LIEB BLOG

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Showing posts with label DOS. Show all posts
Showing posts with label DOS. Show all posts

Wednesday, December 23, 2020

NYS Proposes Regulations that Require Appraisers to Learn Fair Housing / Anti-Discrimination

On 12/23/2020, the NYS Department of State proposed mandating fair housing education as a condition of license renewal for appraisers and assistant appraisers.  


The proposed regulations would be at 19 NYCRR 1107.2(b), 19 NYCRR 1107.33(a), (b), and (c), and 19 NYCRR 1107.34. 


In substance, the regulations would require that every licensed or certified appraiser complete an approved course of study in Fair Housing and Fair Lending every two years with the following course topics: 

a) 7 Hour Introduction to Fair Housing and Fair Lending Instruction

b) 4 Hour Update on Fair Housing and Fair Lending Instruction


Now, we are in the public comment period until 02/21/2021. To make your comments, email the regulator at david.mossberg@dos.ny.gov


While we are very encouraged by increased fair housing and anti-discrimination trainings being required in NYS, we are concerned with how specific the subtopics of education are and how they offer no explanation as to what exactly the government is looking for within each subtopic. We are also concerned about how this requirement will impact federal government contractor appraisers who must follow Executive Order 13950 on Combating Race and Sex Stereotyping and are therefore restricted on engaging in trainings on unconscious bias or implicit bias to the extent that "it teaches or implies that an individual, by virtue of his or her race, sex, and/or national origin, is racist, sexist, oppressive, or biased, whether consciously or unconsciously," per the US Department of Labor. We hope that these issues will be addressed before this regulation is finalized. 


To the specific subtopic requirements, under topic a), the subtopics are as follows:

(1) Fair housing, fair lending requirements, and the history of lending 2 hours

(a) What is fair housing?

(b) What is fair lending?

(c) Roadblocks to fair housing/lending

(d) Federal laws Civil Rights Act of 1866

Civil Rights Act of 1964 Fair Housing Act of 1968

Supreme Court

The Housing and Community Development Act of 1974

The Fair Housing Amendment Act of 1988

Other legislation

- Community Reinvestment Act

- Equal Credit Opportunity Act

- Home Mortgage Disclosure Act

- Real Estate Settlement Procedures Act American Disabilities Act

(ADA)

(e) New York State Law - Executive Law includes the Civil Rights

Law of the State (NY Human Rights Law - Article 15)

- Additional protected classes; age and marital status

- Includes residential property, land commercial property and credit

transactions

(f) Local Regulations

(g) Exemptions and Exceptions

- Senior Citizen Housing

- Drug users and alcohol abusers

- Two family exemption

(h) USPAP/FIRREA

(i) Enforcement and Duties

-U.S. Department of Justice

-Department of Housing and Urban Development (HUD)

-New York State Department of State, Division of Licensing

-New York State Division of Human Rights

-Administrative Law Judges

-Federal and State Courts

-Responsibilities of individual appraisers

(j) Penalties New York State Federal Government

(2) Development of appraisal (Standard 1 USPAP) 1.5 hours

(a) Bias and discrimination in the analysis in development

(b) Documentation of sources

(c) Secondary market guidelines Fannie Mae, Freddie Mac, HUD,

VA

(3) Reporting of appraisal results (Standard 2 USAP) 1.5 hour

(a) Bias and discrimination in the report

(b) Documentation of sources

(c) Secondary market guidelines Fannie Mae, Freddie Mac, HUD,

VA

(4) Case studies 2 hours

(a) Neighborhood issues

(b) Improvement issues

(c) External obsolescence

(d) Conscious and Unconscious bias


Under topic b), the subtopics are as follows:

(1) Fair housing, fair lending requirements, and the history of lending 1 hour

(a) What is fair housing?

(b) What is fair lending?

(c) Roadblocks to fair housing/lending

(d) Federal laws Civil Rights Act of 1866

Civil Rights Act of 1964 Fair Housing Act of 1968

Supreme Court

The Housing and Community Development Act of 1974

The Fair Housing Amendment Act of 1988

Other legislation

- Community Reinvestment Act

- Equal Credit Opportunity Act

- Home Mortgage Disclosure Act

- Real Estate Settlement Procedures Act American Disabilities Act

(ADA)

(e) New York State Law - Executive Law includes the Civil Rights

Law of the State (NY Human Rights Law - Article 15)

- Additional protected classes; age and marital status

- Includes residential property, land commercial property and credit

transactions

(f) Local Regulations

(g) Exemptions and Exceptions

Senior Citizen Housing

Drug users and alcohol abusers

Two family exemption

(h) USPAP/FIRREA

(i) Enforcement and Duties

-U.S. Department of Justice

-Department of Housing and Urban Development (HUD)

