Bill Text: NY A08077 | 2021-2022 | General Assembly | Amended
Bill Title: Replaces all instances of the word or variations of the word salesman with the word salesperson or variation thereof; amends the language of the real property law to be gender neutral.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2022-05-03 - substituted by s536a [A08077 Detail]
Download: New_York-2021-A08077-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 8077--A 2021-2022 Regular Sessions IN ASSEMBLY June 11, 2021 ___________ Introduced by M. of A. O'DONNELL, McDONALD -- read once and referred to the Committee on Judiciary -- recommitted to the Committee on Judici- ary in accordance with Assembly Rule 3, sec. 2 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the real property law, in relation to replacing all instances of the word or variations of the word salesman with the word salesperson or variation thereof The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The article heading of article 12-A of the real property 2 law, as amended by chapter 107 of the laws of 1927, is amended to read 3 as follows: 4 REAL ESTATE BROKERS AND REAL ESTATE 5 [SALESMEN] SALESPERSONS 6 § 2. Subdivisions 2, 3, 5, and 6 of section 440 of the real property 7 law, subdivision 2 as amended by chapter 324 of the laws of 1998, subdi- 8 visions 3 and 5 as amended by chapter 699 of the laws of 1988, and 9 subdivision 6 as amended by chapter 699 of the laws of 2021, are amended 10 to read as follows: 11 2. "Associate real estate broker" means a licensed real estate broker 12 who shall by choice elect to work under the name and supervision of 13 another individual broker or another broker who is licensed under a 14 partnership, trade name, limited liability company or corporation. Such 15 individual shall retain [his or her] their license as a real estate 16 broker as provided for in this article; provided, however, that the 17 practice of real estate sales and brokerage by such individual as an 18 associate broker shall be governed exclusively by the provisions of this 19 article as they pertain to real estate [salesmen] salespersons. Nothing 20 contained herein shall preclude an individual who elects to be licensed 21 as an associate broker from also retaining a separate real estate EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD04895-02-2A. 8077--A 2 1 broker's license under an individual, partnership, trade name, limited 2 liability company or corporation. 3 3. "Real estate [salesman] salesperson" means a person associated with 4 a licensed real estate broker to list for sale, sell or offer for sale, 5 at auction or otherwise, to buy or offer to buy or to negotiate the 6 purchase or sale or exchange of real estate, or to negotiate a loan on 7 real estate other than a mortgage loan as defined in section five 8 hundred ninety of the banking law, or to lease or rent or offer to 9 lease, rent or place for rent any real estate, or collects or offers or 10 attempts to collect rent for the use of real estate for or in behalf of 11 such real estate broker, or who, notwithstanding any other provision of 12 law, performs any of the above stated functions with respect to the 13 resale of a condominium property originally sold pursuant to the 14 provisions of the general business law governing real estate syndication 15 offerings. 16 5. "Association, associated; or associated with" whenever used in this 17 article shall be deemed to make reference to a [salesman's] 18 salesperson's relationship with [his or her] their broker. Nothing in 19 this article shall be deemed or construed to be indicative or determina- 20 tive of the legal relationship of a salesperson to a broker nor shall 21 any provision of this article be deemed or construed to alter or other- 22 wise affect the legal responsibility of a real estate broker to third 23 parties for the acts of anyone associated with such broker pursuant to 24 this article. 25 6. "Office manager" means a licensed associate real estate broker who 26 shall by choice elect to work as an office manager under the name and 27 supervision of another individual broker or another broker who is 28 licensed under a partnership, trade name, limited liability company or 29 corporation. An associate real estate broker shall be required to have 30 been active as a licensed associate broker for at least two of the four 31 years preceding appointment as an office manager. Such individual shall 32 retain [his or her] their license as a real estate broker as provided 33 for in this article and shall be required to exercise the same duty of 34 supervision over [salesmen] salespersons and associate brokers as a 35 licensed real estate broker; provided, however, that the practice of 36 real estate sales and brokerage by such individual as an associate 37 broker shall be governed exclusively by the provisions of this article 38 as they pertain to real estate [salesmen] salespersons. Nothing 39 contained in this subdivision shall preclude an individual who is 40 licensed as an associate broker who elects to work as an office manager 41 from also retaining a separate real estate broker's license under an 42 individual, partnership, trade name, limited liability company or corpo- 43 ration. 44 § 3. Section 440-a of the real property law, as amended by section 3 45 of part V of chapter 58 of the laws of 2020, is amended to read as 46 follows: 47 § 440-a. License required for real estate brokers and [salesmen] 48 salespersons. No person, co-partnership, limited liability company or 49 corporation shall engage in or follow the business or occupation of, or 50 hold [himself] themselves or itself out or act temporarily or otherwise 51 as a real estate broker or real estate [salesman] salesperson in this 52 state without first procuring a license therefor as provided in this 53 article. No person shall be entitled to a license as a real estate 54 broker under this article, either as an individual or as a member of a 55 co-partnership, or as a member or manager of a limited liability company 56 or as an officer of a corporation, unless [he or she is] they are twentyA. 8077--A 3 1 years of age or over. No person shall be entitled to a license as a real 2 estate [salesman] salesperson under this article unless [he or she is] 3 they are over the age of eighteen years. No person shall be entitled to 4 a license as a real estate broker or real estate [salesman] salesperson 5 under this article who has been convicted in this state or elsewhere of 6 a crime, unless the secretary makes a finding in conformance with all 7 applicable statutory requirements, including those contained in article 8 twenty-three-A of the correction law, that such convictions do not 9 constitute a bar to licensure. No person shall be entitled to a license 10 as a real estate broker or real estate [salesman] salesperson under this 11 article who does not meet the requirements of section 3-503 of the 12 general obligations law. 13 Notwithstanding anything to the contrary in this section, tenant asso- 14 ciations and not-for-profit corporations authorized in writing by the 15 commissioner of the department of the city of New York charged with 16 enforcement of the housing maintenance code of such city to manage resi- 17 dential property owned by such city or appointed by a court of competent 18 jurisdiction to manage residential property owned by such city shall be 19 exempt from the licensing provisions of this section with respect to the 20 properties so managed. 