S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6186
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 10, 2021
                                ___________
 
 Introduced by M. of A. GRIFFIN, THIELE, AUBRY, GALEF, JACKSON, SILLITTI,
   HUNTER,  ENGLEBRIGHT  --  read  once  and referred to the Committee on
   Judiciary
 
 AN ACT to amend the real property law,  in  relation  to  requiring  the
   secretary  of  state  to  promulgate regulations requiring real estate
   brokers to institute standardized operating procedures for the prereq-
   uisites prospective homebuyers  shall  meet  prior  to  receiving  any
   services
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 442-h of the real property law is amended by adding
 a new subdivision 4 to read as follows:
   4. (A) THE SECRETARY OF STATE, UPON NOTICE AND A PUBLIC HEARING, SHALL
 PROMULGATE RULES AND REGULATIONS REQUIRING REAL ESTATE BROKERS TO INSTI-
 TUTE 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 SUBSE-
 QUENT  TO  SUCH  SUBMISSION, REAL ESTATE BROKERS SHALL NOTIFY AND SUBMIT
 SUCH NEW STANDARD OPERATING PROCEDURES WITHIN THIRTY DAYS.   ANY  SALES-
 PERSON  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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06380-03-1
              

 A. 6186                             2
 
   § 2. Paragraph (a) of subdivision 1 of section 441-c of the real prop-
 erty  law,  as amended by chapter 131 of the laws of 2020, is amended to
 read as follows:
   (a)  The  department  of state may revoke the license of a real estate
 broker or salesman or suspend the same, for such period as  the  depart-
 ment 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 VIOLATION OF SUBDIVISION FOUR OF SECTION FOUR HUNDRED
 FORTY-TWO-H OF THIS ARTICLE, or  for  a  material  misstatement  in  the
 application  for  such  license,  or if such licensee has been guilty of
 fraud or fraudulent practices, or for dishonest or misleading  advertis-
 ing,  or  has demonstrated untrustworthiness or incompetency to act as a
 real estate broker or salesman, or for a violation of article fifteen of
 the executive law committed in his or her  capacity  as  a  real  estate
 broker  or  salesman,  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 includ-
 ing, but not limited to, the interruption or discontinuance of essential
 building service, that interferes with or disturbs the  peace,  comfort,
 repose and quiet enjoyment of a tenant.
   § 3. This act shall take effect immediately.