Real Estate
License Law
(June 2020)
New York
DEPARTMENT OF STATE
Division of Licensing Services
https://dos.ny.gov
Kathy Hochul Rossana Rosado
Governor Secretary of State
,Licensing of Real Estate Brokers and Real Estate Salespersons
Article 12-A Real Property Law
Section
440 Definitions
440-a License required for real estate brokers and salespersons
440-b Licenses in Putnam County
441 Application for license
441-a License and pocket card
441-b License fees
441-c Revocation and suspension of licenses
441-d Salesperson’s license suspended by revocation or suspension of employer’s license
441-e Denial of license; complaints; notice of hearing
441-f Judicial review
442 Splitting commissions
442-a Compensation of salespersons; restrictions
442-b Discontinuance or change of salesperson’s association; report
442-c Violations by salespersons; broker’s responsibility
442-d Actions for commissions; license prerequisite
442-e Violations
442-f Saving clause
442-g Nonresident licensees
442-h Rules of the Secretary of State
442-i State real estate board
442-j Effect of invalid provision
442-k Powers and duties of the state real estate board
442-l After-the-fact referral fees
443 Disclosure regarding real estate agency relationship; form
443-a Disclosure obligations
Related Statutes and Laws
Real Property Law
Article 8 Conveyances & Mortgages
Section
242 Disclosure prior to the sale of real property
Article 9 Recording Instruments Affecting Real Property
Section
291-i Validity of electronic recording
333-c Lands in agricultural districts; disclosure
Article 14 Property Condition Disclosure In The Sale Of Residential Real Property
Section
460 Short title
461 Definitions
462 Property condition disclosure statement
463 Exemptions
464 Revision
465 Remedy
466 Duty of an agent
467 Liability
Executive Law
Article 15 Human Rights Law
Section
296(5) Unlawful discriminatory practices
United States Code
42 USCA 3604 It shall be unlawful . . .
Rules and Regulations Title 19 NYCRR
Subchapter D Real Estate Brokers and Salespersons
Part
175 Regulations Affecting Brokers and Salesperson
176 Approval of Real Estate Courses
177 Continuing Education
178 Nonsolicitation Orders
179 Determination of Real Estate Experience
Page 2 / Real Estate License Law NYS Department of State Division of Licensing Services
, who, notwithstanding any other provision of law, performs any of the
ARTICLE 12-A
above stated functions with respect to the resale of a condominium
REAL PROPERTY LAW property originally sold pursuant to the provisions of the General
Business Law governing real estate syndication offerings.
§440. Definitions 4. “Tenant relocator” means any person, firm, corporation,
partnership, limited liability company or any legal entity whatsoever,
1. Whenever used in this article “real estate broker” means any
which, for another and for a fee, commission or other valuable
person, firm, limited liability company or corporation, who, for
consideration, supervises, organizes, arranges, coordinates, handles
another and for a fee, commission or other valuable consideration,
or is otherwise in charge of or responsible for the relocation of
lists for sale, sells, at auction or otherwise, exchanges, buys or rents,
commercial or residential tenants from buildings or structures that are
or offers or attempts to negotiate a sale, at auction or otherwise,
to be demolished, rehabilitated, remodeled, or otherwise structurally
exchange, purchase or rental of an estate or interest in real estate, or
altered.
collects or offers or attempts to collect rent for the use of real estate,
or negotiates or offers or attempts to negotiate, a loan secured or to be 5. “Association, associated; or associated with” whenever used in
secured by a mortgage, other than a residential mortgage loan, as this article shall be deemed to make reference to a salesperson’s
defined in §590 of the Banking Law, or other incumbrance upon or relationship with his or her broker. Nothing in this article shall be
transfer of real estate, or is engaged in the business of a tenant deemed or construed to be indicative or determinative of the legal
relocator, or who, notwithstanding any other provision of law, relationship of a salesperson to a broker nor shall any provision of
performs any of the above stated functions with respect to the resale this article be deemed or construed to alter or otherwise affect the
of condominium property originally sold pursuant to the provisions legal responsibility of a real estate broker to third parties for the acts
of the General Business Law governing real estate syndication of anyone associated with such broker pursuant to this article.
