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This entry was published on 2014-09-22
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SECTION 442-H
Rules of the secretary of state
Real Property (RPP) CHAPTER 50, ARTICLE 12-A
§ 442-h. Rules of the secretary of state. 1. The secretary of state,
and not the state real estate board established under section four
hundred forty-two-i of this article, shall adopt such rules and
regulations as the secretary of state may determine are necessary for
the administration and enforcement of this section.

2. (a) If, after a public hearing and a reasonable investigation, the
secretary of state determines that the owners of residential real
property within a defined geographic area are subject to intense and
repeated solicitations by real estate brokers and salespersons or others
to place their property for sale with such real estate brokers or
salespersons, or otherwise to sell their property, and that such
solicitations have caused owners to reasonably believe that property
values may decrease because persons of different race, ethnic, social,
or religious backgrounds are moving or are about to move into the
neighborhood or geographic area, the secretary of state may adopt a
rule, to be known as a nonsolicitation order, directing all real estate
brokers, salespersons and other persons regularly engaged in the trade
or business of buying and selling real estate to refrain from soliciting
residential real estate listings or otherwise soliciting the sale of
residential real estate within the subject area. Each area subject to
such an order shall be bounded or otherwise specifically defined in the
order. The nonsolicitation order shall be subject to such terms and
conditions as the secretary of state may determine are, on balance, in
the best interest of the public, including but not limited to the
affected owners and licensees. A nonsolicitation order may prohibit any
or all types of solicitation directed towards particular home-owners,
including but not limited to letters, postcards, telephone calls,
door-to-door calls, and handbills. Every nonsolicitation order shall
contain a provision setting forth the day, month and year that the order
shall become effective, as well as the day, month and year that the
order shall expire. A nonsolicitation order shall not be effective for
more than five years. However, a nonsolicitation order and the
boundaries of the area where it applies may be re-adopted or amended
from time to time in accordance with the procedures set forth herein.

(b) No real estate broker shall establish a new principal office or
branch office within any geographic area which is the subject of a
nonsolicitation order without prior approval from the secretary of
state. The secretary of state may deny any application for the
establishment or relocation of a principal office or branch office if
approval of the application would cause the total number of principal
and branch offices within the subject area to exceed the total number of
principal and branch offices that were licensed within the area on the
date the nonsolicitation order became effective.

3. (a) If the secretary of state determines that some owners of
residential real property within a defined geographic area are subject
to intense and repeated solicitation by real estate brokers and
salespersons to place their property for sale with such real estate
brokers or salespersons, or are subject to intense and repeated
solicitation by other persons regularly engaged in the trade or business
of buying and selling real estate to sell their real estate, the
secretary of state may adopt a rule establishing a cease and desist
zone, which zone shall be bounded or otherwise specifically defined in
the rule. After the secretary of state has established a cease and
desist zone, the owners of residential real property located within the
zone may file an owner's statement with the secretary of state
expressing their wish not to be solicited by real estate brokers,
salespersons or other persons regularly engaged in the trade or business
of buying and selling real estate. The form and content of the statement
shall be prescribed by the secretary of state. After a cease and desist
zone has been established by the secretary of state, no real estate
broker, salesperson or other person regularly engaged in the trade or
business of buying and selling real estate shall solicit a listing from
any owner who has filed a statement with the secretary of state if such
owner's name appears on the current cease and desist list prepared by
the secretary of state. The prohibition on solicitation shall apply to
direct forms of solicitation such as the use of the telephone, the mail,
personal contact and other forms of direct solicitation as may be
specified by the secretary of state.

(b) The secretary of state shall compile a cease and desist list for
each zone established pursuant to paragraph (a) of this subdivision. In
addition to such other information as the secretary of state may deem
appropriate, each cease and desist list shall contain the name of each
owner who has filed an owner's statement with the secretary, as well as
the address of the property within the zone to which the owner's
statement applies. The secretary of state shall send to each owner who
has filed an owner's statement a written acknowledgement of the
secretary of state's receipt thereof and a pamphlet explaining to the
owner his or her rights in connection therewith and the procedures and
time limits applicable to the filing of complaints for violations. The
secretary of state shall allow an owner who files, or on behalf of whom
is filed, a complaint or other report of a violation of a cease and
desist rule ninety days in which to perfect a complaint by submitting
such other or further information or documents as the secretary of state
may require. The secretary of state shall print a list for each zone.
Each list shall be revised and reprinted at least annually on or before
December thirty-first and shall be made available to the public and to
real estate brokers at a reasonable price to be set by the secretary of
state and approved by the director of the division of the budget.
Additions or deletions shall be made to each list only at the time the
list is reprinted, and the secretary of state shall not issue amendments
or addenda to any printed list.

(c) No rule establishing a cease and desist zone shall be effective
for longer than five years. However, the secretary of state may re-adopt
the rule to continue the cease and desist zone for additional periods
not to exceed five years each. Whenever a rule establishing a cease and
desist zone shall have expired or shall have been repealed, all owner's
statements filed with the secretary of state pursuant to that rule shall
also expire. However, an owner may file a new statement with the
secretary of state if a new rule is adopted establishing a cease and
desist zone containing the owner's property. Once the boundaries of a
cease and desist zone have been established by rule of the secretary of
state, the boundaries may not be changed except by repeal of the
existing rule and adoption of a new rule establishing the new
boundaries.