[ ] is old law to be omitted.
LBD17378-03-0
S. 9011 2
real estate other than a mortgage loan as defined in section five
hundred ninety of the banking law, or to lease or rent or offer to
lease, rent or place for rent any real estate, or collects or offers or
attempts to collect rent for the use of real estate for or in behalf of
such real estate broker, or who, notwithstanding any other provision of
law, performs any of the above stated functions with respect to the
resale of a condominium property originally sold pursuant to the
provisions of the general business law governing real estate syndication
offerings.
5. "Association, associated; or associated with" whenever used in this
article shall be deemed to make reference to a [salesman's]
SALESPERSON'S relationship with [his or her] THEIR broker. Nothing in
this article shall be deemed or construed to be indicative or determina-
tive of the legal relationship of a salesperson to a broker nor shall
any provision of this article be deemed or construed to alter or other-
wise affect the legal responsibility of a real estate broker to third
parties for the acts of anyone associated with such broker pursuant to
this article.
6. "Office manager" means a licensed associate real estate broker who
shall by choice elect to work as an office manager under the name and
supervision of another individual broker or another broker who is
licensed under a partnership, trade name, limited liability company or
corporation. Such individual shall retain [his or her] THEIR license as
a real estate broker as provided for in this article; provided, however,
that the practice of real estate sales and brokerage by such individual
as an associate broker shall be governed exclusively by the provisions
of this article as they pertain to real estate [salesmen] SALESPERSONS.
Nothing contained in this subdivision shall preclude an individual who
is licensed as an associate broker who elects to work as an office
manager from also retaining a separate real estate broker's license
under an individual, partnership, trade name, limited liability company
or corporation.
§ 3. Section 440-a of the real property law, as amended by section 3
of part V of chapter 58 of the laws of 2020, is amended to read as
follows:
§ 440-a. License required for real estate brokers and [salesmen]
SALESPERSONS. No person, co-partnership, limited liability company or
corporation shall engage in or follow the business or occupation of, or
hold [himself] THEMSELVES or itself out or act temporarily or otherwise
as a real estate broker or real estate [salesman] SALESPERSON in this
state without first procuring a license therefor as provided in this
article. No person shall be entitled to a license as a real estate
broker under this article, either as an individual or as a member of a
co-partnership, or as a member or manager of a limited liability company
or as an officer of a corporation, unless [he or she is] THEY ARE twenty
years of age or over. No person shall be entitled to a license as a real
estate [salesman] SALESPERSON under this article unless [he or she is]
THEY ARE over the age of eighteen years. No person shall be entitled to
a license as a real estate broker or real estate [salesman] SALESPERSON
under this article who has been convicted in this state or elsewhere of
a crime, unless the secretary makes a finding in conformance with all
applicable statutory requirements, including those contained in article
twenty-three-A of the correction law, that such convictions do not
constitute a bar to licensure. No person shall be entitled to a license
as a real estate broker or real estate [salesman] SALESPERSON under this
S. 9011 3
article who does not meet the requirements of section 3-503 of the
general obligations law.
Notwithstanding anything to the contrary in this section, tenant asso-
ciations and not-for-profit corporations authorized in writing by the
commissioner of the department of the city of New York charged with
enforcement of the housing maintenance code of such city to manage resi-
dential property owned by such city or appointed by a court of competent
jurisdiction to manage residential property owned by such city shall be
exempt from the licensing provisions of this section with respect to the
properties so managed.
§ 4. Section 440-b of the real property law, as added by chapter 555
of the laws of 1934, is amended to read as follows:
§ 440-b. Licenses in Putnam county. On and after the first day of
July, nineteen hundred thirty-four, no person, copartnership or corpo-
ration shall engage in or follow the business or occupation of, or hold
[himself] THEMSELVES or itself out temporarily or otherwise as a real
estate broker or real estate [salesman] SALESPERSON in the county of
Putnam, without first procuring a license therefor as provided in this
article, except that such license in such county shall be granted and
issued, without the written examination provided in this article, to a
person, copartnership or corporation who was engaged in business as a
real estate broker or real estate [salesman] SALESPERSON in such county
prior to the first day of January, nineteen hundred thirty-four.