-New York State Department of State, Division of Licensing

-New York State Division of Human Rights

-Administrative Law Judges

-Federal and State Courts

-Responsibilities of individual appraisers

(j) Penalties New York State Federal Government

(2) Development of appraisal (Standard 1 USPAP) 1 hour

(a) Bias and discrimination in the analysis

(b) Documentation of sources

(c) Secondary market guidelines Fannie Mae, Freddie Mac, HUD,

VA

(3) Reporting of appraisal results (Standard 2 USAP) 1 hour

(a) Bias and discrimination in the report

(b) Documentation of sources

(c) Secondary market guidelines Fannie Mae, Freddie Mac, HUD,

VA

(4) Case studies 1 hour

(a) Neighborhood issues

(b) Improvement issues

(c) External obsolescence

(d) Conscious and Unconscious bias


 




Monday, April 27, 2020

Fair Housing Disclosure / Notice / Website Requirements - Effective June 20, 2020

Major NEW Fair Housing Regulations are effective June 20, 2020 according to the NYS Board of Real estate meeting that was held on April 27, 2020.

ALERT: Real estate brokers must implement trainings immediately on their salespersons distributing the new required disclosure form or risk both license law violations and lawsuits for discrimination. Lieb Compliance is ready to help.



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The new disclosure regulation is 19 NYCRR 175.28:

a) A real estate broker shall be responsible to ensure that each individual licensed pursuant to Article 12-A of the New York Real Property Law and associated with such broker provides to a prospective purchaser, tenant, seller, or landlord upon first substantive contact a disclosure notice furnished by the Department, containing substantive provisions of the New York State Human Rights Law. The disclosure notice shall set forth how Human Rights Law complaints may be filed, and such other information as the Department deems pertinent.

b) The disclosure notice required pursuant to paragraph (a) of this section, may be provided to a prospective purchaser, tenant, seller, or landlord by any of the following means: email, text, electronic messaging system, facsimile, or hardcopy. An electronic communication containing a link to the disclosure notice required pursuant to paragraph (a) of this section shall be permissible, provided the communication also contains text to inform the prospective purchaser, tenant, seller, or landlord that the link contains information regarding the New York State Human Rights Law. Oral disclosure does not satisfy the requirements imposed by this section.

c) The disclosure notice required by paragraph (a) of this section shall apply to all real property whether or not it is used or occupied, or intended to be used or occupied, wholly or partly, as a home or residence of one or more persons regardless of the number of units, and shall include: condominiums; cooperative apartments; vacant lands, including unimproved real property upon which such dwellings are to be constructed; or commercial properties.

d) A real estate broker, licensed real estate salesperson, or licensed associate broker that provides the disclosure notice required pursuant to this section by hardcopy, shall obtain a signed acknowledgment from the prospective buyer, tenant, seller, or landlord. Such signed disclosure notice shall be retained for not less than three years. A real estate broker, licensed real estate salesperson, or licensed associate broker that provides the disclosure notice required pursuant to this section by email, text, electronic messaging system, or facsimile, shall maintain a duplicate copy of such disclosure and shall retain the same for not less than three years. If the prospective buyer, tenant, seller, or landlord declines to sign the disclosure notice, the real estate broker, licensed real estate salesperson or licensed associate broker shall set forth under oath or affirmation a written declaration of the facts regarding when such notice was provided and shall maintain a copy of the declaration for not less than three years.

Interestingly, subsection (e) was deleted from 175.28 after public comment. Subsection (e) previously stated "[a] real estate broker shall be jointly liable for any violation of this section committed by any licensed individual associated with such broker." Our comment on the topic, given on January 21, 2020, was discussed at the NYS Board of Real Estate meeting on April 27, 2020.

We commented:
This subsection is superfluous, to an extent, and creates issues with regulatory construction as it indicates that a broker is not jointly and severally liable for other violations of 19 NYCRR 175 and as such, it should be stricken. I imagine the intended purpose is to clarify the impact of RPL 442-c on this regulation, but it should be further clarified as it's ripe for litigation the way it currently exists, as proposed.
As you can see, it's always important to participate in the regulatory process through comments. 

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ALERT: Real estate brokers need to display this new notice in their offices & on their websites. Real estate brokers must audit their real estate salespersons' websites under this new regulation. Lieb Compliance is ready to help.