21 § 4. Section 440-b of the real property law, as added by chapter 555 22 of the laws of 1934, is amended to read as follows: 23 § 440-b. Licenses in Putnam county. On and after the first day of 24 July, nineteen hundred thirty-four, no person, copartnership or corpo- 25 ration shall engage in or follow the business or occupation of, or hold 26 [himself] themselves or itself out temporarily or otherwise as a real 27 estate broker or real estate [salesman] salesperson in the county of 28 Putnam, without first procuring a license therefor as provided in this 29 article, except that such license in such county shall be granted and 30 issued, without the written examination provided in this article, to a 31 person, copartnership or corporation who was engaged in business as a 32 real estate broker or real estate [salesman] salesperson in such county 33 prior to the first day of January, nineteen hundred thirty-four. 34 § 5. Paragraphs (a), (b) and (c) of subdivision 1 and paragraphs (a), 35 (b), (c), and (d) of subdivision 1-A of section 441 of the real property 36 law, paragraph (a) of subdivision 1 as amended by chapter 324 of the 37 laws of 1998, paragraphs (b) and (c) of subdivision 1 and paragraph (d) 38 of subdivision 1-A as amended by chapter 183 of the laws of 2006, and 39 paragraphs (a), (b), and (c) of subdivision 1-A as amended by chapter 81 40 of the laws of 1995, are amended to read as follows: 41 (a) Any person, copartnership, limited liability company or corpo- 42 ration desiring to act as a real estate broker or any person desiring to 43 act as a real estate [salesman] salesperson on or after the first day of 44 October, nineteen hundred twenty-two, shall file with the department of 45 state at its office in Albany an application for the kind of license 46 desired, in such form and detail as such department shall prescribe and 47 conforming to the requirements of section 3-503 of the general obli- 48 gations law, setting forth the following, if the application be for a 49 broker's license: 50 (i) The name and residence address of the applicant, and if an indi- 51 vidual the name under which [he intends] they intend to conduct busi- 52 ness. 53 (ii) If the applicant be a copartnership the name and residence 54 address of each member thereof and the name under which the business is 55 to be conducted; or, if the applicant be a limited liability company, 56 the name of the company, and the name and residence of each of itsA. 8077--A 4 1 members; or, if the applicant be a corporation, the name of the corpo- 2 ration and the name and residence address of each of its officers. 3 (iii) The place or places, including the city, town or village, with 4 the street and number, where the business is to be conducted. 5 (iv) The business or occupation theretofore engaged in by the appli- 6 cant, or, if a copartnership, by each member thereof, or, if a limited 7 liability company, by each member thereof, or, if a corporation, by each 8 officer thereof, for a period of two years, immediately preceding the 9 date of such application, setting forth the place or places where such 10 business or occupation was engaged in and the name or names of employ- 11 ers, if any. 12 (v) The form, information and statement required by section 3-503 of 13 the general obligations law. 14 (b) Such further information as the department may reasonably require 15 shall be furnished by the applicant including sufficient proof of having 16 taken and passed a written examination and answered such questions as 17 may be prepared by the department to enable it to determine the trust- 18 worthiness of the applicant if an individual, or of each member of a 19 co-partnership or each member of a limited liability company or each 20 officer of a corporation for whom a license as a broker is asked, and 21 [his or] their competency to transact the business of real estate broker 22 in such a manner as to safeguard the interests of the public. In deter- 23 mining competency, the department shall require proof that the person 24 being tested to qualify to apply for a broker's license has a fair know- 25 ledge of the English language, a fair understanding of the general 26 purposes and general legal effect of deeds, mortgages, land contracts of 27 sale, and leases, a general and fair understanding of the obligations 28 between principal and agent, as well as of the provisions of this 29 section. The applicant must also furnish proof that [he has] they have 30 attended for at least one hundred twenty hours and has successfully 31 completed a real estate course or courses approved by the secretary of 32 state as to method and content and supervision which approval may be 33 withdrawn if in the opinion of the secretary of state said course or 34 courses are not being conducted properly as to method, content and 35 supervision, and that either the applicant has actively participated in 36 the general real estate brokerage business as a licensed real estate 37 [salesman] salesperson under the supervision of a licensed real estate 38 broker for a period of not less than two years or has had the equivalent 39 experience in general real estate business for a period of at least 40 three years, the nature of which experience shall be established by 41 affidavit duly sworn to under oath and/or other and further proof 42 required by the department of state. Computer-based and distance-learn- 43 ing courses may be approved by the department so long as providers 44 demonstrate the ability to monitor and verify participation by the 45 applicant for the specified time period. Notwithstanding the foregoing 46 authority to approve computer-based and distance-learning courses, the 47 department may prescribe that specified subjects or hours must be 48 presented in a classroom setting. 49 (c) In the event the applicant shall be a licensed [salesman] sales- 50 person under this article and shall have submitted acceptable proof 51 pursuant to the provisions of either paragraph (d) of subdivision one-A 52 of this section or paragraph (a) of subdivision three of this section of 53 having attended and successfully completed seventy-five hours of an 54 approved real estate course or courses within eight years of the date of 55 the application, the department may accept and credit same against the 56 one hundred twenty hours required hereunder.A. 8077--A 5 1 (a) Every application for a real estate [salesman's] salesperson's 2 license shall set forth: 3 (i) The name and residence address of the applicant. 4 (ii) The name and principal business address of the broker with whom 5 [he is] they are to be associated. 6 (iii) The business or occupation engaged in for the two years imme- 7 diately preceding the date of the application, setting forth the place 8 or places where such business or occupation was engaged in, and the name 9 or names of employers if any. 10 (iv) The length of time [he has] they have been engaged in the real 11 estate business. 