New York Standardized Operating Procedures for Brokers

The law does not require every broker to impose all three prerequisites. It requires a clear, public answer and consistent conduct. A posted document is not enough when agents follow a different process or apply the written process selectively.

What must a New York broker's standardized operating procedure cover?

The procedure must state whether the brokerage requires each of these items before providing services to a prospective homebuyer:

As of September 25, 2026, the Department of State's licensing update still says it is not considering expanding this list. That could change, so recheck the Department's page before relying on it.

Official source map

New York Real Property Law section 442-h(4) is the controlling statute. It sets the content, publication, maintenance, amendment, adherence and renewal-affirmation duties.

The New York State Department of State licensing update explains the April 20, 2022 compliance date and confirms that brokers do not submit their standardized operating procedures to the Department.

Three related sources complete the compliance picture:

• Executive Law section 296 prohibits discriminatory housing practices and applies broader New York protected categories.
• Real Property Law section 441-c supplies disciplinary authority, including for a failure to comply with section 442-h(4).
• 19 NYCRR section 175.21 requires regular, frequent and consistent broker supervision of associated salespersons.

These sources serve different purposes. Section 442-h tells the broker what procedure to create and publish. Fair housing law tests whether the policy and its application discriminate. Supervision and discipline rules address responsibility and consequences.

Does every brokerage have to require all three items?

No. The required subject is the brokerage's answer, not a state command to answer yes.

A broker may state, for example:

• identification is not required before services
• an exclusive broker agreement is required before services
• mortgage preapproval is not required before services

Another broker may choose different answers. Each procedure must comply with current law, accurately describe the brokerage's process and be followed by the people operating under that license.

The exam trap

If a question asks what every broker must do, the answer is to institute and publish a procedure addressing the listed prerequisites. “Require all prospects to present all three items” overstates the law.

Reading is the first step

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Who is covered by the procedure?

Section 442-h(4) speaks about prerequisites that prospective homebuyers must meet before receiving services. It is not written as a general prerequisite rule for every seller, landlord or prospective tenant.

That scope matters on an exam question: “prospective homebuyers” does not mean “every member of the public.” Separate fair housing, agency disclosure and other service duties may apply to buyers, sellers, landlords and tenants under their own rules.

The broker creates the procedure. Brokers, associate brokers and salespersons operating under that brokerage license must adhere to it. A team does not create a different service threshold unless the supervising broker's procedure lawfully provides for it.

When must the procedure be applied?

The statute says the procedure covers prerequisites prospective homebuyers must meet prior to receiving any services. It does not supply a detailed list of every communication that counts as a service.

A brokerage should therefore define operational triggers before agents improvise. Consider how the procedure applies to:

• a phone call requesting buyer representation
• a portal lead asking for property-specific help
• scheduling or conducting a showing
• preparing an offer
• sending a tailored property search
• advising on price, terms or negotiation
• an open-house visitor who asks for continuing buyer services

The internal workflow should match the public statement. A public “no identification required” policy cannot coexist with an internal script that demands identification before a first showing.

Worked example: open-house visitor

A person attends an open house without an appointment. The person later asks the listing agent to arrange a tour of another property as a buyer's agent.

The statute does not define whether every open-house interaction is a service. The brokerage should decide that trigger in advance and apply its public procedure consistently. When the visitor requests continuing buyer services, the agent should follow the same current procedure and address agency and conflicts separately.

Where must the procedure be posted?

The broker must post the standardized operating procedure on every publicly available website and mobile-device application the broker maintains.

The broker must also make a copy available to the public on request at office locations.

For a publicly available website or app maintained by an associated salesperson or team, the current statute says it should either:

• post the broker's procedure, or
• link directly to the procedure on the broker's website or app

The Department's public licensing guidance directs associated-agent and team sites and apps to post the broker's procedure or a direct link to it.

What counts as usable publication?

Section 442-h does not prescribe a particular font, menu label or page design. Publication should still let a consumer find and read the procedure without guessing.