The new advertising regulation is 19 NYCRR 175.29:

a) A real estate broker shall display and maintain at every office and branch office operated by such broker a notice, furnished by the Department, indicating the substantive provisions of the New York State Human Rights Law relative to housing accommodations. The notice shall set forth
how Human Rights Law complaints may be filed and such other information as the Department deems pertinent.

b) The notice required by paragraph (a) of this section shall be prominently displayed in the window of such office and any branch office maintained by such broker if such broker also provides listings or other postings in the window of such location and must be visible to persons on that portion of the sidewalk adjacent to such office or branch office. If any office or branch office is not accessible from the sidewalk or if postings are otherwise prohibited by any other applicable law, then the notice
required pursuant to paragraph (a) of this section shall be prominently posted in the same location the business license is posted pursuant to subdivision 3 of section 441-a of article 12 of the Real Property Law.

c) All websites created and maintained by real estate brokers, associate real estate brokers, real estate salespersons and any real estate team, as such term is defined by section 175.25 of this title, shall prominently and conspicuously display on the homepage of such website a link to the Department’s notice as required by paragraph (a) of this section, which shall be made available by the Department.

d) A real estate broker, licensed real estate salesperson, or licensed associate broker shall have displayed at all open houses of all real property the notice required by paragraph (a) of this section. In addition, a real estate broker, licensed real estate agent, or licensed associate broker shall
have available at all open houses and showings of all real property the notice required by paragraph (a) of section 175.28 of this part.

Interestingly, subsection (e) was deleted from 175.29 after public comment. Subsection (e) previously stated "[a] real estate broker shall be jointly liable for any violation of this section committed by any licensed individual associated with such broker." Our comment on the topic, given on January 21, 2020, was discussed at the NYS Board of Real Estate meeting on April 27, 2020.

We commented:
This subsection is superfluous, to an extent, and creates issues with regulatory construction as it indicates that a broker is not jointly and severally liable for other violations of 19 NYCRR 175 and as such, it should be stricken. I imagine the intended purpose is to clarify the impact of RPL 442-c on this regulation, but it should be further clarified as it's ripe for litigation the way it currently exists, as proposed.
As you can see, it's always important to participate in the regulatory process through comments. 

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Finally, real estate schools now have to record their fair housing trainings & Lieb School is already in compliance with the new regulation, 19 NYCRR 177.9:

(a) Every entity approved to provide instruction pertaining to fair housing and/or discrimination in the sale or rental of real property or an interest in real property shall cause a recording to be created of each course in its entirety. Such recording shall contain both video and audio of the instruction.

(b) The recording required by paragraph (a) of this section shall be maintained by the approved entity for at least one year following the date such course was provided to an enrolled student. If the entity knows or suspects that the recording is or will be the subject of litigation, then the approved entity shall maintain such recording as required by law.

(c) The recording required by paragraph (a) of this section may be subject to audit by the Department pursuant to section 177.11 of this part.


Friday, February 07, 2020

Recent Legal Matters CE Course & DOS Guidance on Paying Landlord's Agents

Last night, 2/6/2020, we were thrilled to have a packed house attending our new CE - Recent Legal Matters.

Image may contain: 10 people, people sitting and indoor

While not specifically a course topic, the DOS Guidance's Additional FAQs (updated: 1/31/2020) was brought up by students. Specifically, students inquired about FAQ #5:
5. CAN A LANDLORD’S AGENT COLLECT A “BROKER FEE” FROM THE PROSPECTIVE TENANT? No, a landlord’s agent cannot be compensated by the prospective tenant for bringing about the meeting of the minds. NY RPL § 238-a(1)(a) provides, in part, “no landlord, lessor, sub-lessor or grantor may demand any payment, fee, or charge for the processing, review or acceptance of an application, or demand any other payment, fee or charge before or at the beginning of the tenancy, except background checks and credit checks….” The fee to bring about the meeting of the minds would be a “payment, fee or charge before or at the beginning of the tenancy” other than a background or credit check as provided in this section. Accordingly, a landlord’s agent that collects a fee for bringing about the meeting of the minds between the landlord and tenant (i.e., the broker fee) from the tenant can be subject to discipline. 
What good timing for this to come up because our course materials included an explanation of the requirements for an agency (DOS) to issue a regulation, which were not undertaken with respect to this Guidance. As such, the Guidance is NOT law, but, instead an agency's interpretation of law. With respect to the Guidance constituting an interpretation rather than law, we explained how and when an agency's interpretation is given deference by the courts who are the co-equal branch of government with the constitutional authority to be the final voice on interpreting statutes (laws). Incident thereto, we shared the following quotes from case law with our students:
It is well settled that “[a]n agency's interpretation of its own regulation ‘is entitled to deference if that interpretation is not irrational or unreasonable’” &
“the question is one of pure statutory reading and analysis, dependent only on accurate apprehension of legislative intent, there is little basis to rely on any special competence or expertise of the  administrative agency and its interpretive regulations... And, of course, if the regulation runs counter to the clear wording of a statutory provision, it should not be accorded any weight.”
Oh, do we expect a legal battle on this issue. Stay tuned. It's going to get entertaining fast.

