Bill Text: NY S00411 | 2023-2024 | General Assembly | Introduced

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Bill Title: Codifies the duty of real estate brokers to supervise salespersons and associate brokers through regular, frequent and consistent personal guidance, instruction and oversight; lists elements of supervision including the ability to familiarize salespersons with state and federal laws against discrimination.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced) 2024-01-03 - REFERRED TO JUDICIARY [S00411 Detail]

Download: New_York-2023-S00411-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                           411

                               2023-2024 Regular Sessions

                    IN SENATE

                                       (Prefiled)

                                     January 4, 2023
                                       ___________

        Introduced  by Sens. THOMAS, KAVANAGH -- read twice and ordered printed,
          and when printed to be committed to the Committee on Judiciary

        AN ACT to amend the real property law, in relation  to  the  duty  of  a
          licensed real estate broker to supervise real estate salespersons

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Section 442-c of the real property law, as amended by chap-
     2  ter 529 of the laws of 2022, is amended to read as follows:
     3    § 442-c. Violations  by  salespersons;  duty  to  supervise;  broker's
     4  responsibility.  1.  A  licensed real estate broker shall have a duty to
     5  exercise reasonable and adequate supervision over real estate  salesper-
     6  sons  and  associate  real  estate brokers through regular, frequent and
     7  consistent personal guidance, instruction and oversight. Reasonable  and
     8  adequate  supervision  shall  also be determined by: the availability of
     9  the supervising broker to all salespersons and associate  brokers  under
    10  the  supervision  of the broker to review and approve all documents; the
    11  distance between the supervising broker's main location and  all  branch
    12  offices  with  salespersons and associate brokers the supervising broker
    13  oversees; and the ability of the broker to familiarize salespersons  and
    14  associate brokers with the requirements of federal and state law govern-
    15  ing  real  estate  transactions, including, without limitation, prohibi-
    16  tions against discrimination.
    17    2. No violation of a provision of this article by a real estate sales-
    18  person or employee of a real estate broker shall be deemed to  be  cause
    19  for the revocation or suspension of the license of the broker, unless it
    20  shall  appear that the broker had actual knowledge of such violation, or
    21  failed to exercise reasonable and adequate  supervision  over  the  real
    22  estate  salesperson or associate broker or retains the benefits, profits
    23  or proceeds of a transaction wrongfully negotiated by their salesperson,
    24  associate broker or employee after notice of the salesperson's,  associ-

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01879-01-3
        S. 411                              2

     1  ate  broker's  or  employee's  misconduct. A broker shall be guilty of a
     2  misdemeanor for having any salesperson associated with  their  firm  who
     3  has not secured the required license authorizing such employment.
     4    § 2. This act shall take effect immediately.