§ 5. Paragraphs (a), (b) and (c) of subdivision 1 and paragraphs (a),
(b), (c), and (d) of subdivision 1-A of section 441 of the real property
law, paragraph (a) of subdivision 1 as amended by chapter 324 of the
laws of 1998, paragraphs (b) and (c) of subdivision 1 and paragraph (d)
of subdivision 1-A as amended by chapter 183 of the laws of 2006, and
paragraphs (a), (b), and (c) of subdivision 1-A as amended by chapter 81
of the laws of 1995, are amended to read as follows:
(a) Any person, copartnership, limited liability company or corpo-
ration desiring to act as a real estate broker or any person desiring to
act as a real estate [salesman] SALESPERSON on or after the first day of
October, nineteen hundred twenty-two, shall file with the department of
state at its office in Albany an application for the kind of license
desired, in such form and detail as such department shall prescribe and
conforming to the requirements of section 3-503 of the general obli-
gations law, setting forth the following, if the application be for a
broker's license:
(i) The name and residence address of the applicant, and if an indi-
vidual the name under which [he intends] THEY INTEND to conduct busi-
ness.
(ii) If the applicant be a copartnership the name and residence
address of each member thereof and the name under which the business is
to be conducted; or, if the applicant be a limited liability company,
the name of the company, and the name and residence of each of its
members; or, if the applicant be a corporation, the name of the corpo-
ration and the name and residence address of each of its officers.
(iii) The place or places, including the city, town or village, with
the street and number, where the business is to be conducted.
(iv) The business or occupation theretofore engaged in by the appli-
cant, or, if a copartnership, by each member thereof, or, if a limited
liability company, by each member thereof, or, if a corporation, by each
officer thereof, for a period of two years, immediately preceding the
date of such application, setting forth the place or places where such
S. 9011 4
business or occupation was engaged in and the name or names of employ-
ers, if any.
(v) The form, information and statement required by section 3-503 of
the general obligations law.
(b) Such further information as the department may reasonably require
shall be furnished by the applicant including sufficient proof of having
taken and passed a written examination and answered such questions as
may be prepared by the department to enable it to determine the trust-
worthiness of the applicant if an individual, or of each member of a
co-partnership or each member of a limited liability company or each
officer of a corporation for whom a license as a broker is asked, and
[his or] their competency to transact the business of real estate broker
in such a manner as to safeguard the interests of the public. In deter-
mining competency, the department shall require proof that the person
being tested to qualify to apply for a broker's license has a fair know-
ledge of the English language, a fair understanding of the general
purposes and general legal effect of deeds, mortgages, land contracts of
sale, and leases, a general and fair understanding of the obligations
between principal and agent, as well as of the provisions of this
section. The applicant must also furnish proof that [he has] THEY HAVE
attended for at least one hundred twenty hours and has successfully
completed a real estate course or courses approved by the secretary of
state as to method and content and supervision which approval may be
withdrawn if in the opinion of the secretary of state said course or
courses are not being conducted properly as to method, content and
supervision, and that either the applicant has actively participated in
the general real estate brokerage business as a licensed real estate
[salesman] SALESPERSON under the supervision of a licensed real estate
broker for a period of not less than two years or has had the equivalent
experience in general real estate business for a period of at least
three years, the nature of which experience shall be established by
affidavit duly sworn to under oath and/or other and further proof
required by the department of state. Computer-based and distance-learn-
ing courses may be approved by the department so long as providers
demonstrate the ability to monitor and verify participation by the
applicant for the specified time period. Notwithstanding the foregoing
authority to approve computer-based and distance-learning courses, the
department may prescribe that specified subjects or hours must be
presented in a classroom setting.
(c) In the event the applicant shall be a licensed [salesman] SALES-
PERSON under this article and shall have submitted acceptable proof
pursuant to the provisions of either paragraph (d) of subdivision one-A
of this section or paragraph (a) of subdivision three of this section of
having attended and successfully completed seventy-five hours of an
approved real estate course or courses within eight years of the date of
the application, the department may accept and credit same against the
one hundred twenty hours required hereunder.
(a) Every application for a real estate [salesman's] SALESPERSON'S
license shall set forth:
(i) The name and residence address of the applicant.
(ii) The name and principal business address of the broker with whom
[he is] THEY ARE to be associated.
