payable on a monthly, yearly or other record of any such accompanying document is presented to basis. Such notice shall be provided by the seller prior to the recording officer at the same time as such instrument is accepting a purchase offer. recorded by electronic means; provided that each such (b) Any prospective or actual purchaser who has suffered a document or record shall be presented to the recording loss due to a violation of this subdivision is entitled to officer as a separate digitized paper document or electronic recover any actual damages incurred from the person record unto itself. offering to sell or selling said real property. 2. A digitized paper document or documents shall be created

3. Any person, firm, company, partnership or corporation offering using a software application or other electronic process which stores
   to sell real property on which uncapped natural gas wells are situated, an image of the original paper document or documents, and which and of which such person, firm, company, partnership or corporation does not permit additions, deletions or other changes to the digitized has actual knowledge, shall inform any purchaser of the existence of image, or if additions, deletions or changes are permitted, a media these wells prior to entering into a contract for the sale/purchase of trail exists which creates an electronic record which makes it possible such property. to identify these changes.

4. Nothing in this section or any other provision of law shall be
   construed to require the recording by electronic means of instruments affecting real property. The decision by each county clerk to ARTICLE 9 participate in electronic recording is discretionary. Once a county clerk permits electronic recording, the county will accept such RECORDING INSTRUMENTS electronic recordings. AFFECTING REAL PROPERTY 4. Where any recording officer permits instruments affecting real property and any accompanying documents to be presented for recording or filing as digitized paper documents or electronic records §291-i. Validity of electronic recording. pursuant to this section, such recording by electronic means shall be

5. Notwithstanding any law to the contrary, in accordance with the rules and regulations established by the
   electronic facilitator pursuant to subdivision five of this section. (a) where a law, rule or regulation requires, as a condition for recording, that an instrument affecting real property be an 5. In order to ensure consistency in the standards and practices of, original, be on paper or another tangible medium or be in and the technology used by recording officers in the state, the

NYS Department of State Division of Licensing Services Real Estate License Law / Page 19

ARTICLE 14 electronic facilitator, as described in section three hundred three of

the state technology law, shall, consistent with the provisions of PROPERTY CONDITION article three of the state technology law, promulgate rules and DISCLOSURE IN THE SALE regulations, and amendments thereto, as appropriate governing the use and acceptance of digitized paper documents, electronic records OF RESIDENTIAL REAL PROPERTY and electronic signatures under this article. Such authority shall address and be limited to standards requiring adequate information security protection to ensure that electronic records of instruments §460. Short title affecting real property documents are accurate, authentic, adequately This article shall be known and may be cited as the "Property preserved for long-term electronic storage and resistant to tampering. Condition Disclosure Act". When promulgating rules and regulations, the electronic facilitator may take into consideration: §461. Definitions (a) the most recent standards promulgated by national standard-setting bodies such as, without limitation, the As used in this article, the following terms shall have the following property records industry association; meanings: (b) the views of interested persons and governmental officials 1. "Agent" means a person who is licensed as a real estate broker and entities, including but not limited to recording officers or a real estate salesperson pursuant to section 440-a of this chapter and representatives of the state title, legal and banking and is acting in a fiduciary capacity. industries; and 2. "Binding contract of sale" means a real estate purchase contract (c) the needs of counties of varying size, population, and or offer that would, upon signing by the seller and subject to resources. satisfaction of any contingencies, require the buyer to accept a transfer of title. 6. Nothing contained in this section shall be construed to authorize a recording officer to furnish digitized paper documents of 3. "Knowledge" means only actual knowledge of a defect or the reports required by section five hundred seventy-four of the real condition on the part of the seller of residential real property. property tax law. Such reports shall be furnished as paper documents 4. "Real estate purchase contract" means any of the following: with the requisite notations thereon, except where the state board of (a) a contract which provides for the purchase and sale or real property services has agreed to accept data submissions in lieu exchange of residential real property; thereof or has provided for the electronic transmission of such data (b) a lease with an option to purchase residential real property; pursuant to law. (c) a lease-with-obligation-to-purchase agreement for

§333-c. Lands in agricultural districts; residential real property; or

disclosure (d) an installment land sale contract for residential real

property. 1. When any purchase and sales contract is presented for the sale,

1. "Residential real property" means real property improved by a purchase, or exchange of real property located partially or wholly
   one to four family dwelling used or occupied, or intended to be used within an agricultural district established pursuant to the provisions or occupied, wholly or partly, as the home or residence of one or of article 25-AA of the Agriculture and Markets Law, the prospective more persons, but shall not refer to (a) unimproved real property grantor shall deliver to the prospective grantee a notice which states upon which such dwellings are to be constructed, or (b) the following: condominium units or cooperative apartments, or (c) property in a "It is the policy of this State and this community to conserve, protect homeowners' association that is not owned in fee simple by the and encourage the development and improvement of agricultural land seller. for the production of food, and other products, and also for its natural

2. "Transfer of title" means delivery of a properly executed and ecological value. This notice is to inform prospective residents
   instrument conveying title to residential real property and shall that the property they are about to acquire lies partially or wholly include delivery of a real estate purchase contract that is a lease or within an agricultural district, and that farming activities occur within installment land sale contract. the district. Such farming activities may include, but not be limited to, activities that cause noise, dust and odors." §462. Property condition disclosure statement 2. Such disclosure notice shall be signed by the prospective grantor and grantee prior to the sale, purchase or exchange of such 1. Except as is provided in section 463 of this article, every seller real property. of residential real property pursuant to a real estate purchase contract shall complete and sign a property condition disclosure statement as 3. Failure of the seller to provide such information to the buyer prescribed by subdivision two of this section and cause it, or a copy shall not prevent the recording officer from filing such deed. thereof, to be delivered to a buyer or buyer's agent prior to the signing by the buyer of a binding contract of sale. A copy of the property condition disclosure statement containing the signatures of

both seller and buyer shall be attached to the real estate purchase

contract. Nothing contained in this article or this disclosure statement is intended to prevent the parties to a contract of sale from entering into agreements of any kind or nature with respect to the physical

Page 20 / Real Estate License Law NYS Department of State Division of Licensing Services

1. Does anybody else claim to own any part of your property? condition of the property to be sold, including, but not limited to,
   agreements for the sale of real property "as is". Yes No Unkn NA (If Yes, explain below)

2. Has anyone denied you access to the property or made a 2. The following shall be the disclosure form: PROPERTY CONDITION formal legal claim challenging your title to the property? Yes
   No Unkn NA (If Yes, explain below) DISCLOSURE STATEMENT

3. Are there any features of the property shared in common with
   adjoining landowners or a homeowners association, such as Name of Seller or Sellers: walls, fences or driveways? Yes No Unkn NA (If Yes, describe below) Property Address:

4. Are there any electric or gas utility surcharges for line The Property Condition Disclosure Act requires the seller of
   extensions, special assessments or homeowner or other residential real property to cause this disclosure statement or a copy association fees that apply to the property? Yes No Unkn NA thereof to be delivered to a buyer or buyer's agent prior to the signing (If Yes, explain below) by the buyer of a binding contract of sale.

5. Are there certificates of occupancy related to the property? Purpose of Statement: This is a statement of certain conditions
   Yes No Unkn NA (If No, explain below) and information concerning the property known to the seller. This Disclosure Statement is not a warranty of any kind by the seller or by ENVIRONMENTAL any agent representing the seller in this transaction. It is not a Note to Seller - In this section, you will be asked questions substitute for any inspections or tests and the buyer is encouraged to regarding petroleum products and hazardous or toxic substances that obtain his or her own independent professional inspections and you know to have been spilled, leaked or otherwise been released on environmental tests and also is encouraged to check public records the property or from the property onto any other property. Petroleum pertaining to the property. products may include, but are not limited to, gasoline, diesel fuel, A knowingly false or incomplete statement by the seller on this home heating fuel, and lubricants. Hazardous or toxic substances are form may subject the seller to claims by the buyer prior to or after the products or other material that could pose short or long-term danger transfer of title. to personal health or the environment if they are not properly disposed of, applied or stored. These include, but are not limited to, "Residential real property" means real property improved by a fertilizers, pesticides and insecticides, paint including paint thinner, one to four family dwelling used or occupied, or intended to be used varnish remover and wood preservatives, treated wood, construction or occupied, wholly or partly, as the home or residence of one or materials such as asphalt and roofing materials, antifreeze and other more persons, but shall not refer to (a) unimproved real property automotive products, batteries, cleaning solvents including septic upon which such dwellings are to be constructed or (b) condominium tank cleaners, household cleaners, pool chemicals, products units or cooperative apartments or (c) property on a homeowners' containing mercury and lead and indoor mold. association that is not owned in fee simple by the seller. Note to Buyer - If contamination of this property from petroleum Instructions to the Seller: products and/or hazardous or toxic substances is a concern to you, a. Answer all questions based upon your actual knowledge. you are urged to consider soil and groundwater testing of this

6. Attach additional pages with your signature if additional space property.
   is required.

7. Is any or all of the property located in a Federal Emergency

8. Complete this form yourself. Management Agency (FEMA) designated floodplain? Yes No

9. If some items do not apply to your property, check "NA" (Non- Unkn NA (If Yes, explain below)
   applicable). If you do not know the answer check "Unkn" 11. Is any or all of the property located wholly or partially in the (Unknown). Special Flood Hazard Area ("SFHA"; "100-year floodplain") Seller's Statement: The seller makes the following representations according to the Federal Emergency Management Agency's to the buyer based upon the seller's actual knowledge at the time of (FEMA's) current flood insurance rate maps for your area? signing this document. The seller authorizes his or her agent, if any, Yes No Unkn NA (If Yes, explain below) to provide a copy of this statement to a prospective buyer of the 12. Is any or all of the property located wholly or partially in a residential real property. The following are representations made by Moderate Risk Flood Hazard Area ("500-year floodplain") the seller and are not the representations of the seller's agent. according to FEMA's current flood insurance rate maps for GENERAL INFORMATION your area? Yes No Unkn NA (If Yes, explain below)

10. How long have you owned the property? 13. Is the property subject to any requirement under federal law to
    obtain and maintain flood insurance on the property? Yes No 2. How long have you occupied the property? Unkn NA (If Yes, explain below) 3. What is the age of the structure or structures? Note to buyer - Homes in the Special Flood Hazard Area, also known as High If the structure was built before 1978 you are encouraged to Risk Flood Zones, on FEMA's flood insurance rate maps with investigate for the presence of lead based paint. mortgages from federally regulated or insured lenders are 4. Does anybody other than yourself have a lease, easement or required to obtain and maintain flood insurance. Even when any other right to use or occupy any part of your property not required, FEMA encourages homeowners in high risk, other than those stated in documents available in the public moderate risk, and low risk flood zones to purchase flood record, such as rights to use a road or path or cut trees or insurance that covers the structure(s) and the personal property crops? Yes No Unkn NA

NYS Department of State Division of Licensing Services Real Estate License Law / Page 21

toxic substance spilled, leaked or otherwise been released on within the structure(s). Also note that homes in coastal areas the property or from the property onto any other property? Yes may be subject to increased risk of flooding over time due to No Unkn NA (If Yes, describe below) projected sea level rise and increased extreme storms caused by climate change which may not be reflected in current flood 26. Has the property been tested for the presence of motor fuel, insurance rate maps. motor oil, home heating fuel, lubricating oil, or any other petroleum product, methane gas, or any hazardous or toxic 14. Have you ever received assistance, or are you aware of any substance? Yes No Unkn NA (If Yes, attach report(s)) previous owners receiving assistance, from the Federal Emergency Management Agency (FEMA), the U.S. Small 27. Has the property been tested for indoor mold? Business Administration (SBA), or any other federal disaster Yes No Unkn (If Yes, attach a copy of the report) flood assistance for flood damage to the property? Yes No STRUCTURAL Unkn NA (If Yes, explain below)

1. Is there any rot or water damage to the structure or structures? For properties that have received federal disaster assistance, Yes No Unkn NA (If Yes, explain below) the requirement to obtain flood insurance passes down to all

2. Is there any fire or smoke damage to the structure or future owners. Failure to obtain and maintain flood insurance
   structures? Yes No Unkn NA (If Yes, explain below) can result in an individual being ineligible for future assistance. 30. Is there any termite, insect, rodent or pest infestation or damage? Yes No Unkn NA (If Yes, explain below) 15. Is there flood insurance on the property? Yes No Unkn NA (If

3. Has the property been tested for termite, insect, rodent or pest Yes, attach a copy of the policy)
   infestation or damage? Yes No Unkn NA (If Yes, please attach A standard homeowner's insurance policy typically does not report(s)) cover flood damage. You are encouraged to examine your policy to determine whether you are covered. 32. What is the type of roof/roof covering (slate, asphalt, other)? Any known material defects? How old is the roof? Is there a 16. Is there a FEMA elevation certificate available for the transferable warranty on the roof in effect now? Yes No Unkn property? Yes No Unkn NA (If Yes, attach a copy of the NA (If Yes, explain below) certificate)

4. Are there any known material defects in any of the following An elevation certificate is a FEMA form, completed by a
   structural systems: footings, beams, girders, lintels, columns or licensed surveyor or engineer. The form provides critical partitions? Yes No Unkn NA (If Yes, explain below) information about the flood risk of the property and is used by flood insurance providers under the National Flood Insurance MECHANICAL SYSTEMS AND SERVICES Program (NFIP) to help determine the appropriate flood 34. What is the water source? (Circle all that apply - well, private, insurance rating for the property. A buyer may be able to use municipal, other)? If municipal, is it metered? Yes No Unkn the elevation certificate from a previous owner for their flood NA insurance policy. 35. Has the water quality and/or flow rate been tested? Yes No

5. Have you ever filed a claim for flood damage to the property Unkn NA (If Yes, describe below)
   with any insurance provider, including the National Flood 36. What is the type of sewage system? (Circle all that apply - Insurance Program (NFIP)? Yes No Unkn NA (If Yes, explain public sewer, private sewer, septic or cesspool)? If septic or below) cesspool, age? ________ Date last pumped? __________

6. Is any or all of the property located in a designated wetland? Frequency of pumping? _____________ Any known material
   Yes No Unkn NA (If Yes, explain below) defects? Yes No Unkn NA (If Yes, explain below)

7. Is the property located in an agricultural district? Yes No Unkn More information on "septic system operation and
   NA (If Yes, explain below) maintenance" can be found on the NYS Department of Health

8. Was the property ever the site of a landfill? Yes No Unkn NA website in the informational health pamphlet made available
   (If Yes, explain below) by the Department of Health pursuant to section 396-s of NYS general business law. 21. Are there or have there ever been fuel storage tanks above or below the ground on the property? Yes No Unkn NA 37. Who is your electric service provider? _________ What is the amperage? __________ Does it have circuit breakers or fuses? • If Yes, are they currently in use? Yes No Unkn NA _________ Private or public poles? __________ Any known • Location(s) material defects? Yes No Unkn NA (If Yes, explain below)

• Are they leaking or have they ever leaked? Yes No Unkn 38. Are there any flooding, drainage or grading problems that NA (If Yes, explain below) resulted in standing water on any portion of the property? Yes

1. Is there asbestos in the structure? Yes No Unkn NA (If Yes, No Unkn NA (If Yes, state locations and explain below)
   state location or locations below) 39. Has the structure(s) experienced any water penetration or

2. Is lead plumbing present? Yes No Unkn NA (If Yes, state damage due to seepage or a natural flood event, such as from
   location or locations below) heavy rainfall, coastal storm surge, tidal inundation or river overflow? Yes No Unkn NA (If Yes, explain below) 24. Has a radon test been done? Yes No Unkn NA (If Yes, attach a copy of the report) Are there any known material defects in any of the following (If Yes, explain below. Use additional sheets if necessary): 25. Has motor fuel, motor oil, home heating fuel, lubricating oil or any other petroleum product, methane gas, or any hazardous or 40. Plumbing system? Yes No Unkn NA

Page 22 / Real Estate License Law NYS Department of State Division of Licensing Services

1. Nothing in this article shall require a seller to undertake or 41. Security system? Yes No Unkn NA
   provide for any investigation or inspection of his or her residential 42. Carbon monoxide detector? Yes No Unkn NA real property or to check any public records. 43. Smoke detector? Yes No Unkn NA

2. Fire sprinkler system? Yes No Unkn NA §463. Exemptions

3. Sump pump? Yes No Unkn NA A property condition disclosure statement shall not be required in

4. Foundation/slab? Yes No Unkn NA connection with any of the following transfers of residential real

5. Interior walls/ceilings? Yes No Unkn NA property:

6. Exterior walls or siding? Yes No Unkn NA 1. A transfer pursuant to a court order, including, but not limited
   to, a transfer order by a probate court during the administration of a 49. Floors? Yes No Unkn NA decedent's estate, a transfer pursuant to a writ of execution, a transfer 50. Chimney/fireplace or stove? Yes No Unkn NA by a trustee in bankruptcy or debtor-in-possession, a transfer as a

7. Patio/deck? Yes No Unkn NA result of the exercise of the power of eminent domain, and a transfer

8. Driveway? Yes No Unkn NA that results from a decree for specific performance of a contract or
   other agreement between two or more persons; 53. Air conditioner? Yes No Unkn NA

9. A transfer to mortgagee or an affiliate or agent thereof by a 54. Heating system? Yes No Unkn NA
   mortgagor by deed in lieu of foreclosure or in satisfaction of the 55. Hot water heater? Yes No Unkn NA mortgage debt;

10. The property is located in the following school district Unkn 3. A transfer to a beneficiary of a deed of trust;
    Note: Buyer is encouraged to check public records concerning the 4. A transfer pursuant to a foreclosure sale that follows a default property (e.g. tax records and wetland and FEMA's current flood in the satisfaction of an obligation that is secured by a mortgage; insurance rate maps and elevation certificates).

