NY State Senate Bill 2019-S7023

Archive: Last Bill Status - In Senate Committee Judiciary Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2020	referred to judiciary

2019-S7023 (ACTIVE) - Details

Current Committee:: Senate Judiciary
Law Section:: Real Property Law
Laws Affected:: Add §442-m, RP L

2019-S7023 (ACTIVE) - Summary

Requires all fees, commissions or other compensation for any service, help or aid rendered by a buyer's agent in a real estate transaction to be paid by the buyer.

2019-S7023 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S7023

SPONSOR: SANDERS
 
TITLE OF BILL:

An act to amend the real property law, in relation to compensating a
buyer's agent in a real estate transaction

 
PURPOSE OF THE BILL:

The purpose of this bill is to end the "buyer broker rule." This rule
requires a seller of real estate to agree to pay the buyer's agent as a
condition of listing a home.

 
SUMMARY OF PROVISIONS:

Section 1: Definitions.

Section 2: All fees, commissions or other compensation for any service,
help or aid rendered by a buyer's agent in a real estate transaction on
behalf of a buyer shall be paid by such buyer. A seller and/or a sell-

er's agent shall not negotiate or pay any part of such payment for
services rendered by such buyer's agent.

Section 3: Effective date.

 
JUSTIFICATION:

Even though the Fair Housing Act was passed more than 50 years ago, New
York State still has a problem with housing discrimination.  Newsday
finished a three-year investigation in 2019 and concluded that African-
American home buyers were being steered to black neighborhoods.

Currently, trade associations require home sellers to pay the buyer's
agent as a condition of listing a home-this is known as the "buyer
broker rule." This requirement makes home transactions more expensive.

By ending the buyer broker rule, this bill would reduce the dependence
of buyers on real estate agents and/or shift the relationship so the
agent is paid by the buyer. This would reduce transaction costs for both
buyers and sellers. Additionally, it would limit the opportunity for
discrimination because buyers decide which houses to visit on their own.

The New York Times Editorial Board called for the elimination of the
buyer broker rule in "The Jim Crow South? No, Long Island Today" on
November 21, 2019.

 
PRIOR LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None

 
EFFECTIVE DATE:
This act shall take effect on the one hundred eightieth day after it
shall have become a law.

2019-S7023 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7023
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 8, 2020
                                ___________
 
 Introduced  by  Sen. SANDERS -- 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  compensating  a
   buyer's agent in a real estate transaction
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The real property law is amended by adding  a  new  section
 442-m to read as follows:
   §  442-M.  COMPENSATION  OF BUYER'S AGENT. 1. AS USED IN THIS SECTION,
 THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   A. "AGENT" MEANS A PERSON WHO IS LICENSED AS  A  REAL  ESTATE  BROKER,
 ASSOCIATE  REAL  ESTATE  BROKER OR REAL ESTATE SALESPERSON UNDER SECTION
 FOUR HUNDRED FORTY-A OF THIS ARTICLE AND IS ACTING IN A FIDUCIARY CAPAC-
 ITY.
   B. "BUYER" MEANS A TRANSFEREE IN A RESIDENTIAL  REAL  PROPERTY  TRANS-
 ACTION  AND INCLUDES A PERSON WHO EXECUTES AN OFFER TO PURCHASE RESIDEN-
 TIAL REAL PROPERTY FROM A SELLER THROUGH AN AGENT, OR  WHO  HAS  ENGAGED
 THE  SERVICES OF AN AGENT WITH THE OBJECT OF ENTERING INTO A RESIDENTIAL
 REAL PROPERTY TRANSACTION AS A TRANSFEREE.
   C. "BUYER'S AGENT" MEANS AN AGENT WHO CONTRACTS TO LOCATE  RESIDENTIAL
 REAL  PROPERTY  FOR  A  BUYER  OR  WHO  FINDS A BUYER FOR A PROPERTY AND
 PRESENTS AN OFFER TO PURCHASE TO THE SELLER OR SELLER'S AGENT AND  NEGO-
 TIATES ON BEHALF OF THE BUYER.
   D. "SELLER" MEANS THE TRANSFEROR IN A RESIDENTIAL REAL PROPERTY TRANS-
 ACTION,  AND  INCLUDES  AN OWNER WHO LISTS RESIDENTIAL REAL PROPERTY FOR
 SALE WITH AN AGENT, WHETHER OR NOT A TRANSFER RESULTS, OR  WHO  RECEIVES
 AN OFFER TO PURCHASE RESIDENTIAL REAL PROPERTY.
   E.  "SELLER'S AGENT" MEANS A LISTING AGENT WHO ACTS ALONE, OR AN AGENT
 WHO ACTS IN COOPERATION WITH A LISTING AGENT, ACTS AS A  SELLER'S  SUBA-
 GENT  OR ACTS AS A BROKER'S AGENT TO FIND OR OBTAIN A BUYER FOR RESIDEN-
 TIAL REAL PROPERTY.
   2. ALL FEES, COMMISSIONS OR OTHER COMPENSATION FOR ANY  SERVICE,  HELP
 OR  AID  RENDERED  BY  A  BUYER'S  AGENT IN A REAL ESTATE TRANSACTION ON

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD14431-01-9

 S. 7023                             2
 
 BEHALF OF A BUYER SHALL BE PAID BY SUCH BUYER. A SELLER AND/OR  A  SELL-
 ER'S  AGENT  SHALL  NOT  NEGOTIATE  OR  PAY ANY PART OF SUCH PAYMENT FOR
 SERVICES RENDERED BY SUCH BUYER'S AGENT.
   § 2. This act shall take effect on the one hundred eightieth day after
 it shall have become a law.

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Senate Bill S7023

Sponsored By

Archive: Last Bill Status - In Senate Committee Judiciary Committee

2019-S7023 (ACTIVE) - Details

2019-S7023 (ACTIVE) - Summary

2019-S7023 (ACTIVE) - Sponsor Memo

2019-S7023 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S7023

Share this bill

Sponsored By

James Sanders Jr.

Archive: Last Bill Status - In Senate Committee Judiciary Committee

2019-S7023 (ACTIVE) - Details

2019-S7023 (ACTIVE) - Summary

2019-S7023 (ACTIVE) - Sponsor Memo

2019-S7023 (ACTIVE) - Bill Text download pdf

Comments