Brokers’ New Mandatory Rules
Just signed into law on March 18, 2022, requiring compliance by April 20, 2022, every real estate broker, operating within the State of New York, MUST have on each publicly available website and mobile device application they maintain, a list of standardized operating procedures, to evaluate prospective residential homebuyers, prior to receiving any services. These rules are to allow the prospective client/purchaser to understand what is required of them.
The type of standardized operating procedures shall include but not be limited to the broker advising: (i) whether prospective clients shall show identification (ii) whether an exclusive broker agreement is required (iii) whether pre-approval for a mortgage loan is required; (iv) any other such standardized operating procedures as the Secretary of State shall determine by regulation and upon notice and public hearing.
Brokers must keep an archive of all standardized procedures, for as long as they are actively licensed, by having each amendment 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. Any broker or salesperson operating under a brokerage license that fails to adhere to such operating procedures shall be subject to discipline under RPL 441-c. This amendment removed the requirement for brokers to submit and file their standardized operating procedures with the Department of State. Any time a real estate broker is required to renew their license they must however now affirm compliance with the Department of State that they are in compliance with these requirements relative to standardized operating procedures.
SDK HEIBERGER TEAM
² New York Consolidated Laws, Real Property Law - RPP § 441-c | FindLaw