(iii) The business or occupation engaged in for the two years imme-
diately preceding the date of the application, setting forth the place
or places where such business or occupation was engaged in, and the name
or names of employers if any.
S. 9011 5
(iv) The length of time [he has] THEY HAVE been engaged in the real
estate business.
(v) The form, information and statement required by section 3-503 of
the general obligations law.
(b) Each applicant for a [salesman's] SALESPERSON'S license shall
provide such further information as the department may reasonably
require, appearing at such time and place as may be designated by the
department, to take a written examination and answer such questions as
may be prepared by the department to enable it to determine the trust-
worthiness of the applicant and the applicant's competence to transact
the business of real estate [salesman] SALESPERSON in such a manner as
to safeguard the interests of the public, including the applicant's
working knowledge of the basic concepts of law pertaining to contracts,
real property, agency and this article which govern conduct of such
business, mastery of basic skills needed to perform the applicant's
duties, working knowledge of the ethical obligations of a real estate
[salesman] SALESPERSON, and knowledge of the provisions of the general
obligations law pertaining to performance of the applicant's duties.
(c) Each application for either a broker's or [salesman's]
SALESPERSON'S license under this article shall be subscribed by the
applicant; or if made by a co-partnership it shall be subscribed by a
member thereof, or if made by a corporation it shall be subscribed by an
officer thereof, and shall conform to the requirements of section 3-503
of the general obligations law. Each application shall contain an affir-
mation by the person so subscribing that the statements therein are true
under the penalties of perjury. An application for a license shall be
accompanied by the appropriate license fee, as hereinafter prescribed in
this article.
(d) Anything to the contrary herein notwithstanding, on and after the
effective date of this paragraph, no [salesman's] SALESPERSON'S license
or conditional license shall be issued by the department unless the
application therefor has been accompanied by proof that prior to such
application the applicant has attended at least seventy-five hours and
successfully completed a real estate course or courses approved by the
secretary of state as to method and content and supervision, which
approval may be withdrawn if in the opinion of the secretary of state
said course or courses are not properly conducted as to method, content
and supervision. Computer-based and distance-learning courses may be
approved by the department so long as providers demonstrate the ability
to monitor and verify participation by the applicant for the specified
time period. Notwithstanding the foregoing authority to approve compu-
ter-based and distance-learning courses, the department may prescribe
that specified subjects or hours must be presented in a classroom
setting.
§ 6. Subdivisions 1, 2, 3, 5, 6, 8, and 12 of section 441-a of the
real property law, subdivisions 1 and 8 as amended by chapter 226 of the
laws of 1980, subdivision 2 as amended by chapter 345 of the laws of
2012, subdivisions 3 and 6 as amended by chapter 183 of the laws of
2006, subdivision 5 as amended by chapter 61 of the laws 1989, and
subdivision 12 as added by chapter 430 of the laws of 2008, are amended
to read as follows:
1. The department of state, if satisfied of the competency and trust-
worthiness of the applicant, shall issue and deliver to [him] THEM a
license in such form and manner as the department shall prescribe, but
which must set forth the name and principal business address of the
licensee, and, in the case of a real estate [salesman] SALESPERSON, the
S. 9011 6
name and business address of the broker with whom the [salesman] SALES-
PERSON is associated.
2. Terms. A license issued or reissued under the provisions of this
article shall entitle the person, co-partnership, limited liability
company or corporation to act as a real estate broker, or, if the appli-
cation is for a real estate [salesman's] SALESPERSON'S license, to act
as a real estate [salesman] SALESPERSON in this state up to and includ-
ing the date in which the license by its terms expires.
3. Place of business; business sign required. Except as otherwise
provided in this article, each licensed real estate broker shall have
and maintain a definite place of business within this state, and shall
conspicuously post on the outside of the building in which said office
is conducted a sign of a sufficient size to be readable from the side-
walk indicating the name and the business of the applicant as a licensed
real estate broker, unless said office shall be located in an office,
apartment or hotel building, in which event the name and the words
"licensed real estate broker" shall be posted in the space provided for
posting of names of occupants of the building, other than the mail box.
