NY State Senate Bill S2157A

Archive: Last Bill Status - Signed by Governor

Introduced
In Committee
On Floor Calendar
- Passed Senate
- Passed Assembly
Delivered to Governor
Signed by Governor

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Actions

view actions (13)

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Dec 21, 2021	signed chap.699
Dec 10, 2021	delivered to governor
Jun 09, 2021	returned to senate passed assembly
Jun 03, 2021	ordered to third reading rules cal.346 substituted for a6355
Feb 08, 2021	referred to judiciary delivered to assembly passed senate
Feb 03, 2021	amended on third reading 2157a
Feb 02, 2021	ordered to third reading cal.232
Feb 01, 2021	reported and committed to rules
Jan 20, 2021	referred to judiciary

Votes

view votes

Feb 8, 2021 - floor Vote

S2157A

floor

Aye

Nay

Absent

Excused

Abstained

Feb 2, 2021 - Judiciary committee Vote

S2157

committee

Aye

Nay

Aye with Reservations

Absent

Excused

Abstained

Feb 2, 2021 - Rules committee Vote

S2157

committee

Aye

Nay

Aye with Reservations

Absent

Excused

Abstained

Bill Amendments

Original

A (Active)

Original

A (Active)

Co-Sponsors

S2157 - Details

See Assembly Version of this Bill:: A6355
Law Section:: Real Property Law
Laws Affected:: Amd §440, RP L

S2157 - Summary

Requires associate real estate brokers serving as real estate office managers to exercise supervision over other associate brokers and real estate salesmen.

S2157 - Sponsor Memo

 
BILL NUMBER: S2157

SPONSOR: THOMAS
 
TITLE OF BILL:

An act to amend the real property law, in relation to associate real
estate brokers acting as office managers

 
PURPOSE OR GENERAL IDEA OF BILL:

To mandate that licensed associate brokers, operating as office manag-
ers, have the same statutory obligations of oversight placed on brokers
at their definite place of business.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section one of the bill amends the definition of office manager in
subdivision 6 of section 440 of the real property law. An office manager
must have been active in the real estate industry for two of the four
years preceding their appointment as an office manager. An office manag-
er is required to supervise salesmen and associate brokers.

Section two is the effective date.

 
JUSTIFICATION:

In New York, real estate brokers are required to maintain and supervise
a principal place of business. Additionally, brokers with numerous
offices can appoint a licensed associate real estate broker as an office
manager to oversee their branch offices. An associate real estate broker
has the same licensing credentials as a broker and can work as an inde-
pendent agent, but has chosen to work under the name and supervision of
another broker.

However, unlike a broker, associate brokers acting as office managers
are not held to the same statutory obligations of oversight placed on
brokers at their principal place of business. Instead, office managers
are held to the same standards as a real estate agent while maintaining
their broker's license. This lack of oversight over agents by office
managers can manifest itself with agents who are not properly trained
and supervised in their behavior, performance, and compliance with fair
housing regulations.

This bill would require that associate brokers acting as office managers
are held to the same standards as licensed real estate brokers, and
ensures that proper oversight is given over real estate agents irrespec-
tive of whether they are working out of a broker's principal place of
business or branch office under an office manager.

 
PRIOR LEGISLATIVE HISTORY:

New legislation.

 
FISCAL IMPLICATIONS:

TBD.

 
EFFECTIVE DATE:
This act shall take effect immediately.
The terms real estate agent and broker are often used interchangeably.
While there may be overlaps in what they do, the two are distinctly
different, especially when it comes to their qualifications.  A real
estate agent serves as a facilitator of real estate transactions and is
responsible for bringing buyers and sellers together. A real estate
broker, on the other hand, is someone who

S2157 - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2157
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             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  associate  real
   estate brokers acting as office managers
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 6 of section 440 of the real property  law,  as
 added by chapter 183 of the laws of 2006, is amended to read as follows:
   6.  "Office manager" means a licensed associate real estate broker who
 shall by choice elect to work as an office manager under  the  name  and
 supervision  of  another  individual  broker  or  another  broker who is
 licensed under a partnership, trade name, limited liability  company  or
 corporation.  AN  ASSOCIATE REAL ESTATE BROKER SHALL BE REQUIRED TO HAVE
 BEEN ACTIVE AS A LICENSED ASSOCIATE BROKER FOR AT LEAST TWO OF THE  FOUR
 YEARS  PRECEDING APPOINTMENT AS AN OFFICE MANAGER. Such individual shall
 retain his or her license as a real estate broker  as  provided  for  in
 this article[; provided, however, that the practice of real estate sales
 and  brokerage  by  such  individual  as  an  associate  broker shall be
 governed exclusively by the provisions of this article as  they  pertain
 to real estate salesmen] AND SHALL BE REQUIRED TO EXERCISE THE SAME DUTY
 OF  SUPERVISION  OVER SALESMEN AND ASSOCIATE BROKERS  AS A LICENSED REAL
 ESTATE BROKER. Nothing contained in this subdivision shall  preclude  an
 individual  who is licensed as an associate broker who elects to work as
 an office manager from also retaining a separate  real  estate  broker's
 license  under an individual, partnership, trade name, limited liability
 company or corporation.
   § 2. This act shall take effect immediately.
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08443-01-1