12 (v) The form, information and statement required by section 3-503 of 13 the general obligations law. 14 (b) Each applicant for a [salesman's] salesperson's license shall 15 provide such further information as the department may reasonably 16 require, appearing at such time and place as may be designated by the 17 department, to take a written examination and answer such questions as 18 may be prepared by the department to enable it to determine the trust- 19 worthiness of the applicant and the applicant's competence to transact 20 the business of real estate [salesman] salesperson in such a manner as 21 to safeguard the interests of the public, including the applicant's 22 working knowledge of the basic concepts of law pertaining to contracts, 23 real property, agency and this article which govern conduct of such 24 business, mastery of basic skills needed to perform the applicant's 25 duties, working knowledge of the ethical obligations of a real estate 26 [salesman] salesperson, and knowledge of the provisions of the general 27 obligations law pertaining to performance of the applicant's duties. 28 (c) Each application for either a broker's or [salesman's] 29 salesperson's license under this article shall be subscribed by the 30 applicant; or if made by a co-partnership it shall be subscribed by a 31 member thereof, or if made by a corporation it shall be subscribed by an 32 officer thereof, and shall conform to the requirements of section 3-503 33 of the general obligations law. Each application shall contain an affir- 34 mation by the person so subscribing that the statements therein are true 35 under the penalties of perjury. An application for a license shall be 36 accompanied by the appropriate license fee, as hereinafter prescribed in 37 this article. 38 (d) Anything to the contrary herein notwithstanding, on and after the 39 effective date of this paragraph, no [salesman's] salesperson's license 40 or conditional license shall be issued by the department unless the 41 application therefor has been accompanied by proof that prior to such 42 application the applicant has attended at least seventy-five hours and 43 successfully completed a real estate course or courses approved by the 44 secretary of state as to method and content and supervision, which 45 approval may be withdrawn if in the opinion of the secretary of state 46 said course or courses are not properly conducted as to method, content 47 and supervision. Computer-based and distance-learning courses may be 48 approved by the department so long as providers demonstrate the ability 49 to monitor and verify participation by the applicant for the specified 50 time period. Notwithstanding the foregoing authority to approve compu- 51 ter-based and distance-learning courses, the department may prescribe 52 that specified subjects or hours must be presented in a classroom 53 setting. 54 § 6. Paragraph (b) of subdivision 1 of section 441 of the real proper- 55 ty law, as amended by chapter 100 of the laws of 2022, is amended to 56 read as follows:A. 8077--A 6 1 (b) Such further information as the department may reasonably require 2 shall be furnished by the applicant including sufficient proof of having 3 taken and passed a written examination and answered such questions as 4 may be prepared by the department to enable it to determine the trust- 5 worthiness of the applicant if an individual, or of each member of a 6 co-partnership or each member of a limited liability company or each 7 officer of a corporation for whom a license as a broker is asked, and 8 [his, her or] their competency to transact the business of real estate 9 broker in such a manner as to safeguard the interests of the public. In 10 determining competency, the department shall require proof that the 11 person being tested to qualify to apply for a broker's license has a 12 fair knowledge of the English language, a fair understanding of the 13 general purposes and general legal effect of deeds, mortgages, land 14 contracts of sale, and leases, a general and fair understanding of the 15 obligations between principal and agent, has taken a class on cultural 16 competency training, as well as of the provisions of this section. The 17 applicant must also furnish proof that [he or she has] they have 18 attended for at least one hundred twenty hours and has successfully 19 completed a real estate course or courses approved by the secretary of 20 state as to method and content and supervision which approval may be 21 withdrawn if in the opinion of the secretary of state said course or 22 courses are not being conducted properly as to method, content and 23 supervision, and that either the applicant has actively participated in 24 the general real estate brokerage business as a licensed real estate 25 [salesman] salesperson under the supervision of a licensed real estate 26 broker for a period of not less than two years or has had the equivalent 27 experience in general real estate business for a period of at least 28 three years, the nature of which experience shall be established by 29 affidavit duly sworn to under oath and/or other and further proof 30 required by the department of state. Computer-based and distance-learn- 31 ing courses may be approved by the department so long as providers 32 demonstrate the ability to monitor and verify participation by the 33 applicant for the specified time period. Notwithstanding the foregoing 34 authority to approve computer-based and distance-learning courses, the 35 department may prescribe that specified subjects or hours must be 36 presented in a classroom setting. For purposes of this section, cultural 37 competency is defined as understanding cultural norms, preferences and 38 challenges within our diverse communities. 39 § 7. Paragraph (b) of subdivision 1 of section 441 of the real proper- 40 ty law, as separately amended by chapters 697 of the laws of 2021 and 41 100 of the laws of 2022, is amended to read as follows: 42 (b) Such further information as the department may reasonably require 43 shall be furnished by the applicant including sufficient proof of having 44 taken and passed a written examination and answered such questions as 45 may be prepared by the department to enable it to determine the trust- 46 worthiness of the applicant if an individual, or of each member of a 47 co-partnership or each member of a limited liability company or each 48 officer of a corporation for whom a license as a broker is asked, and 49 [his, her or] their competency to transact the business of real estate 50 broker in such a manner as to safeguard the interests of the public. In 51 determining competency, the department shall require proof that the 52 person being tested to qualify to apply for a broker's license has a 53 fair knowledge of the English language, a fair understanding of the 54 general purposes and general legal effect of deeds, mortgages, land 55 contracts of sale, and leases, a general and fair understanding of the 56 obligations between principal and agent, has taken a class on culturalA. 