A strong implementation uses:

• a descriptive link such as “Standardized Operating Procedures for Prospective Homebuyers”
• a stable public URL
• readable text on mobile and desktop
• the broker's current legal or licensed business name
• the procedure's effective date
• access that does not require an account or lead form

These are operational quality practices, not extra statutory elements. The statutory duties remain posting and public availability.

Must the procedure be notarized?

Yes. The statute directs brokers to date stamp and notarize their standardized operating procedures before posting and maintaining them.

Notarization does not decide whether the substance is lawful. It authenticates the signed document in the manner required by the statute. A notarized policy that permits selective treatment can still violate fair housing law.

Keep the completed notarized version, not merely an editable draft or webpage copy.

Must brokers file the procedure with the Department of State?

No. The December 2021 legislation initially included a filing requirement, but the agreed 2022 amendment removed it. The Department's current guidance says brokers are not required to submit the procedures.

The current exam distinction is:

• prepare, notarize, publish, maintain and archive: required
• file the procedure with the Department: not required
• affirm compliance at broker-license renewal: required

Keeping the file at the brokerage is required. Sending it to the Department is not.

How long must a broker keep the procedure?

Section 442-h requires the broker to maintain a file of the standardized operating procedures while the broker's license is active.

When the procedure changes, the broker must archive the alterations. The statute does not reduce that archive to only the newest version.

A clean archive identifies:

• version or effective date
• date stamp
• notarization
• full procedure text
• dates each public location was updated
• websites and apps carrying that version
• date the version was replaced

The statute requires the procedure text, date stamp, notarization and archive of alterations. Version labels, publication dates and location logs are practical controls that help show which document reached each required public location.

What happens when a broker changes the procedure?

If the broker alters the procedure after posting, the broker must:

1. date stamp the new procedure
2. notarize it
3. post it on each publicly available broker website and app within 30 days
4. make the current version available at offices
5. archive the alteration
6. align agent, team and office workflows with the new version

The 30-day period is a deadline for posting the altered procedure, not a general period in which agents may choose between the old and new policy. The brokerage should set a clear effective date and train staff so the public statement and actual conduct do not diverge.

Worked example: exclusive agreement change

A brokerage changes from “no exclusive agreement required” to “exclusive agreement required before buyer services.” The website is updated on day 25, but agents began demanding the agreement on day one without notice or a coordinated effective date.

The public and actual procedures did not match during the transition. The broker should control the effective date, training, public posting and archived version as one change process.

What must happen at broker-license renewal?

Each time a broker renews the license, the broker must affirm to the Department of State that the broker complies with the standardized operating procedure requirements.

That renewal affirmation is not a substitute for day-to-day compliance. Before affirming, the broker should verify:

• a current notarized procedure exists
• every broker website and app shows the correct version
• salesperson and team sites or apps post or directly link to it
• offices can provide a copy on request
• alterations are archived
• agents follow the current answers

A copied procedure with no implementation does not support a reliable affirmation.

How does the procedure support fair housing?

The procedure exposes three points where subjective gatekeeping can limit buyer service. Identification, exclusive agreements and mortgage preapproval can each be applied neutrally, or used selectively to discourage a protected prospect.

Consider two buyers asking for the same service:

• Buyer A is offered a showing without identification.
• Buyer B is required to show identification because the agent distrusts the buyer's accent.

If the public procedure says identification is not required, Buyer B received a prerequisite that the policy rejects. Even if the policy says identification is required, waiving it for Buyer A while enforcing it against Buyer B can show unequal treatment because of national origin.

The procedure does not replace New York's fair housing disclosure notice, agency disclosure or the substantive ban on discrimination. It is one control inside a larger fair-service system.

Can a brokerage ever treat two buyer situations differently?

Different facts can require different actions without discriminatory treatment. The key is to identify the real reason and apply it consistently.

Building security requirement

A condominium requires every visitor to show government-issued identification at its security desk. That property-access rule is different from a brokerage-wide prerequisite before buyer services.