Wednesday, January 15, 2020

Real Estate Brokers - Guess the Pass Rate on the Salesperson Exam from 9/17/19 to 12/16/19

Tuesday, January 14, 2020

Real Estate Brokers - Guess How Many License Complaints DOS Received from 9/17/19 to 12/16/19

248 in 3 months

According to the Board of Real Estate Meeting

Of which DOS:

  • 121 closed
  • 2 withdrawan
  • 2 duplicates
  • 19 civil matter
  • 9 resolved
  • 8 no violation
  • 24 no jurisdiction
  • 11 insufficient evidence
  • 43 were holds placed on licensee's record to address brefore renew
  • 6 were referred to counsel for a hearing
Lieb School - where the law is followed

Thursday, October 05, 2017

Real Estate Salesperson FAQ: NY CE Requirements and Switching Broker of Record

A Real Estate Salesperson recently asked the following question:

Question: "If a broker released my license, can I still take the CE 22.5 hours and get credit towards my license? Or do I have to wait until a broker hires me? "

Answer (from The Department of State of NY): A renewal license will be issued to any licensee eligible to renew who has not been expired over 2 years, has completed the 22.5 hours of continuing education or is exempt and is associated with a broker at the time of renewal. There is nothing in the continuing education regulations that require a sponsoring broker be in place to be eligible to complete continuing education.

Friday, September 15, 2017

IMPORTANT NOTICE REGARDING CEASE AND DESIST ZONES FOR BRONX AND QUEENS COUNTIES

On September 12, 2017 the Department of State (the “Department”) filed a Notice of Adoption to establish cease and desist zones for parts of Bronx and Queens Counties. The regulations relating to these zones will go into effect on October 1, 2017 and will expire on October 1, 2022.

After several public hearings and obtaining information from homeowners within the designated zones, the Department concluded that regulations were necessary to protect individuals unwanted, intense and repeated solicitations.

While the zones are in effect, it will be unlawful for any licensed real estate broker or salesperson, or any other person regularly engaged in the business of buying and selling property to solicit a homeowner within the zone that has filed a notice with the Department requesting not to receive such solicitations. A list of homeowners that have filed such statements will be available on the Department’s website for free, or available for purchase for $10.00. The Department expects the first list to be available beginning December 1, 2017.

Sending solicitations to a homeowner that has registered with the Department can result in monetary fines, suspension or revocation of licensure. If necessary, enforcement proceedings will commence after January 1, 2018.

The zones include the following parts of Bronx and Queens Counties:

Bronx County:
All the land west of the Eastchester Bay south of Griswold Avenue to Bruckner Expressway; thence southerly along the Bruckner Expressway/Throgs Neck Expressway to Layton Avenue; then easterly to the Eastchester Bay.

Queens County:
The sections of the area of land in the County of Queens, City of New York, within the neighborhood commonly referred to as College Point, and more specifically bounded by and described as follows:
Beginning at the intersection of interstate 678 and the East River; thence southerly along interstate 678 to the intersection of interstate 678 and 14th Avenue; thence westerly along 14th Avenue to College Point Boulevard; thence southerly along College Point Boulevard to 28th Avenue; thence westerly to Flushing Bay; thence northeasterly along Flushing Bay and the East River to the point of the beginning.

The sections of the area of land in the County of Queens, City of New York, within the neighborhoods commonly referred to as: Bay Side, Bay Terrace and Murray Hill, and more specifically bounded by and described as follows:

Beginning at the intersection of the Cross Island Parkway and 149th Street; thence southerly along 149th Street to 46th Avenue; thence easterly along 46th Avenue and continuing along Hollis Court Boulevard to interstate 495; thence easterly along interstate 495 to the Cross Island Parkway; thence northerly along the Cross Island Parkway to the point of the beginning.

If you have any questions regarding the cease and desist zones for Bronx or Queens Counties, you may email questions to the Department at: licensing@dos.ny.gov, or contact 518-474-4429. Call Center Representatives are available from 8:30am to 4:30pm Monday through Friday except on Legal Holidays.

Tuesday, January 31, 2017

ALERT - Amended Real Estate Brokerage Regulations

The Real Estate License Law regulations at 19 NYCRR 175.1, 175.7, 176.3, 177.3, 177.7 & 175.25 have been amended. 

The industry now has new understandings of escrow requirements, compensation, advertising, qualifying education and continuing education as of January 4, 2017. 

Summary of New Understandings:

  • As to escrow, we now know that we must deposit all escrow money within 3 business days and hold it in a secure place like a safe until such time as its deposited in the bank.
  • As to compensation, we have learned that if we are paid by more than one source, we no longer have to receive consent from all parties, just our client.
  • As to advertising, we understand that business cards must include our license type.
  • As to qualifying education, we know that we now need to learn 1 hour on the new topic of License Safety, but the topic of Property Insurance has been reduced to only 1 hour from 2. 
  • Finally, with respect to continuing education, we no longer have to take a minimum of 3 hours in a course module, but can take only 1 hour when such a course is available (Lieb School is launching a 1 hour Agency Disclosure course very soon) and each hour is now only 50 minutes long (for bathroom breaks, etc.) whereas it used to be a 60 minute requirement. 