11. A transfer by a sale under a power of sale that follows a default The seller should use this area to further explain any item above. in the satisfaction of an obligation that is secured by a mortgage; If necessary, attach additional pages and indicate here the number of

12. A transfer by a mortgagee, or a beneficiary under a mortgage, additional pages attached.
    or an affiliate or agent thereof, who has acquired the residential real property at a sale under a mortgage or who has acquired the residential real property by a deed in lieu of foreclosure;

13. A transfer by a fiduciary in the course of the administration of a
    descendent's estate, a guardianship, a conservatorship, or a trust;

14. A transfer from one co-owner to one or more other co-owners;
    Seller's Certification: Seller certifies that the information in this 9. A transfer made to the transferor's spouse or to one or more Property Condition Disclosure Statement is true and complete to the persons in the lineal consanguinity of one or more of the transferors; seller's actual knowledge as of the date signed by the seller. If a seller

15. A transfer between spouses or former spouses as a result of a of residential real property acquires knowledge which renders
    decree of divorce, dissolution of marriage, annulment, or legal materially inaccurate a Property Condition Disclosure Statement separation or as a result of property settlement, agreement incidental provided previously, the seller shall deliver a revised Property to a decree of divorce, dissolution of marriage, annulment or legal Condition Disclosure Statement to the buyer as soon as practicable. separation; In no event, however, shall a seller be required to provide a revised Property Condition Disclosure Statement after the transfer of title 11. A transfer to or from the state, a political subdivision of the from the seller to the buyer or occupancy by the buyer, whichever is state, or another governmental entity; earlier. 12. A transfer that involves newly constructed residential real Seller's Signature ___________________ Date property that previously had not been inhabited; _________________ 13. A transfer by a sheriff; or Seller's Signature ___________________ Date 14. A transfer pursuant to a partition action. _________________

§464. Revision Buyer's Acknowledgment: Buyer acknowledges receipt of a copy of

this statement and buyer understands that this information is a If a seller of residential real property acquires knowledge which statement of certain conditions and information concerning the renders materially inaccurate a property condition disclosure property known to the seller. It is not a warranty of any kind by the statement provided previously, the seller shall deliver a revised seller or seller's agent and is not a substitute for any home, pest, property condition disclosure statement to the buyer as soon as radon or other inspections or testing of the property or inspection of practicable. In no event, however, shall a seller be required to provide the public records. a revised property condition disclosure statement after the transfer of Buyer's Signature ____________________ Date title from the seller to the buyer or occupancy by the buyer, _________________ whichever is earlier. Buyer's Signature ____________________ Date _________________

NYS Department of State Division of Licensing Services Real Estate License Law / Page 23

§465. Liability accommodations for not more than two families living independently

of each other, if the owner resides in one of such housing 1. Nothing contained in this article shall be construed as limiting accommodations, (2) to the restriction of the rental of all rooms in a any existing legal cause of action or remedy at law, in statute or in housing accommodation to individuals of the same sex or (3) to the equity. rental of a room or rooms in a housing accommodation, if such rental

1. Any seller who provides a property condition disclosure is by the occupant of the housing accommodation or by the owner of statement or provides or fails to provide a revised property condition the housing accommodation and the owner resides in such housing disclosure statement shall be liable only for a willful failure to accommodation or (4) solely with respect to age and familial status to perform the requirements of this article. For such a willful failure, the the restriction of the sale, rental or lease of housing accommodations seller shall be liable for the actual damages suffered by the buyer in exclusively to persons sixty-two years of age or older and the spouse addition to any other existing equitable or statutory remedy. of any such person, or for housing intended and operated for occupancy by at least one person fifty-five years of age or older per

§466. Duty of an Agent unit. In determining whether housing is intended and operated for

occupancy by persons fifty-five years of age or older, Sec. 807(b) (2) An agent representing a seller of residential real property as a listing (c) (42 U.S.C. 3607 (b) (2) (c)) of the federal Fair Housing Act of broker shall have the duty to timely inform each seller represented by 1988, as amended, shall apply. that agent of the seller's obligations under this article. An agent (b) It shall be an unlawful discriminatory practice for the owner, representing a buyer of residential real property, or, if the buyer is not lessee, sub-lessee, or managing agent of, or other person having the represented by an agent, the agent representing a seller of residential right of ownership or possession of or the right to sell, rent or lease, real property and dealing with a prospective buyer, shall have the land or commercial space: duty to timely (in any event, before the buyer signs a binding contract of sale) inform such buyer of the buyer's rights and obligations under (1) To refuse to sell, rent, lease or otherwise deny to or withhold this article. If an agent performs the duties and obligations imposed from any person or group of persons land or commercial space upon him or her pursuant to this section, the agent shall have no because of the race, creed, color, national origin, sexual orientation, further duties under this article and shall not be liable to any party for military status, sex, age, disability, marital status, or familial status of a violation of this article. such person or persons, or to represent that any housing accommodation or land is not available for inspection, sale, rental or Article 15 lease when in fact it is so available;

Human Rights Law (2) To discriminate against any person because of race, creed, color,

national origin, sexual orientation, military status, sex, age, disability, §296 Unlawful discriminatory practices marital status, or familial status in the terms, conditions or privileges of the sale, rental or lease of any such land or commercial space; or in 5. (a) It shall be an unlawful discriminatory practice for the owner, the furnishing of facilities or services in connection therewith; lessee, sub-lessee, assignee, or managing agent of, or other person (3) To print or circulate or cause to be printed or circulated any having the right to sell, rent or lease a housing accommodation, statement, advertisement or publication, or to use any form of constructed or to be constructed, or any agent or employee thereof: application for the purchase, rental or lease of such land or (1) To refuse to sell, rent, lease or otherwise to deny to or withhold commercial space or to make any record or inquiry in connection from any person or group of persons such a housing accommodation with the prospective purchase, rental or lease of such land or because of the race, creed, color, national origin, sexual orientation, commercial space which expresses, directly or indirectly, any military status, sex, age, disability, marital status, or familial status of limitation, specification or discrimination as to race, creed, color, such person or persons, or to represent that any housing national origin, sexual orientation, military status, sex, age, disability, accommodation or land is not available for inspection, sale, rental or marital status, or familial status; or any intent to make any such lease when in fact it is so available. limitation, specification or discrimination. (2) To discriminate against any person because of race, creed, color, (4) With respect to age and familial status, the provisions of this national origin, sexual orientation, military status, sex, age, disability, paragraph shall not apply to the restriction of the sale, rental or lease marital status, or familial status in the terms, conditions or privileges of land or commercial space exclusively to persons fifty-five years of of the sale, rental or lease of any such housing accommodation or in age or older and the spouse of any such person, or to the restriction of the furnishing of facilities or services in connection therewith. the sale, rental or lease of land to be used for the construction, or (3) To print or circulate or cause to be printed or circulated any location of housing accommodations exclusively for persons sixty- statement, advertisement or publication, or to use any form of two years of age or older, or intended and operated for occupancy by application for the purchase, rental or lease of such housing at least one person fifty-five years of age or older per unit. In accommodation or to make any record or inquiry in connection with determining whether housing is intended and operated for occupancy the prospective purchase, rental or lease of such a housing by persons fifty-five years of age or older, Sec. 807(b) (2) (c) (42 accommodation which expresses, directly or indirectly, any U.S.C. 3607(b) (2) (c)) of the federal Fair Housing Act of 1988, as limitation, specification or discrimination as to race, creed, color, amended, shall apply. national origin, sexual orientation, military status, sex, age, disability, (c) It shall be an unlawful discriminatory practice for any real estate marital status, or familial status, or any intent to make any such broker, real estate salesperson or employee or agent thereof: limitation, specification or discrimination. (1) To refuse to sell, rent or lease any housing accommodation, land The provisions of this paragraph (a) shall not apply (1) to the rental or commercial space to any person or group of persons or to refuse to of a housing accommodation in a building which contains housing negotiate for the sale, rental or lease, of any housing accommodation,

Page 24 / Real Estate License Law NYS Department of State Division of Licensing Services

(f) The provisions of this subdivision, as they relate to age, shall not land or commercial space to any person or group of persons because of the race, creed, color, national origin, sexual orientation, military apply to persons under the age of eighteen years. status, sex, age, disability, marital status, or familial status of such (g) It shall be an unlawful discriminatory practice for any person person or persons, or to represent that any housing accommodation, offering or providing housing accommodations, land or commercial land or commercial space is not available for inspection, sale, rental space as described in paragraphs (a), (b), and (c) of this subdivision or lease when in fact it is so available, or otherwise to deny or to make or cause to be made any written or oral inquiry or record withhold any housing accommodation, land or commercial space or concerning membership of any person in the state organized militia in any facilities of any housing accommodation, land or commercial relation to the purchase, rental or lease of such housing space from any person or group of persons because of the race, creed, accommodation, land, or commercial space, provided, however, that color, national origin, sexual orientation, military status, sex, age, nothing in this subdivision shall prohibit a member of the state disability, marital status, or familial status of such person or persons. organized militia from voluntarily disclosing such membership. (2) To print or circulate or cause to be printed or circulated any UNITED STATES CODE statement, advertisement or publication, or to use any form of application for the purchase, rental or lease of any housing accommodation, land or commercial space or to make any record or 42 USCA §3604. It shall be unlawful . . . inquiry in connection with the prospective purchase, rental or lease of any housing accommodation, land or commercial space which To make, print, or publish, or cause to be made, printed, or published expresses, directly or indirectly, any limitation, specification, or any notice, statement or advertisement, with respect to the sale or discrimination as to race, creed, color, national origin, sexual rental of a dwelling that indicates any preference, limitation, or orientation, military status, sex, age, disability, marital status, or discrimination based on race, color, religion, sex, handicap, familial familial status; or any intent to make any such limitation, status, or national origin, or an intention to make any such preference, specification or discrimination. limitation, or discrimination. (3) With respect to age and familial status, the provisions of this paragraph shall not apply to the restriction of the sale, rental or lease of any land or commercial space exclusively to persons fifty-five RULES AND REGULATIONS years of age or older and the spouse of any such person, or to the TITLE 19 NYCRR restriction of the sale, rental or lease of any housing accommodation or land to be used for the construction or location of housing

SUBCHAPTER D accommodations for persons sixty-two years of age or older, or

intended and operated for occupancy by at least one person fifty-five Real Estate Brokers and Salespersons years of age or older per unit. In determining whether housing is Part intended and operated for occupancy by persons fifty-five years of 175 Regulations Affecting Brokers and Salespersons age or older, Sec. 807 (b) (2) (c) (42 U.S.C. 3607 (b) (2) (c)) of the 176 Approval of Real Estate Courses federal Fair Housing Act of 1988, as amended, shall apply. 177 Continuing Education 178 Nonsolicitation Orders (d) It shall be an unlawful discriminatory practice for any real estate 179 Determination of Real Estate Experience board, because of the race, creed, color, national origin, sexual orientation, military status, age, sex, disability, marital status, or familial status of any individual who is otherwise qualified for PART 175 membership, to exclude or expel such individual from membership, REGULATIONS AFFECTING or to discriminate against such individual in the terms, conditions and privileges of membership in such board. BROKERS AND SALESPERSONS (e) It shall be an unlawful discriminatory practice for the owner, proprietor or managing agent of, or other person having the right to Section 175.1 Commingling money of principal provide care and services in, a private proprietary nursing home, 175.2 Rendering account for client convalescent home, or home for adults, or an intermediate care 175.3 Managing property for client facility, as defined in section two of the social services law, 175.4 Broker's purchase of property listed with him heretofore constructed, or to be constructed, or any agent or 175.5 Disclosure of interest to client employee thereof, to refuse to provide services and care in such home 175.6 Broker's sale of property in which he owns an interest or facility to any individual or to discriminate against any individual 175.7 Compensation in the terms, conditions, and privileges of such services and care 175.8 Negotiating with party to exclusive listing contract solely because such individual is a blind person. For purposes of this 175.9 Inducing breach of contract of sale or lease 175 10 Broker's offering property for sale must be authorized paragraph, a "blind person" shall mean a person who is registered as 175.11 Sign on property a blind person with the commission for the visually handicapped and 175.12 Delivering duplicate original of instrument who meets the definition of a "blind person" pursuant to section three 175.13 Accepting services of another broker's salesperson or of chapter four hundred fifteen of the laws of nineteen hundred employee thirteen1 entitled "An act to establish a state commission for 175.14 Termination of salesperson's association with broker improving the condition of the blind of the state of New York, and 175.15 Automatic continuation of exclusive listing contract making an appropriation therefor". 175.16 [Reserved] 175.17 Prohibitions in relation to solicitation and unlawful discriminatory practice

NYS Department of State Division of Licensing Services Real Estate License Law / Page 25

§175.6 Broker's sale of property in which he 175.18 Use of trade or corporate name