Co-Sponsors

S2157A (ACTIVE) - Details

See Assembly Version of this Bill:: A6355
Law Section:: Real Property Law
Laws Affected:: Amd §440, RP L

S2157A (ACTIVE) - Summary

Requires associate real estate brokers serving as real estate office managers to exercise supervision over other associate brokers and real estate salesmen.

S2157A (ACTIVE) - Sponsor Memo

 
BILL NUMBER: S2157A

SPONSOR: THOMAS
 
TITLE OF BILL:

An act to amend the real property law, in relation to associate real
estate brokers acting as office managers

 
PURPOSE OR GENERAL IDEA OF BILL:

To mandate that licensed associate brokers, operating as office manag-
ers, have the same statutory obligations of oversight placed on brokers
at their definite place of business.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section one of the bill amends the definition of office manager in
subdivision 6 of section 440 of the real property law. An office manager
must have been active in the real estate industry for two of the four
years preceding their appointment as an office manager. An office manag-
er is required to supervise salesmen and associate brokers.

Section two is the effective date.

 
JUSTIFICATION:

In New York, real estate brokers are required to maintain and supervise
a principal place of business. Additionally, brokers with numerous
offices can appoint a licensed associate real estate broker as an office
manager to oversee their branch offices. An associate real estate broker
has the same licensing credentials as a broker and can work as an inde-
pendent agent, but has chosen to work under the name and supervision of
another broker.

However, unlike a broker, associate brokers acting as office managers
are not held to the same statutory obligations of oversight placed on
brokers at their principal place of business. Instead, office managers
are held to the same standards as a real estate agent while maintaining
their broker's license. This lack of oversight over agents by office
managers can manifest itself with agents who are not properly trained
and supervised in their behavior, performance, and compliance with fair
housing regulations.

This bill would require that associate brokers acting as office managers
are held to the same standards as licensed real estate brokers, and
ensures that proper oversight is given over real estate agents irrespec-
tive of whether they are working out of a broker's principal place of
business or branch office under an office manager.

 
PRIOR LEGISLATIVE HISTORY:

New legislation.

 
FISCAL IMPLICATIONS:

TBD.

 
EFFECTIVE DATE:
This act shall take effect immediately.
The terms real estate agent and broker are often used interchangeably.
While there may be overlaps in what they do, the two are distinctly
different, especially when it comes to their qualifications. A real
estate agent serves as a facilitator of real estate transactions and is
responsible for bringing buyers and sellers together. A real estate
broker, on the other hand, is someone who continues their education past
the agent level to attain a higher-level license as a broker.
For example, in New York, an agent is required to complete a 75-hour
real estate education course in real estate approved by the Secretary of
State and pass a qualifying examination administered by the Department
of State. While a broker must have at least two years of experience as a
licensed agent or at least three years of experience in the general real
estate field, or a combination of the both, meet the minimum points
required for the experience type, (e.g., buying and selling your proper-
ty, managing property owned by your employer), have satisfactorily
completed both the qualifying agent course of 75 hours, an additional
45-hour broker course as approved by the
Secretary of State, and have passed a qualifying examination adminis-
tered by the Department of State.
Having a broker's license allows an individual to work as an independent
agent or have a brokerage business with other agents working under them.
When a broker employs other agents, those agents handle most or all of
the brokerage transactions. However, it is the broker who is ultimately
responsible for all transactions that come through their brokerage and
for the supervision and conduct of its agents within their brokerage.
Brokers employing agents take on a considerable risk if an agent is not
properly trained and supervised, particularly concerning fair housing
regulations.
On November 17, 2019, Newsday revealed that over a three-year period it
had used Fred Fieberg, cofounder of the Fair Housing Justice Center, and
Robert Schwemm, Professor of Law at Kentucky College of Law and an
expert on Fair Housing Laws, to conduct tests of real estate agents
doing business from the New York City line to the Hamptons; from Long
Island Sound to the South Shore. They used eighty-six paired matches,
thirty-nine Black and White, thirty-one Hispanic and White, and sixteen
Asian and White. Newsday confirmed that the agents had houses to sell by
doing an online search of the Zillow Website. According to the Newsday
report, forty-percent of the tests demonstrated disparate treatment in
violation of Federal Fair Housing Laws. The breakdown was forty-nine
percent of Blacks, thirty-nine percent of Hispanics, and nineteen
percent of Asians experienced disparate treatment, each being equally
qualified to purchase the properties as were the Whites with whom they
were paired. The price range of the homes were reported to be from
$400,000 into the millions.
In seven tests conducted by Newsday, agents were caught providing
blatant unequal service to minority prospective homebuyers compared with
their white counterparts. One agent demanded to see identification of
the minority tester, but not the white tester. A minority tester was
required to present proof of preapproval for a mortgage loan before
receiving listings-unlike the white paired tester. An agent refused to
show listings to a minority tester unless they agreed to sign an exclu-
sive broker's agreement before the agent invited the white tester to
view homes without requiring such agreement.
In an effort to prevent these violations of fair housing laws, the
Committees recommend the Legislature enact new statute requiring brokers
standardize pre-home showing policies, including:  Thus, it is up to the
broker to supervise his or her agents by providing direct training or
training resources concerning behavior, performance, and legal compli-
ance.
Currently, Article 12-A of the real property law does not have a section
detailing a broker's supervisory responsibilities over an agent. This
bill seeks to correct this issue by adding this new section to the law.
Such a provision must be added to provide clear standards about the
state's expectations for adequate and reasonable supervision over real
estate agents by real estate brokers.

S2157A (ACTIVE) - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  2157--A
     Cal. No. 232
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 20, 2021
                                ___________
 
 Introduced  by  Sens. THOMAS, KAPLAN, KAVANAGH -- read twice and ordered
   printed, and when printed to be committed to the Committee on  Judici-
   ary  --  reported  favorably  from said committee and committed to the
   Committee on Rules --  committee  discharged,  bill  amended,  ordered
   reprinted as amended and recommitted to said committee
 
 AN  ACT  to  amend  the real property law, in relation to associate real
   estate brokers acting as office managers
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subdivision 6 of section 440 of the real property law, as
 added by chapter 183 of the laws of 2006, is amended to read as follows:
   6. "Office manager" means a licensed associate real estate broker  who
 shall  by  choice  elect to work as an office manager under the name and
 supervision of another  individual  broker  or  another  broker  who  is
 licensed  under  a partnership, trade name, limited liability company or
 corporation. AN ASSOCIATE REAL ESTATE BROKER SHALL BE REQUIRED  TO  HAVE
 BEEN  ACTIVE AS A LICENSED ASSOCIATE BROKER FOR AT LEAST TWO OF THE FOUR
 YEARS PRECEDING APPOINTMENT AS AN OFFICE MANAGER. Such individual  shall
 retain  his  or  her  license as a real estate broker as provided for in
 this article AND SHALL BE REQUIRED TO EXERCISE THE SAME DUTY  OF  SUPER-
 VISION  OVER  SALESMEN  AND  ASSOCIATE BROKERS AS A LICENSED REAL ESTATE
 BROKER; provided, however, that the practice of real  estate  sales  and
 brokerage  by  such  individual as an associate broker shall be governed
 exclusively by the provisions of this article as they  pertain  to  real
 estate salesmen. Nothing contained in this subdivision shall preclude an
 individual  who is licensed as an associate broker who elects to work as
 an office manager from also retaining a separate  real  estate  broker's
 license  under an individual, partnership, trade name, limited liability
 company or corporation.
   § 2. This act shall take effect immediately.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD08443-02-1

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The New York State Senate

senate Bill S2157A

Sponsored By

Archive: Last Bill Status - Signed by Governor

Your Voice

Actions

Votes

Feb 8, 2021 - floor Vote

Floor Vote: Feb 8, 2021

Feb 2, 2021 - Judiciary committee Vote

Committee Vote: Feb 2, 2021

Feb 2, 2021 - Rules committee Vote

Committee Vote: Feb 2, 2021

Bill Amendments

Co-Sponsors

S2157 - Details

S2157 - Summary

S2157 - Sponsor Memo

S2157 - Bill Text download pdf

Co-Sponsors

S2157A (ACTIVE) - Details

S2157A (ACTIVE) - Summary

S2157A (ACTIVE) - Sponsor Memo

S2157A (ACTIVE) - Bill Text download pdf

Comments

senate Bill S2157A

Share this bill

Sponsored By

Archive: Last Bill Status - Signed by Governor

Your Voice

Actions

Votes

Feb 8, 2021 - floor Vote

Floor Vote: Feb 8, 2021

Feb 2, 2021 - Judiciary committee Vote

Committee Vote: Feb 2, 2021

Feb 2, 2021 - Rules committee Vote

Committee Vote: Feb 2, 2021

Bill Amendments

Co-Sponsors

S2157 - Details

S2157 - Summary

S2157 - Sponsor Memo

S2157 - Bill Text download pdf

Co-Sponsors

S2157A (ACTIVE) - Details

S2157A (ACTIVE) - Summary

S2157A (ACTIVE) - Sponsor Memo

S2157A (ACTIVE) - Bill Text download pdf

Comments