8077--A 7 1 competency training, a general and fair understanding of the laws, rules 2 and regulations pertaining to fair housing and discrimination in the 3 sale or rental of real property or an interest in real property, as well 4 as of the provisions of this section. The applicant must also furnish 5 proof that [he or she has] they have attended for at least one hundred 6 fifty-two hours and has successfully completed a real estate course or 7 courses approved by the secretary of state as to method and content and 8 supervision which approval may be withdrawn if in the opinion of the 9 secretary of state said course or courses are not being conducted prop- 10 erly as to method, content and supervision, and that either the appli- 11 cant has actively participated in the general real estate brokerage 12 business as a licensed real estate [salesman] salesperson under the 13 supervision of a licensed real estate broker for a period of not less 14 than two years or has had the equivalent experience in general real 15 estate business for a period of at least three years, the nature of 16 which experience shall be established by affidavit duly sworn to under 17 oath and/or other and further proof required by the department of state. 18 Computer-based and distance-learning courses may be approved by the 19 department so long as providers demonstrate the ability to monitor and 20 verify participation by the applicant for the specified time period. 21 Notwithstanding the foregoing authority to approve computer-based and 22 distance-learning courses, the department may prescribe that specified 23 subjects or hours must be presented in a classroom setting. For purposes 24 of this section, cultural competency is defined as understanding 25 cultural norms, preferences and challenges within our diverse communi- 26 ties. 27 § 8. Paragraph (c) of subdivision 1 of section 441 of the real proper- 28 ty law, as amended by chapter 697 of the laws of 2021, is amended to 29 read as follows: 30 (c) In the event the applicant shall be a licensed [salesman] sales- 31 person under this article and shall have submitted acceptable proof 32 pursuant to the provisions of either paragraph (d) of subdivision one-A 33 of this section or paragraph (a) of subdivision three of this section of 34 having attended and successfully completed seventy-seven hours of an 35 approved real estate course or courses, six hours of which have been 36 focused on fair housing and discrimination in the sale or rental of real 37 property or an interest in real property, within eight years of the date 38 of the application, the department may accept and credit same against 39 the one hundred fifty-two hours required hereunder. 40 § 8-a. Paragraphs (b) and (d) of subdivision 1-A of section 441 of the 41 real property law, as amended by chapter 697 of the laws of 2021, are 42 amended to read as follows: 43 (b) Each applicant for a [salesman's] salesperson's license shall 44 provide such further information as the department may reasonably 45 require, appearing at such time and place as may be designated by the 46 department, to take a written examination and answer such questions as 47 may be prepared by the department to enable it to determine the trust- 48 worthiness of the applicant and the applicant's competence to transact 49 the business of real estate [salesman] salesperson in such a manner as 50 to safeguard the interests of the public, including the applicant's 51 working knowledge of the basic concepts of law pertaining to contracts, 52 real property, agency and this article which govern conduct of such 53 business, knowledge of laws, rules, and regulations pertaining to fair 54 housing and discrimination in the sale or rental of real property or an 55 interest in real property, mastery of basic skills needed to perform the 56 applicant's duties, working knowledge of the ethical obligations of aA. 8077--A 8 1 real estate [salesman] salesperson, and knowledge of the provisions of 2 the general obligations law pertaining to performance of the applicant's 3 duties. 4 (d) Anything to the contrary herein notwithstanding, on and after the 5 effective date of this paragraph, no [salesman's] salesperson's license 6 or conditional license shall be issued by the department unless the 7 application therefor has been accompanied by proof that prior to such 8 application the applicant has attended at least seventy-seven hours and 9 successfully completed a real estate course or courses approved by the 10 secretary of state as to method and content and supervision, which 11 approval may be withdrawn if in the opinion of the secretary of state 12 said course or courses are not properly conducted as to method, content 13 and supervision. Computer-based and distance-learning courses may be 14 approved by the department so long as providers demonstrate the ability 15 to monitor and verify participation by the applicant for the specified 16 time period. Notwithstanding the foregoing authority to approve compu- 17 ter-based and distance-learning courses, the department may prescribe 18 that specified subjects or hours must be presented in a classroom 19 setting. 20 § 9. Subdivisions 1, 2, 3, 5, 6, 8, and 12 of section 441-a of the 21 real property law, subdivisions 1 and 8 as amended by chapter 226 of the 22 laws of 1980, subdivision 2 as amended by chapter 345 of the laws of 23 2012, subdivisions 3 and 6 as amended by chapter 183 of the laws of 24 2006, subdivision 5 as amended by chapter 61 of the laws 1989, and 25 subdivision 12 as added by chapter 430 of the laws of 2008, are amended 26 to read as follows: 27 1. The department of state, if satisfied of the competency and trust- 28 worthiness of the applicant, shall issue and deliver to [him] them a 29 license in such form and manner as the department shall prescribe, but 30 which must set forth the name and principal business address of the 31 licensee, and, in the case of a real estate [salesman] salesperson, the 32 name and business address of the broker with whom the [salesman] sales- 33 person is associated. 34 2. Terms. A license issued or reissued under the provisions of this 35 article shall entitle the person, co-partnership, limited liability 36 company or corporation to act as a real estate broker, or, if the appli- 37 cation is for a real estate [salesman's] salesperson's license, to act 38 as a real estate [salesman] salesperson in this state up to and includ- 39 ing the date in which the license by its terms expires. 40 3. Place of business; business sign required. Except as otherwise 41 provided in this article, each licensed real estate broker shall have 42 and maintain a definite place of business within this state, and shall 43 conspicuously post on the outside of the building in which said office 44 is conducted a sign of a sufficient size to be readable from the side- 45 walk indicating the name and the business of the applicant as a licensed 46 real estate broker, unless said office shall be located in an office, 47 apartment or hotel building, in which event the name and the words 48 "licensed real estate broker" shall be posted in the space provided for 49 posting of names of occupants of the building, other than the mail box. 50 Where the applicant for a real estate broker's license maintains more 51 than one place of business, the broker shall apply for and the depart- 52 ment shall issue a supplemental license for each branch office so main- 53 tained upon payment to the department of state for each supplemental 54 license so issued the same fee prescribed in this article for a license 55 to act as a real estate broker. Each such branch office shall be under 56 the direct supervision of the broker to whom the license is issued, or aA. 8077--A 9 1 representative broker of a corporation or partnership or manager of a 2 limited liability company holding such license, or a duly appointed 3 office manager. Such fee shall accompany such application and shall be 4 non-refundable. For purposes of this subdivision, the principal resi- 5 dence of a real estate broker or [salesman] salesperson shall not be 6 deemed a place of business solely because such broker or [salesman] 7 salesperson shall have included the residence telephone number in [his] 8 their business cards. 