Where the applicant for a real estate broker's license maintains more
than one place of business, the broker shall apply for and the depart-
ment shall issue a supplemental license for each branch office so main-
tained upon payment to the department of state for each supplemental
license so issued the same fee prescribed in this article for a license
to act as a real estate broker. Each such branch office shall be under
the direct supervision of the broker to whom the license is issued, or a
representative broker of a corporation or partnership or manager of a
limited liability company holding such license, or a duly appointed
office manager. Such fee shall accompany such application and shall be
non-refundable. For purposes of this subdivision, the principal resi-
dence of a real estate broker or [salesman] SALESPERSON shall not be
deemed a place of business solely because such broker or [salesman]
SALESPERSON shall have included the residence telephone number in [his]
THEIR business cards.
5. Change of address. Notice in writing in the manner and form
prescribed by the department shall be given the department at its
offices in Albany by a licensed real estate broker on [his] THEIR own
behalf and on behalf of each [salesman] SALESPERSON associated with
[him] THEM of any change in [his] THEIR or its principal business
address. The filing fee of ten dollars for each licensee named therein
shall accompany such notice. Such change by a licensee without such
notification shall operate to suspend [his] THEIR license until such
suspension shall be vacated by the department.
6. Pocket card. The department shall prepare, issue and deliver, with
the assistance of the department of motor vehicles, to each licensee a
pocket card in such form and manner as the department shall prescribe,
but which shall contain the photo, name and business address of the
licensee, and, in the case of a real estate [salesman] SALESPERSON, the
name and business address of the broker with whom [he or she is] THEY
ARE associated and shall certify that the person whose name appears
thereon is a licensed real estate broker or [salesman] SALESPERSON, as
may be. Such cards must be shown on demand. In the case of loss,
destruction or damage, the secretary of state may, upon submission of
satisfactory proof, issue a duplicate pocket card upon payment of a fee
of ten dollars.
8. Death of broker. A license issued to a real estate broker who was,
at the time of [his] THEIR death, the sole proprietor of a brokerage
S. 9011 7
office may be used after the death of such licensee by [his] THEIR duly
appointed administrator or executor in the name of the estate pursuant
to authorization granted by the surrogate under the provisions of the
surrogate's court procedure act for a period of not more than one
hundred twenty days from the date of death of such licensee in order to
complete any unfinished realty transactions in the process of negoti-
ation by the broker or [his salesmen] THEIR SALESPERSONS existing prior
to [his] THEIR decease. There shall be endorsed upon the face of the
license, after the name of the decedent, the words "deceased", the date
of death and the name of the administrator or executor under whose
authority the license is being used. The period of one hundred twenty
days may be extended upon application to the secretary of state, for
good cause shown, for an additional period not to exceed one hundred
twenty days. A license expiring during such period or extension shall be
automatically renewed and continued in effect during such period or
extension. No fee shall be charged for any such license or renewal ther-
eof.
12. Whenever any person licensed as a real estate broker or real
estate [salesman] SALESPERSON is convicted in this state or elsewhere of
a felony, of a sex offense, as defined in subdivision two of section one
hundred sixty-eight-a of the correction law or any offense committed
outside of this state which would constitute a sex offense, or a sexual-
ly violent offense, as defined in subdivision three of section one
hundred sixty-eight-a of the correction law or any offense committed
outside this state which would constitute a sexually violent offense,
such real estate broker or real estate [salesman] SALESPERSON shall
within five days of the imposition of sentence, transmit a certified
copy of the judgment of conviction to the department of state.
§ 7. Subdivisions 1 and 2 of section 441-b of the real property law,
subdivision 1 as amended by section 1 of part S of chapter 58 of the
laws of 2017, and subdivision 2 as amended by chapter 324 of the laws of
1998, are amended to read as follows:
1. The fee for a license issued or reissued under the provisions of
this article entitling a person, co-partnership, limited liability
company or corporation to act as a real estate broker shall be one
hundred fifty-five dollars. The fee for a license issued or reissued
under the provisions of this article entitling a person to act as a real
estate [salesman] SALESPERSON shall be fifty-five dollars. Notwithstand-
ing the provisions of subdivision seven of section four hundred forty-
one-a of this article, after January first, nineteen hundred eighty-six,
the secretary of state shall assign staggered expiration dates for
outstanding licenses that have been previously renewed on October thir-
ty-first of each year from the assigned date unless renewed. If the
assigned date results in a term that exceeds twenty-four months, the
applicant shall pay an additional prorated adjustment together with the
regular renewal fee. The secretary of state shall assign dates to exist-
ing licenses in a manner which shall result in a term of not less than
two years.
