Requires applicants for licenses as real estate brokers and real estate salesmen and for renewals thereof to complete instruction in the law of agency

2 Co-sponsors

• George Latimer
• Michael H. Ranzenhofer

Title of bill

An act to amend the real property law, in relation to requiring three hours of agency related coursework as a requirement for renewal of a real estate license

Purpose of bill

The bill amends the real property law to require two hours of agency related coursework in the licensee's initial two-year licensing term as part of the 22 1/2 hours of continuing education required for renewal of a real estate license in New York. In subsequent license terms one hour of agency related coursework will be required.

Summary of provisions of bill

Section 1. Section 441(3)(a) subsection 7 of the real property law is amended to add "at least one hour of instruction pertaining to agency except in the case of the initial two-year licensing term for real estate salespersons, two hours of agency related instruction must be completed".

Justification

Understanding the agency relationship created between buyers/sellers, landlords/tenants and the real estate professional representing them during the real estate transaction is essential.

There are many real estate professionals and consumers who are often confused by the agency relationships created during the real estate transaction. At various points in time there may be several different agency relationships created, terminated or changed from first encounter to the closing table. Understanding what fiduciary duties are owed, the proper use of the agency disclosure form, and the ability to successfully represent clients in various forms of agency relationships such as buyer/tenant agency, seller/landlord agency and dual agency are critical for consumer protection.

Legislative history

New bill, 2016.

Fiscal implications for state and local governments

None.

Effective date

This act shall take effect on the first of January next succeeding the date on which it shall have become law. Effective immediately, the Secretary of State shall promulgate necessary and advisable rules and regulations for the implementation of this act.