9 5. Change of address. Notice in writing in the manner and form 10 prescribed by the department shall be given the department at its 11 offices in Albany by a licensed real estate broker on [his] their own 12 behalf and on behalf of each [salesman] salesperson associated with 13 [him] them of any change in [his] their or its principal business 14 address. The filing fee of ten dollars for each licensee named therein 15 shall accompany such notice. Such change by a licensee without such 16 notification shall operate to suspend [his] their license until such 17 suspension shall be vacated by the department. 18 6. Pocket card. The department shall prepare, issue and deliver, with 19 the assistance of the department of motor vehicles, to each licensee a 20 pocket card in such form and manner as the department shall prescribe, 21 but which shall contain the photo, name and business address of the 22 licensee, and, in the case of a real estate [salesman] salesperson, the 23 name and business address of the broker with whom [he or she is] they 24 are associated and shall certify that the person whose name appears 25 thereon is a licensed real estate broker or [salesman] salesperson, as 26 may be. Such cards must be shown on demand. In the case of loss, 27 destruction or damage, the secretary of state may, upon submission of 28 satisfactory proof, issue a duplicate pocket card upon payment of a fee 29 of ten dollars. 30 8. Death of broker. A license issued to a real estate broker who was, 31 at the time of [his] their death, the sole proprietor of a brokerage 32 office may be used after the death of such licensee by [his] their duly 33 appointed administrator or executor in the name of the estate pursuant 34 to authorization granted by the surrogate under the provisions of the 35 surrogate's court procedure act for a period of not more than one 36 hundred twenty days from the date of death of such licensee in order to 37 complete any unfinished realty transactions in the process of negoti- 38 ation by the broker or [his salesmen] their salespersons existing prior 39 to [his] their decease. There shall be endorsed upon the face of the 40 license, after the name of the decedent, the words "deceased", the date 41 of death and the name of the administrator or executor under whose 42 authority the license is being used. The period of one hundred twenty 43 days may be extended upon application to the secretary of state, for 44 good cause shown, for an additional period not to exceed one hundred 45 twenty days. A license expiring during such period or extension shall be 46 automatically renewed and continued in effect during such period or 47 extension. No fee shall be charged for any such license or renewal ther- 48 eof. 49 12. Whenever any person licensed as a real estate broker or real 50 estate [salesman] salesperson is convicted in this state or elsewhere of 51 a felony, of a sex offense, as defined in subdivision two of section one 52 hundred sixty-eight-a of the correction law or any offense committed 53 outside of this state which would constitute a sex offense, or a sexual- 54 ly violent offense, as defined in subdivision three of section one 55 hundred sixty-eight-a of the correction law or any offense committed 56 outside this state which would constitute a sexually violent offense,A. 8077--A 10 1 such real estate broker or real estate [salesman] salesperson shall 2 within five days of the imposition of sentence, transmit a certified 3 copy of the judgment of conviction to the department of state. 4 § 10. Subdivisions 1 and 2 of section 441-b of the real property law, 5 subdivision 1 as amended by chapter 91 of the laws of 2022 and subdivi- 6 sion 2 as amended by chapter 324 of the laws of 1998, are amended to 7 read as follows: 8 1. The fee for a license issued or reissued under the provisions of 9 this article entitling a person, co-partnership, limited liability 10 company or corporation to act as a real estate broker shall be one 11 hundred fifty-five dollars plus an additional thirty dollar surcharge. 12 Such surcharge shall be collected by the department of state and depos- 13 ited into the anti-discrimination in housing fund established pursuant 14 to section eighty-a of the state finance law to be used for statewide 15 fair housing testing efforts. The fee for a license issued or reissued 16 under the provisions of this article entitling a person to act as a real 17 estate [salesman] salesperson shall be fifty-five dollars plus an addi- 18 tional ten dollar surcharge. Such surcharge shall be collected by the 19 department of state and deposited into the anti-discrimination in hous- 20 ing fund established pursuant to section eighty-a of the state finance 21 law to be used for statewide fair housing testing efforts. Notwithstand- 22 ing the provisions of subdivision seven of section four hundred forty- 23 one-a of this article, after January first, nineteen hundred eighty-six, 24 the secretary of state shall assign staggered expiration dates for 25 outstanding licenses that have been previously renewed on October thir- 26 ty-first of each year from the assigned date unless renewed. If the 27 assigned date results in a term that exceeds twenty-four months, the 28 applicant shall pay an additional prorated adjustment together with the 29 regular renewal fee. The secretary of state shall assign dates to exist- 30 ing licenses in a manner which shall result in a term of not less than 31 two years. 32 2. Corporations and co-partnerships. If the licensee be a corporation, 33 the license issued to it shall entitle the president thereof or such 34 other officer as shall be designated by such corporation, to act as a 35 real estate broker. For each other officer who shall desire to act as a 36 real estate broker in behalf of such corporation an additional license 37 expiring on the same date as the license of the corporation shall be 38 applied for and issued, as hereinbefore provided, the fee for which 39 shall be the same as the fee required by this section for the license to 40 the corporation. No license as a real estate [salesman] salesperson 41 shall be issued to any officer of a corporation nor to any manager or 42 member of a limited liability company nor to a member of a co-partner- 43 ship licensed as a real estate broker. If the licensee be a co-partner- 44 ship the license issued to it shall entitle one member thereof to act as 45 a real estate broker, and for each other member of the firm who desires 46 to act as a real estate broker an additional license expiring on the 47 same date as the license of the co-partnership shall be applied for and 48 issued, as hereinbefore provided, the fee for which shall be the same as 49 the fee required by this section for the license to the co-partnership. 