175.19 Net listing agreements owns an interest 175.20 Branch offices 175.21 Supervision of salesperson by broker Before a real estate broker sells property in which he owns an 175.22 Ownership of voting stock by salespersons prohibited interest, he shall make such interest known to the purchaser. 175.23 Records of transactions to be maintained 175.24 Exclusive listings--residential property §175.7 Compensation 175.25 Advertising 175.26 Posting of business signs A real estate broker shall make it clear for which party he is acting 175.27 Disclaimer and he shall not receive compensation from more than one party except with the full knowledge and consent of the broker's client. §175.1 Commingling money of principal A real estate broker shall not commingle the money or other property §175.8 Negotiating with party to exclusive listing of his principal with his own and shall at all times maintain a contract separate, special bank account to be used exclusively for the deposit of said No real estate broker shall negotiate the sale, exchange or lease of monies and which deposit shall be made within three business days any property directly with an owner or lessor if he knows that such until such time as the money is deposited into a separate, special bank owner, or lessor, has an existing written contract granting exclusive account, it shall be safeguarded in a secure location so as to prevent authority in connection with such property with another broker. loss or misappropriation. Said monies shall not be placed in any §175.9 Inducing breach of contract of sale or depository, fund or investment other than a federally insured bank

lease account. Accrued interest, if any, shall not be retained by, or for the

benefit of, the broker except to the extent that it is applied to, and No real estate broker shall induce any party to contract of sale or deducted from, earned commission, with the consent of all parties. lease to break such contract for the purpose of substituting in lieu thereof a §175.2 Rendering account for client new contract with another principal. A real estate broker shall, within a reasonable time, render an account to this client and remit to him, any monies collected for his client, §175.10 Broker's offering property for sale must and unexpended for his account. be authorized

§175.3 Managing property for client A real estate broker shall never offer a property for sale or lease

without the authorization of the owner. (a) When acting as an agent in the management of property a real estate broker shall not accept any commission, rebate or profit on §175.11 Sign on property expenditures made for his client without his full knowledge and No sign shall ever be placed on any property by a real estate broker consent. without the consent of the owner. (b) A person, firm or corporation licensed or acting as a real estate broker, and having on deposit or otherwise in custody or control any §175.12 Delivering copy of instrument money furnished as security by a tenant of real property, shall treat, A real estate broker shall immediately deliver a copy of any handle and dispose of such money (including any required interest instrument to any party or parties executing the same, where such thereon) in compliance with the requirements of §7-103 of the instrument has been prepared by such broker or under his supervision General Obligations Law. Failure to so comply, including failure to and where such instrument relates to the employment of the broker or pay, apply or credit any required interest, shall constitute grounds for to any matters pertaining to the consummation of a lease, or the disciplinary or other appropriate action by the Secretary of State. purchase, sale or exchange of real property or any other type of real estate transaction in which he may participate as a broker. §175.4 Broker's purchase of property listed with

him §175.13 Accepting services of another broker's

A real estate broker shall not directly or indirectly buy for himself salesperson or employee property listed with him, nor shall he acquire any interest therein A real estate broker shall not accept the services of any salesperson or without first making his true position clearly known to the listing employee in the organization of another real estate broker without the owner. knowledge of the broker and no real estate broker should give or permit to be given or directly offer to give anything of value for the §175.5 Disclosure of interest to client purpose of influencing or rewarding the actions of any salesperson or Before a real estate broker buys property for a client in the ownership employee of another real estate broker in relation to the business of of which the broker has an interest, he shall disclose his interest to all such broker or the client of such broker without the knowledge of parties to the transaction. such broker.

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§175.14 Termination of salesperson's association Beginning at the intersection of Utica Avenue and Clarkson

Avenue; thence westerly along Clarkson Avenue to East 43 Street; rdwith broker thence southerly along East 43 Street to Linden Boulevard; thence rd A real estate salesperson shall, upon termination of his association westerly along Linden Boulevard to Rogers Avenue; thence with a real estate broker, forthwith turn over to such broker any and Southerly along Rogers Avenue to Snyder Avenue; thence westerly all listing information obtained during his association whether such along Snyder Avenue to Bedford Avenue; thence southerly along information was originally given to him by the broker or copied from Bedford to Foster Avenue; thence easterly along Foster Avenue to the records of such broker or acquired by the salesperson during his New York Avenue; thence southerly along New York Avenue to association. Farragut Road; thence westerly along Farragut Road to East 32 nd Street; thence southerly along East 32 Street to Avenue H; thence nd easterly along Avenue H to Brooklyn Avenue; thence northerly along §175.15 Automatic continuation of exclusive Brooklyn Avenue to Glenwood Road; thence easterly along listing contract Glenwood Road to Albany Avenue; thence northerly along Albany No real estate broker shall be a party to an exclusive listing contract Avenue to Farragut Road; thence easterly along Farragut Road to which shall contain an automatic continuation of the period of such Schenectady Avenue; thence northerly along Schenectady Avenue to listing beyond the fixed termination date set forth therein. Avenue D; thence easterly along Avenue D to Ditmas Avenue; thence continuing easterly along Ditmas Avenue to Rockaway

§175.16 [Reserved] Parkway; thence northwesterly along Rockaway Parkway to East

New York Avenue; thence southwesterly along East New York Avenue to Utica Avenue; thence southerly along Utica Avenue to the §175.17 Prohibitions in relation to solicitation point of the beginning at the intersection of Utica Avenue and and unlawful discriminatory practice Clarkson Avenue. (a)(1) No broker or salesperson shall induce or attempt to induce (iii) The names and addresses of owners who have filed a cease- an owner to sell or lease any residential property or to list same for and-desist zone. Following the first compilation of a list, the list shall sale or lease by making any representations regarding the entry or be revised and updated annually on or before December 31 . st prospective entry into the neighborhood of a person or persons of a Individual lists shall be identified by geographic area and year. particular race, color, religion, national origin, age, sex, sexual (iv) A copy of each cease-and-desist list shall be available for orientation, disability, gender identity, military status, familial status inspection at the following offices of the Department of State: or any other protected category under any federal, state or local law applicable to the activities of real estate licensees in New York State. Department of State (2)(i) No licensed real estate broker or salesperson shall solicit 99 Washington Avenue the sale, lease or the listing for sale or lease of residential property Albany, New York 12231-0001 after such licensee has received written notice from an owner thereof that such owner or owners do not desire to sell, lease or Department of State list such property. (ii) Notice provided under the provisions of this subdivision State Office Building Annex to a real estate broker shall constitute notice to all associate 164 Hawley Street Binghamton, New York 13901-4053 brokers and salespersons who are employed by the real estate broker. Department of State (3)(i) No licensed real estate broker or salesperson shall solicit the sale, lease or the listing for sale or lease of residential property 65 Court Street from owner of residential property located in a designated cease-Buffalo, New York 14202-3471 and-desist zone if such owner has filed a cease-and-desist notice with the Department of State indicating that such owner or owners Department of State do not desire to sell, lease or list their residential property and do not desire to be solicited to sell, lease or list their residential Hughes State Office Building property. Syracuse, New York 13202-1428 (ii) The following geographic areas are designated as cease- Department of State and-desist zones, and, unless sooner redesignated, the designation for the following cease-and-desist zones shall expire on the State Office Building following dates: Veterans Memorial Highway Hauppauge, New York 11788-5501 Zone Expiration Date

Department of State County of Kings July 1, 2028

Within the County of Kings as follows: 123 William Street The sections of the area of land in the County of Kings, City of New York, New York 10038-3804 New York, within the neighborhood commonly referred to as Community Board 17, and more specifically bounded by and described as follows:

NYS Department of State Division of Licensing Services Real Estate License Law / Page 27

(v) The cost of each list compiled pursuant to this subdivision ure; Oct. 9, 1998 as emergency measure; Dec. 4, 1998 as emergency measure; Jan. 19, 1999; Sept. 3, 1999 as emergency measure; Dec. 2, shall be $10 and shall be available upon written request to the 1999 as emergency measure; March 1, 2000 as emergency measure; following address: May 15, 2000; Feb. 15, 2001 as emergency measure, expired 90 days after filing; May 18, 2001 as emergency measure, expired 90 days Department of State after filing; Dec. 13, 2002 as emergency measure, expired 90 days after filing; March 26, 2003 as emergency measure; June 12, 2003 as 123 William Street emergency measure, expired 90 days after filing; June 27, 2003 as New York, New York 10038-3804 emergency measure; Sept. 11, 2003 as emergency measure, expired 90 days after filing; Sept. 24, 2003 as emergency measure; Dec. 11, 2003 as emergency measure; (vi) The original cease-and-desist notice shall be filed with the Jan. 7, 2004 as emergency measure; Jan. 12, 2004; April 21, 2004 as Department of State's Division of Licensing Services at 123 William emergency measure; July 19, 2004 as emergency measure; Aug. 31, Street, New York, New York 10038-3804, and shall be available for 2004 as emergency measure; Oct. 18, 2004; Nov. 30, 2004 as emer- gency measure, expired 90 days after filing; March 15, 2005 eff. public inspection and copying upon written request and appointment. March 30, 2005. Amended (c)(2); emergency rulemaking eff. Nov. (vii) For the purposes of Real Property Law, section 441-c, it 26, 2007, expired Feb. 23, 2008; emergency rulemaking eff. Feb. 25, shall not be a demonstration of untrustworthiness or incompetence 2008, expired May 24, 2008; emergency rulemaking eff. Mar. 7, for a licensee to solicit an owner who had filed a cease-and-desist 2008, expired June 4, 2008; amd. filed May 21, 2008 eff. June 4, notice with the Department of State if the owner's name and address 2008; emergency rulemaking eff. May 23, 2008; expired Aug. 20, 2008; emergency rulemaking eff. Aug. 20, 2008; expired Nov. 17, do not appear on the current cease-and-desist list compiled by the 2008; filed Sept. 29, 2008 eff. Oct. 15, 2008; amd. filed July 30, 2009 Department of State pursuant to subparagraph (iii) of this paragraph. eff. Aug. 19, 2009; emergency rulemaking eff. June 8, 2010, expired; (4)(i) For the purposes of this subdivision, solicitation shall mean amds. filed Aug. 17, 2010 eff. Sept. 1, 2010; amd. filed May 3, 2016 an attempt to purchase or rent or an attempt to obtain a listing of eff. May 18, 2016; amd. filed Sept. 12, 2017 eff. Sept. 27, 2017. property for sale, for rent or for purchase. Solicitation shall include Current with amendments included in the New York State Register, but not be limited to use of the telephone, mails, delivery services, Volume XXXIX, Issue 40, dated October 4, 2017. personal contact or otherwise causing any solicitation, oral or written, direct or by agent: 19 NYCRR 175.17, 19 NY ADC 175.17 (a) to be delivered or presented to the owner or anyone else at the owner's home address; §175.18 Use of trade or corporate name (b) to be left for the owner or anyone else at the owner's home No licensed real estate broker or applicant applying for a real estate address; or broker's license, may use a trade or corporate name which, in the (c) to be placed on any vehicle, structure or object located on the opinion of the Department of State, is so similar to the trade name or owner's premises. corporate name of any licensed real estate broker that confusion to the public will result therefrom. (ii) Solicitation shall not include classified advertising in regularly printed periodicals that are not primarily real estate related;

§175.19 Net listing agreements advertisements placed in public view if they are not otherwise in

violation of this subdivision; or radio and television advertisements. (a) The term net listing as used herein shall mean an agency or (5) For the purposes of this subdivision, residential property shall other agreement whereby a prospective seller of real property or an mean one-, two- or three-family houses, including a cooperative interest therein, lists such property or interest for sale with a licensed apartment or condominium. real estate broker authorizing the sale thereof at a specified net (b) No real estate broker or salesperson shall engage in an unlawful amount to be paid to the seller and authorizing the broker to retain as discriminatory practice, as proscribed by any federal, state or local commission, compensation, or otherwise, the difference between the law applicable to the activities of real estate licensees in New York price at which the property or interest is sold and the specified net State. A finding by any federal, state or local agency or court of amount to be received by the seller. competent jurisdiction that a real estate broker or salesperson has (b) No real estate broker shall make or enter into a "net listing" engaged in unlawful discriminatory practice in the performance of contract for the sale of real property or any interest therein. licensed real estate activities shall be presumptive evidence of untrustworthiness and will subject such licensee to discipline, §175.20 Branch offices including a proceeding for revocation. Nothing herein shall limit or (a) Every branch office shall be owned, maintained and operated restrict the Department from otherwise exercising its authority only by the licensed broker to whom the license for such office is pursuant to section 441-c of the Real Property Law. issued. A branch office shall not be conducted, maintained and operated under an arrangement whereby a licensed salesperson or Credits employee of the broker shall pay, or be responsible for, any expense Sec. amds. filed: Oct. 4, 1977; Sept. 26, 1989 as emergency measure; or obligation created or incurred in its conduct, maintenance or Dec. 22, 1989 as emergency measure, expired 60 days after filing; operation, or under any other arrangement, the purpose, intent or March 21, 1990 as emergency measure; April 2, 1990; Nov. 22, 1994 effect of which shall permit a licensed salesperson or employee to as emergency measure, expired 90 days after filing; March 2, 1995 as carry on the business of real estate broker for his own benefit, emergency measure; May 4, 1995 as emergency measure; June 30, directly, or indirectly, in whole or in part. 1995 as emergency measure; July 3, 1995; May 2, 1996 as emergen- cy measure; July 12, 1996 as emergency measure; Sept. 3, 1996 as emergency measure; Oct. 9, 1996; July 10, 1998 as emergency meas-

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(b) Every branch office shall be under the direct supervision of the (b) In some transactions, the broker may not be provided a copy of the documents required to be maintained by subdivision (a) of this broker to whom the license is issued, or a representative broker of a corporation or partnership holding such license. section. In such instances, the broker will not be found to have violated the requirements of this section. (c) Repealed. (d) No broker shall relocate his principal office or any branch §175.24 Exclusive listings--residential property office without prior approval of the department. (a) Residential real property as used in this section shall mean real

§175.21 Supervision of salesperson by broker property used or occupied, or intended to be used or occupied, wholly

or partly, as a home or residence of one or more persons improved (a) The supervision of a real estate salesperson by a licensed real by: (i) a one to four family dwelling or (ii) condominium or estate broker, required by subdivision l(d) of §441 of the Real cooperative apartments but shall not refer to unimproved real Property Law, shall consist of regular, frequent and consistent property upon which such dwellings are to be constructed. personal guidance, instruction, oversight and superintendence by the (b) In all commission agreements obtained by a broker which real estate broker with respect to the general real estate brokerage provide for an exclusive listing of residential property, the broker business conducted by the broker, and all matters relating thereto. shall have attached to the listing or printed on the listing and signed (b) The broker and salesperson shall keep written records of all or initialed by the homeowner or the homeowner's agent the real estate listings obtained by the salesperson, and of all sales and following explanation in type size of not less than six point: other transactions effected by, and with the aid and assistance of, the "EXPLANATION: salesperson, during the period of his association, which records shall An "exclusive right to sell" listing means that if you, the owner of the be sufficient to clearly identify the transactions and shall indicate the property, find a buyer for your house, or if another broker finds a dates thereof. Such records must be submitted by the salesperson to buyer, you must pay the agreed commission to the present broker. An the Department of State with his application for a broker's license. "exclusive agency" listing means that if you, the owner of the (c) Participation in the general real estate brokerage business as a property find a buyer, you will not have to pay a commission to the licensed real estate salesperson shall consist of active service under broker. However, if another broker finds a buyer, you will owe a the supervision of a licensed real estate broker for at least 35 hours commission to both the selling broker and your present broker." per week for 50 weeks in each year required for qualification under (c) If an exclusive listing of residential property is obtained by a the law. broker who is a member of a multiple listing service, the listing

§175.22 Ownership of voting stock by agreement shall provide that the homeowner shall have the option of

having all negotiated offers to purchase the listed residential property salespersons prohibited submitted either through the listing broker or submitted through the No licensed real estate salesperson may own, either singly or jointly, selling broker. directly or indirectly, any voting shares of stock in any licensed real

§175.25 Advertising estate brokerage corporation with which he is associated.