The full amended regulations are as follows:

Section 175.1 of Title 19 NYCRR is amended to read as follows:
            Section 175.1. Commingling money of principal.
A real estate broker shall not commingle the money or other property of his principal with his own and shall at all times maintain a separate, special bank account to be used exclusively for the deposit of said monies and which deposit shall be made [as promptly as practicable] within three business days.   Until such time as the money is deposited into a separate, special bank account, it shall be safeguarded in a secure location so as to prevent loss or misappropriation.  Said monies shall not be placed in any depository, fund or investment other than a federally insured bank account.  Accrued interest, if any, shall not be retained by, or for the benefit of, the broker except to the extent that it is applied to, and deducted from, earned commission, with the consent of all parties.

Section 175.7 of Title 19 NYCRR is amended to read as follows:
            Section 175.7. Compensation.
A real estate broker shall make it clear for which party he is acting and he shall not receive compensation from more than one party except with the full knowledge and consent of [all parties] the broker’s client.

Section 176.3 (a) of Title 19 NYCRR is amended to read as follows:
            Section 176.3. Subjects for study--real estate salespersons.
            (a) The following are the required subjects to be included in the course of study in real estate for licensure as a real estate salesperson, and the required number of hours to be devoted to each subject:

Salesperson's Course
Subject Matter: Hours:
License Law and Regulations ................................... 3
Law of Agency ................................................. 11
Legal Issues .................................................. 10
The Contract of Sales and Leases .............................. 3
Real Estate Finance ........................................... 5
Land Use Regulations .......................................... 3
Construction and Environmental Issues ......................... 5
Valuation Process and Pricing Properties ...................... 3
Human Rights and Fair Housing ................................. 4
Real Estate Mathematics ....................................... 1
Municipal Agencies ............................................ 2
Property Insurance ........................................... [2] 1
License Safety ........................................... 1
Taxes and Assessments ......................................... 3
Condominiums and Cooperatives ................................. 4
Commercial and Investment Properties .......................... 10
Income Tax Issues in Real Estate Transactions ................. 3
Mortgage Brokerage ............................................ 1
Property Management ........................................... 2
Instruction ................................................... 75
Final Examination ............................................. 3
TOTAL ..................................................... 78

Section 177.3 (g) of Title 19 NYCRR is amended to read as follows:
             
 (g) a detailed outline of the subject matter of each course or seminar containing at least 22½ hours of instruction, or of each course module containing at least [three hours] one hour of instruction, together with the time sequence of each segment thereof, the faculty for each segment, and teaching techniques used in each segment;

Section 177.7 of Title 19 NYCRR is amended to read as follows:
            Section 177.7. Computation of instruction time.
            To meet the minimum statutory requirement, attendance shall be computed on the basis of an hour equaling [60] 50 minutes.

Section 175.25 (d)(2) of Title 19 NYCRR is amended to read as follows:
            Section 175.25. Business cards.


(2) Notwithstanding subdivision (c) of this section, business cards must contain the business address of the licensee, license type, and the name of the real estate broker or real estate brokerage with whom the associate real estate broker or real estate salesperson is associated. All business cards must also contain the office telephone number for the associate real estate broker, real estate salesperson or team.

Friday, September 23, 2016

Lieb School Launches 22.5 CE License Renewal Course Package | Online Video Classes | $99.00

NY Real Estate Continuing Education 22.5 Credit 

License Renewal Course Package 

(click for online classes preview - turn sound on)
Anywhere and anytime you can finish all 22.5 hours of real estate continuing education as long as you have internet access. Lieb School’s online license renewal package includes video, audio and interactivity to get the job done without making you want to gouge your eyeballs out. Satisfies Department of State, New York Real Estate Continuing Education Requirements for License Renewal.

Courses include:

  • Deal Killers (3 CE Credits)
  • Conflicts of Interest (3 CE Credits)
  • Agency Disclosure (8 CE Credits)
  • Divorce Deals (4.5 CE Credits)
  • Fair Housing Act (4 CE Credits)
The first course in this package is Deal Killers, where you will learn how to comprehensively negotiate a deal with substance and understand how to lock in your commission through creating a paper trail proving that you addressed substantially all of the essential terms of the transaction while negotiating the deal. Next, Conflicts of Interest will teach you the role of each player in a transaction and how to avoid an ethical claim that can otherwise ruin your career. Following, you will learn the whole enchilada about agency disclosure including an easy to follow 12 scenario explanation of which form to give and when. After you have mastered how to fill out the agency disclosure forms, Divorce Deals will show you how to navigate through all of the complexities of selling a marital residence and share with you interesting insights of what your clients are going through during their divorce process. Last but certainly not least, after completing the Fair Housing Act course, you will learn the nationwide standard for anti-discrimination laws in residential housing and how to perform your job while avoiding lawsuits, which New York State is actively pursuing against real estate brokers today.