offerings. In the sale of lots pursuant to the provisions of article 9-A 6. “Office manager” means a licensed associate real estate broker
of this chapter, the term “real estate broker” shall also include any who shall by choice elect to work as an office manager under the
person, partnership, association or corporation employed by or on name and supervision of another individual broker or another broker
behalf of the owner or owners of lots or other parcels of real estate, at who is licensed under a partnership, trade name, limited liability
a stated salary, or upon a commission, or upon a salary and company or corporation. Such individual shall retain his or her
commission, or otherwise, to sell such real estate, or any parts license as a real estate broker as provided for in this article; provided,
thereof, in lots or other parcels, and who shall sell or exchange, or however, that the practice of real estate sales and brokerage by such
offer or attempt or agree to negotiate the sale or exchange, of any individual as an associate broker shall be governed exclusively by the
such lot or parcel of real estate. For purposes of this subdivision the provisions of this article as they pertain to real estate salesmen.
term, “interest in real estate” shall include the sale of a business Nothing contained in this subdivision shall preclude an individual
wherein the value of the real estate transferred as part of the business who is licensed as an associate broker who elects to work as an office
is not merely incidental to the transaction, and shall not include the manager from also retaining a separate real estate broker’s license
assignment of a lease, and further, the transaction itself is not under an individual, partnership, trade name, limited liability
otherwise subject to regulation under state or federal laws governing company or corporation.
the sale of securities. In connection with the sale of a business the
term “real estate broker” shall not include a person, firm or §440-a. License required for real estate brokers
corporation registered pursuant to the provisions of article 23-A of
the General Business Law or federal securities laws. and salespersons
2. “Associate real estate broker” means a licensed real estate No person, co-partnership, limited liability company or corporation
broker who shall by choice elect to work under the name and shall engage in or follow the business or occupation of, or hold
supervision of another individual broker or another broker who is himself or itself out or act temporarily or otherwise as a real estate
licensed under a partnership, trade name, limited liability company or broker or real estate salesperson in this State without first procuring a
corporation. Such individual shall retain his or her license as a real license therefor as provided in this article. No person shall be entitled
estate broker as provided for in this article; provided, however, that to a license as a real estate broker under this article, either as an
the practice of real estate sales and brokerage by such individual as individual or as a member of a co-partnership, or as a member or
an associate broker shall be governed exclusively by the provisions of manager of a limited liability company, or as an officer of a
this article as they pertain to real estate salespersons. Nothing corporation, unless he or she is 20 years of age or over. No person
contained herein shall preclude an individual who elects to be shall be entitled to a license as a real estate salesperson under this
licensed as an associate broker from also retaining a separate real article unless he or she is over the age of 18 years. No person shall be
estate broker’s license under an individual, partnership, trade name, entitled to a license as a real estate broker or real estate salesperson
limited liability company or corporation. under this article who has been convicted in this state or elsewhere of
a crime, unless the secretary makes a finding in conformance with all
3. “Real estate salesperson” means a person associated with a
applicable statutory requirements, including those contained in article
licensed real estate broker to list for sale, sell or offer for sale, at
twenty-three-A of the correction law, that such convictions do not
auction or otherwise, to buy or offer to buy or to negotiate the
constitute a bar to licensure. No person shall be entitled to a license
purchase or sale or exchange of real estate, or to negotiate a loan on
as a real estate broker or real estate salesperson under this article who
real estate other than a mortgage loan as defined in §590 of the
does not meet the requirements of section 3-503 of the General
Banking Law, or to lease or rent or offer to lease, rent or place for
Obligations Law.