(a) Definitions §175.23 Records of transactions to be

1. "Advertising" and "advertisement" mean promotion and maintained
   solicitation related to licensed real estate activity, including but not limited to, advertising via mail, telephone, websites, e-mail, (a) Each licensed broker shall keep and maintain for a period of electronic bulletin boards, business cards, signs, billboards, and three years, paper and/or electronic records of each transaction flyers. "Advertising" and "advertisement" shall not include effected through his or her office concerning the sale of real property commentary made by a duly licensed real estate salesperson, real used or occupied, or intended to be used or occupied, wholly or estate associate broker or real estate broker that is not related to partly, as the home or residence of one or more persons improved by promoting licensed real estate activity. a one-to-four-family dwelling, or a condominium or cooperative

2. "Team" means two or more persons, one of whom must be apartments but shall not refer to unimproved real property upon
   an associate real estate broker or real estate salesperson, associated which such dwellings are to be constructed. Records to be kept and with maintained shall contain: the same real estate brokerage who hold themselves out or operate as (1) the names and addresses of the seller and the buyer, a team. (2) the broker prepared purchase contract or binder, or if the purchase

3. "Real estate brokerage" means a real estate company contract is not prepared by the broker, then the purchase price and the
   represented by a real estate broker. amount of deposit (if collected by broker),

4. "Logo" means a graphic mark used to identify a real estate (3) the amount of commission paid to broker,
   broker, associate broker, salesperson or team, but not a photograph of (4) the gross profit realized by the broker if purchased by him or her a real estate broker, associate broker, salesperson or team contained for resale, in an advertisement. (5) any document required under Article 12-A of the Real Property 5. "Property" means real estate property or shares of stock in Law and a cooperative corporation. (6) the listing agreement or commission agreement or buyer-broker (b) Placement of advertisements agreement.

NYS Department of State Division of Licensing Services Real Estate License Law / Page 29

of the brokerage in an advertisement, provided that the advertisement 1. Only a real estate broker is permitted to place or cause to clearly identifies the type of such other telephone number as desk, be published advertisements related to the sale or lease of property. home, cell phone, or otherwise. Advertisements placed or caused to be published by an associate real estate broker, a real estate salesperson or a team for the sale or lease 8. Logos. A real estate team, associate real estate broker or of property listed with or represented by a real estate broker are not real estate salesperson may use a logo different from that of the real permitted except where the property is listed with or represented by estate broker or real estate brokerage with whom they are associated, the real estate broker with whom the associate real estate broker, real provided that the name or logo of the real estate broker or real estate estate salesperson or team placing the ad is associated and said real brokerage is also printed in the advertisement. estate broker approved placement of the advertisement. 9. Property description. Advertisements shall include an

1. Authorization honest and accurate description of the property to be sold or leased.

2. No property shall be advertised unless the real estate All advertisements that state the advertised property is in the vicinity
   of a geographical area or territorial subdivision shall include as part broker has obtained authorization for such advertisement from the of such advertisement the name of the geographical area or territorial owner of the property or as hereinafter provided. subdivision in which such property is actually located. Use by real b. Real estate brokers shall not advertise property that is estate brokers, associate real estate brokers and real estate subject to an exclusive listing held by another real estate without the salespersons of a name to describe an area that would be misleading permission of the listing broker. to the public is prohibited. c. Proprietary information. Photographs of property that

3. Guaranteed Profits. Advertisements shall not guarantee are posted on a real estate broker's website shall not be used or
   future profits from any real estate activity. reproduced without written permission from the copyright holder of (d) Additional requirements and exceptions such photographs.

4. Classified Advertisements. Classified and multi-property (c) Content of advertisements
   advertisements shall indicate that the advertiser is a real estate broker 1. Name of real estate broker. Advertisements shall indicate or brokerage; or provide the name of the real estate broker or real that the advertiser is a real estate broker or provide the name of the estate brokerage. Classified and multi-property advertisements may real estate broker or real estate brokerage and either: (i) the full omit the license type or any associate real estate broker or real estate address of the real estate broker or real estate brokerage or, (ii) the salesperson named in the advertisement. telephone number of the real estate broker or brokerage.

5. Business Cards. Notwithstanding subdivision (c) of this 2. Name of associated licensees. The advertisement may
   section, business cards must contain the business address of the include the names of one or more associate real estate brokers or real licensee, license type, and the name of the real estate broker or real estate salespersons associated with the real estate broker or brokerage estate brokerage with whom the associate real estate broker or real placing the advertisement. Where an advertisement includes the estate salesperson is associated. All business cards must also contain name of an associate broker, real estate salesperson or a team, the the office telephone number for the associate real estate broker, real name of the real estate broker and/or real estate brokerage must also estate salesperson or team. be printed in the advertisement.

6. Web-based advertising 3. Nicknames. Real estate brokers, associate real estate

7. Websites created and maintained by associate real brokers, and real estate salespersons shall advertise using the name
   estate under which said real estate broker, associate real estate broker or brokers, real estate salespersons and teams are real estate salesperson is licensed with the Department of State. A permitted, provided that said associate real estate nickname may be used in an advertisement provided that the full- brokers, real estate salespersons and teams are duly licensed name is listed clearly and conspicuously. authorized by their supervising real estate broker to 4. License type. Except as provided in subsection (d) of this create and maintain such websites and such websites section, advertisements shall correctly and accurately state the type of remain subject to the supervision of the real estate license held by the real estate broker, associate real estate broker or broker with whom the licensees are associated while the real estate salesperson named in the advertisement. Licensees may website is live. abbreviate the type of license held, provided that such abbreviation is b. Every page of such a website shall include the not misleading. The use of the titles, "sales associate", "licensed information sales agent" or simply "broker" is prohibited. Real estate brokers, required by these rules and regulations. In addition, a associate real estate brokers or real estate salespersons who have link additional titles or designations are permitted to advertise such titles to the broker or brokerage website with whom the of designations. associate broker, salesperson or team is associated is

8. Contact information. An associate real estate broker, real required on the homepage of the associate broker,
   estate salesperson or team may provide additional contact salesperson or team website unless the broker or information, such as a post office box, in an advertisement. brokerage does not have a website.

9. Home offices. A residence may be used as an office 4. E-mail. An initial e-mail from a real estate broker,
   provided that it is properly licensed by the Department of State. associate real estate broker, real estate salesperson or team to a client or potential client shall provide the information required by these 7. Telephone numbers. Notwithstanding subdivision (c)(1) of rules and regulations. Such information may be omitted from this section, a real estate broker, associate broker, real estate subsequent e-mail communications to the same recipient. salesperson or team may provide telephone numbers other than that

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§175.27 Disclaimer 5. For-Sale Signs. Notwithstanding subdivision (c)(1) of this

section, unless otherwise prohibited by local law, any property listed Nothing in this Part is intended to be, or should be construed as, an through a real estate broker must be advertised as such, and any indication that a salesperson is either an independent contractor or signage placed upon such property soliciting the sale or lease of the employee of a broker. property must identify the representative broker or brokerage.

1. Advertisements referencing property not listed with broker. Section 175.28 Notification of Fair Housing Laws (i) No real estate broker, associate real estate broker, or real estate (a) A real estate broker shall be responsible to ensure that each salesperson shall advertise in any manner or make reference to in any individual licensed pursuant to Article 12-A of the New York Real advertisement property that is subject to an exclusive listing Property Law and associated with such broker provides to a agreement of another broker, without authorization from the prospective purchaser, tenant, seller, or landlord upon first exclusive listing broker. Such advertisements must clearly and substantive contact a disclosure notice furnished by the Department, conspicuously disclose the name of the exclusive listing broker containing substantive provisions of the New York State Human immediately after one of the following phrases: "Listing Provided by Rights Law. The disclosure notice shall set forth how Human Rights [insert name of the exclusive listing broker]", "Listing by [insert Law complaints may be filed, and such other information as the name of exclusive listing broker]", "Listing Broker Contact [insert Department deems pertinent. name of exclusive listing broker]", "Listing of [insert name of exclusive listing broker]", "Listing Provided Courtesy of [insert name (b) The disclosure notice required pursuant to paragraph (a) of this of exclusive listing broker]", "Listing Courtesy of [insert name of section, may be provided to a prospective purchaser, tenant, seller, or exclusive listing broker]", or "Listing Agent Contact [insert name of landlord by any of the following means: email, text, electronic exclusive listing broker]". messaging system, facsimile, or hardcopy. An electronic communication containing a link to the disclosure notice required (ii) Any real estate broker, associate real estate broker, or real estate pursuant to paragraph (a) of this section shall be permissible, salesperson that pays a third-party for advertising involving a provided the communication also contains text to inform the property that is subject to an exclusive listing agreement of another prospective purchaser, tenant, seller, or landlord that the link contains broker must, in addition to the requirements in subparagraph (i), information regarding the New York State Human Rights Law. Oral include in any advertisement that provides the advertising broker's disclosure does not satisfy the requirements imposed by this section. name words to disclose that the advertisement is a paid advertisement, using at a minimum the word "advertisement" (c) The disclosure notice required by paragraph (a) of this section immediately following the real estate broker, associate real estate shall apply to all real property whether or not it is used or occupied, broker, or real estate salesperson's name. or intended to be used or occupied, wholly or partly, as a home or residence of one or more persons regardless of the number of units, (e) Teams and shall include: condominiums; cooperative apartments; vacant 1. Team name. Team names shall either: (i) include the full lands, including unimproved real property upon which such licensed name of the real estate brokers, associate brokers or real dwellings are to be constructed; or commercial properties. estate salespersons who are part of said team, or (ii) if the names are (d) A real estate broker, licensed real estate salesperson, or licensed not included, the team name must be immediately followed by "at/of associate broker that provides the disclosure notice required pursuant [full name of the broker/brokerage]." Team names shall use the term to this section by hardcopy, shall obtain a signed acknowledgment "team." The use of any other terms besides "team," such as from the prospective buyer, tenant, seller, or landlord. Such signed "associate," "realty" or "group" is prohibited. The use of the name of disclosure notice shall be retained for not less than three years. A real a non-licensed individual in a team name is prohibited. For twelve estate broker, licensed real estate salesperson, or licensed associate months after the adoption of this regulation, teams that have changed broker that provides the disclosure notice required pursuant to this their name to comply with this provision shall be entitled to state in section by email, text, electronic messaging system, or facsimile, advertisements under their new name that they were 'formerly known shall maintain a duplicate copy of such disclosure and shall retain the as' their prior team name. same for not less than three years. If the prospective buyer, tenant, 2. Unlicensed team members. If any unlicensed seller, or landlord declines to sign the disclosure notice, the real individuals are named in advertising for a team, the advertisement estate broker, licensed real estate salesperson or licensed associate must clearly and conspicuously state which individuals are real estate broker shall set forth under oath or affirmation a written declaration licensees and which ones are not. of the facts regarding when such notice was provided and shall maintain a copy of the declaration for not less than three years. §175.26 Posting of business signs For purposes of compliance with subdivision 3 of §441-a of Article 12 of the Real Property Law, in an apartment building where the posting of signs is not permitted in the lobby pursuant to the rules and Section 175.29 Posting of Fair Housing Laws regulations of the building, said sign must be posted on the corridor wall next to the entrance door of the dwelling unit or on the entrance (a) A real estate broker shall display and maintain at every office and door of the dwelling unit or on the entrance door of the dwelling unit branch office operated by such broker a notice, furnished by the in which the business is conducted. Department, indicating the substantive provisions of the New York State Human Rights Law relative to housing accommodations. The notice shall set forth how Human Rights Law complaints may be filed and such other information as the Department deems pertinent.

NYS Department of State Division of Licensing Services Real Estate License Law / Page 31

§176.1 Approved entities (b) The notice required by paragraph (a) of this section shall be

prominently displayed in the window of such office and any branch Real estate courses and offerings may be given by any college or office maintained by such broker if such broker also provides listings university accredited by the Commissioner of Education of the State or other postings in the window of such location and must be visible of New York or by a regional accrediting agency accepted by said to persons on that portion of the sidewalk adjacent to such office or Commissioner of Education; public and private vocational schools; branch office. If any office or branch office is not accessible from the real estate boards; and real estate-related professional societies and sidewalk or if postings are otherwise prohibited by any other organizations. No real estate course of study seeking approval may be applicable law, then the notice required pursuant to paragraph (a) of affiliated with or controlled by any real estate broker, licensed this section shall be prominently posted in the same location the salesperson, licensed or certified real estate appraiser, firm, or business license is posted pursuant to subdivision 3 of section 441-a company or franchise, or controlled by a subsidiary of any real estate of article 12 of the Real Property Law. broker, real estate appraiser or franchise. (c) All websites created and maintained by real estate brokers, associate real estate brokers, real estate salespersons and any real §176.2 Request for approval of courses of study estate team, as such term is defined by section 175.25 of this title, Applications for approval to conduct courses of study to satisfy the shall prominently and conspicuously display on the homepage of requirements for licensed real estate salesperson and broker shall be such website a link to the Department's notice as required by made 60 days before the proposed course is to be conducted. The paragraph (a) of this section, which shall be made available by the application shall be prescribed by the Department to include the Department. following: (d) A real estate broker, licensed real estate salesperson, or licensed (a) name and business address of the proposed school which will associate broker shall have displayed at all open houses of all real present the course; property the notice required by paragraph (a) of this section. In addition, a real estate broker, licensed real estate agent, or licensed (b) if applicant is a partnership, the names and home addresses of associate broker shall have available at all open houses and showings all the partners of the entity; of all real property the notice required by paragraph (a) of section (c) if applicant is a corporation, the names and home addresses of 175.28 of this part. persons who own five percent or more of the stock of the entity; (d) the name, home and business address and telephone number of PART 176 the education coordinator that will be responsible for administering APPROVAL OF the regulations contained in this part;

REAL ESTATE COURSES (e) locations where classes will be conducted;

(f) title of each course to be conducted;

(g) final examination to be presented for each course, including

Section the answer key; 176.1 Approved entities (h) all times included on each test form must be consistent with 176.2 Request for approval of courses of study content specifications indicated for each course. Weighing of 176.3 Subjects for study--real estate salespersons significant content areas should fall within the weight ranges 176.4 Subjects of study--real estate broker 176.5 Computation of instruction time indicated. All reference sources used to support each correct answer 176.6 Attendance and examinations must be included. Linkage to each answer must be indicated with a 176.7 [Reserved] footnote showing page number, subject matter, etc.; 176.8 Facilities (i) description of materials that will be distributed; 176.9 Examination requirement and record retention 176.10 Change in approved course of study (j) the books that will be used for the outline and the final exams; 176.11 Faculty and 176.12 Reserved detailed outline for local concerns when applying for broker 176.13 [Reserved] course approval. 176.14 Auditing 176.15 College degree major in real estate 176.16 Suspensions and denials of course approval §176.3 Subjects for study--real estate 176.17 Open to public salespersons 176.18 [Reserved] 176.19 Reserved The following are the required subjects to be included in the 176.20 Certificate of completion course of study in real estate for licensure as a real estate salesperson, 176.21 Fees and the required number of hours to be devoted to each subject: 176.22 Distance learning 176.23 Distance learning program requirements Salesperson's Course 176.24 Request for approval of distance learning programs

Subject Matter Hours 176.25 Course completion for distance learning courses 176.26 30 hour supplemental course License Law and Regulations 3 Law of Agency 11 Legal Issues 10 The Contract of Sales and Leases 3