The agent should explain the source of the requirement and apply it to every visitor subject to the building rule. The brokerage should not misstate its own “no identification” procedure merely because a building has a separate access protocol.

Financing versus cash purchase

Mortgage preapproval concerns mortgage financing. A cash buyer does not obtain a mortgage preapproval. The brokerage's workflow should explain how its public procedure applies to a buyer who does not plan to use a mortgage, without inventing a protected-class exception.

If the brokerage uses proof of funds or another financial screen, it should obtain current legal and broker guidance on how that process fits the published procedure and fair housing law. Section 442-h expressly identifies the required topics, and the Department's current notice says it is not considering an expanded list.

Client-requested accommodation

A person with a disability may need a reasonable change in how information or documents are delivered. Providing an effective accommodation is not the same as selectively lowering a service standard because of a stereotype.

What makes a fair brokerage process provable?

Section 442-h requires the procedure and archive. It does not prescribe a customer-relationship-management system or a particular prospect log. A brokerage that wants to show consistent application still needs reliable operational evidence.

1. Use one controlled public document

Give the procedure an owner, version, effective date and stable URL. Remove stale copies from team pages, recruiting microsites and old app screens.

2. Convert each answer into a workflow

If identification is required, define when it is requested, what satisfies the requirement and how legitimate property-access rules are distinguished. Do the same for exclusive agreements and mortgage preapproval.

3. Record the service decision

For each prospective buyer, record which prerequisite was requested, when it was requested, the policy version used and any fact-specific reason for a different step.

This record is a risk-control practice, not a new section 442-h retention period. Follow current legal and brokerage instructions for record retention and privacy.

4. Monitor outcomes, not only scripts

Compare how agents handle similar prospects. Repeated exceptions for one group and strict enforcement for another can reveal a problem that the written policy hides.

5. Test every public surface

Check broker, branch, agent and team sites and apps from a logged-out mobile device. A link that works only for staff is not meaningfully public.

6. Train with close cases

Use open houses, portal leads, cash buyers, building security, language access, accessibility and mid-version changes. Memorizing three yes-or-no answers is not enough to handle the real trigger.

7. Escalate exceptions before improvising

An agent should involve the supervising broker when a new fact does not fit the current workflow. A documented, lawful decision is stronger than an unexplained exception made after the fact.

A brokerage self-audit checklist

Document

• Does the current procedure answer all three listed prerequisite questions?
• Is it date stamped and notarized?
• Does it identify the broker and effective version clearly?

Publication

• Is the procedure on every publicly available broker website and app?
• Do associated-agent and team sites and apps post it or link directly to it?
• Can each office provide a copy on request?

Change control

• Was every altered procedure posted within 30 days?
• Is each prior version archived?
• Did training and workflow changes match the effective date?

Conduct

• Do agents follow the same policy with comparable prospects?
• Are legitimate different facts recorded accurately?
• Are protected-class assumptions excluded from service decisions?

Renewal

• Can the broker support the required compliance affirmation with current documents and actual practice?

Ten exam-style scenarios

1. A broker requires all three listed prerequisites. This can be the broker's procedure, but New York does not require every brokerage to choose those answers.
2. A broker posts an unnotarized draft. The statutory process requires date stamping and notarization.
3. A broker sends the procedure to the Department but never posts it. Filing is not required, while public posting is required.
4. An agent's public website links directly to the broker's current procedure. That follows the posting path described for associated-agent sites.
5. A broker changes the mortgage-preapproval answer and posts the new notarized version 45 days later. The statute gives 30 days for posting an alteration.
6. The public procedure says no identification is required, but an agent demands it only from buyers of one national origin. The agent departs from the procedure and raises a fair housing issue.
7. A building security desk requires every visitor to show identification. Distinguish the building's uniform access rule from the brokerage's service prerequisite.
8. A broker keeps only the newest procedure and deletes prior versions. Alterations must be archived.
9. A salesperson follows a team-created policy that conflicts with the supervising broker's procedure. The salesperson must adhere to the procedure under the brokerage license.
10. At renewal, the broker affirms compliance although several public agent pages contain no procedure or direct link. The broker should correct the publication gap before making the affirmation.