After trying Lieb School’s ONLINE classes, you will never want online education from any other provider. Lieb School’s leading distance education combines the latest interactive technology, license law education and continuing edutainment.

Each course includes a video from a live classroom setting that was instructed by premiere lecturer Andrew Lieb, Esq. Content is thereafter broken down in order to simplify the learning experience so that students can absorb our field’s complex materials without being overwhelmed.

*Prices Subject to change
** Must complete the courses 6 months from the date you registered


CLICK HERE TO REGISTER






Wednesday, September 21, 2016

Real Estate Brokerage Regulatory Updates - 9/20/16 NYS Board of Real Estate meeting summary


On 9/20/16 the NYS Board of Real Estate continued its mission of optimizing the regulation of real estate brokers in our state by holding its meeting in NYC and Albany. To remind real estate brokers and salespersons, the public is welcome at these meetings where the public can bring comments from the floor. It's encouraged that Lieb School students attend these meetings to have your voices heard. 

"[T]he Board has general authority to promulgate rules and regulations affecting real estate brokers and salespersons in order to administer and effectuate the purposes of Article 12-A of the Real Property Law."

A complete video of the meeting is available on youtube.

In summary, the following was discussed:
  1. The partnership between the Department of State and the Division of Human Rights to enforce fair housing laws; 
  2. The new agency disclosure continuing education requirements as signed by the Governor into law earlier this month; 
  3. Diversity being an approved topic for continuing education;
  4. Notice of regulatory changes for the following topics will appear on the state register for 45 day comment period on 9/28/16: 19 NYCRR 175.1 (escrow and how much time can be held before deposited), 19 NYCRR 175.7 (consent of parties), 19 NYCRR 176.3 (license safety course and reduction in hours to property insurance course), 19 NYCRR 177.3 (allows training modules to be 1 hour rather than 3), 19 NYCRR 177.7 (allows the computating the computation from 60 to 50 minutes), and 19 NYCRR 175.25 (advertisements of business cards that license type be listed as a clarification); and
  5. Changing point allocation for acting as listing agent and selling agent.
Of note, no quorum existed so no votes were taken. The next meeting is expected in January 2017. 


Thursday, March 24, 2016

Notice to all Real Estate Brokers and Salespeople from the Department of State, New York

Monday, March 14, 2016

Real Estate Brokerage Regulatory Updates - 2/26/16 NYS Board of Real Estate meeting summary

On 2/26/16 the NYS Board of Real Estate continued its mission of optimizing the regulation of real estate brokers in our state by holding its meeting in NYC, Buffalo and Albany. To remind real estate brokers and salespersons, the public is welcome at these meetings where the public can bring comments from the floor. It’s encouraged that Lieb School students attend these meetings to have your voices heard. 

"[T]he Board has general authority to promulgate rules and regulations affecting real estate brokers and salespersons in order to administer and effectuate the purposes of Article 12-A of the Real Property Law."

A complete video of the meeting is available on YouTube.

In summary, the following was discussed:
The following pending regulations have moved forward and have one more required round of approval prior to being published in the State Register for public comment:


Pending Regulations:
1) Commingling of principal funds
2) Compensation of brokers
3) Additional license safety course
4) Changing the amount of hours from a course from 60 minutes required to 50 minutes required
5) Advertising regulations
6) Updates to the broker approval course

Next, the meeting shifted to a focus on Fair Housing in furtherance of the Governor's Fair Housing Initiative from February of this year. In support thereof, 19 NYCRR 175.17 was proposed to be amended and unanimously approved by vote. The new amended regulation will both broaden the protected classes to include all Federal, State, and Locally Protected Classes and clarify that a violation of Fair Housing, as determined by any local agency or a court of competent jurisdiction, shall be presumptive evidence of untrustworthiness in real estate brokerage wherein the Department of State may revoke a license. 

In all, the meeting's apparent goal was to increase awareness and enforcement of Fair Housing, to alert agents about upcoming educational awareness and outreach planned by the Department of State, and to renew the State's focus and attention onto discrimination through a collaboration between the Department of State and the Department of Human Rights. 

Wednesday, May 01, 2013

President Broker is no more - DOS bans use of corporate titles

This past Friday, the NYS Department of State provided an Opinion Letter stating that the use of corporate titles by real estate agents, who do not actually hold such related authority, is misleading and impermissible.