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Real Estate Finance 5 Financial Analysis for Commercial Transactions 2 Real Property Investment 4 Land Use Regulations 3 General Business Law 3 Construction and Environmental Issues 5 Construction and Development 3 Valuation Process and Pricing Properties 3 Conveyance of Real Property 1 Human Rights and Fair Housing 6 Commercial Leasing Terms 2 Real Estate Mathematics 1 Residential Leasing Terms 1 Municipal Agencies 2 Real Property Management 4 Property Insurance 1 Taxes and Assessments 1 License Safety 1 Assessment Exemptions & Taxes (e.g., STAR, seniors, veterans, PLOT) 2 Taxes and Assessments 3 Advanced Fair Housing and Fair Lending 3 Condominiums and Cooperatives 4 Historical Overview of Fair Housing 1 Commercial and Investment Properties 10 Cultural Competency 2 Income Tax Issues in Real Estate Transactions 3 Diversity Equity & Inclusion Training/History 2 Mortgage Brokerage 1 Implicit Bias 2 Property Management 2 Assistance Animals and Service Animals 1 Instruction 77 Source of Income and Subsidy Programs 2 Achieving Transactional Agreements through Final Examination 3 Transaction Analysis 6 Total 80 Local Issues and Concerns * 2 (b) All approved courses must use this course syllabus in • Cease and desist regulations conducting their programs. • Nonsolicitation orders

• Illegal entities/conversions §176.4 Subjects for study--real estate broker • Rent regulations (rent control, rent stabilization)
• Farmland The education qualifications for real estate broker's license requires
• Forestry the completion of:

• Sign ordinances (a) an approved real estate salesperson's course except that a • Zoning salesperson who was licensed prior to November 1, 1979, may • Waterfront property substitute 77 hours of approved continuing education in lieu of a • Wetlands/restrictions salesperson's course; and • Environment problems in an area
  (b) an approved real estate broker's course. • Role of real estate professionals in the community

• Property values impact on the economy Before enrolling a student into an approved broker's course, the

• Impact of government on property values education coordinator must be provided with evidence of a signed
  Instruction 75 statement from the student indicating that he/she has successfully Final examination 3 completed the salesperson's course. Proof of the student's completion of the prerequisite course must be kept on file by the education Total 78 coordinator. The following are the required subjects to be included in Hours the course of study in real estate for licensure as a real estate broker

• Program coordinators are not limited to these topics. They must, and the required number of hours to be devoted to each subject:
  however, submit an outline and learning objectives for the two hours that will be presented to students. The outline and learning objectives must explain how local issues and concerns impact property values. All approved instructors must use this course syllabus in conducting their program. Broker's Course

Subject Matter Hours §176.5 Computation of instruction time Agency Law, License Law and Operating a Real Estate Office 16 Broker Supervision & Use of Office Managers 2 To meet the minimum statutory requirement, attendance shall be Onboarding/Continued Training 2 computed on the basis of an hour equaling 50 minutes. For every 50 Agent Safety and Supervision 2 minutes of instruction there shall be an additional 10 minute break. Lawful Application of Teams 1 The time of the breaks shall be left to the discretion of the individual Standard Operating Procedures 1 education coordinator. Breaks shall not be considered optional, nor Financial Management (e.g., budgets, record keeping) 2 are they to be used to release the class earlier than scheduled. Real Estate Finance 2 Loan Products - Investment Monies §176.6 Attendance and examinations (e.g., FDIC, FHA, VA, PMI) 1 (a) No licensed person shall receive credit for any course or Risk Management course module presented in a class-room setting if he or she is absent (e.g., inflation, assessment, leverage, tax shelters, etc.) 2

NYS Department of State Division of Licensing Services Real Estate License Law / Page 33

or from the class room, during any instructional period, for a period or periods totaling more than 10 percent of the time prescribed for the (b) Work experience in a specialized field directly related to real course or course module pursuant to sections 176.3 and 176.4 of this estate Title, and no licensed person shall be absent from the class room Each year of experience = 10 points except for a reasonable and unavoidable cause. or (b) Students who fail to attend the required scheduled class hours may, at the discretion of the approved entity, make up the missed subject matter during subsequent classes presented by the approved (c) Attorney, admitted to New York State Bar entity. Each year of experience = 10 points (c) Final examinations may not be taken by any student who has 2. Section Two not satisfied the attendance requirement. A maximum of 50 points can be claimed in this section. (d) A make up examination may be presented to students at the Experience as an instructor = 10 points for each year discretion of the approved entity. Make up examinations must be

1. Section Three submitted for approval to the department in accordance with
   guidelines noted in §176.2 (g) and (h) of this Part. A maximum of 30 points can be claimed in this section. Formal academic achievement in a specialized subject matter §176.7 [Reserved] directly related to real estate (five points for each 30 hour course successfully completed) §176.8 Facilities

2. Section Four
   Each course shall be presented in such premises and in such facilities 50 points can be claimed in this section. as shall be necessary to properly present the course. No course shall Formal training in the techniques of organizing and presenting be presented in any real estate broker's office or the office of any instructional material association of real estate brokers except as otherwise may be

3. Section Five permitted under this Part.
   Only one selection may be made in this section. §176.9 Examination requirement and record The holder of one of the following: retention AAS Degree 20 points (a) All organizations conducting approved courses of study shall B.A. or B.S. Degree 30 retain the attendance records, the final examinations and a list of points students who successfully complete each course for a period of three M.A. or L.L.D. or JDDegree 40 years after completion of each course. All documents shall at all points times during such period be available for inspection by duly B.A., B.S. or M.A. with a Major in Real Estate 50 authorized representatives of the Department of State. points (b) All examinations required for course work shall be written and (c) An approved entity, which engages presenters to conduct given within a reasonable time after the course work has been classes identified as technical subjects, are exempt from the conducted. The failure of the final exam shall constitute failure of the provisions of this section 176.11 except that an approved entity must course. make application to the Department of State accompanied by a resume indicating at least three years of experience in the specified §176.10 Change in approved course of study technical area. There shall be no change or alteration in any approved course of (d) All points claimed are subject to verification within two years study of any subject or in any instruction staff without prior written of application. notice to and approval by the department. (e ) Any applicant who fails to provide evidence of claimed points may be subjected to disciplinary action. §176.11 Faculty

§176.12 Reserved Each instructor, as certified by the Department of State, for an

approved real estate course of study, shall submit a resume to the §176.13 [Reserved] department and meet the following criteria, and shall achieve at least 100 points based on the following scale which includes real estate §176.14 Auditing brokerage/specialty experience, instructional experience and academic achievement. A duly authorized designee of the department may audit any course offered, and may verify attendance and inspect the records of (b) In order to receive approval as an instructor, an individual attendance of the course at any time during its presentation or must achieve 100 points in the system employed below: thereafter. 1. Section One A maximum of 50 points can be claimed in this section. (a) Licensed as a real estate broker or salesperson Each year of experience = 10 points

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§176.15 College degree major in real estate record was satisfactory and in conformity with the law, and that such

course was completed on a stated date. The certificate must be signed by the owner or course coordinator and dated, and must have affixed Evidence satisfactory to the department of the successful completion thereto the official seal of the school or entity. of a course of study at any accredited college or university in the (b) A list of all the names of students who successfully complete United States of America, approved by the Commissioner of each course of study must be maintained by the approved entity. Education of the State of New York or by a regional accrediting Approved entities must submit a statement affirmed under the penalty agency accepted by said Commissioner of Education, which has a of perjury, from the approved faculty instructor, attesting to program leading to a recognized collegiate degree, which includes compliance with all applicable statutory and regulatory requirements therein a major in real estate, may be deemed acceptable for the pertaining to the instruction of the established curriculum. The educational credit under sections 176.3 and 176.4 of this Part, submissions required by this subdivision shall be submitted provided attendance at such real estate course is not less than 152 electronically to the Department. hours in the case of an applicant for licensure as a real estate broker, and 77 hours in the case of an applicant for licensure as a real estate

§176.21 Fees salesperson, and the applicant presents evidence of the issuance of a

bachelor's degree and that he has passed the required course in real Each school or entity shall pay an annual registration fee of $300 for estate. each 12 months or part thereof, and an additional registration fee of $150 for each 12 months or part thereof for each location in excess of §176.16 Suspensions and denials of course one where courses are to be given, said period to run from each approval September 1st to the subsequent August 31st. For each teacher employed to teach the Real Estate Broker's or Real Estate Within 45 days after the receipt of the application for approval of an Salesperson's course, each school or entity shall pay a one-time offering, the department shall inform the entity as to whether the registration fee of $25. Fees shall be payable on submission of the offering has been approved, denied, or whether additional application or applications, and are nonrefundable. information is needed to determine the acceptability of the offering. The department may deny, suspend, or revoke the approval of a real §176.22 Distance learning estate course or a real estate instructor, if it is determined that they are not in compliance with the law and rules, or if the offering does Distance Education is defined as any educational process based on not adequately reflect and present current real estate knowledge as a the geographical separation of instructor and learner (for example, basis for a level of real estate practice. If disciplinary action is taken, CD-ROM, disk, on-line learning). Educational providers who wish to a written order of suspension, revocation or denial of approval will be offer distance learning programs must have their programs evaluated issued. Anyone who objects to such denial, suspension or revocation and approved in accordance with the provisions of this Part, shall have the opportunity to be heard by the Secretary of State or specifically sections 176.23, 176.24 and 176.25. appointed designee. Upon the first finding that a real estate instructor failed to meet the obligations required under any applicable law or §176.23 Distance learning program regulation, such instructor's approval shall be suspended for a requirements: reasonable period as determined by the Secretary or appointed designee. An instructor's certificate shall be revoked for any (a) the material of a distance learning program must be divided subsequent failure. into major units; (b) the contents of major units must be divided into modules of §176.17 Open to public instructions; All courses approved pursuant to this Part shall be open to all (c) the distance learning program must contain a time-default members of the public regardless of the membership of the mechanism for inactivity so that a student is not credited when not prospective student in any real estate board, or real estate related actively participating in the program; professional society or organization. (d) the school or other person offering the program must obtain from each student a signed and dated statement that he or she §176.18 [Reserved] personally completed each module of the learning program; (e) the school or other person offering the program must retain a §176.19 [Reserved] record of each student's participation in and completion of the distance learning program for a period of three years, and such records must be available for review and inspection by the §176.20 Certificate of completion Department of State; (a) Evidence of successful completion of the course must be (f) the educational provider must have an instructor approved furnished to students in certificate form. The certificate must indicate pursuant to section 176.11 of this Part available to students, during the following: name of the entity; Real Estate Salesperson's Course, reasonable business hours, to answer questions pertaining to the 77 hours, or Real Estate Broker's Course, 75 hours; code number of qualifying course content; the entity; a statement that the student, who shall be named, has (g) the course must include a proctored final examination which satisfactorily completed a course of study in real estate subjects must be held at a location within New York State approved by the approved by the Secretary of State in accordance with the provisions Department. of chapter 868 of the Laws of 1977, and that his or her attendance

NYS Department of State Division of Licensing Services Real Estate License Law / Page 35

§176.24 Request for approval of distance coordinator and dated, and must have affixed thereto the official seal

of the school or entity. learning programs

§176.26 Supplemental Courses Applications for approval to conduct distance learning courses of

study to satisfy the requirements for licensed real estate salesperson (a)Broker Applicants and broker shall be made 60 days before the proposed course is to be (1) An applicant for a license as a real estate broker who, prior to conducted. The application shall be prescribed by the Department to December 21, 2022, successfully completed an approved 45-hour include the following: salesperson qualifying course taken prior to July 1, 2008, may take a (a) name, business address and telephone number of the proposed 30-hour supplemental course, as provided for by paragraph (5) of this school which will present the course; subdivision, and an approved two-hour continuing education course (b) if applicant is a partnership, the names and home addresses of devoted to fair housing and/or anti-bias training; if successfully the partners in the entity, of a corporation, the names and home completed, they may be used by said applicant in conjunction with addresses of any persons who own five percent or more of the stock the 75-hour broker qualifying course towards satisfying the of the entity. educational requirements for a license, as provided in Section 176.4 of this Part. (c) the name, home and business address and telephone number of the education coordinator that will be responsible for administering (2) An applicant for a license as a real estate broker who, prior to the regulations contained in this part; December 21, 2022, successfully completed an approved 45-hour broker qualifying course, a 30-hour supplemental course, as provided (d) locations where the final examination will be conducted; for by paragraph (5) of this subdivision, and an approved 45-hour (e) title of each course to be conducted; salesperson qualifying course taken prior to July 1, 2008, may take a (f) final examination to be presented for each course, including 32-hour supplemental course, as provided for by paragraph (6) of this the answer key; subdivision; if successfully completed, it may be used by said (g) all times included on each test form must be consistent with towards satisfying the educational requirements for a license, as content specifications indicated for each course. Weighing of provided in Section 176.4 of this Part. significant content areas should fall within the weight ranges (3) An applicant for a license as a real estate broker who, prior to indicated. All reference sources used to support each correct answer December 21, 2022, successfully completed an approved 75-hour must be included. Linkage to each answer must be indicated with a salesperson qualifying course, may take an approved two-hour footnote showing page number, subject matter, etc.; continuing education course devoted to fair housing and/or anti-bias (h) the books that will be used for the outline and the final exams; training; if successfully completed, it may be used by said applicant in conjunction with the 75-hour broker qualifying course towards (i) an explanation of the means for monitoring and verifying each satisfying the educational requirements for a license, as provided in student's active participation, on an ongoing basis, during each Section 176.4 of this Part. module of instruction; (4) An applicant for a license as a real estate broker who, prior to (j) a brief description of the hardware and software to be used by December 21, 2022, successfully completed an approved 75-hour the student; salesperson qualifying course, and an approved 45-hour broker (k) a plan for providing technical support to the student; qualifying course, may take a 32-hour supplemental course, as (l) a detailed course outline divided into major units; the contents provided for by paragraph (6) of this subdivision; if successfully of major units must be divided into modules of instruction; completed, it may be used by said applicant towards satisfying the (m) a detailed outline for local concerns when applying for broker educational requirements for a license, as provided in Section 176.4 course approval. of this Part. (5) The following are the required subjects to be included in the 30-§176.25 Course completion for distance learning hour supplemental course and the required number of hours to be

courses devoted to each such subject:

Contract preparation 1 hour (a) The student must successfully complete a distance learning Predatory lending 1 hour course within 12 months of starting the program. This includes the Pricing properties 1 hour passing of the school's final examination. Municipal agencies 2 hours (b) (Reserved) Property insurance 2 hours (c) The school or other person offering the program must provide Taxes and assessments 3 hours evidence of successful completion of the course to each student in Condominiums and cooperatives 4 hours certificate form. The certificate must indicate the following: name of Commercial and investments properties 10 hours the entity; Real Estate Salesperson's Course, 77 hours, or Real Estate Income tax issues and real estate transactions 3 hours Broker's Course, 75 hours; code number of the entity; a statement Mortgage brokerage 1 hour that the student, who shall be named, has satisfactorily completed a Property management 2 hours course of study in real estate subjects approved by the Secretary of Total 30 hours State in accordance with the provisions of chapter 868 of the Laws of Final Exam 2 hours 1977, and that his or her attendance record was satisfactory and in TOTAL 32 hours conformity with the law, and that such course was completed on a stated date. The certificate must be signed by the owner or course

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(6) The following are the required subjects to be included in the 32- 177.11 Auditing 177.12 [Reserved] hour supplemental course and the required number of hours to be 177.13 Change in approved course of study devoted to each such subject: 177.14 Suspensions and denials of course approval Broker Supervision & Use of Office Managers 2 hours 177.15 Open to public Onboarding/Continued Training 2 hours 177.16 Facilities Agent Safety and Supervision 2 hours 177.17 Faculty Lawful Application of Teams 1 hour 177.18 Continuing education credit Standard Operating Procedures 1 hour 177.19 Registration period Financial Management (e.g., budgets, record keeping) 2 hours 177.20 Distance learning programs--Computer based 177.21 Request for approval of distance learning programs Loan Products - Investment Monies (e.g., FDIC, FHA, 177.22 Distance learning program requirements VA, PMI) 1 hour Risk Management (e.g., inflation, assessment, §177.1 General requirement leverage, tax shelters, etc.) 2 hours Assessment exemptions & taxes (e.g., STAR, seniors, (a) Renewals. No renewal license shall be issued to any real estate veterans, PLOT) 2 hours broker or salesperson for any license period unless such licensee shall Cultural Competency 2 hours provide evidence of completion of 22 1/2 hours of approved Diversity Equity & Inclusion Training/History 2 hours continuing education within the two-year period immediately Historical Overview of Fair Housing 1 hour preceding such renewal as required by Article 12-A of the New York Assistance Animals and Service Animals 1 hour Real Property law. Source of Income and Subsidy Programs 2 hours (b) Course approval. No offering of a course of study in the real Commercial Leasing Terms 2 hours estate field for the purpose of compliance with the continuing Financial Analysis for Commercial Transactions 2 hours education requirements of subdivision 3 of §441 of the Real Property Residential Leasing Terms 1 hour Law shall be acceptable for credit unless such course of study shall Implicit Bias 2 hours have been approved by the department under the provisions of this Recent Developments in Real Estate 2 hours Part. Total 32 hours Final Exam 2 hours §177.2 Approved entities TOTAL 34 HOURS Continuing education real estate courses and offerings may be given (b)Salesperson Applicants by any college or university accredited by the Commissioner of (1) An applicant for a license as a real estate salesperson who, prior Education of the State of New York or by a regional accrediting to December 21, 2022, successfully completed an approved 45-hour agency approved by said Commissioner of Education; public or salesperson qualifying course taken prior to July 1, 2008, may take a private vocational schools; real estate boards; and real estate-related 30-hour supplemental course, as provided for by paragraph (5) of professional societies and organizations. Courses, including sales or subdivision (a) this section, and an approved two-hour continuing technology, that increase the competency of the licensee as it relates education course devoted to fair housing and/or anti-bias training, to the real estate transaction shall be acceptable as meeting and if successfully completed, may be used by said applicant towards continuing education requirements subject to the restrictions set forth satisfying the educational requirements for a license, as provided in in paragraph (d) of this section. No real estate course of study Section 176.3 of this Part. seeking approval may be affiliated with or controlled by a real estate broker, salesperson, firm or company or real estate franchise, or (2) An applicant for a license as a real estate salesperson who, prior controlled by a subsidiary of any real estate broker or real estate to December 21, 2022, successfully completed an approved 75-hour franchise. The following types of instruction shall not be acceptable salesperson qualifying course, may take an approved two-hour as meeting continuing education requirements: continuing education course devoted to fair housing and/or anti-bias (a) general training or education to prepare a student for passing a training, and if successfully completed, may be used by said applicant real estate broker's or salesperson's examination which is not part of towards satisfying the educational requirements for a license, as an approved course under Part 176 of this Title; provided in Section 176.3 of this Part. (b) offerings in mechanical office and business skills, such as PART 177 typing, basic computer skills training, instructional navigation of the world wide web, instructional use of generic computer software, CONTINUING EDUCATION speed reading, memory improvement, report writing, personal motivation, salesmanship and sales psychology;

Section (c) sales promotion meetings; and 177.1 General requirement 177.2 Approved entities (d) subjects that are not real estate related. 177.3 Request for approval of course of study in classroom setting 177.4 Successful completion of course in classroom setting §177.3 Request for approval of course of study 177.5 Credit for teaching in class-room setting 177.6 Extension of time to complete courses 177.7 Computation of instruction time The following applies to courses to be presented in a class-room 177.8 Attendance setting where the instructor is present with the class. Requests for 177.9 Video Recording and Record Preservation 177.10 [Reserved]

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§177.8 Attendance approval of courses of study in the real estate field to be given to

satisfy the requirements for continuing education under the (a) No licensed person shall receive credit for any course or provisions of this Part shall be made 60 days before the proposed course module presented in a classroom setting if he or she is absent course is to be given, and on a form prescribed by the department from the class room, during any instructional period, for a period or which shall include the following: periods totaling more than 10 percent of the time prescribed for the (a) name, address and telephone number of the applicant; course or course module pursuant to section 177.3(g) or section (b) if applicant is a partnership, the names of the partners in the 177.21(e) of this Part, and no licensed person shall be absent from the entity; if a corporation, the names of any persons who own five classroom except for a reasonable and unavoidable cause. If a course percent or more of the stock of the entity; or course module is computer based and is not presented in a classroom setting, no licensed person shall receive credit for the (c) title of each course to be offered; course or course module if he or she fails to complete any portion of (d) date and location of each course offered; the course or course module. (e) duration and time of each course offered; (b) The person or organization conducting the course shall certify (f) procedure for taking attendance; to the department, upon demand, the name of each licensed person (g) a detailed outline of the subject matter of each course or who successfully completed the course of study and their license seminar containing at least 22½ hours of instruction, or of each registration number, and shall maintain its attendance records and a course module containing at least one hour of instruction, together copy of such report for three years and, in addition, shall maintain the with the time sequence of each segment thereof, the faculty for each following record concerning the course: segment, and teaching techniques used in each segment; and (1) the approval number issued by the department for the course; (h) description of materials to be distributed to the participants. (2) the offering, title and description of the course; (3) the dates and hours the course was given; and §177.4 Successful completion of course in class- (4) the names of the persons who took the course and whether room setting they passed or failed. (a) Any subject course for continuing education shall be accepted (c) In addition to the certification required by subdivision (b) of for credit on the basis of attendance only. this section, each person or organization conducting a course of study shall submit, electronically, to the Department a statement (b) Evidence of successful completion of the course must be affirmed under the penalty of perjury, from the approved faculty furnished to students in certificate form. The certificate must indicate instructor, attesting to compliance with all applicable statutory and the following: the name of the approved entity, the name of the regulatory requirements pertaining to the instruction of the course, the code number of the course, and that the student who shall established curriculum. be named has satisfactorily completed a continuing education course approved by the Department of State and the number of hours earned.

§177.9 Video Recording and Record The certificate must be signed and dated by the owner or course

coordinator. Preservation (a) Every entity approved to provide instruction pertaining to fair §177.5 Credit for teaching housing and/or discrimination in the sale or rental of real property or A licensee who shall teach an approved real estate course pursuant to an interest in real property shall cause a recording to be created of Part 176 of this Subchapter or an approved subject offered for each course in its entirety. Such recording shall contain both video continuing education shall be credited with two hours for each hour and audio of the instruction. of actual teaching performed. Records of such teaching shall be (b) The recording required by paragraph (a) of this section shall be maintained by the person or organization presenting the course and maintained by the approved entity for at least one year following the certified on forms prescribed by the department. The records of such date such course was provided to an enrolled student. If the entity teaching shall be deemed records of attendance for all purposes of knows or suspects that the recording is or will be the subject of these rules. litigation, then the approved entity shall maintain such recording as required by law. §177.6 Extension of time to complete courses (c) The recording required by paragraph (a) of this section may be The department may grant a waiver to any licensee who evidences subject to audit by the Department pursuant to section 177.11 of this bona fide hardship precluding completion of the continuing education part. requirements prior to the time the renewal application is to be filed. A licensee seeking such a waiver shall file the appropriate renewal §177.10 [Reserved] application, together with the evidence demonstrating such hardship, together with a written request for such waiver. §177.11 Auditing

§177.7 Computation of instruction time A duly authorized designee of the department may audit any course

offered and may verify attendance and inspect the records of To meet the minimum statutory requirement, attendance shall be attendance of the course at any time during its presentation or computed on the basis of an hour equaling 50 minutes. thereafter.

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§177.12 [Reserved] specified therein. No salesperson shall be permitted to carry-over

excess hours following completion of an approved 30-hour or an approved 32-hour supplemental course to a subsequent two-year §177.13 Change in approved course of study renewal cycle. There shall be no change or alteration in any approved course of (c) No continuing education course will be considered for study of any subject or in any instruction staff without prior written continuing education credit more than once within the two year cycle notice to, and approval by, the department. of renewal.

§177.14 Suspensions and denials of course §177.19 Registration period approval Each registration or renewal period for approved programs or courses Within 45 days after the receipt of the application for approval of an shall be for 12 months or a part thereof, said period to commence on offering, the department shall inform the entity as to whether the January 1st or date thereafter and to continue until December 31st. offering has been approved, denied, or whether additional

information is needed to determine the acceptability of the offering. §177.20 Distance learning programs-computer The department may deny, suspend or revoke the approval of a real based estate course or a real estate instructor, if it is determined that they are not in compliance with the law and rules or if the offering does Distance education is defined as any educational process based on the not adequately reflect and present current real estate knowledge as a geographical separation of instructor and learner (e.g., CDROM, basis for a level of real estate practice. If disciplinary action is taken, disk, on-line learning, etc.). Educational providers who wish to offer a written order of suspension, revocation, or denial of approval will distance learning programs must have their programs evaluated and be issued. Anyone who objects to such denial, suspension or approved in accordance with the provisions of this Part, including revocation shall have the opportunity to be heard by the Secretary of specifically sections 177.21 and 177.22. State or appointed designee. Upon the first finding that a real estate instructor failed to meet the obligations required under any applicable §177.21 Request for approval of distance law or regulation, such instructor's approval shall be suspended for a learning programs reasonable period as determined by the Secretary or appointed designee. An instructor's certificate shall be revoked for any Each request for approval of a distance learning program shall be subsequent failure. made at least 60 days before the proposed course is to be offered and shall include the following:

§177.15 Open to public (a) name, address and telephone number of the applicant;

All courses approved pursuant to this Part shall be open to all (b) if applicant is a partnership, the names of the partners in the members of the public regardless of the membership of the entity; if a corporation, the names of any persons who own five prospective student in any real estate board, or real estate-related percent or more of the stock of the entity; professional society or organization. (c) title of each course to be offered; (d) duration and time of each course offered; §177.16 Facilities (e) a detailed outline of the subject matter of each course, together Each course shall be presented in such premises and in such facilities with the time sequence of each major unit and module; as shall be necessary to properly present the course. No course shall (f) the disk or CD-ROM for the course or access to the on-line be presented in any real estate broker's office or the office of any course; association of real estate brokers, except as otherwise may be (g) an explanation of the means for monitoring and verifying each permitted under these rules. student's active participation, on an ongoing basis, during each module of instruction; §177.17 Faculty (h) a brief description of the hardware and software to be used by A person intending to present an approved course shall first be the student; and qualified pursuant to §176.11 of this Title. (i) a plan for providing technical support to the student.

§177.18 Continuing education credit §177.22 Distance learning program

(a) A salesperson who has received credit for a broker qualifying requirements course pursuant to Part 176 of this Subchapter during a period of time To be approved, a distance learning program must meet the following as defined in section 441(3)(a) of the Real Property Law, shall criteria: receive continuing education credit for such course for such period. (a) the material of a distance learning program must be divided (b) A salesperson may receive continuing education credit for into major units; successfully completing an approved 30-hour or an approved 32-hour supplemental course, as described in Part 176 of this Title, provided, (b) the contents of major units must be divided into modules of however, that in order to complete the 22 1/2 hours of continuing instruction; education required in Real Property Law section 441(3), such salesperson must also separately satisfy specific course topics as

NYS Department of State Division of Licensing Services Real Estate License Law / Page 39

(c) the distance learning program must contain a time-default (e) a residential condominium unit. mechanism for inactivity so that a student is not credited when not

§178.4 Boundary streets actively participating in the program;

(d) the school or other person offering the program must obtain For the purposes of this Part, a nonsolicitation area shall include all from each student a signed and dated statement that he or she properties abutting the boundary streets named in the description of personally completed each module of the learning program; the nonsolicitation area. The intent being that the nonsolicitation area (e) the school or other person offering the program must retain a shall include properties on both sides of the boundary streets. record of each student's participation in and completion of the distance-learning program for a period of three years, and such record §178.5 Prohibited forms of solicitation must be available for review and inspection by the Department of (a) Within a nonsolicitation area, no real estate broker or real State; estate salesperson shall engage in any form of solicitation where the (f)-(g) [Reserved] purpose of such solicitation is, directly or indirectly, to obtain a (h) the school or other person offering the program must provide listing of residential property for sale and where such solicitation is evidence of successful completion of the course to each student in directed at or toward a homeowner or occupant of residential certificate form. The certificate must indicate the following: the name property within a designated nonsolicitation area. of the approved entity, the name of the course, the code number of (b) The following are examples of the types of solicitation that are the course, and that the student, who shall be named, has prohibited: satisfactorily completed the continuing education course approved by (1) letters; the Department of State and the number of hours earned. The (2) postcards; certificate must be signed and dated by the owner or course coordinator or other person offering the program; and (3) handbills or leaflets or fliers; (i) Reserved direct advertising delivered by mail or other service; (5) telephone calls; PART 178 (6) door-to-door calls; and NONSOLICITATION ORDERS (7) postings in public places. (c) The following is not prohibited by a nonsolicitation order. Section 178.1 Definition of nonsolicitation order Advertisements that are published in newspapers of general 178.2 [Reserved] circulation: 178.3 Residential property (1) if such newspaper has a general readership throughout the 178.4 Boundary streets metropolitan New York City area or throughout a substantial 178.5 Prohibited forms of solicitation portion of the metropolitan New York City area;

§178.l Definition of nonsolicitation order (2) if such newspaper is published not less than once per week;

and A nonsolicitation order is a directive to all real estate brokers and real (3) if such newspaper is sold by subscription or by individual estate salespersons. The nonsolicitation order directs that all brokers copy and is not distributed free of charge. and salespersons must refrain from soliciting listings for the sale of residential property within a designated geographic area. A nonsolicitation order prohibits any and all types of solicitation PART 179 directed at or toward homeowners in the designated geographic area. DETERMINATION OF The types of solicitation that are prohibited include but are not limited to letters, postcards, telephone calls, door-to-door calls, REAL ESTATE EXPERIENCE handbills, and postings in public areas. In addition, a nonsolicitation order may contain such other terms or conditions as the Secretary of Section State may determine are, on balance, in the best interest of the public, 179.1 Qualifying experience which shall include but not be limited to the affected owners and 179.2 Point system licensees. 179.3 Experience point schedule

§179.l Qualifying experience §178.2 [Reserved]

An applicant for licensure as a real estate broker must possess two

§178.3 Residential property years of full-time experience as a licensed real estate salesperson

under the supervision of a licensed real estate broker or the For the purposes of this Part, the term residence or residential equivalent full-time experience in general real estate business for a property shall include any of the following: period of at least three years. (a) a one-family residence;

§179.2 Point system (b) a two-family residence;

(c) a three-family residence; (a) An applicant will receive credit for such experience according (d) a residential cooperative apartment; and to the point system set forth in section 179.3 of this Part.

