Codifies the duty of real estate brokers to supervise salesmen and associate brokers through regular, frequent and consistent personal guidance, instruction and oversight; lists elements of supervision including the ability to familiarize salesmen with state and federal laws against discrimination.
STATE OF NEW YORK
________________________________________________________________________
2156
2021-2022 Regular Sessions
IN SENATE
January 20, 2021
___________
Introduced by Sen. THOMAS -- read twice and ordered printed, and when
printed to be committed to the Committee on Judiciary
AN ACT to amend the real property law, in relation to the duty of a
licensed real estate broker to supervise real estate salesmen
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 442-c of the real property law, as amended by chap-
2 ter 699 of the laws of 1988, is amended to read as follows:
3 § 442-c. Violations by salesmen; duty to supervise; broker's responsi-
4 bility. 1. A licensed real estate broker shall have a duty to exercise
5 reasonable and adequate supervision over real estate salesmen and asso-
6 ciate real estate brokers through regular, frequent and consistent
7 personal guidance, instruction and oversight. Reasonable and adequate
8 supervision shall also be determined by: the availability of the super-
9 vising broker to all salesmen and associate brokers under the super-
10 vision of the broker to review and approve all documents; the distance
11 between the supervising broker's main location and all branch offices
12 with salesmen and associate brokers the supervising broker oversees; and
13 the ability of the broker to familiarize salesmen and associate brokers
14 with the requirements of federal and state law governing real estate
15 transactions, including, without limitation, prohibitions against
16 discrimination.
17 2. No violation of a provision of this article by a real estate sales-
18 man or employee of a real estate broker shall be deemed to be cause for
19 the revocation or suspension of the license of the broker, unless it
20 shall appear that the broker had actual knowledge of such violation, or
21 failed to exercise reasonable and adequate supervision over the real
22 estate salesman or associate broker or retains the benefits, profits or
23 proceeds of a transaction wrongfully negotiated by his salesman, associ-
24 ate broker or employee after notice of the salesman's, associate
25 broker's or employee's misconduct. A broker shall be guilty of a misde-
26 meanor for having any salesman associated with his firm who has not
27 secured the required license authorizing such employment.
28 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD08440-02-1