License Law and Regulations

Exam rule

Article 12-A is New York's real estate licensing law. It requires a license for brokerage work and sets conduct rules. The Department of State enforces the law through the Secretary of State. The State Real Estate Board helps with rules, education and policy. Certain subjects remain with the Secretary, including client money, property management and transaction records. State law also requires each broker to adopt standardized operating procedures for buyer service. Those procedures cover identification, exclusive broker agreements and mortgage preapproval. The broker must date, notarize, post, keep and follow them.

Exam rule

A broker performs covered real estate work for another person for compensation. The broker runs the brokerage and answers to the public and supervised licensees. An associate broker holds a broker license but works under another broker's name and supervision. In that role, the associate broker follows the rules for salespersons. A salesperson works only through a sponsoring broker. An office manager must be an associate broker with two active years in that role during the prior four years. The office manager has the same supervision duty as a broker. Dual licensure lets an associate broker keep a separate broker license while working under another broker. It is not dual agency.

Exam rule

A license is needed when a person does listed work for someone else and expects pay. Listed work includes selling, buying, leasing, renting, negotiating and collecting rent. It also covers some business sales, nonresidential mortgage loans and tenant relocation. Section 442-f gives exemptions. Court appointees, public officers on duty and attorneys doing legal work appear in that clause. An owner may handle the owner's own property. Section 442-d stops an unlicensed person from suing for a commission. A broker license does not grant every property credential. A real estate appraiser and home inspector use other licenses. So do an apartment information vendor and apartment sharing agent. A nonresident applicant files an irrevocable consent. It accepts New York court power and service through the Secretary of State.

Exam rule

A salesperson does licensed work for the sponsoring broker. The broker must give regular, frequent and consistent guidance and oversight. A listing negotiated by the salesperson belongs to the broker. Both must keep listing and deal records. Under Section 442-a, a salesperson may receive brokerage pay only from the associated broker. Another broker cannot use that salesperson without the sponsoring broker's knowledge. One violation by the salesperson does not always discipline the broker. The broker may be responsible after knowing about the act, failing to supervise or keeping its benefits.

Exam rule

A salesperson applicant must be at least 18 and complete 77 hours of approved education. The course includes six hours on fair housing and discrimination. The student also completes the school's proctored final exam and the state exam. A broker applicant must be at least 20 and complete 152 approved hours. Broker experience follows a point system. Licensed salesperson experience needs at least two years and 3,500 points. Equivalent or combined experience generally needs 5,250 points, with at least three years for the equivalent route. A criminal conviction is not an automatic lifetime bar. The Department applies the governing statutes, including Correction Law Article 23-A.

Exam rule

A salesperson applicant applies through eAccessNY and names a sponsoring broker. The broker must authorize the application. The state written exam is multiple choice and based on the 77-hour curriculum. The time limit is 90 minutes after instructions. Results are pass or fail, with no numeric score. A passing result remains valid for two years. The current salesperson license fee is $65. The broker license fee is $185, and a branch license is also $185. The written exam fee is $15. Before final denial, the Department gives written reasons. The applicant then has 30 days to request a hearing in writing.

Exam rule

A broker or salesperson license lasts two years. Renewal requires 22.5 approved hours during the prior two years. The total includes 3 hours of fair housing and 2.5 hours of ethical business practices. It also includes 2 hours each of implicit bias and cultural competency. One hour covers recent legal matters. Agency requires 1 hour, except a salesperson's first term requires 2 hours. Attorneys admitted to the New York bar are the current exception. There is no grace period for licensed work. An associate broker or salesperson also needs a sponsoring broker to renew. A broker must affirm compliance with the brokerage's standard buyer-service procedures at renewal.

Exam rule

A broker needs a definite business place and the required broker sign. The current broker license is displayed at the principal office. Each branch needs a $185 supplemental license, direct supervision and its own displayed license. A salesperson license is mailed to the business address. Each licensee receives a pocket card and must show it on demand. An unreported business-address change suspends the affected license until the Department lifts the suspension. Address changes outside renewal generally cost $10 per licensee. Name and broker-status changes use the required filing and fee. A licensee must report a covered felony or sex-offense judgment within five days after sentencing.

Exam rule

When a salesperson leaves, the former broker files the end of the association. The salesperson returns all listing information at once. Licensed work stops until the Department's record names a new broker. The new broker files the association and pays the current $20 fee. A broker may not use another firm's salesperson without that broker's knowledge. Any extra license or association must appear in the Department's records. If the sponsoring broker's license is suspended or revoked, the salesperson's license is also suspended. It stays suspended until the association changes or the broker's suspension ends.

Exam rule

Property advertising needs owner authorization and broker approval. A property under another broker's exclusive listing needs that listing broker's permission. Every ad must identify the broker or brokerage and give its full address or phone number. If an ad names a salesperson, associate broker or team, it must also name the brokerage. License titles must be accurate. A team name uses the word team and follows the brokerage-name rule. Website rules apply on every page, and the first email to a prospect carries the required identity. Paid advertising for another broker's exclusive listing needs the required listing credit and the word advertisement.

Exam rule

A broker keeps a principal's money apart from business funds. The money goes into a separate special escrow account at a federally insured bank within three business days. It stays safeguarded until deposit. The broker accounts and remits within a reasonable time. Residential transaction records are kept for three years. A broker-prepared instrument goes to every signer at once. A listing agreement cannot be a net listing. A broker may share commission with an associated salesperson or another licensed broker. Paying an unlicensed person for covered transaction help is a barred commission split or kickback. Section 442-l also bars an after-the-fact referral fee unless reasonable cause supports it.

Exam rule

An unlicensed assistant may perform clerical work outside the broker definition. The assistant may answer calls, schedule appointments, assemble closing papers and seek loan-status reports. The assistant may also gather facts for a market analysis or appraisal. Ads, flyers and contract forms may be prepared for broker approval. The assistant may place signs and arrange repairs as directed. The broker remains responsible for training and supervision. The broker or salesperson may pay for unlicensed work by salary, hourly rate or task. Payment based on a completed transaction requires a salesperson license and must come from the broker. Showing, negotiating, listing and advising remain licensed work.

Exam rule

Administrative discipline can include a reprimand, fine, suspension or revocation under section 441-c. Common grounds include fraud, dishonest conduct, material application errors, misleading ads and incompetence. The administrative fine may reach $2,000 instead of suspension or revocation. Before discipline, the Department gives written charges at least 10 days before a hearing. The licensee may appear with counsel. After notice of suspension or revocation, the license and pocket card return within five days. A sworn affidavit may explain a loss. Revocation blocks a new license for at least one year. A final decision is challenged through an Article 78 proceeding. A violation of Article 12-A can also be a misdemeanor.

Exam rule

Article 14 generally covers seller transfers of occupied or intended one-to-four-family homes. Unless an exemption applies, the seller completes the current DOS-1614-f statement. The buyer or buyer's agent receives it before the buyer signs a binding contract. The signed statement is attached to the contract. It reports the seller's actual knowledge, is not a warranty and does not replace inspections. The old $500 credit is gone. New knowledge that makes an answer materially inaccurate requires a revised statement as soon as practicable. That duty ends at title transfer or buyer occupancy. A seller with actual knowledge of uncapped natural gas wells gives separate notice before the sale contract.