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This entry was published on 2020-08-07
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SECTION 441-C
Revocation and suspension of licenses
Real Property (RPP) CHAPTER 50, ARTICLE 12-A
§ 441-c. Revocation and suspension of licenses. 1. Powers of
department. (a) The department of state may revoke the license of a
real estate broker or salesman or suspend the same, for such period as
the department may deem proper, or in lieu thereof may impose a fine not
exceeding one thousand dollars payable to the department of state, or a
reprimand upon conviction of the licensee of a violation of any
provision of this article, or for a material misstatement in the
application for such license, or if such licensee has been guilty of
fraud or fraudulent practices, or for dishonest or misleading
advertising, or has demonstrated untrustworthiness or incompetency to
act as a real estate broker or salesman, or for a violation of article
fifteen of the executive law committed in his or her capacity as a real
estate broker or salesman, as the case may be. In the case of a real
estate broker engaged in the business of a tenant relocator,
untrustworthiness or incompetency shall include engaging in any course
of conduct including, but not limited to, the interruption or
discontinuance of essential building service, that interferes with or
disturbs the peace, comfort, repose and quiet enjoyment of a tenant.

(b)(i) The provisions of this paragraph shall apply in all cases of
licensed broker or licensed salesman who have failed, after receiving
appropriate notice, to comply with a summons, subpoena or warrant
relating to a paternity or child support proceeding or is in arrears in
payment of child support or combined child and spousal support referred
to the department by a court pursuant to the requirements of section two
hundred forty-four-c of the domestic relations law or pursuant to
section four hundred fifty-eight-b or five hundred forty-eight-b of the
family court act.

(ii) Upon receipt of an order from the court pursuant to one of the
foregoing provisions of law based on arrears in payment of child support
or combined child and spousal support, the department, if it finds such
person to be so licensed, shall within thirty days of receipt of such
order from the court, provide notice to the licensee of, and initiate, a
hearing which shall be held by it at least twenty days and no more than
thirty days after the sending of such notice to the licensee. The
hearing shall be held solely for the purpose of determining whether
there exists as of the date of the hearing proof that full payment of
all arrears of support established by the order of the court to be due
from the licensee have been paid. Proof of such payment shall be a
certified check showing full payment of established arrears or a notice
issued by the court, or the support collection unit where the order is
payable to the support collection unit designated by the appropriate
social services district. Such notice shall state that full payment of
all arrears of support established by the order of the court to be due
have been paid. The licensee shall be given full opportunity to present
such proof of payment from the court or support collection unit at the
hearing in person or by counsel. The only issue to be determined by the
department as a result of the hearing is whether the arrears have been
paid. No evidence with respect to the appropriateness of the court order
or ability of the respondent party in arrears to comply with such order
shall be received or considered by the department.

(iii) Upon receipt of an order from the court based on failure to
comply with a summons, subpoena, or warrant relating to a paternity or
child support proceeding, the department, if it finds such person to be
so licensed, shall within thirty days of receipt of such order from the
court, provide notice to the licensee that his or her license shall be
suspended within sixty days unless the conditions in subparagraph (v) of
this section are met.

(iv) Notwithstanding any inconsistent provision of this article or of
any other provision of law to the contrary, the license of a real estate
broker or salesman shall be suspended if at the hearing, provided for by
subparagraph two of this paragraph, the licensee fails to present proof
of payment as required by such subdivision. Such suspension shall not be
lifted unless the court or the support collection unit, where the court
order is payable to the support collection unit designated by the
appropriate social services district, issues notice to the department
that full payment of all arrears of support established by the order of
the court to be due have been paid.

(v) Notwithstanding any inconsistent provision of this article or of
any other provision of law to the contrary, the license of a real estate
broker or a salesperson shall be suspended in accordance with the
provisions of subparagraph (iii) of this paragraph unless the court
terminates its order to commence suspension proceedings. Such suspension
shall not be lifted unless the court issues an order to the department
terminating its order to commence suspension proceedings.

(vi) The department shall inform the court of all actions taken
hereunder as required by law.

(vii) This paragraph applies to paternity and child support
proceedings commenced under, and support obligations paid pursuant to
any order of child support or child and spousal support issued under
provisions of section two hundred thirty-six or two hundred forty of the
domestic relations law, or article four, five, five-A or five-B of the
family court act.

(viii) Notwithstanding any inconsistent provision of this article or
of any other provision of law to the contrary, the provisions of this
paragraph shall apply to the exclusion of any other requirements of this
article and to the exclusion of any other requirement of law to the
contrary.

2. Determination of department. In the event that the department shall
revoke or suspend any such license, or impose any fine or reprimand on
the holder thereof, its determination shall be in writing and officially
signed. The original of such determination, when so signed, shall be
filed in the office of the department and copies thereof shall be served
personally or by registered mail upon the broker or salesman and
addressed to the principal place of business of such broker or salesman,
and to the complainant. All brokers' and salesmen's licenses and pocket
cards shall be returned to the department of state within five days
after the receipt of notice of a revocation or suspension, or in lieu
thereof, the broker or salesman whose license has been revoked or
suspended shall make and file an affidavit in form prescribed by the
department of state, showing that the failure to return such license and
pocket card is due either to loss or destruction thereof.

3. The display of a real estate broker's license after the revocation
or suspension thereof is prohibited.

4. Whenever the license of a real estate broker or real estate
salesman is revoked by the department, such real estate broker or real
estate salesman shall be ineligible to be relicensed either as a real
estate broker or real estate salesman until after the expiration of a
period of one year from the date of such revocation.