CREL Unit 1

Consumer protection

Protect the welfare, health, and safety of the public; prevent economic loss from dishonest or incompetent real estate practices; maintain high professional standards.

Who administers the New York License Law?

The New York Department of State (DOS), Division of Licensing Services.

Penalties for violating License Law

Any violation of Article 12-A is at minimum a misdemeanor.

Misdemeanor penalty

Fine up to $1,000 per violation, up to 1 year in jail, or both.

What can DOS do for license violations?

DOS may suspend or revoke a license.

Recourse for licensees charged with a violation

Licensees may request an Article 78 proceeding (judicial review) and be represented by legal counsel.

Broker

Only category authorized to operate their own real estate business.

Associate Broker

Qualified to be a broker but works under another broker's supervision.

Salesperson

Assists and works under the supervision of a broker.

Exemptions from Licensure

Includes attorneys licensed in NY, public officials performing official duties, and others.

Salesperson License Requirements

At least 18 years old, honest and trustworthy, no felony or most sexual/violent offense convictions, legal right to work in the US, basic English understanding, 75-hour approved prelicensing course, pass state exam (70% minimum), have a sponsoring broker.

Broker License Requirements

At least 20 years old, complete 45-hour broker course, US citizen or lawful permanent resident, 2 years experience as salesperson + 3,500 points, OR 3 years equivalent experience in general real estate + 5,250 points, pass state broker exam (70% minimum).

License period

2 years.

Broker license fee

$150.

Salesperson license fee

$50.

Address/name change notification

Notify DOS online within 5 days, pay $10 per license.

Who holds the license?

The sponsoring broker physically keeps the salesperson's and associate broker's licenses.

Commissions sharing rules

Brokers may share commissions only with their own associated licensees or other licensed brokers.

Kickback

Improperly sharing compensation or receiving money from a company the agent referred a client to — prohibited.

Advertising rules

Must include the broker's firm name and indicate the advertiser is a real estate broker (no blind ads).

Continuing Education (CE) requirements

22.5 hours every 2-year renewal period, must include at least 3 hours of fair housing and 1 hour of agency.

General rules for operating a brokerage

Maintain a principal place of business in NY, display a readable sign with the principal broker's name, keep transaction documents on file for at least 3 years.

Unlicensed Assistants

May do administrative activities only; may NOT list/sell property, prospect for listings, show property, hold open houses alone, or answer buyer's questions about a property.

Property Condition Disclosure

Every seller of 1-4 family residential property must complete and sign a disclosure statement.

Liabilities & Penalties

Violators may be suspended, revoked, fined, or reprimanded (administrative discipline).

Common Violations

Includes substantial misrepresentation, commingling, failing to account for or remit money belonging to others, and discrimination.

Article 12-A

Section of NY Real Property Law governing real estate licensing.

Blind ad

Ad that doesn't disclose it was placed by a licensee (prohibited).

Commingling

Mixing client money with personal funds (illegal).

Escrow

Third party holds funds/documents until conditions are met.

Revocation

Permanent recall of license.

Suspension

Temporary recall of license.