2. Corporations and co-partnerships. If the licensee be a corporation,
the license issued to it shall entitle the president thereof or such
other officer as shall be designated by such corporation, to act as a
real estate broker. For each other officer who shall desire to act as a
real estate broker in behalf of such corporation an additional license
expiring on the same date as the license of the corporation shall be
applied for and issued, as hereinbefore provided, the fee for which
shall be the same as the fee required by this section for the license to
S. 9011 8
the corporation. No license as a real estate [salesman] SALESPERSON
shall be issued to any officer of a corporation nor to any manager or
member of a limited liability company nor to a member of a co-partner-
ship licensed as a real estate broker. If the licensee be a co-partner-
ship the license issued to it shall entitle one member thereof to act as
a real estate broker, and for each other member of the firm who desires
to act as a real estate broker an additional license expiring on the
same date as the license of the co-partnership shall be applied for and
issued, as hereinbefore provided, the fee for which shall be the same as
the fee required by this section for the license to the co-partnership.
If the licensee be a limited liability company, the license issued to it
shall entitle one member thereof or one manager thereof to act as a real
estate broker, and for each other member or manager of the firm who
desires to act as a real estate broker an additional license expiring on
the same date as the license of the limited liability company shall be
applied for and issued, as hereinbefore provided, the fee for which
shall be the same as the fee required by this section for the license to
the limited liability company. In case a person licensed individually as
a real estate broker thereafter becomes an officer of a corporation or a
member or manager of a limited liability company or a member of a
co-partnership an application shall be made in behalf of such corpo-
ration, limited liability company or co-partnership for a broker's
license for [him] THEM as its representative for the remainder of the
then current license term, provided that the license and pocket card
previously issued to the licensee in [his] THEIR individual capacity
shall have been returned to the department whereupon the department
shall cause a properly signed endorsement to be made without charge on
the face of such license and pocket card as to such change of license
status and return the license and pocket card to the licensee.
§ 8. Paragraph (a) of subdivision 1, subparagraphs (i) and (iv) of
paragraph (b) of subdivision 1, and subdivisions 2 and 4 of section
441-c of the real property law, paragraph (a) of subdivision 1 as
amended by chapter 131 of the laws of 2020, subparagraphs (i) and (iv)
of paragraph (b) as amended by chapter 398 of the laws of 1997, and
subdivisions 2 and 4 as amended by chapter 347 of the laws of 1966, are
amended to read as follows:
(a) The department of state may revoke the license of a real estate
broker or [salesman] SALESPERSON or suspend the same, for such period as
the department may deem proper, or in lieu thereof may impose a fine not
exceeding one thousand dollars payable to the department of state, or a
reprimand upon conviction of the licensee of a violation of any
provision of this article, or for a material misstatement in the appli-
cation for such license, or if such licensee has been guilty of fraud or
fraudulent practices, or for dishonest or misleading advertising, or has
demonstrated untrustworthiness or incompetency to act as a real estate
broker or [salesman] SALESPERSON, or for a violation of article fifteen
of the executive law committed in [his or her] THEIR capacity as a real
estate broker or [salesman] SALESPERSON, as the case may be. In the case
of a real estate broker engaged in the business of a tenant relocator,
untrustworthiness or incompetency shall include engaging in any course
of conduct including, but not limited to, the interruption or discontin-
uance of essential building service, that interferes with or disturbs
the peace, comfort, repose and quiet enjoyment of a tenant.
(i) The provisions of this paragraph shall apply in all cases of
licensed broker or licensed [salesman] SALESPERSON who have failed,
after receiving appropriate notice, to comply with a summons, subpoena
S. 9011 9
or warrant relating to a paternity or child support proceeding or is in
arrears in payment of child support or combined child and spousal
support referred to the department by a court pursuant to the require-
ments of section two hundred forty-four-c of the domestic relations law
or pursuant to section four hundred fifty-eight-b or five hundred
forty-eight-b of the family court act.