50 If the licensee be a limited liability company, the license issued to it 51 shall entitle one member thereof or one manager thereof to act as a real 52 estate broker, and for each other member or manager of the firm who 53 desires to act as a real estate broker an additional license expiring on 54 the same date as the license of the limited liability company shall be 55 applied for and issued, as hereinbefore provided, the fee for which 56 shall be the same as the fee required by this section for the license toA. 8077--A 11 1 the limited liability company. In case a person licensed individually as 2 a real estate broker thereafter becomes an officer of a corporation or a 3 member or manager of a limited liability company or a member of a 4 co-partnership an application shall be made in behalf of such corpo- 5 ration, limited liability company or co-partnership for a broker's 6 license for [him] them as its representative for the remainder of the 7 then current license term, provided that the license and pocket card 8 previously issued to the licensee in [his] their individual capacity 9 shall have been returned to the department whereupon the department 10 shall cause a properly signed endorsement to be made without charge on 11 the face of such license and pocket card as to such change of license 12 status and return the license and pocket card to the licensee. 13 § 11. Paragraph (a) of subdivision 1, subparagraphs (i) and (iv) of 14 paragraph (b) of subdivision 1, and subdivisions 2 and 4 of section 15 441-c of the real property law, paragraph (a) of subdivision 1 as sepa- 16 rately amended by chapters 687 and 696 of the laws of 2021, subpara- 17 graphs (i) and (iv) of paragraph (b) of subdivision 1 as amended by 18 chapter 398 of the laws of 1997, and subdivisions 2 and 4 as amended by 19 chapter 347 of the laws of 1966, are amended to read as follows: 20 (a) The department of state may revoke the license of a real estate 21 broker or [salesman] salesperson or suspend the same, for such period as 22 the department may deem proper, or in lieu thereof may impose a fine not 23 exceeding two thousand dollars payable to the department of state, 24 provided that fifty percent of all moneys received by the department of 25 state for such fines shall be payable to the anti-discrimination in 26 housing fund established pursuant to section eighty-a of the state 27 finance law, or a reprimand upon conviction of the licensee of a 28 violation of any provision of this article, or for a violation of subdi- 29 vision four of section four hundred forty-two-h of this article, or for 30 a material misstatement in the application for such license, or if such 31 licensee has been guilty of fraud or fraudulent practices, or for 32 dishonest or misleading advertising, or has demonstrated untrustworthi- 33 ness or incompetency to act as a real estate broker or [salesman] sales- 34 person, or for a violation of article fifteen of the executive law 35 committed in [his or her] their capacity as a real estate broker or 36 [salesman] salesperson, as the case may be. In the case of a real estate 37 broker engaged in the business of a tenant relocator, untrustworthiness 38 or incompetency shall include engaging in any course of conduct includ- 39 ing, but not limited to, the interruption or discontinuance of essential 40 building service, that interferes with or disturbs the peace, comfort, 41 repose and quiet enjoyment of a tenant. 42 (i) The provisions of this paragraph shall apply in all cases of 43 licensed broker or licensed [salesman] salesperson who have failed, 44 after receiving appropriate notice, to comply with a summons, subpoena 45 or warrant relating to a paternity or child support proceeding or is in 46 arrears in payment of child support or combined child and spousal 47 support referred to the department by a court pursuant to the require- 48 ments of section two hundred forty-four-c of the domestic relations law 49 or pursuant to section four hundred fifty-eight-b or five hundred 50 forty-eight-b of the family court act. 51 (iv) Notwithstanding any inconsistent provision of this article or of 52 any other provision of law to the contrary, the license of a real estate 53 broker or [salesman] salesperson shall be suspended if at the hearing, 54 provided for by subparagraph [two] (ii) of this paragraph, the licensee 55 fails to present proof of payment as required by such subdivision. Such 56 suspension shall not be lifted unless the court or the supportA. 8077--A 12 1 collection unit, where the court order is payable to the support 2 collection unit designated by the appropriate social services district, 3 issues notice to the department that full payment of all arrears of 4 support established by the order of the court to be due have been paid. 5 2. Determination of department. In the event that the department shall 6 revoke or suspend any such license, or impose any fine or reprimand on 7 the holder thereof, its determination shall be in writing and officially 8 signed. The original of such determination, when so signed, shall be 9 filed in the office of the department and copies thereof shall be served 10 personally or by registered mail upon the broker or [salesman] salesper- 11 son and addressed to the principal place of business of such broker or 12 [salesman] salesperson, and to the complainant. All brokers' and [sales-13men's] salespersons' licenses and pocket cards shall be returned to the 14 department of state within five days after the receipt of notice of a 15 revocation or suspension, or in lieu thereof, the broker or [salesman] 16 salesperson whose license has been revoked or suspended shall make and 17 file an affidavit in form prescribed by the department of state, showing 18 that the failure to return such license and pocket card is due either to 19 loss or destruction thereof. 20 4. Whenever the license of a real estate broker or real estate [sales-21man] salesperson is revoked by the department, such real estate broker 22 or real estate [salesman] salesperson shall be ineligible to be reli- 23 censed either as a real estate broker or real estate [salesman] sales- 24 person until after the expiration of a period of one year from the date 25 of such revocation. 26 § 12. Section 441-d of the real property law, as amended by chapter 27 226 of the laws of 1980, is amended to read as follows: 28 § 441-d. [Salesman's] Salesperson's license suspended by revocation or 29 suspension of employer's license. The revocation or suspension of a 30 broker's license shall operate to suspend the license of each real 31 estate [salesman] salesperson associated with such broker, pending a 32 change of association of the [salesman] salesperson or the expiration of 33 the period of suspension of the broker's license. Such suspension of the 34 [salesman's] salesperson's license shall be deemed to be a discontin- 35 uance of association with the broker being suspended. 