Common misconceptions

“Every buyer must show identification in New York”

Incorrect. Every broker must state whether identification is required before services. The broker's published answer controls the brokerage process, subject to law.

“Every buyer must sign an exclusive agreement before any service”

Incorrect as a statement of section 442-h. The statute requires the broker to publish whether the brokerage imposes that prerequisite.

“Every financed buyer must already have preapproval”

Incorrect as a statewide section 442-h command. The broker must publish whether mortgage preapproval is required before services.

“The procedure must be filed with the Department”

Incorrect under current law and Department guidance. The earlier filing requirement was removed.

“A website posting protects selective agent conduct”

Incorrect. Brokers and salespersons operating under the license must adhere to the procedure, and fair housing law independently prohibits discriminatory service.

“Only the broker needs to know the procedure”

Incorrect. Associated licensees must follow it, and public agent or team websites and apps must address publication as the law and Department guidance direct.

What should a New York salesperson remember?

Use this five-part sequence:

1. Content: identification, exclusive agreement and mortgage preapproval
2. Choice: state whether each is required rather than assuming the state requires it
3. Publication: broker sites, apps, offices and associated public sites
4. Control: date stamp, notarize, update within 30 days and archive changes
5. Conduct: follow the current procedure consistently and without discrimination

Study Current New York Fair Housing and Agency Rule Changes for the wider rule set, Steering, Blockbusting, Redlining and Biased Advertising for unequal-service patterns, and Broker Supervision and Vicarious Liability for supervisory responsibility.

Frequently asked questions

What are standardized operating procedures in New York real estate?

Standardized operating procedures are a New York broker's public, notarized statement of whether prospective homebuyers must show identification, sign an exclusive broker agreement or get mortgage preapproval before receiving services.

Does New York require buyers to show identification before a showing?

No single statewide rule does. Section 442-h does not impose one answer on every brokerage. The broker's published procedure must state whether identification is required before services. A property may have a separate uniform security requirement.

Does New York require an exclusive buyer agreement before service?

Not through one statewide answer in section 442-h. Each broker must state whether an exclusive broker agreement is a prerequisite before services.

Does New York require mortgage preapproval before a buyer receives service?

Section 442-h requires the broker to publish whether mortgage-loan preapproval is required. It does not require every broker to choose yes.

Must the standardized operating procedure be notarized?

Yes. The statute requires the broker to date stamp and notarize the procedure.

Must a broker file the procedure with the Department of State?

No. The 2022 amendment removed the filing requirement. Brokers retain, publish and archive the procedure and affirm compliance at renewal.

Where must a broker post the procedure?

On every publicly available website and mobile app the broker maintains. A copy must also be available to the public on request at office locations.

What must an agent or team website do?

It should post the supervising broker's procedure or link directly to it on the broker's public website or app. Department guidance directs associated-agent and team sites and apps to use one of those routes.

How quickly must an altered procedure be posted?

Within 30 days after the alteration. The new procedure must be date stamped and notarized, and the alteration must be archived.

What happens if a salesperson ignores the procedure?

Section 442-h states that a broker or salesperson operating under the brokerage license who fails to adhere is subject to the penalties imposed by Real Property Law section 441-c.

Sources and verification notes

It is educational exam preparation, not legal advice or a substitute for a broker's current legal and supervisory instructions.

Primary sources reviewed:

• New York Real Property Law section 442-h
• New York State Department of State, Important Updates: Licensing
• New York Real Property Law section 441-c
• New York Executive Law section 296
• New York Department of State, Real Estate License Law and regulations
• New York Department of State, Real Estate Salesperson 77-Hour Curriculum

The Department's licensing update page covers standardized operating procedures in two places. Both say brokers do not submit the procedures to the Department, and both give April 20, 2022 as the compliance date.