Senate Bill S5693

Signed By Governor
2013-2014 Legislative Session

Relates to clarifying the permissibility of commissions, fees, or other compensation paid to real estate brokers

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Sponsored By

Archive: Last Bill Status - Signed by Governor

  • Introduced
    • In Committee Assembly
    • In Committee Senate
    • On Floor Calendar Assembly
    • On Floor Calendar Senate
    • Passed Assembly
    • Passed Senate
  • Delivered to Governor
  • Signed By Governor

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Bill Amendments

co-Sponsors

2013-S5693 - Details

See Assembly Version of this Bill:
A7979
Law Section:
Real Property Law
Laws Affected:
Amd §442, RP L

2013-S5693 - Summary

Relates to clarifying the permissibility of commissions, fees, or other compensation paid to real estate brokers.

2013-S5693 - Sponsor Memo

2013-S5693 - Bill Text download pdf 

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  5693

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              June 5, 2013
                               ___________

Introduced  by  Sen.  ZELDIN -- 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  clarifying  the
  permissibility of commissions, fees or other compensation paid to real
  estate brokers

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 442 of the real property law, as amended by chapter
45 of the laws of 1982, the opening paragraph as amended by chapter  316
of  the  laws  of  2004, the second undesignated paragraph as amended by
chapter 734 of the laws of 1986, is amended to read as follows:
  S 442. Splitting commissions. 1. No real estate broker shall  pay  any
part  of  a fee, commission or other compensation received by the broker
to any person for any service, help or aid  rendered  in  any  place  in
which  this  article  is  applicable,  by  such  person to the broker in
buying, selling, exchanging, leasing, renting or negotiating a loan upon
any real estate including the resale of  a  condominium  OR  COOPERATIVE
APARTMENT  unless  such a person be a duly licensed real estate salesman
regularly associated with such broker or a  duly  licensed  real  estate
broker  or a person regularly engaged in the real estate brokerage busi-
ness in a state outside of New York; provided,  however,  that  notwith-
standing  any  other  provision of this section, it shall be permissible
for a real estate broker to pay any part of a fee, commission, or  other
compensation  received  to  an  unlicensed  corporation or an unlicensed
limited liability company  if  each  of  its  shareholders  or  members,
respectively,  is  associated as an individual with the broker as a duly
licensed associate broker or salesman.
  2. Furthermore, notwithstanding any other provision of law,  it  shall
be  permissible  for  a  broker  properly  registered  pursuant  to  the
provisions of article twenty-three-A of the  general  business  law  who
earns  a  commission on the original sale of a cooperative or homeowners

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11341-02-3

co-Sponsors

2013-S5693A - Details

See Assembly Version of this Bill:
A7979
Law Section:
Real Property Law
Laws Affected:
Amd §442, RP L

2013-S5693A - Summary

Relates to clarifying the permissibility of commissions, fees, or other compensation paid to real estate brokers.

2013-S5693A - Sponsor Memo

2013-S5693A - Bill Text download pdf 

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 5693--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              June 5, 2013
                               ___________

Introduced  by  Sens. ZELDIN, VALESKY -- read twice and ordered printed,
  and when printed to be committed to  the  Committee  on  Judiciary  --
  recommitted  to  the  Committee on Judiciary in accordance with Senate
  Rule  6,  sec.  8  --  committee  discharged,  bill  amended,  ordered
  reprinted as amended and recommitted to said committee

AN  ACT  to  amend  the real property law, in relation to clarifying the
  permissibility of commissions, fees or other compensation paid to real
  estate brokers

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 442 of the real property law, as amended by chapter
45  of the laws of 1982, the opening paragraph as amended by chapter 316
of the laws of 2004, the second undesignated  paragraph  as  amended  by
chapter 734 of the laws of 1986, is amended to read as follows:
  S  442.  Splitting commissions. 1. No real estate broker shall pay any
part of a fee, commission or other compensation received by  the  broker
to  any  person  for  any  service, help or aid rendered in any place in
which this article is applicable,  by  such  person  to  the  broker  in
buying, selling, exchanging, leasing, renting or negotiating a loan upon
any  real  estate  including  the resale of a condominium OR COOPERATIVE
APARTMENT unless such a person be a duly licensed real  estate  salesman
regularly  associated  with  such  broker or a duly licensed real estate
broker or a person regularly engaged in the real estate brokerage  busi-
ness  in  a  state outside of New York; provided, however, that notwith-
standing any other provision of this section, it  shall  be  permissible
for  a real estate broker to pay any part of a fee, commission, or other
compensation received to an  unlicensed  corporation  or  an  unlicensed
limited  liability  company  if  each  of  its  shareholders or members,
respectively, is associated as an individual with the broker as  a  duly
licensed associate broker or salesman.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11341-04-4

co-Sponsors

2013-S5693B (ACTIVE) - Details

See Assembly Version of this Bill:
A7979
Law Section:
Real Property Law
Laws Affected:
Amd §442, RP L

2013-S5693B (ACTIVE) - Summary

Relates to clarifying the permissibility of commissions, fees, or other compensation paid to real estate brokers.

2013-S5693B (ACTIVE) - Sponsor Memo

2013-S5693B (ACTIVE) - Bill Text download pdf 

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 5693--B

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              June 5, 2013
                               ___________

Introduced  by  Sens. ZELDIN, VALESKY -- read twice and ordered printed,
  and when printed to be committed to  the  Committee  on  Judiciary  --
  recommitted  to  the  Committee on Judiciary in accordance with Senate
  Rule  6,  sec.  8  --  committee  discharged,  bill  amended,  ordered
  reprinted  as  amended  and recommitted to said committee -- committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN ACT to amend the real property law, in  relation  to  clarifying  the
  permissibility of commissions, fees or other compensation paid to real
  estate brokers

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 442 of the real property law, as amended by chapter
45 of the laws of 1982, the opening paragraph as amended by chapter  316
of  the  laws  of  2004, the second undesignated paragraph as amended by
chapter 734 of the laws of 1986, is amended to read as follows:
  S 442. Splitting commissions. 1. No real estate broker shall  pay  any
part  of  a fee, commission or other compensation received by the broker
to any person for any service, help or aid  rendered  in  any  place  in
which  this  article  is  applicable,  by  such  person to the broker in
buying, selling, exchanging, leasing, renting or negotiating a loan upon
any real estate including the resale of  a  condominium  OR  COOPERATIVE
APARTMENT  unless  such a person be a duly licensed real estate salesman
regularly associated with such broker or a  duly  licensed  real  estate
broker  or a person regularly engaged in the real estate brokerage busi-
ness in a state outside of New York; provided,  however,  that  notwith-
standing  any  other  provision of this section, it shall be permissible
for a real estate broker to pay any part of a fee, commission, or  other
compensation  received  to  an  unlicensed  corporation or an unlicensed
limited liability company  if  each  of  its  shareholders  or  members,

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11341-08-4

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