(iv) Notwithstanding any inconsistent provision of this article or of
any other provision of law to the contrary, the license of a real estate
broker or [salesman] SALESPERSON shall be suspended if at the hearing,
provided for by subparagraph [two] (II) of this paragraph, the licensee
fails to present proof of payment as required by such subdivision. Such
suspension shall not be lifted unless the court or the support
collection unit, where the court order is payable to the support
collection unit designated by the appropriate social services district,
issues notice to the department that full payment of all arrears of
support established by the order of the court to be due have been paid.
2. Determination of department. In the event that the department shall
revoke or suspend any such license, or impose any fine or reprimand on
the holder thereof, its determination shall be in writing and officially
signed. The original of such determination, when so signed, shall be
filed in the office of the department and copies thereof shall be served
personally or by registered mail upon the broker or [salesman] SALESPER-
SON and addressed to the principal place of business of such broker or
[salesman] SALESPERSON, and to the complainant. All brokers' and [sales-
men's] SALESPERSONS' licenses and pocket cards shall be returned to the
department of state within five days after the receipt of notice of a
revocation or suspension, or in lieu thereof, the broker or [salesman]
SALESPERSON whose license has been revoked or suspended shall make and
file an affidavit in form prescribed by the department of state, showing
that the failure to return such license and pocket card is due either to
loss or destruction thereof.
4. Whenever the license of a real estate broker or real estate [sales-
man] SALESPERSON is revoked by the department, such real estate broker
or real estate [salesman] SALESPERSON shall be ineligible to be reli-
censed either as a real estate broker or real estate [salesman] SALES-
PERSON until after the expiration of a period of one year from the date
of such revocation.
§ 9. Section 441-d of the real property law, as amended by chapter 226
of the laws of 1980, is amended to read as follows:
§ 441-d. [Salesman's] SALESPERSON'S license suspended by revocation or
suspension of employer's license. The revocation or suspension of a
broker's license shall operate to suspend the license of each real
estate [salesman] SALESPERSON associated with such broker, pending a
change of association of the [salesman] SALESPERSON or the expiration of
the period of suspension of the broker's license. Such suspension of the
[salesman's] SALESPERSON'S license shall be deemed to be a discontin-
uance of association with the broker being suspended.
§ 10. Subdivisions 1 and 2 of section 441-e of the real property law,
subdivision 1 as added by chapter 699 of the laws of 1988, and subdivi-
sion 2 as amended by chapter 505 of the laws of 2001, are amended to
read as follows:
1. Denial of license. The department of state shall, before making a
final determination to deny an application for a license, notify the
applicant in writing of the reasons for such proposed denial and shall
afford the applicant an opportunity to be heard in person or by counsel
prior to denial of the application. Such notification shall be served
S. 9011 10
personally or by certified mail or in any manner authorized by the civil
practice law and rules. If the applicant is a [salesman] SALESPERSON or
has applied to become a [salesman] SALESPERSON, the department shall
also notify the broker with whom such [salesman] SALESPERSON is associ-
ated, or with whom such [salesman] SALESPERSON or applicant is about to
become associated, of such proposed denial. If a hearing is requested,
such hearing shall be held at such time and place as the department
shall prescribe. If the applicant fails to make a written request for a
hearing within thirty days after receipt of such notification, then the
notification of denial shall become the final determination of the
department. The department, acting by such officer or person in the
department as the secretary of state may designate, shall have the power
to subpoena and bring before the officer or person so designated any
person in this state, and administer an oath to and take testimony of
any person or cause [his] THEIR deposition to be taken. A subpoena
issued under this section shall be regulated by the civil practice law
and rules. If, after such hearing, the application is denied, written
notice of such denial shall be served upon the applicant personally or
by certified mail or in any manner authorized by the civil practice law
and rules, and if the applicant is a [salesman] SALESPERSON, or has
applied to become a [salesman] SALESPERSON, the department shall notify
the broker with whom such applicant is associated.
2. Revocation, suspension, reprimands, fines. The department of state
shall, before revoking or suspending any license or imposing any fine or
reprimand on the holder thereof or before imposing any fine upon any
person not licensed pursuant to this article who is deemed to be in
violation of section four hundred forty-two-h of this article, and at
least ten days prior to the date set for the hearing, notify in writing
the holder of such license or such unlicensed person of any charges made
and shall afford such licensee or unlicensed person an opportunity to be
heard in person or by counsel in reference thereto. Such written notice
may be served by delivery of same personally to the licensee, or by
mailing same by certified mail to the last known business address of
such licensee or unlicensed person, or by any method authorized by the
civil practice law and rules. If said licensee be a [salesman] SALESPER-
SON, the department shall also notify the broker with whom [he is] THEY
ARE associated of the charges by mailing notice by certified mail to the
broker's last known business address. The hearing on such charges shall
be at such time and place as the department shall prescribe.