36 § 13. Subdivisions 1 and 2 of section 441-e of the real property law, 37 subdivision 1 as added by chapter 699 of the laws of 1988, and subdivi- 38 sion 2 as amended by chapter 505 of the laws of 2001, are amended to 39 read as follows: 40 1. Denial of license. The department of state shall, before making a 41 final determination to deny an application for a license, notify the 42 applicant in writing of the reasons for such proposed denial and shall 43 afford the applicant an opportunity to be heard in person or by counsel 44 prior to denial of the application. Such notification shall be served 45 personally or by certified mail or in any manner authorized by the civil 46 practice law and rules. If the applicant is a [salesman] salesperson or 47 has applied to become a [salesman] salesperson, the department shall 48 also notify the broker with whom such [salesman] salesperson is associ- 49 ated, or with whom such [salesman] salesperson or applicant is about to 50 become associated, of such proposed denial. If a hearing is requested, 51 such hearing shall be held at such time and place as the department 52 shall prescribe. If the applicant fails to make a written request for a 53 hearing within thirty days after receipt of such notification, then the 54 notification of denial shall become the final determination of the 55 department. The department, acting by such officer or person in the 56 department as the secretary of state may designate, shall have the powerA. 8077--A 13 1 to subpoena and bring before the officer or person so designated any 2 person in this state, and administer an oath to and take testimony of 3 any person or cause [his] their deposition to be taken. A subpoena 4 issued under this section shall be regulated by the civil practice law 5 and rules. If, after such hearing, the application is denied, written 6 notice of such denial shall be served upon the applicant personally or 7 by certified mail or in any manner authorized by the civil practice law 8 and rules, and if the applicant is a [salesman] salesperson, or has 9 applied to become a [salesman] salesperson, the department shall notify 10 the broker with whom such applicant is associated. 11 2. Revocation, suspension, reprimands, fines. The department of state 12 shall, before revoking or suspending any license or imposing any fine or 13 reprimand on the holder thereof or before imposing any fine upon any 14 person not licensed pursuant to this article who is deemed to be in 15 violation of section four hundred forty-two-h of this article, and at 16 least ten days prior to the date set for the hearing, notify in writing 17 the holder of such license or such unlicensed person of any charges made 18 and shall afford such licensee or unlicensed person an opportunity to be 19 heard in person or by counsel in reference thereto. Such written notice 20 may be served by delivery of same personally to the licensee, or by 21 mailing same by certified mail to the last known business address of 22 such licensee or unlicensed person, or by any method authorized by the 23 civil practice law and rules. If said licensee be a [salesman] salesper- 24 son, the department shall also notify the broker with whom [he is] they 25 are associated of the charges by mailing notice by certified mail to the 26 broker's last known business address. The hearing on such charges shall 27 be at such time and place as the department shall prescribe. 28 § 14. Subdivision 1 and paragraph (i) of subdivision 2 of section 442 29 of the real property law, as amended by chapter 514 of the laws of 2014, 30 are amended to read as follows: 31 1. No real estate broker shall pay any part of a fee, commission or 32 other compensation received by the broker to any person for any service, 33 help or aid rendered in any place in which this article is applicable, 34 by such person to the broker in buying, selling, exchanging, leasing, 35 renting or negotiating a loan upon any real estate including the resale 36 of a condominium or cooperative apartment unless such a person be a duly 37 licensed real estate [salesman] salesperson regularly associated with 38 such broker or a duly licensed real estate broker or a person regularly 39 engaged in the real estate brokerage business in a state outside of New 40 York; provided, however, that notwithstanding any other provision of 41 this section, it shall be permissible for a real estate broker to pay 42 any part of a fee, commission, or other compensation received to an 43 unlicensed corporation or an unlicensed limited liability company if 44 each of its shareholders or members, respectively, is associated as an 45 individual with the broker as a duly licensed associate broker or 46 [salesman] salesperson. 47 (i) a real estate [salesman] salesperson duly licensed under this 48 article who is regularly associated with such broker; 49 § 15. Section 442-a of the real property law, as amended by chapter 50 226 of the laws of 1980, is amended to read as follows: 51 § 442-a. Compensation of [salesmen] salespersons; restrictions. No 52 real estate [salesman] salesperson in any place in which this article is 53 applicable shall receive or demand compensation of any kind from any 54 person, other than a duly licensed real estate broker with whom [he] 55 they associated, for any service rendered or work done by such [sales-A. 8077--A 14 1man] salesperson in the appraising, buying, selling, exchanging, leas- 2 ing, renting or negotiating of a loan upon any real estate. 3 § 16. Section 442-b of the real property law, as amended by chapter 4 226 of the laws of 1980, is amended to read as follows: 5 § 442-b. Discontinuance or change of [salesman's] salesperson's asso- 6 ciation; report. When the association of any real estate [salesman] 7 salesperson shall have been terminated for any reason whatsoever, [his] 8 their broker shall forthwith notify the department of state thereof in 9 such manner as the department shall prescribe. Where change of such 10 [salesman's] salesperson's association is the basis for such termi- 11 nation, the [salesman's] salesperson's successor broker shall forthwith 12 notify the department of such change in such manner as the department 13 shall prescribe, such notice to be accompanied by a fee of one dollar. 14 No real estate [salesman] salesperson shall perform any act within any 15 of the prohibitions of this article from and after the termination for 16 any cause of [his] their association until [he] they thereafter shall 17 have become associated with a licensed real estate broker. 18 § 17. Section 442-c of the real property law, as amended by chapter 19 699 of the laws of 1988, is amended to read as follows: 20 § 442-c. Violations by [salesmen] salespersons; broker's responsibil- 21 ity. No violation of a provision of this article by a real estate 22 [salesman] salesperson or employee of a real estate broker shall be 23 deemed to be cause for the revocation or suspension of the license of 24 the broker, unless it shall appear that the broker had actual knowledge 25 of such violation or retains the benefits, profits or proceeds of a 26 transaction wrongfully negotiated by [his salesman] their salesperson or 27 employee after notice of the [salesman's] salesperson's or employee's 28 misconduct. A broker shall be guilty of a misdemeanor for having any 29 [salesman] salesperson associated with [his] their firm who has not 30 secured the required license authorizing such employment. 