rent any real estate, or collects or offers or attempts to collect rent for
the use of real estate for or in behalf of such real estate broker, or Notwithstanding anything to the contrary in this section, tenant
associations, and not-for-profit corporations authorized in writing by
NYS Department of State Division of Licensing Services Real Estate License Law / Page 3
, the commissioner of the department of the City of New York charged examination and answered such questions as may be
with enforcement of the housing maintenance code of such city to prepared by the department to enable it to determine the
manage residential property owned by such city or appointed by a trustworthiness of the applicant if an individual, or of each
court of competent jurisdiction to manage residential property owned member of a co-partnership or each member of a limited
by such city shall be exempt from the licensing provisions of this liability company or each officer of a corporation for whom
section with respect to the properties so managed. a license as a broker is asked, and his or their competency
to transact the business of real estate broker in such a
§440-b. Licenses in Putnam County manner as to safeguard the interests of the public. In
determining competency, the department shall require
On and after the first day of July, 1934, no person, co-partnership or
proof that the person being tested to qualify to apply for a
corporation shall engage in or follow the business or occupation of,
broker’s license has a fair knowledge of the English
or hold himself or itself out temporarily or otherwise as a real estate
language, a fair understanding of the general purposes and
broker or real estate salesperson in the County of Putnam, without
general legal effect of deeds, mortgages, land contracts of
first procuring a license therefor as provided in this article, except
sale, and leases, a general and fair understanding of the
that such license in such county shall be granted and issued, without
obligations between principal and agent, as well as of the
the written examination provided in this article, to a person, co-
provisions of this section. The applicant must also furnish
partnership or corporation who was engaged in business as a real
proof that he has attended for at least 120 hours and has
estate broker or real estate salesperson in such county prior to the first
successfully completed a real estate course or courses
day of January, 1934.
approved by the Secretary of State as to method and
content and supervision which approval may be withdrawn
§441. Application for license if in the opinion of the Secretary of State said course or
1. Form. courses are not being conducted properly as to method,
content and supervision, and that either the applicant has
(a) Any person, co-partnership, limited liability company or
actively participated in the general real estate brokerage
corporation desiring to act as a real estate broker or any
business as a licensed real estate salesperson under the
person desiring to act as a real estate salesperson on or after
supervision of a licensed real estate broker for a period of
the first day of October, 1922, shall file with the
not less than two years or has had the equivalent
Department of State at its office in Albany an application
experience in general real estate business for a period of at
for the kind of license desired, in such form and detail as
least three years, the nature of which experience shall be
such department shall prescribe and conforming to the
established by affidavit duly sworn to under oath and/or
requirements of §3-503 of the General Obligations Law,
other and further proof required by the Department of
setting forth the following, if the application be for a
State. Computer-based and distance-learning courses may
broker’s license:
be approved by the department so long as providers
(i) The name and residence address of the applicant, and if demonstrate the ability to monitor and verify participation
an individual the name under which he intends to conduct by the applicant for the specified time period.
business. Notwithstanding the foregoing authority to approve
(ii) If the applicant be a co-partnership the name and computer-based and distance-learning courses, the
residence address of each member thereof and the name department may prescribe that specified subjects or hours
under which the business is to be conducted; or, if the must be presented in a classroom setting.
applicant be a limited liability company, the name of the (c) In the event the applicant shall be a licensed salesperson
company, and the name and residence of each of its under this article and shall have submitted acceptable proof
members; or, if the applicant be a corporation, the name of pursuant to the provisions of either paragraph (d) of
the corporation and the name and residence address of each subdivision 1-A of this section or paragraph (a) of
of its officers. subdivision 3 of this section of having attended and
(iii) The place or places, including the city, town or village, successfully completed 75 hours of an approved real estate
with the street and number, where the business is to be course or courses within eight years of the date of the
conducted. application, the department may accept and credit same
(iv) The business or occupation theretofore engaged in by against the 120 hours required hereunder.
the applicant, or, if a co-partnership, by each member 1-A. (a) Every application for a real estate salesperson’s license
thereof, or, if a limited liability company, by each member shall set forth:
thereof, or, if a corporation, by each officer thereof, for a (i) The name and residence address of the applicant.
period of two years, immediately preceding the date of
(ii) The name and principal business address of the broker
such application, setting forth the place or places where
with whom he is to be associated.
such business or occupation was engaged in and the name
or names of employers, if any. (iii) The business or occupation engaged in for the two
years immediately preceding the date of the application,
(v) The form, information and statement required by §3-
setting forth the place or places where such business or
503 of the General Obligations Law.
occupation was engaged in, and the name or names of
(b) Such further information as the department may reasonably employers if any.
require shall be furnished by the applicant including
sufficient proof of having taken and passed a written
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