“On December 21, 2021, New York Real Property Law section 442-h (rules of the Secretary of State relating to real estate brokers and salespersons) was amended to require, in part, that real estate brokers ‘institute standardized operating procedures for the prerequisites prospective homebuyers must meet prior to receiving any services.’”[i] The Bill signed in December required that:
“(a) The secretary of state, upon notice and a public hearing, shall promulgate rules and regulations requiring real estate brokers to institute standardized operating procedures for the prerequisites prospective homebuyers must meet prior to receiving any services. Such rules and regulations shall include but not be limited to the following:
(i) whether prospective clients shall show identification;
(ii) whether an exclusive broker agreement is required; and
(iii) whether pre-approval for a mortgage loan is required.
(b) Real estate brokers shall submit such standardized operating procedures to the department of state and the department of state shall maintain a file of such standardized operating procedures while the broker’s license is active and for at least five years thereafter. If any alterations are made to the standardized operating procedures subsequent to such submission, real estate brokers shall notify and submit such new standard operating procedures within thirty days. Any salesperson operating under a brokerage license that fails to adhere to such operating procedures shall be subject to the penalties imposed by section four hundred forty-one-c of this article.”[ii]
“[S]tarting April 20, 2022, every real estate broker, operating within the State of New York, shall have on each publicly available website and mobile device application they maintain a list of standardized operating procedures.”[iii] “Brokers must keep an archive of all standardized procedures, for as long as they are actively licensed, by having each amendment date stamped and notarized. All new procedures must be posted and made available, at each brokerage office and online, within 30 days of any changes.”[iv] Finally, “[a]ny broker or salesperson operating under a brokerage license that fails to adhere to such operating procedures shall be subject to discipline.”[v]
For further information, please contact Christopher E. Vatter at email@example.com.
[ii] N.Y. Real P. Law §442-h.