31 § 18. Section 442-d of the real property law, as amended by chapter 32 324 of the laws of 1998, is amended to read as follows: 33 § 442-d. Actions for commissions; license prerequisite. No person, 34 copartnership, limited liability company or corporation shall bring or 35 maintain an action in any court of this state for the recovery of 36 compensation for services rendered, in any place in which this article 37 is applicable, in the buying, selling, exchanging, leasing, renting or 38 negotiating a loan upon any real estate without alleging and proving 39 that such person was a duly licensed real estate broker or real estate 40 [salesman] salesperson on the date when the alleged cause of action 41 arose. 42 § 19. Subdivision 5 of section 442-e of the real property law, as 43 added by chapter 468 of the laws of 1940, is amended to read as follows: 44 5. The secretary of state shall have the power to enforce the 45 provisions of this article and upon complaint of any person, or on [his] 46 their own initiative, to investigate any violation thereof or to inves- 47 tigate the business, business practices and business methods of any 48 person, firm or corporation applying for or holding a license as a real 49 estate broker or [salesman] salesperson, if in the opinion of the secre- 50 tary of state such investigation is warranted. Each such applicant or 51 licensee shall be obliged, on request of the secretary of state, to 52 supply such information as may be required concerning [his] their or its 53 business, business practices or business methods, or proposed business 54 practices or methods. 55 § 20. Subdivisions 1, 4, and 6 of section 442-g of the real property 56 law, subdivision 1 as amended by chapter 744 of the laws of 1978, subdi-A. 8077--A 15 1 vision 4 as amended by chapter 482 of the laws of 1963, and subdivision 2 6 as added by section 2 of part D of chapter 328 of the laws of 2014, 3 are amended to read as follows: 4 1. A nonresident of this state may become a real estate broker or a 5 real estate [salesman] salesperson by conforming to all of the 6 provisions of this article, except that a nonresident broker regularly 7 engaged in the real estate business as a vocation who is licensed and 8 maintains a definite place of business in another state, which offers 9 the same privileges to the licensed brokers of this state, shall not be 10 required to maintain a place of business within this state. Anything to 11 the contrary herein notwithstanding, if any state prohibits or restricts 12 the right of a resident of this state to become a licensed nonresident 13 real estate broker or [salesman] salesperson, then the issuance of such 14 a license to an applicant resident in such state shall be similarly 15 restricted. The department of state shall recognize the license issued 16 to a real estate broker or [salesman] salesperson by another state as 17 satisfactorily qualifying [him] them for license as broker or [salesman] 18 salesperson, as the case may be, under this section; provided that the 19 laws of the state of which [he is] they are a resident require that 20 applicants for licenses as real estate brokers and [salesmen] salesper- 21 sons shall establish their competency by written examinations but permit 22 licenses to be issued to residents of the State of New York duly 23 licensed under this article, without examination. If the applicant is a 24 resident of a state which has not such requirement then the applicant 25 must meet the examination requirement as provided herein and the depart- 26 ment of state shall issue a license to such nonresident broker or 27 [salesman] salesperson upon payment of the license fee and the filing by 28 the applicant with the department of a certified copy of the applicant's 29 license issued by such other state. 30 4. The secretary of state shall promptly send one of such copies by 31 registered mail, return receipt requested, to the nonresident broker or 32 nonresident [salesman] salesperson at the post office address of [his] 33 their main office as set forth in the last application filed by him or 34 her. 35 6. Notwithstanding any other provisions of this article, the depart- 36 ment of state shall grant a real estate broker or a real estate [sales-37man] salesperson license to an applicant who is a member of the house- 38 hold of a member of the armed forces of the United States, national 39 guard or reserves and was a member of such household before such member 40 of the armed forces relocated to the state who submits satisfactory 41 evidence of licensure, certification or registration to practice an 42 equivalent occupation issued by a state, territory, protectorate or 43 dependency of the United States, provided that such license, certif- 44 ication or certificate of registration was current and effective within 45 one year of the date of the individual's application for licensure in 46 New York, was granted in compliance with standards that are, in the 47 judgment of the secretary, no less rigorous than those required for 48 licensure in New York. If such standards for licensure, certification or 49 registration are deemed by the secretary to be less rigorous than those 50 required for licensure in New York, the secretary shall permit an appli- 51 cant to submit evidence in a form acceptable to the department of state 52 to demonstrate the applicant's competency and trustworthiness. If such 53 evidence is sufficient in the judgment of the secretary, the secretary 54 shall grant a real estate broker or real estate salesperson license.A. 8077--A 16 1 § 21. Paragraph j of subdivision 1 of section 443 of the real property 2 law, as amended by chapter 549 of the laws of 2007, is amended to read 3 as follows: 4 j. "Designated sales agent" means a licensed real estate [salesman] 5 salesperson or associate broker, working under the supervision of a real 6 estate broker, who has been assigned to represent a client when a 7 different client is also represented by such real estate broker in the 8 same transaction. 9 § 22. This act shall take effect immediately; provided, however, the 10 amendments to paragraph (b) of subdivision 1 of section 441 of the real 11 property law made by section six of this act shall take effect on the 12 same date and in the same manner as section 1 of chapter 688 of the laws 13 of 2021, takes effect, and the amendments to such paragraph (b) made by 14 section seven of this act shall take effect on the same date and in the 15 same manner as section 2 of chapter 697 of the laws of 2021, takes 16 effect; and provided, further, the amendments to paragraph (c) of subdi- 17 vision 1 of section 441 of the real property law made by section eight 18 of this act shall take effect on the same date and in the same manner as 19 section 2 of chapter 697 of the laws of 2021, takes effect; and 20 provided, further, the amendments to paragraphs (b) and (d) of subdivi- 21 sion 1-A of section 441 of the real property law made by section eight-a 22 of this act shall take effect on the same date and in the same manner as 23 section 3 of chapter 697 of the laws of 2021, takes effect.