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1. Transient garage/parking lot (b) 3500 points shall equate to two years of full-time experience.
   (c) Upon request by the department, either prior to or after

2. Multi-unit commercial condominium licensure, an applicant shall provide documentation or other proof to
   substantiate any or all of the experience claimed by the applicant.

3. Urban commercial development siteFailure to promptly provide the requested documentation or proof
   400 shall be grounds to deny the application, or if the applicant has been

4. Alternative sale type transactionlicensed, shall be grounds to suspend or revoke such license. Any
   400 false claim of experience shall be grounds to deny the application, or

5. Single-tenant commercial condoif the applicant has been licensed, shall be grounds to suspend or
   250 revoke such license.

6. Listings 10

§179.3 Experience point schedule COMMERCIAL LEASING:

1. New Lease-aggregate rental $1 to $200,000 (a) Experience points shall be credited an applicant in accordance 150 with the following schedule: 23. New Lease-aggregate rental $200,000 to $1 million

2. New Lease-aggregate rental over $1 million
   400 25. Renewal-aggregate renewal $1 to $200,000 75

REAL ESTATE BROKER POINT SYSTEM FOR LICENSED 26. Renewal-aggregate rental $200,000 to $1 million

SALESPERSON ACTIVITY ONLY 125

1. Renewal-aggregate rental over $1 million Category
   200 Point

2. Listings 10
   Value COMMERCIAL FINANCING:

(includes residential properties of more than four units): RESIDENTIAL SALES:

1. $1 to $500,000 1. Single Family, condo, co-op unit, multi- family
   200 (2 to 8-unit), farm (with residence, under 100 acres)

2. $500,000 to $5,000,000 250
   300 2. Exclusive listings

3. Over $5,000,00010
   400 3. Open listings 1 MISCELLANEOUS:

4. Binders effected 32. Sale vacant lots, land (under 100 acres) 50
   25 33. Sale vacant land (more than 100 acres)

5. Co-op unit transaction approved by seller and buyer 150
   that fails to win Board of Directors approval 34. Other must be fully explained. 100 --

RESIDENTIAL RENTALS: TOTAL POINTS NEEDED:

1. Rentals or subleases effected 25 3500
2. Exclusive Listings 5 (b) An applicant shall have the burden of establishing to the 8. Open Listings 1 satisfaction of the department that the applicant actually performed 9. Property Management the work associated with the real estate transaction claimed as

• Lease renewal 2 experience credit. - Rent collections per tenant/per year 1

COMMERCIAL SALES:

1. Taxpayer 400

2. Office Building

3. Apartment Building (9 units or more)
   400 GLOSSARY OF REAL ESTATE 13. Shopping Center 400 TERMS

4. Factory/Industrial warehouse

5. Hotel/Motel

NYS Department of State Division of Licensing Services Real Estate License Law / Page 41

A Appraisal - An estimate of a property's value by an appraiser

who is usually presumed to be expert in his work. Abstract of Title - A summary of al1 of the recorded instruments Appraisal by Income Capitalization Approach - An estimate of and proceedings which affect the title to property, arranged in the value by capitalization of productivity and income. order in which they were recorded. Appraisal by Sale Comparison Approach - Comparability with Accretion - The addition of land through processes of nature, as the sale prices of other similar properties. by water or wind. Appraisal by Cost Approach - Adding together all parts of a Accrued Interest - Accrue; to grow; to be added to. Accrued property separately appraised to form a whole: e.g., value of the land interest is interest that has been earned but not due and payable. considered as vacant added to the cost of reproduction of the Acknowledgment - A formal declaration before a duly authorized building, less depreciation. officer by a person who has executed an instrument that such Appurtenance - Something which is outside the property itself execution is the person's act and deed. but belongs to the land and adds to its greater enjoyment such as a Acquisition - An act or process by which a person procures right-of-way or a barn or a dwelling. property. Assessed Valuation - A valuation placed upon property by a Acre - A measure of land equaling 43,560 square feet. public officer or a board, as a basis for taxation. Action for Specific Performance - A court action to compel a Assessment - A charge against real estate made by a unit of defaulting principal to comply with the provisions of a contract. government to cover a proportionate cost of an improvement such as Adjacent - Lying near to but not necessarily in actual contact a street or sewer. with. Assessor - An official who has the responsibility of determining Adjoining - Contiguous; attaching, in actual contact with. assessed values. Administrator - A person appointed by court to administer the Assignee - The person to whom an agreement or contract is estate of a deceased person who left no will; i.e., who died intestate. assigned. Ad Valorem - According to valuation. Assignment - The method or manner by which a right or contract is transferred from one person to another. Adverse Possession - A means of acquiring title where an occupant has been in actual, open, notorious, exclusive, and Assignor - A party who assigns or transfers an agreement or continuous occupancy of property under a claim of right for the contract to another. required statutory period. Assumption of Mortgage - The taking of title to property by a Affidavit - A statement or declaration reduced to writing, and grantee, wherein the grantee assumes liability for payment of an sworn to or affirmed before some officer who is authorized to existing note or bond secured by a mortgage against a property and administer an oath or affirmation. becomes personally liable for the payment of such mortgage debt. Affirm - To confirm, to ratify, to verify. Avulsion - A sudden and perceptible loss or addition to land by the action of water, or a sudden change in the bed or course of a Agency - That relationship between principal and agent which stream. arises out of a contract either expressed or implied, written or oral, wherein an agent is employed by a person to do certain acts on the B person's behalf in dealing with a third party. Balloon Mortgage Payment - A large payment during the term Agent - One who undertakes to transact some business or to of a mortgage, often at the end. manage some affair for another by authority of the latter. Beneficiary - The person who receives or is to receive the Agreement of Sale - A written agreement between seller and benefits resulting from certain acts. purchaser in which the purchaser agrees to buy certain real estate and the seller agrees to sell upon terms and conditions set forth therein. Bequeath - To give or hand down by will; to leave by will. Air Rights - Rights in real property to use the space above the Bequest - That which is given by the terms of a will. surface of the land. Bill of Sale - A written instrument given to pass title of personal Alienation - A transferring of property to another; the transfer of property from vendor to vendee. property and possession of lands, or other things, from one person to Binder - An agreement to cover the down payment for the another. purchase of real estate as evidence of good faith on the part of the Alienation Clause - Allows lender to require the balance of a purchaser. loan to be paid in full if the collateral is sold (also known as a "due Blanket Mortgage - A mortgage covering more than one on sale" clause). property. A blanket mortgage is often used for subdivision financing. Amortization - A gradual paying off of a debt by periodic Blockbusting - The practice of inducing homeowners in a installments. particular neighborhood to sell their homes quickly, often at below Apportionment - Adjustment of the income, expenses or carrying market prices, by creating the fear that the entry of a minority group charges of real estate usually computed to the date of closing of title or groups into the neighborhood will cause a precipitous decline in so that the seller pays all expenses to that date. The buyer assumes all property values. expenses commencing the date the deed is conveyed to the buyer. Bona Fide - In good faith, without fraud.

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Cloud on the Title - An outstanding claim or incumbrance which, Bond - The evidence of a personal debt which is secured by a if valid, would affect or impair the owner's title. mortgage or other lien on real estate. Collateral - Additional security pledged for the payment of an Building Code - Regulations established by state or local obligation. governments stating fully the structural requirements for building. Color of Title - That which appears to be good title, but which is Building Line - A line fixed at a certain distance from the front not title in fact. and/or sides of a lot, beyond which no building can project. Commingling - To mingle or mix, for example, a client's funds in Building Loan Agreement - An agreement whereby the lender the broker's personal or general account. advances money to an owner primarily in the erection of buildings. Such funds are commonly advanced in installments as the structure is Commission - A sum due a real estate broker for services in that completed. capacity. Building Permit - Written governmental permission for the Commitment - A pledge or a promise or affirmation agreement. construction, renovation or substantial repair of a building. Completion Bond - A bond used to guarantee that a proposed

C subdivision development will be completed. Condemnation - Taking private property for public use, with fair Cancellation Clause - A provision in a lease or other contract compensation to the owner; exercising the right of eminent domain. which confers upon one or more of all of the parties to the lease the Conditional Sales Contract - A contract for the sale of property right to terminate the party's or parties' obligations thereunder upon stating that delivery is to be made to the buyer, title to remain vested the occurrence of the condition or contingency set forth in the said in the seller until the conditions of the contract have been fulfilled. clause. Consideration - Anything given to induce another to enter into a Capital Appreciation - The appreciation accruing to the benefit contract such as money or personal services. of the capital improvement to real estate. Constructive Notice - Information or knowledge of a fact Capital Asset - Any asset of a permanent nature used for the imputed by law to a person because the person could have discovered production of income. the fact by proper diligence and inquiry (e.g. via public records). Capital Gain - Income that results from the sale of an asset not in Contingency - A provision in a contract that requires the the usual course of business. (Capital gains may be taxed at a lower occurrence of a specific event before the contract can be completed. rate than ordinary income.) Contract - An agreement between competent parties to do or not Capital Improvement - Any structure erected as a permanent to do certain things which is legally enforceable, whereby each party improvement to real estate, usually extending the useful life and acquires a right. value of a property. (The replacement of a roof would be considered a capital improvement.) Conversion - Change from one character or use to another. Capital Loss - A loss from the sale of an asset not in the usual Conveyance - The transfer of the title of land from one to course of business. another. The means or medium by which title of real estate is transferred. Caveat Emptor - Let the buyer beware. The buyer must examine the goods or property and buy at the buyer's own risk. Covenants - Agreements written into deeds and other instruments promising performance or nonperformance of certain acts, or Cease and Desist List - Upon the establishment of a cease and stipulating certain uses or nonuses of the property. desist zone by the Secretary, a list of homeowners who have filed owner's statements expressing their wish not to be solicited by real Cul-de-sac - A blind alley: a street with only one outlet. estate brokers or salespersons. Soliciting of listed homeowners by Current Value - The value usually sought to be estimated in an licensees is prohibited. Violators of such prohibition are subject to appraisal. licensure suspension or revocation.

D Cease and Desist Zone - A rule adopted by the Secretary of State which prohibits the direct solicitation of homeowners whose names Damages - The indemnity recoverable by a person who has and addresses appear on a cease and desist list maintained by the sustained an injury, either to his/her person, property, or relative Secretary. Such rule may be adopted upon the Secretary's rights, through the act or default of another. determination that some homeowners within a defined geographic Debit - The amount charged as due or owing. area have been subject to intense and repeated solicitation by real Debt Capital - Money borrowed for a particular business estate brokers and salespersons. purpose. Certificate of Occupancy (CO) - A document issued by a Debt Service - Annual amount to be paid by a debtor on an governmental authority that a building is ready and fit for occupancy. obligation to repay borrowed money. Chain of Title - A history of conveyances and incumbrances Decedent - One who is dead. affecting a title from the time the original patent was granted, or as far back as records are available. Decree - Order issued by one in authority; an edict or law; a judicial decision. Chattel - Personal property, such as household goods. Dedication - A grant and appropriation of land by its owner for Client - The one by whom a broker is employed. some public use, accepted for such use, by an authorized public Closing Date - The date upon which the property is conveyed by official on behalf of the public. the seller to the buyer.

NYS Department of State Division of Licensing Services Real Estate License Law / Page 43

Deed - An instrument in writing duly executed and delivered, that Encroachment - A building, part of a building, or obstruction conveys title to real property. which intrudes upon or invades a highway or sidewalk or trespasses upon the property of another. Deed Restriction - An imposed restriction in a deed for the Encumbrance - Any right to or interest in the land interfering purpose of limiting the use of the land such as: with its use or transfer, or subjecting it to an obligation. (Also 1. A restriction against the sale of liquor thereon. Incumbrance) 2. A restriction as to the size, type, value or placement of Endorsement - An act of signing one's name on the back of a improvements that may be erected thereon. check or note, with or without further qualifications. Default - Failure to fulfill a duty or promise, or to discharge an Equity - The interest or value which the owner has in real estate obligation; omission or failure to perform any acts. over and above the liens against it. Defeasance Clause - The clause in a mortgage that permits the Equity Loan - Junior loan based on a percentage of the equity. mortgagor to redeem his or her property upon the payment of the Equity of Redemption - A right of the owner to reclaim property obligations to the mortgagee. before it is sold through foreclosure proceedings, by the payment of Deficiency Judgment - A judgment given when the security for a the debt, interest and costs. loan does not entirely satisfy the debt upon its default. Erosion - The wearing away of land through processes of nature, Delivery - The transfer of the possession of a thing from one as by water and winds. person to another. Escheat - The reversion to the State of property in event the Demand Note - A note which is payable on demand of the holder. owner thereof abandons it or dies, without leaving a will and has no Demising Clause - A clause found in a lease whereby the distributees to whom the property may pass by lawful descent. landlord (lessor) leases and the tenant (leasee) takes the property. Escrow - A written agreement between two or more parties Depreciation - Loss of value in real property brought about by providing that certain instruments or property be placed with a third age, physical deterioration, or functional or economic obsolescence. party to be delivered to a designated person upon the fulfillment or Descent - When an owner of real estate dies intestate, the owner's performance of some act or condition. (See Rule 175.1) property descends, by operation of law, to the owner's distributees. Estate - The degree, quantity, nature and extent of interest which Devise - A gift of real estate by will or last testament. a person has in real property. Devisee - One who receives a bequest of real estate made by will. Estate in Reversion - The residue of an estate left for the grantor, to commence in possession after the termination of some particular Devisor - One who bequeaths real estate by will. estate granted by the grantor. Dispossess Proceedings - Summary process by a landlord to oust Estate at Will - The occupation of lands and tenements by a a tenant and regain possession of the premises for nonpayment of rent tenant for an indefinite period, terminable by one or both parties at or other breach of conditions of the lease or occupancy. will. Documentary Evidence - Evidence in the form of written or Estoppel Certificate - An instrument executed by the mortgagor printed papers. setting forth the present status and the balance due on the mortgage as Dual Agency - Representing both principals (seller and buyer) to of the date of the execution of the certificate. a transaction. Eviction - A legal proceeding by a lessor landlord to recover Duress - Unlawful constraint exercised upon a person whereby possession of real property. the person is forced to do some act against the person's will. Eviction, Actual - Where one is either by force or by process of E law, actually put out of possession. Earnest Money - Down payment made by a purchaser of real Eviction, Constructive - Any disturbance of the tenant's estate as evidence of good faith. possession of the leased premises by the landlord whereby the premises are rendered unfit or unsuitable for the purpose for which Easement - A right that may be exercised by the public or they were leased. individuals on, over or through the lands of others. Exclusive Agency - An agreement of employment of a broker to Economic Life - The period over which a property will yield the the exclusion of all other brokers; if sale is made by any other broker investor a return on the investment. during term of employment, broker holding exclusive agency is Economic Obsolescence - Lessened desirability or useful life entitled to commissions in addition to the commissions payable to the arising from economic forces, such as changes in optimum land use, broker who effected the transaction. (See Rule 175.24) legislative enactments which restrict or impair property rights, and Exclusive Right to Sell - An agreement of employment by a changes in supply-demand ratios. broker under which the exclusive right to sell for a specified period is Ejectment - A form of action to regain possession of real granted to the broker; if a sale during the term of the agreement is property, with damages for the unlawful retention; used when there is made by the owner or by any other broker, the broker holding such no relationship of landlord and tenant. exclusive right to sell is nevertheless entitled to compensation. (See Eminent Domain - A right of the government to acquire property Rule 175.24) for necessary public use by condemnation; the owner must be fairly Executor - A male person or a corporate entity or any other type compensated. of organization named or designed in a will to carry out its provisions as to the disposition of the estate of a deceased person.

