Proposed Amendments to Department of State Rules and Regulations Affecting Real Estate Licensees

February 5, 2018 | By Charles Botensten

Q. Can you please summarize the proposed amendments to the New York State Department of State Rules and Regulations (the “Regulations”) that affect real estate licensees in New York? 

A. Recently the New York State Department of State (the “DOS”) published certain proposed amendments to the Regulations (the “Amendments”).  The purpose of the Amendments is to update obsolete and outdated portions of the Regulations.   The publication of the Amendments commenced a 45 day public comment period (which concludes on May 2, 2015).  At the conclusion of the public comment period, the DOS will either adopt or amend the Amendments.  REBNY supports the enactment of the Amendments and does not anticipate that there will be any public comment on the Amendments.

The following is a brief summary of the Amendments:

  1. 19 NYCRR 175.12. This regulation has been amended so that a real estate licensee is no longer required to deliver a duplicate original of an instrument prepared by, or under the supervision of, a real estate broker and which instrument is executed by a party or parties to a transaction. 

    The amended Regulation will read:

    175.12 Delivering copy of instrument

    A real estate broker shall immediately deliver a copy of any instrument to any party or parties executing the same, where such instrument has been prepared by such broker or under his supervision and where such instrument relates to the employment of the broker or to any matters pertaining to the consummation of a lease, or the purchase, sale or exchange of real property or any other type of real estate transaction in which he may participate as a broker.

  2. 19 NYCRR 175.20. This regulation has been amended to reconcile its terms with Section 440 (6) of the Real Property Law, which requires an office manager to have an associate real estate broker license.  The previous regulation permitted a real estate salesperson to operate a real estate broker’s branch office.

    The amended Regulation will read, in part:

    175.20 Branch Offices

    (b) Every branch office shall be under the direct supervision of the broker to whom the license is issued, or a representative broker of a corporation or partnership holding such license.

     

  3. 19 NYCRR 175.24. This regulation has been amended to reconcile its terms with Section 443 of the Real Property Law, which was amended to include condominium and cooperative apartments in the definition of real property.  The previous regulation did not include condominium and cooperative apartments in the definition of real property.

    The amended Regulation will read, in part:

    175.24 Exclusive Listings - Residential Property

    (a)   Residential real property as used in this section shall mean real property used or occupied, or intended to be used or occupied, wholly or partly, as the home or residence of one or more persons improved by (i) a one-to-four family dwelling or (ii) condominium or cooperative apartments but shall not refer to unimproved real property upon which such dwellings are to be constructed.

     

  4. 19 NYCRR 177.2. This regulation has been amended to include technology courses related to the practice of real estate as acceptable in meeting continuing education requirements.

    The amended Regulation will read, in part:

    177.2 Approved Entities

    Courses, including sales or technology, that increase the competency of the licensee as it relates to the real estate transaction shall be acceptable as meeting continuing education requirements subject to the restrictions set forth in paragraph (d) of this section.

    The following types of instruction shall not be acceptable as meeting continuing education requirements:

    (d) subjects that are not real estate related.

     

  5. 19 NYCRR 179.1. This regulation has been amended to reconcile its terms with Section 441(b) of the Real Property Law, which requires that an applicant for licensure as a real estate broker must possess (i) two years of full-time experience under the supervision of a licensed real estate broker or (ii) the equivalent full-time experience in general real estate business for a period of at least three years. The previous regulation contained outdated time frames and the incorrect amount of points necessary to equate to the two years of full-time experience requirement.

    The amended Regulations will read, in part: