NEW YORK IMPLEMENTS NEW REQUIREMENTS FOR REAL ESTATE BROKERS AND AGENTS

NEW YORK IMPLEMENTS NEW REQUIREMENTS FOR REAL ESTATE BROKERS AND AGENTS

April 4, 2022

Later this month, licensed real estate brokers in New York will be required to adhere to new rules aimed at improving transparency for individuals seeking to hire an agent.

Pursuant to the passage of Senate Bill S.7729, starting April 20, 2022, every real estate broker operating in New York will be required to post on their website and mobile apps, a list of standardized operating procedures.

Those procedures must include, at a minimum, the following information:

  • Whether prospective clients must show identification
  • Whether an exclusive broker agreement is required
  • Whether pre-approval for a mortgage loan is required

 The new rules also extend to any agents or teams associated with any broker. In such instances, they too must post the standard operating procedures under which their broker operates.

The rules, outlined in a memo released by Governor Hochul’s office, further detail requirements all brokers must adhere to, including:

  • Brokers must keep an archive of all standardized procedures, for as long as they are actively licensed, and each amendment must be date stamped and notarized.
  • All new procedures must be posted and made available, at each brokerage office and online, within 30 days of any changes.

Brokers and agents found to be in violation of the new requirements after April 20, 2022, will be subject to penalties.

The attorneys in our commercial real estate and development practice group are working closely with the brokers we represent to assist in the development and implementation of these written procedures. As with all our corporate clients, our goal is always to be proactive and ensure our clients are in full compliance with ever-changing state and federal regulations before an issue arises.

If you have questions about New York State’s new requirements for commercial real estate brokers and agents, give our team a call at 716-854-4300. We are here to help.

Click here to learn more about the new regulations.