NY RE Broker cheat sheet

Licensing authority in New York is the Department of State (DOS), Division of Licensing Services; the license law is Article 12-A of the Real Property Law.

A salesperson license must be held under a sponsoring broker; a salesperson cannot lawfully accept a commission or fee directly from a client or customer.

Broker license requires age 20+, salesperson experience or equivalent education, and passing the broker exam; salesperson requires age 18+ and a sponsoring broker.

License terms run two years and renew by the expiration date; late renewal within the grace period requires payment of an additional late fee.

Commissions are negotiable and may not be fixed by law or by agreement among brokers; the amount is set by the parties' contract.

Disciplinary actions include revocation, suspension, reprimand, fine, and mandatory education; the DOS may also impose a license restriction.

A licensee must disclose agency relationships in writing at the first substantive contact and obtain written acknowledgment of the disclosure form.

Commingling client funds with personal or business funds is prohibited; escrow funds must be held in a properly designated account.

Federal Fair Housing Act prohibits discrimination based on race, color, religion, sex, national origin, familial status, and disability.

New York State Human Rights Law adds protected classes including sexual orientation, gender identity or expression, military status, age, marital status, and source of income.

Source-of-income protection means a landlord may not refuse a tenant solely because rent is paid through a housing subsidy such as Section 8.

Familial status protection covers households with children under 18 and pregnant women; blanket 'no children' policies are unlawful.

Disability protection requires reasonable accommodation in rules and reasonable modification of premises at the tenant's expense when needed.

Steering, blockbusting, and panic selling are prohibited practices; a licensee may not channel buyers toward or away from neighborhoods by protected class.

A licensee may not make, print, or publish any statement indicating a preference or limitation based on a protected class.

Fair housing complaints may be filed with HUD, the NYS Division of Human Rights, or in court; retaliation against a complainant is itself unlawful.

Advertising must include the licensed name of the brokerage as registered with the DOS; a salesperson's name may appear only with the broker's licensed name.

A salesperson may not advertise property as an independent agent or imply that the salesperson is the broker.

Blind ads omitting the brokerage name are prohibited; every ad must identify the brokerage responsible for the listing.

Advertising must be truthful and not misleading; omissions that create a false impression violate the license law.

Fair housing rules apply to all advertising: ad copy may not state a preference or limitation based on a protected class.

Use of the term 'team' or a trade name in advertising requires that the licensed brokerage name also appear.

Internet and social media listings are advertising; the brokerage name must appear on the listing page or profile used for the ad.

A licensee may not advertise a property without the owner's authorization or without a valid listing agreement.

Real estate brokerage offices must maintain written standardized operating procedures (SOPs) and provide them to prospective clients.

SOPs must describe how the brokerage handles buyer and seller clients, including agency disclosure and the sequence of services.

The SOP must address how the brokerage will handle prospective buyer clients who contact the firm before any exclusive agreement.

SOPs must be published conspicuously on the brokerage's website and provided in writing upon request.

Procedures must state whether the firm requires an exclusive buyer-broker agreement and at what point it is signed.

SOPs must be applied consistently; treating similarly situated clients differently without a stated basis undermines the procedure.

The SOP must identify the brokerage's policy on fair housing and on handling complaints or inquiries.

Records of the SOP and its distribution should be retained; failure to maintain compliant procedures is a license-law violation.

Broker candidate must complete 120 hours of qualifying education (the broker qualifying course) or hold equivalent approved education.

Broker applicant must have at least two years of experience as a licensed salesperson, or satisfy an approved equivalent experience standard.

Broker exam covers license law, agency, contracts, finance, valuation, property condition, and fair housing.

The 75-hour salesperson qualifying course plus the 120-hour broker course are the standard education tracks under Article 12-A.

Continuing education for brokers is 22.5 hours per two-year cycle, including at least 3 hours of fair housing and 2 hours of agency.

Salesperson continuing education is 22.5 hours per renewal cycle, including fair housing and agency components.

Course providers and curricula must be approved by the DOS; unapproved hours do not count toward licensure.

Applicants must submit fingerprints for a criminal history check and disclose any prior disciplinary or criminal record.

Each branch office must be licensed as a branch and must have a designated licensed broker who supervises it.

The branch office license application identifies the branch address and the broker responsible for that location.

A branch office may not operate under an unlicensed manager; supervisory authority rests with a licensed associate broker or broker.

The main office and each branch must display the license and required agency disclosure notices where clients can see them.

Office manager duties include supervising salespersons, reviewing advertising, and ensuring escrow and recordkeeping compliance.

A salesperson may be supervised only by the broker or associate broker to whom the salesperson is assigned.

Changes in branch address, manager, or ownership must be reported to the DOS within the required time frame.

Unlicensed clerical staff at a branch may not perform activities requiring a license even if supervised on site.

Unlicensed assistants may perform clerical tasks: answering phones, scheduling, filing, data entry, and relaying messages.

Unlicensed assistants may not negotiate price or terms, show property, host open houses, or discuss property details with prospects.

Unlicensed assistants may not prepare or explain contracts, listing agreements, or agency disclosure forms.

Unlicensed assistants may distribute pre-approved advertising and factual listing information but may not create marketing that requires licensee judgment.

An unlicensed assistant may be paid a salary or hourly wage but may not be paid a commission or a share of a brokerage fee.

Office operations must maintain escrow records, transaction files, and agency disclosure acknowledgments for the required retention period.

A licensee may not use an unlicensed person to conduct activities that the license law reserves to licensees, even informally.

Supervision of unlicensed staff is the responsibility of the licensed broker who manages the office.