§ 11. Subdivision 1 and paragraph (i) of subdivision 2 of section 442
of the real property law, as amended by chapter 514 of the laws of 2014,
are amended to read as follows:
1. No real estate broker shall pay any part of a fee, commission or
other compensation received by the broker to any person for any service,
help or aid rendered in any place in which this article is applicable,
by such person to the broker in buying, selling, exchanging, leasing,
renting or negotiating a loan upon any real estate including the resale
of a condominium or cooperative apartment unless such a person be a duly
licensed real estate [salesman] SALESPERSON regularly associated with
such broker or a duly licensed real estate broker or a person regularly
engaged in the real estate brokerage business in a state outside of New
York; provided, however, that notwithstanding any other provision of
this section, it shall be permissible for a real estate broker to pay
any part of a fee, commission, or other compensation received to an
unlicensed corporation or an unlicensed limited liability company if
each of its shareholders or members, respectively, is associated as an
S. 9011 11
individual with the broker as a duly licensed associate broker or
[salesman] SALESPERSON.
(i) a real estate [salesman] SALESPERSON duly licensed under this
article who is regularly associated with such broker;
§ 12. Section 442-a of the real property law, as amended by chapter
226 of the laws of 1980, is amended to read as follows:
§ 442-a. Compensation of [salesmen] SALESPERSONS; restrictions. No
real estate [salesman] SALESPERSON in any place in which this article is
applicable shall receive or demand compensation of any kind from any
person, other than a duly licensed real estate broker with whom [he]
THEY associated, for any service rendered or work done by such [sales-
man] SALESPERSON in the appraising, buying, selling, exchanging, leas-
ing, renting or negotiating of a loan upon any real estate.
§ 13. Section 442-b of the real property law, as amended by chapter
226 of the laws of 1980, is amended to read as follows:
§ 442-b. Discontinuance or change of [salesman's] SALESPERSON'S asso-
ciation; report. When the association of any real estate [salesman]
SALESPERSON shall have been terminated for any reason whatsoever, [his]
THEIR broker shall forthwith notify the department of state thereof in
such manner as the department shall prescribe. Where change of such
[salesman's] SALESPERSON'S association is the basis for such termi-
nation, the [salesman's] SALESPERSON'S successor broker shall forthwith
notify the department of such change in such manner as the department
shall prescribe, such notice to be accompanied by a fee of one dollar.
No real estate [salesman] SALESPERSON shall perform any act within any
of the prohibitions of this article from and after the termination for
any cause of [his] THEIR association until [he] THEY thereafter shall
have become associated with a licensed real estate broker.
§ 14. Section 442-c of the real property law, as amended by chapter
699 of the laws of 1988, is amended to read as follows:
§ 442-c. Violations by [salesmen] SALESPERSONS; broker's responsibil-
ity. No violation of a provision of this article by a real estate
[salesman] SALESPERSON or employee of a real estate broker shall be
deemed to be cause for the revocation or suspension of the license of
the broker, unless it shall appear that the broker had actual knowledge
of such violation or retains the benefits, profits or proceeds of a
transaction wrongfully negotiated by [his salesman] THEIR SALESPERSON or
employee after notice of the [salesman's] SALESPERSON'S or employee's
misconduct. A broker shall be guilty of a misdemeanor for having any
[salesman] SALESPERSON associated with [his] THEIR firm who has not
secured the required license authorizing such employment.
§ 15. Section 442-d of the real property law, as amended by chapter
324 of the laws of 1998, is amended to read as follows:
§ 442-d. Actions for commissions; license prerequisite. No person,
copartnership, limited liability company or corporation shall bring or
maintain an action in any court of this state for the recovery of
compensation for services rendered, in any place in which this article
is applicable, in the buying, selling, exchanging, leasing, renting or
negotiating a loan upon any real estate without alleging and proving
that such person was a duly licensed real estate broker or real estate
[salesman] SALESPERSON on the date when the alleged cause of action
arose.