On Friday evening attorneys and senior management at brokerage houses throughout the State were scrambling to address this issue immediately as many companies give out titles based upon agent's earnings as a reward as opposed to an implied authority and the companies needed to have a plan of action to address this change of understanding of Real Estate License Law.

Somehow the news got a hold of this Opinion Letter and now it is flying around at a rampant pace. So, what you should know is that your company can no longer permit you to utilize titles such as President, Vice President, Senior Vice President, Chairman, Vice Chairman, Managing Member, Director, Managing Director or anything else that is contained in the Business Corporation Law or Limited Liability Company Law as a term that implies authority. Instead, companies need to utilize titles without any correlated authority that does not exist.

Some articles flying around are:

The Real Deal - Brokers with false titles must now toe the line, regulators say
The Wall Street Journal - Titles Could Change for Some Real-Estate Brokers

Yet, there is no need to read the news, instead read the Opinion Letter for yourselves and understand why your companies are doing what they have to.



Friday, January 25, 2013

Updated Q & A: NY Real Estate Continuing Education & License Requirements


Does Lieb School report my completed credits to the Department of State (DOS)? Am I responsible for sending my course certificates to the DOS?  Credits received from Lieb School count towards the 22.5 required from the DOS for license renewal. Certificates provided at each class serve as proof of credit hours (think of them as a receipt). After each class, Lieb School submits to the Department of State, Bureau of Educational Standards, all licensee information for successful completion of each course.  Upon license renewal, the DOS will require the original signed certificates if you are selected for an audit. Make sure that you keep your certificates in a safe place. In the event of an audit, the DOS will cross reference the certificates with the student completion records received by each school.   You are responsible for completing all 22.5 credits by your license renewal deadline date. 

How do I renew my New York State Real Estate License? License renewals must be completed online through the Department of State eACCESSny website.   Please note that the renewal process requires licensees to validate education completion by answering “Yes” to the Continuing Education question that confirms all CE requirements have been satisfied.  If you mistakenly answer “No”, the DOS will not renew your license until they see all original course completion certificates.  You also have to hold onto the original course completion certificates in the event of a license audit by the DOS.  

If I did not complete my continuing education requirements before my license expiration date can I get an extension?  Please refer to §177.6 in the Real Estate License Law. The Department of State will only grant extensions in bona fide hardship cases.  Prior to your license expiration: you must submit to the Department of State, a written request for the extension, completed renewal form, fee, and original documentation demonstrating your hardship; i.e., medical documentation.   

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more questions answered...

Who regulates my New York State Real Estate License?  Your license is regulated by the Department of State, New York (DOS) and NOT by any real estate school or trade organization.

What are the Continuing Education requirements for real estate agents in NY? Every 2 years, licensed real estate brokers and salespersons in the State of New York are required to take 22.5 continuing education credits. The ONLY mandatory class requirement is at least 3 hours of instruction pertaining to fair housing and/or discrimination in the sale or rental of real property or an interest of real property, within the 2 - year period immediately preceding a renewal.

Are there any exemptions for Continuing Education requirements for real estate agents in New York? 
Licensed real estate brokers who are engaged full time in the real estate business and who have been licensed for at least 15 consecutive years immediately preceding license renewal. This exemption must have been met prior to July 1, 2008.  An attorney admitted to the New York State bar is also exempt from the Continuing Education Requirement.

Am I required to take a course in Fair Housing if my real estate license is grandfathered? A NYS real estate agent does not need to take a course in Fair Housing if they are generally exempt by way of the "grandfather" factor.  Please refer the agent to Real Property Law section 441(3)(a) where it expresses the requirement for real estate agents to take 3 hours in a fair housing and/or discrimination course within a license renewal cycle. The link for the license law where this is discussed is as follows: http://www.dos.ny.gov/licensing/lawbooks/RE-Law.pdf

While reviewing the license law, please refer your attention to the last sentence of this requirement wherein it states: "The provisions of this paragraph shall not apply to any licensed real estate broker who is engaged full time in the real estate business and who has been licensed under this article prior to July 1, 2008 for at least 15 consecutive years immediately proceeding such renewal". This is the "grandfather" factor. 

In general, the only exception to the "grandfather" factor exemption is for NAR's mandatory quadrennial ethics requirement for members of the National Association of REALTORS®. This has nothing to do with licensing or the Department of State, New York. 

If I already completed a continuing education class, can I take the same topic again for credit with a different school in NY within the same license renewal cycle? Real estate continuing education courses are assigned independent approval codes by the Bureau of Educational Standards, Department of State, State of New York.  Licensed real estate agents may take multiple courses in the same topic within each "two year cycle of renewal" as long as each course has an independent approval code. Approval codes are assigned for each approved course, not school and not course topic.  It is advised that you always check your records of previously completed approval codes prior to registration for new courses within your cycle of renewal. 

