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This entry was published on 2022-08-19
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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 salesperson or suspend the same, for such period
as the department may deem proper, or in lieu thereof may impose a fine
not exceeding two thousand dollars payable to the department of state,
provided that fifty percent of all moneys received by the department of
state for such fines shall be payable to the anti-discrimination in
housing fund established pursuant to section eighty-a of the state
finance law, or a reprimand upon conviction of the licensee of a
violation of any provision of this article, or for a violation of
subdivision four of section four hundred forty-two-h 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
salesperson, or for a violation of article fifteen of the executive law
committed in their capacity as a real estate broker or salesperson, 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 salesperson 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 salesperson shall be suspended if at the hearing, provided for
by subparagraph (ii) 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 salesperson and
addressed to the principal place of business of such broker or
salesperson, and to the complainant. All brokers' and salespersons'
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 salesperson 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
salesperson is revoked by the department, such real estate broker or
real estate salesperson shall be ineligible to be relicensed either as a
real estate broker or real estate salesperson until after the expiration
of a period of one year from the date of such revocation.