Page 44 / Real Estate License Law NYS Department of State Division of Licensing Services

Executrix - A woman appointed to perform the same duties as an Installments - Parts of the same debt, payable at successive executor. periods as agreed; payments made to reduce a mortgage. Extension Agreement - An agreement which extends the life of a Instrument - A written legal document; created to effect the mortgage to a later date. rights of the parties. Interest Rate - The percentage of a sum of money charged for its F use. Fee; Fee Simple; Fee Absolute - Absolute ownership of real Intestate - A person who dies having made no will, or leaves one property; a person has this type of estate where the person is entitled which is defective in form, in which case the person's estate descends to the entire property with unconditional power of disposition during to the person's distributees in the manner prescribed by law. the person's life and descending to the person's heirs or distributees. Involuntary Lien - A lien imposed against property without Fiduciary - A person who on behalf of or for the benefit of consent of the owner, e.g., taxes, special assessments. another transacts business or handles money or property not the Irrevocable - Incapable of being recalled or revoked; person's own; such relationship implies great confidence and trust. unchangeable; unalterable. Fixtures - Personal property so attached to the land or

J improvements as to become part of the real property. Foreclosure - A procedure whereby property pledged as security Joint Tenancy - Ownership of realty by two or more persons, for a debt is sold to pay the debt in the event of default in payments each of whom has an undivided interest with the "right of or terms. survivorship." Freehold - An interest in real estate, not less than an estate for Judgment - A formal decision issued by a court concerning the life. (Use of this term discontinued Sept. 1, 1967.) respective rights and claims of the parties to an act or suit.

G Junior Mortgage - A mortgage second in lien to a previous mortgage. Grace Period - Additional time allowed to perform an act or

L make a payment before a default occurs. Graduated Leases - A lease which provides for a graduated Laches - Delay or negligence in asserting one's legal rights. change at stated intervals in the amount of the rent to be paid; used Landlord - One who rents property to another. largely in long-term leases. Lease - A contract whereby, for a consideration, usually termed Grant - A technical term used in deeds of conveyance of lands to rent, one who is entitled to the possession of real property transfers indicate a transfer. such rights to another for life, for a term of years, or at will. Grantee - The party to whom the title to real property is Leasehold - The interest or estate which a lessee of real estate has conveyed. therein by virtue of the lessee's lease. Grantor - The person who conveys real estate by deed; the seller. Lessee - A person to whom property is rented under a lease. Gross Income - Total income from property before any expenses Lessor - One who rents property to another under a lease. are deducted. Lien - A legal right or claim upon a specific property which Gross Lease - A lease of property whereby the lessor is to meet attaches to the property until a debt is satisfied. all property charges regularly incurred through ownership. Life Estate - The conveyance of title to property for the duration Ground Rent - Earnings of improved property credited to earning of the life of the grantee. of the ground itself after allowance made for earnings of Life Tenant - The holder of a life estate. improvements. Lis Pendens - A legal document, filed in the office of the county Group Boycott - An agreement between members of a trade to clerk giving notice that an auction or proceeding is pending in the exclude other members from fair participation in the trade. courts affecting the title to the property. (Not applicable in

H commission disputes.) Listing - An employment contract between principal and agent, Habendum Clause - The "to have and to hold" clause which authorizing the agent to perform services for the principal involving defines or limits the quantity of the estate granted in the premises of the latter's property. the deed. Littoral Rights - The right of a property owner whose land Holdover Tenant - A tenant who remains in possession of leased borders on a body of water, such as a lake, ocean or sea, to property after the expiration of the lease term. reasonable use and enjoyment of the shore and water the property I borders on. Incompetent - A person who is unable to manage his/her own M affairs by reason of insanity, imbecility or feeblemindedness. Mandatory - Requiring strict conformity or obedience. In Rem - A proceeding against the realty directly; as Market Allocation - An agreement between members of a trade distinguished from a proceeding against a person. (Used in taking to refrain from competition in specific market areas. land for nonpayment of taxes, etc.) Market Price - The actual selling price of a property.

NYS Department of State Division of Licensing Services Real Estate License Law / Page 45

O Market Value - The most probable price that a property should

bring if exposed for sale in the open market for a reasonable period of Obligee - The person in whose favor an obligation is entered into. time, with both the buyer and seller aware of current market Obligor - The person who binds himself/herself to another; one conditions, neither being under duress. who has engaged to perform some obligation; one who makes a bond. Marketable Title - A title which a court of equity considers to be Obsolescence - Loss in value due to reduced desirability and so free from defect that it will enforce its acceptance by a purchaser. usefulness of a structure because its design and construction become Mechanic's Lien - A lien given by law upon a building or other obsolete; loss because of becoming old fashioned, and not in keeping improvement upon land, and upon the land itself, to secure the price with modern means, with consequent loss of income. of labor done upon, and materials furnished for, the improvement. Open Listing - A listing given to any number of brokers without Meeting of the Minds - Whenever all parties to a contract agree liability to compensate any except the one who first secures a buyer to the substance and terms thereof. ready, willing and able to meet the terms of the listing, or secures the Metes and Bounds - A term used in describing the boundary acceptance by the seller of a satisfactory offer; the sale of the lines of land, seeing forth all the boundary lines together with their property automatically terminates the listing. terminal points and angles. Option - A right given for a consideration to purchase or lease a Minor - A person under an age specified by law; usually under 18 property upon specified terms within a specified time; if the right is years of age. not exercised the option holder is not subject to liability for damages; Monument - A fixed object and point established by surveyors to if exercised, the grantor of option must perform. establish land locations. P Mortgage - An instrument in writing, duly executed and Partition - The division which is made of real property between delivered, that creates a lien upon real estate as security for the those who own it in undivided shares. payment of a specified debt, which is usually in the form of a bond. Party Wall - A wall built along the line separating two properties, Mortgage Commitment - A formal indication by a lending partly on each, which wall either owner, the owner's heirs and institution that it will grant a mortgage loan on property in a certain assigns has the right to use; such right constituting an easement over specified amount and on certain specified terms. so much of the adjoining owner's land as is covered by the wall. Mortgage Reduction Certificate - An instrument executed by Percentage Lease - A lease of property in which the rental is the mortgagee, setting forth the present status and the balance due on based upon the percentage of the volume of sales made upon the the mortgage as of the date of the execution of the instrument. leased premises, usually provides for minimum rental. Mortgagee - The party who lends money and takes mortgage to Performance Bond - A bond used to guarantee the specific secure the payment thereof. completion of an endeavor in accordance with a contract. Mortgagor - A person who borrows money and gives a mortgage Personal Property - Any property which is not real property. on the person's property as security for the payment of the debt. Plat Book - A public record containing maps of land showing the Multiple Listing - An arrangement among Real Estate Board of division of such land into streets, blocks and lots and indicating the Exchange Members, whereby each broker presents the broker's measurements of the individual parcels. listings to the attention of the other members so that if a sale results, the commission is divided between the broker bringing the listing and Plottage - Increment in unity value of a plot of land created by the broker making the sale. (See Rule 175.24) assembling smaller ownerships into one ownership.

N Points - Discount charges imposed by lenders to raise the yields on their loans. Net Listing - A price below which an owner will not sell the Police Power - The right of any political body to enact laws and property, and at which price a broker will not receive a commission; enforce them, for the order, safety, health, morals and general welfare the broker receives the excess over and above the net listing as the of the public. broker's commission. (See Rule 175.19) Power of Attorney - A written instrument duly signed and Nonsolicitation Order - A rule adopted by the Secretary of State executed by a person which authorizes an agent to act on his/her which prohibits any or all types of solicitation directed towards behalf to the extent indicated in the instrument. homeowners within a defined geographic area. Such rule may be Prepayment Clause - A clause in a mortgage which gives a adopted after a public hearing and upon the Secretary's determination mortgagor the privilege of paying the mortgage indebtedness before that homeowners within the subject area have been subject to intense it becomes due. and repeated solicitations by real estate brokers or salespersons and that such solicitations have caused owners to reasonably believe that Price Fixing - Conspiring to establish fixed fees or prices for property values may decrease because persons of different race, services or products. ethnic, religious or social backgrounds are moving or about to move Principal - The employer of an agent or broker; the broker's or into such area. agent's client. Notary Public - A public officer who is authorized to take Probate - To establish the will of a deceased person. acknowledgments to certain classes of documents, such as deeds, Proration - Allocation of closing costs and credits to buyers and contracts, mortgages, and before whom affidavits may be sworn. sellers.

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Purchase Money Mortgage - A mortgage given by a grantee in Rent - The compensation paid for the use of real estate. part payment of the purchase price of real estate. Reproduction Cost - Normal cost of exact duplication of a property as of a certain date. Q Restraint of Trade - Business practices designed to restrict Quiet Enjoyment - The right of an owner or a person legally in competition, create a monopoly, control prices and otherwise obstruct possession to the use of property without interference of possession. the free operation of business. Quiet Title Suit - A suit in court to remove a defect, cloud or Restriction - A limitation placed upon the use of property suspicion regarding legal rights of an owner to a certain parcel of real contained in the deed or other written instrument in the chain of title. property. Reversionary Interest - The interest which a grantor has in lands Quit Claim Deed - A deed which conveys simply the grantor's or other property upon the termination of the preceding estate. rights or interest in real estate, without any agreement or covenant as Revocation - An act of recalling a power of authority conferred, to the nature or extent of that interest, or any other covenants; usually as the revocation of a power of attorney; a license, an agency, etc. used to remove a cloud from the title. Right of Survivorship - Right of the surviving joint owner to R succeed to the interests of the deceased joint owner, distinguishing feature of a joint tenancy or tenancy by the entirety. Racial Steering - The unlawful practice of influencing a person's housing choice based on his/her race. Right-of-Way - The right to pass over another's land pursuant to an easement or license. Real Estate Board - An organization whose members consist primarily of real estate brokers and salespersons. Riparian Owner - One who owns land bounding upon a river or watercourse. Real Estate Syndicate - A partnership formed for participation in a real estate venture. Partners may be limited or unlimited in their Riparian Rights - The right of a property owner whose land liability. borders a natural water course, such as a river, to reasonable use and enjoyment of the water that flows past the property. Riparian literally Real Property - Land, and generally whatever is erected upon or means "riverbank." affixed thereto.

S Realization of Gain - The taking of the gain or profit from the sale of property. Sales Contract - A contract by which the buyer and seller agree Realtor - A coined word which may only be used by an active to terms of sale. member of a local real estate board, affiliated with the National Satisfaction Piece - An instrument for recording and Association of Real Estate Boards. acknowledging payment of an indebtedness secured by a mortgage. Reconciliation - The final stage in the appraisal process where Second Mortgage - A mortgage made by a home buyer in the appraiser reviews the data and estimates the subject property's addition to an existing first mortgage. value. Seizin - The possession of land by one who claims to own at least Recording - The act of writing or entering in a book of public an estate for life therein. record instrument affecting the title to real property. Setback - The distance from the curb or other established line, Recourse - The right to a claim against a prior owner of a within which no buildings may be erected. property or note. Situs - The location of a property. Redemption - The right of a mortgagor to redeem the property by Special Assessment - An assessment made against a property to paying a debt after the expiration date and before sale at foreclosure; pay for a public improvement by which the assessed property is the right of an owner to reclaim the owner's property after the sale supposed to be especially benefitted. for taxes. Specific Performance - A remedy in a court of equity compelling Red-Lining - The refusal to lend money within a specific area for a defendant to carry out the terms of an agreement or contract. various reasons. This practice is illegal. Statute - A law established by an act of the Legislature. Referee's Deed - Used to convey real property sold pursuant to a judicial order, in an action for the foreclosure of a mortgage or for Statute of Frauds - State law which provides that certain partition. contracts must be in writing in order to be enforceable at law. Release - The act or writing by which some claim or interest is Statute of Limitations - A statute barring all right of action after surrendered to another. a certain period of time from the time when a cause of action first arises. Release Clause - A clause found in a blanket mortgage which gives the owner of the property the privilege of paying off a portion Subagent - An agent of a person already acting as an agent of a of the mortgage indebtedness, and thus freeing a portion of the principal. property from the mortgage. Subdivision - A tract of land divided into lots or plots. Rem - (See In Rem) Subletting - A leasing by a tenant to another, who holds under the Remainder - An estate which takes effect after the termination of tenant. a prior estate, such as a life estate. Subordination Clause - A clause which permits the placing of a Remainderman - The person who is to receive the property after mortgage at a later date which takes priority over an existing the termination of the prior estate. mortgage.

NYS Department of State Division of Licensing Services Real Estate License Law / Page 47

Subscribing Witness - One who writes his/her name as witness Variance - The authorization to improve or develop a particular to the execution of an instrument. property in a manner not authorized by zoning. Surety - One who guarantees the performance of another; Vendee's Lien - A lien against property under contract of sale to guarantor. secure deposit paid by a purchaser. Violations - Act, deed or conditions contrary to law or Surrender - The cancellation of a lease by mutual consent of the lessor and the lessee. permissible use of real property. Surrogate's Court (Probate Court) - A court having jurisdiction Void - To have no force or effect; that which is unenforceable. over the proof of wills, the settling of estates and of citations. Voidable - That which is capable of being adjudged void, but is Survey - The process by which a parcel of land is measured and not void unless action is taken to make it so. its area ascertained; also the blueprint showing the measurements, W boundaries and area. Waiver - The renunciation, abandonment, or surrender of some T claim, right or privilege. Tax Sale - Sale of property after a period of nonpayment of taxes. Warranty Deed - A conveyance of land in which the grantor Tenancy in Common - An ownership of realty by two or more warrants the title to the grantee. persons, each of whom has an undivided interest, without the "right Water Rights - The right of a property owner to use water on, of survivorship." under or adjacent to the land for such purposes as irrigation, power or Tenancy by the Entirety - An estate which exists only between private consumption. husband and wife with equal right of possession and enjoyment Will - The disposition of one's property to take effect after death. during their joint lives and with the "right of survivorship." Wraparound Loan - A new loan encompassing any existing Tenancy at Will - A license to use or occupy lands and tenements loans. at the will of the owner.

Z Tenant - One who is given possession of real estate for a fixed period or at will. Zone - An area set off by the proper authorities for specific use; subject to certain restrictions or restraints. Tenant at Sufferance - One who comes into possession of lands by lawful title and keeps it afterwards without any title at all. Zoning Ordinance - Act of city or county or other authorities specifying type and use to which property may be put in specific Testate - Where a person dies leaving a valid will. areas. Tie-in Arrangement - A contract where one transaction depends upon another. Title - Evidence that owner of land is in lawful possession thereof; evidence of ownership. Title Insurance - A policy of insurance which indemnifies the holder for any loss sustained by reason of defects in the title. Title Search - An examination of the public records to determine the ownership and incumbrances affecting real property. Torrens Title - System of title records provided by state law; it is a system for the registration of land titles whereby the state of the title, showing ownership and incumbrances, can be readily ascertained from an inspection of the "register of titles" without the necessity of a search of the public records. Tort - A wrongful act, wrong, injury; violation of a legal right. Transfer Tax - A tax charged under certain conditions on the property belonging to an estate.

Urban Property - City property; closely settled property. Usury - On a loan, claiming a rate of interest greater than that permitted by law.

Valid - Having force, or binding force; legally sufficient and authorized by law. Valuation - Estimated worth or price. The act of valuing by appraisal.

Page 48 / Real Estate License Law NYS Department of State Division of Licensing Services