§ 16. Subdivision 5 of section 442-e of the real property law, as
added by chapter 468 of the laws of 1940, is amended to read as follows:
5. The secretary of state shall have the power to enforce the
provisions of this article and upon complaint of any person, or on [his]
S. 9011 12
THEIR own initiative, to investigate any violation thereof or to inves-
tigate the business, business practices and business methods of any
person, firm or corporation applying for or holding a license as a real
estate broker or [salesman] SALESPERSON, if in the opinion of the secre-
tary of state such investigation is warranted. Each such applicant or
licensee shall be obliged, on request of the secretary of state, to
supply such information as may be required concerning [his] THEIR or its
business, business practices or business methods, or proposed business
practices or methods.
§ 17. Subdivisions 1, 4, and 6 of section 442-g of the real property
law, subdivision 1 as amended by chapter 744 of the laws of 1978, subdi-
vision 4 as amended by chapter 482 of the laws of 1963, and subdivision
6 as added by section 2 of part D of chapter 328 of the laws of 2014,
are amended to read as follows:
1. A nonresident of this state may become a real estate broker or a
real estate [salesman] SALESPERSON by conforming to all of the
provisions of this article, except that a nonresident broker regularly
engaged in the real estate business as a vocation who is licensed and
maintains a definite place of business in another state, which offers
the same privileges to the licensed brokers of this state, shall not be
required to maintain a place of business within this state. Anything to
the contrary herein notwithstanding, if any state prohibits or restricts
the right of a resident of this state to become a licensed nonresident
real estate broker or [salesman] SALESPERSON, then the issuance of such
a license to an applicant resident in such state shall be similarly
restricted. The department of state shall recognize the license issued
to a real estate broker or [salesman] SALESPERSON by another state as
satisfactorily qualifying [him] THEM for license as broker or [salesman]
SALESPERSON, as the case may be, under this section; provided that the
laws of the state of which [he is] THEY ARE a resident require that
applicants for licenses as real estate brokers and [salesmen] SALESPER-
SONS shall establish their competency by written examinations but permit
licenses to be issued to residents of the State of New York duly
licensed under this article, without examination. If the applicant is a
resident of a state which has not such requirement then the applicant
must meet the examination requirement as provided herein and the depart-
ment of state shall issue a license to such nonresident broker or
[salesman] SALESPERSON upon payment of the license fee and the filing by
the applicant with the department of a certified copy of the applicant's
license issued by such other state.
4. The secretary of state shall promptly send one of such copies by
registered mail, return receipt requested, to the nonresident broker or
nonresident [salesman] SALESPERSON at the post office address of [his]
THEIR main office as set forth in the last application filed by him OR
HER.
6. Notwithstanding any other provisions of this article, the depart-
ment of state shall grant a real estate broker or a real estate [sales-
man] SALESPERSON license to an applicant who is a member of the house-
hold of a member of the armed forces of the United States, national
guard or reserves and was a member of such household before such member
of the armed forces relocated to the state who submits satisfactory
evidence of licensure, certification or registration to practice an
equivalent occupation issued by a state, territory, protectorate or
dependency of the United States, provided that such license, certif-
ication or certificate of registration was current and effective within
one year of the date of the individual's application for licensure in
S. 9011 13
New York, was granted in compliance with standards that are, in the
judgment of the secretary, no less rigorous than those required for
licensure in New York. If such standards for licensure, certification or
registration are deemed by the secretary to be less rigorous than those
required for licensure in New York, the secretary shall permit an appli-
cant to submit evidence in a form acceptable to the department of state
to demonstrate the applicant's competency and trustworthiness. If such
evidence is sufficient in the judgment of the secretary, the secretary
shall grant a real estate broker or real estate salesperson license.
§ 18. Paragraph j of subdivision 1 of section 443 of the real property
law, as amended by chapter 549 of the laws of 2007, is amended to read
as follows:
j. "Designated sales agent" means a licensed real estate [salesman]
SALESPERSON or associate broker, working under the supervision of a real
estate broker, who has been assigned to represent a client when a
different client is also represented by such real estate broker in the
same transaction.
§ 19. This act shall take effect immediately.