If I already received credit for taking a continuing education course, can I get credit for taking the same exact course in a different license renewal cycle?  Yes. While New York State Real Estate License Law, 19 NYCRR 177.18(c), states: "No continuing education course will be considered for continuing education credit more than once within the two year cycle of renewal", there is no specific regulation precluding taking the same continuing education course anew in a subsequent and different license renewal cycle.

Do I have to take an Ethics course to renew my license?  Ethics training is not a required course for a Real Estate Broker or Salesperson to maintain their license in full force and effect with the Department of State, New York. Ethics courses may be required by your local Board (trade organization), but are not required to maintain your license with the Department of State of New York.



Wednesday, January 09, 2013

Top NY Real Estate Agent Cont. Ed Questions...Answers Revealed

Continuing Education Questions and Answers for Licensed Brokers and Salespersons in New York. 

What are the Continuing Education requirements for real estate agents in NY? Every 2 years, licensed real estate brokers and salespersons in the State of New York are required to take 22.5 continuing education credits. The ONLY mandatory class requirement is at least 3 hours of instruction pertaining to fair housing and/or discrimination in the sale or rental of real property or an interest of real property, within the 2 - year period immediately preceding a renewal.

Are there any exemptions for Continuing Education requirements for real estate agents in New York? Licensed real estate brokers who are engaged full time in the real estate business and who have been licensed for at least 15 consecutive years immediately preceding license renewal. This exemption must have been met prior to July 1, 2008.  An attorney admitted to the New York State bar is also exempt from the Continuing Education Requirement.

Am I required to take a course in Fair Housing if my real estate license is grandfathered? A NYS real estate agent does not need to take a course in Fair Housing if they are generally exempt by way of the "grandfather" factor.  Please refer the agent to Real Property Law section 441(3)(a) where it expresses the requirement for real estate agents to take 3 hours in a fair housing and/or discrimination course within a license renewal cycle. The link for the license law where this is discussed is as follows: http://www.dos.ny.gov/licensing/lawbooks/RE-Law.pdf

While reviewing the license law, please refer your attention to the last sentence of this requirement wherein it states: "The provisions of this paragraph shall not apply to any licensed real estate broker who is engaged full time in the real estate business and who has been licensed under this article prior to July 1, 2008 for at least 15 consecutive years immediately proceeding such renewal". This is the "grandfather" factor. 

In general, the only exception to the "grandfather" factor exemption is for NAR's mandatory quadrennial ethics requirement for members of the National Association of REALTORS®. This has nothing to do with licensing or the Department of State, New York. 

If I already completed a continuing education class, can I take the same topic again for credit with a different school in NY within the same license renewal cycle? Real estate continuing education courses are assigned independent approval codes by the Bureau of Educational Standards, Department of State, State of New York.  Licensed real estate agents may take multiple courses in the same topic within each "two year cycle of renewal" as long as each course has an independent approval code. Approval codes are assigned for each approved course, not school and not course topic.  It is advised that you always check your records of previously completed approval codes prior to registration for new courses within your cycle of renewal.
  
If I already received credit for taking a continuing education course, can I get credit for taking the same exact course in a different license renewal cycle?  Yes. While New York State Real Estate License Law, 19 NYCRR 177.18(c), states: "No continuing education course will be considered for continuing education credit more than once within the two year cycle of renewal", there is no specific regulation precluding taking the same continuing education course anew in a subsequent and different license renewal cycle.

Tuesday, December 11, 2012

NY Real Estate License Requirements: Learn the Facts

Salespersons - Listen Up!

  1. Your license is regulated by the Department of State, New York (DOS) and NOT by any real estate school or trade organization.
  2. Ethics courses are NOT required to maintain your real estate license with the Department of State, New York (DOS)

Learn the Facts: Real Estate Continuing Education in NY 

Every 2 years, licensed real estate brokers and salespersons in the State of New York are required to take 22.5 continuing education credits. The ONLY mandatory class requirement is at least 3 hours of instruction pertaining to fair housing and/or discrimination in the sale or rental of real property or an interest of real property, within the 2 - year period immediately preceding a renewal.

Exemptions:  Licensed Real Estate Brokers who are engaged full time in the real estate business and who have been licensed for at least 15 consecutive years immediately preceding license renewal. This exemption must have been met prior to July 1, 2008.  An attorney admitted to the New York State bar is also exempt from the Continuing Education Requirement.

Ethics

Ethics training is NOT a required course for a Real Estate Broker or Salesperson to maintain their license in full force and effect with the Department of State, New York. Ethics courses may be required by your local Board (trade organization), but are not required to maintain your license with the Department of State of New York.