This bill has been amended

Bill S5508A-2013

Requires real estate teams to be registered with the department of state

Requires real estate teams to be registered with the department of state.

Details

Actions

  • May 31, 2013: PRINT NUMBER 5508A
  • May 31, 2013: AMEND AND RECOMMIT TO JUDICIARY
  • May 16, 2013: REFERRED TO JUDICIARY

Memo

BILL NUMBER:S5508A

TITLE OF BILL: An act to amend the real property law, in relation to defining real estate team and requiring the registration of real estate teams

PURPOSE OR GENERAL IDEA OF BILL: To require registration of real estate "Team Names" by the supervising broker with the Department of State.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1. Amends Section 440 of the real property law to define "Team."

Section 2. Amends Article 12-A of the real property law by adding a new section 440-C which will require duly licensed real estate brokers, associate brokers or salespersons desiring to act as a real estate "team" to have the real estate broker with whom they are associated, file with the NYS Department of State, an application for the registration of the team name. The section will also clarify that no additional powers are given to team members per the registration and supervision of the team remains the responsibility of the broker.

JUSTIFICATION: "Teams" have become a popular form of practice among real estate professionals in recent years. Teams offer a new form of customer service and are a consumer-friendly, positive development in the real estate profession. There currently exist-no regulations or requirements for the reporting of teams to the State. The purpose of this legislation is to provide accountability and transparency to consumers regarding who the responsible, supervising broker of record is for each "team" by requiring brokers to register team names associated with their brokerage with the Department of State.

PRIOR LEGISLATIVE HISTORY: New bill.

FISCAL IMPLICATIONS: None.

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


Text

STATE OF NEW YORK ________________________________________________________________________ 5508--A 2013-2014 Regular Sessions IN SENATE May 16, 2013 ___________
Introduced by Sen. LANZA -- read twice and ordered printed, and when printed to be committed to the Committee on Judiciary -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the real property law, in relation to defining real estate team and requiring the registration of real estate teams THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 440 of the real property law is amended by adding a new subdivision 7 to read as follows: 7. "TEAM" MEANS TWO OR MORE PERSONS, ONE OF WHOM MUST BE A REAL ESTATE BROKER, ASSOCIATE REAL ESTATE BROKER OR REAL ESTATE SALESPERSON, WHO ARE ASSOCIATED WITH THE SAME REAL ESTATE BROKERAGE AND WHO REGISTER THEM- SELVES AS A TEAM PURSUANT TO THIS ARTICLE. S 2. The real property law is amended by adding a new section 440-c to read as follows: S 440-C. REAL ESTATE TEAMS; REGISTRATION. 1. ANY DULY LICENSED REAL ESTATE BROKER, ASSOCIATE BROKER OR SALESPERSON DESIRING TO ACT AS A REAL ESTATE TEAM SHALL HAVE THE REAL ESTATE BROKER WITH WHOM THEY ARE ASSOCI- ATED FILE, WITH THE DEPARTMENT OF STATE AT ITS OFFICE IN ALBANY, AN APPLICATION FOR THE REGISTRATION OF THE TEAM NAME. SUCH APPLICATION SHALL BE IN SUCH FORM AND DETAIL AS SUCH DEPARTMENT SHALL PRESCRIBE INCLUDING: (A) THE FULL TEAM NAME AND ADDRESS OF THE OFFICE WHERE THE TEAM WILL OPERATE; AND (B) THE NAME OR NAMES AND LICENSE NUMBER OR NUMBERS OF THE LICENSED INDIVIDUAL OR INDIVIDUALS COMPRISING THE TEAM NAME. 2. TEAM NAMES SHALL EITHER: (A) INCLUDE THE FULL LICENSED NAME OF AT LEAST ONE OF THE REAL ESTATE BROKER OR BROKERS, ASSOCIATE BROKER OR BROKERS OR REAL ESTATE SALESPER- SON OR SALESPERSONS THAT ARE PART OF SUCH TEAM; OR
(B) IF SUCH A NAME IS NOT INCLUDED, THE TEAM NAME SHALL BE IMMEDIATELY FOLLOWED BY "AT/OF (FULL NAME OF REAL ESTATE BROKER/BROKERAGE)". ALL TEAM NAMES SHALL USE THE TERM "TEAM". THE USE OF ANY OTHER TERM BESIDES "TEAM" INCLUDING, BUT NOT LIMITED TO "ASSOCIATE", "REALTY" OR "GROUP" IS PROHIBITED. THE USE OF THE NAME OF ANY PERSON WHO IS NOT LICENSED PURSUANT TO THIS ARTICLE IN A TEAM NAME IS PROHIBITED. 3. TEAMS SHALL NOT BE LICENSED ENTITIES AND AS SUCH, ARE PROHIBITED FROM PERFORMING ANY ACTIVITY REQUIRING A LICENSE PURSUANT TO THIS ARTI- CLE. TEAMS ARE PROHIBITED FROM ENTERING INTO AGREEMENTS WITH CONSUMERS AND EACH TEAM MEMBER CAN ONLY ACT AS A REAL ESTATE BROKER, ASSOCIATE BROKER OR SALESPERSON. 4. REGISTRATION OF A TEAM NAME DOES NOT CONFER ANY ADDITIONAL RIGHTS OR STATUS TO THE TEAM OR ANY MEMBER OF THE TEAM. 5. THE SUPERVISION OF TEAM MEMBERS BY A LICENSED REAL ESTATE BROKER SHALL CONSIST OF REGULAR, FREQUENT AND CONSISTENT PERSONAL GUIDANCE, INSTRUCTION, OVERSIGHT AND SUPERINTENDENCE BY THE REAL ESTATE BROKER WITH RESPECT TO THE GENERAL REAL ESTATE BROKERAGE BUSINESS CONDUCTED BY THE TEAM, AND ALL MATTERS RELATING THERETO. 6. A REAL ESTATE BROKER MAY CANCEL A REGISTERED ESTATE TEAM NAME OR, UPON REQUEST BY THE LICENSED INDIVIDUAL OR INDIVIDUALS REGISTERED AS MEMBERS OF A TEAM PURSUANT TO PARAGRAPH (B) OF SUBDIVISION ONE OF THIS SECTION, A REGISTERED REAL ESTATE TEAM NAME SHALL BE CANCELLED BY THE ASSOCIATED REAL ESTATE BROKER WHO SHALL FILE A CANCELLATION OF REGISTRA- TION NOTICE ON SUCH FORM AS THE SECRETARY OF STATE MAY DESIGNATE. THERE SHALL BE NO FEE FOR CANCELLING A TEAM NAME REGISTRATION. S 3. This act shall take effect on the first of January next succeed- ing the date on which it shall have become a law. Provided, however, that effective immediately, the secretary of state is authorized and directed to promulgate any rules and regulations necessary to implement the provisions of this act on its effective date on or before such date.

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