New Law: Real Estate Brokerage in NYS is Changed for Good - Standardized Qualifying of Homebuyers Required

Write down December 21, 2021 as the date that real estate brokerage was changed forever in NYS. That is when S2131A was signed into law and became effective. 

If you are a real estate salesperson or an associate real estate broker at a brokerage firm that is unaware of this new law, it's time to change brokers. 

This law requires your broker to institute standardized operating procedures for the prerequisites prospective homebuyers shall meet and to submit such procedures to the Department of State. 

If procedures are changed, whatsoever, the new procedures shall be submitted within 30 days of the change. 

Plus, the law requires the Secretary of State to promulgate regulations and the combined law / regulations shall, at a minimum, require brokerages to have a policy as to: 

1. Whether prospective clients shall show identification; 
2. Whether an exclusive broker agreement is required; &
3. Whether pre-approval for a mortgage loan is required. 

If you are a salesperson who is operating under a brokerage's license that fails to satisfy this new submission of procedures requirements, or if you fail to follow the procedures, you are subject to a license law violation and penalty, including revocation or suspension of your license. 

This is very serious and will also work as important evidence in any and every fair housing / discrimination litigation moving forward. 

New Law: Real Estate License Law Violation Fine Doubled to Fund Fair Housing Enforcement

Starting on February 19, 2022, the maximum fine for real estate license law violations has been doubled from $1,000 to $2,000 by S945B. Brokers beware. 

Further, 50% of these fines, for violating Article 12-A and 19 NYCRR 175, will be used to establish an Anti-Discrimination in Housing Fund (ADHF). 

The ADHF shall be controlled by the NYS Attorney General and may be used for:

• Fair housing testing;
• Grants to duly applying county, city, town or village human rights commissions;
• Grants to duly applying county, city, town or village agencies specializing in the prevention of unlawful discrimination in housing; &
• Grants to duly applying not-for-profit agencies specializing in the prevention of unlawful discrimination in housing. 

It looks like there is about to be a lot more housing discrimination litigation going on starting in 2022. Are landlords, sellers, brokers, and property managers ready? 

New RE Brokerage CE Requirement - Implicit Bias Training - Lieb School is Ready

Starting on June 19, 2022, real estate licensees in NYS will be required to complete "at least two hours of instruction pertaining to implicit bias awareness and understanding" as part of their 22.5 hours of continuing education to renew their license because of a new law, S538B. 

According to the law, "'implicit bias' shall mean the attitudes or stereotypes that affect an individual's understanding, actions and decisions in an unconscious manner."

Lieb School is ready and already offers an implicit bias course that counts towards the fair housing and discrimination requirements. To comply with the new law, we are re-submitting this course to count towards the required implicit bias training as well. 

New RE Brokerage CE Requirement - Cultural Competency Training - Lieb School is Ready

Starting on April 20, 2022, real estate licensees in NYS will be required to complete "at least two hours of cultural competency training" as part of their 22.5 hours of continuing education to renew their license because of a new law, S979A. 

Lieb School is on top of making sure that its students lead the industry, having already drafted curriculum to satisfy this requirement. Our course will educate licensees on the following subtopics:

1. Right to Social Benefits of Integration
2. Misunderstanding in Cultural Competency
3. 4 Elements in Developing Cultural Competency
4. Friction Between Cultural Sensitivity & Discrimination Law
5. Cultural Norms, Preferences, & Challenges
6. Cultural Competence Techniques

While this course is being finalized for licensing, we asked the Bill Sponsor, James Gaughran, for guidance on what he envisioned in the Curriculum by email on 12/15/2021. We await a response.

New NYS / Local Government Fair Housing Enforcement Obligations

As of 12/21/2021, all state agencies administering housing programs or enforcing housing laws and all localities administering housing programs and receiving funds from the state for such activities are now required to affirmatively further fair housing.

What this means is that the state and local governments will actively seek to create more diverse, inclusive communities. They will do this, according to the new law (S1353A), by:

1. Identifying and overcoming patterns of residential segregation & housing discrimination;
2. Eradicating racially or ethnically concentrated areas of poverty;
3. Reducing disparities in access to opportunities;
4. Eliminating disproportionate housing needs;
5. Providing the public reasonable & regular opportunities to comment on fair housing issues & participate in the development & advancement of affirmative fair housing policy; &
6. Encouraging & maintaining compliance with Article 15 of the Executive law & any other applicable anti-discrimination or fair housing law. 

While this all sounds grand, it's really just aspirational because there are no concrete actions contained in this law, except that an annual report will be available to the public. Only through calling government on the report, will concrete change really happen.