Source: https://www.nysar.com/legal/legal-counsel-compendium/disciplinary-offenses/41---proper-business-practices
Timestamp: 2019-03-23 14:28:40
Document Index: 575743231

Matched Legal Cases: ['§441', '§441', '§175', '§442', '§442', '§175', '§5', '§175', '§441', '§443', '§441', '§441', '§440']

41. Proper Business Practices
81 DOS 91 Matter of DOS v. Affordable Dreams Real Estate - maintenance of business address and business sign; change of address
92 DOS 91 Matter of DOS v. Resource Realty of New York - suspended for failure to provide change of association card
102 DOS 91 Matter of DOS v. Ratan - discipline for failure to maintain trust account and commingling deposit
Declaratory Ruling 91-34 Matter of Kaplan departure of sales associate, whose continuation was implicit condition of contract, relieves seller of obligation to listing broker
47 DOS 92 Matter of DOS v. Selkin - use of unlicensed name by broker - $500 or 1-month suspension
122 DOS 92 Matter of DOS v. Johnson - failure to furnish duplicate original to consumer (19 NYCRR 175.12) $500 fine or 3-month suspension
137 DOS 92 Matter of DOS v. Maldon - failure to file change of association card; no excuse to rely on employee to file
123 DOS 92 Matter of DOS v. Lopez - salesperson who executes change of association card and furnishes it to broker with filing fee is not liable for broker's failure to file the form
47 DOS 92 Matter of Selkin - use of unlicensed name after Division of Licensing Services (allegedly unreasonably) refused to issue new license after stock purchase/asset transfer, upon ground that new name conflicted with that of existing licensee - $500 or 1-month suspension
DOS 93 Matter of Cruz - broker who relocates business without notifying DOS violating RPL §441-­a(5)
10 DOS 93 Matter of James - broker fails to file termination of association forms for two sales associates when broker ceased conducting business at address due to health problems; filing forms only after advised of violations by investigation is no defense - $750 or 2-month suspension
23 DOS 93 DOS v. Kassorla - failure to file change of association and termination of association forms and surrender of license doesn't divest DOS of jurisdiction; $1,500 fine as condition to re-­licensure
24 DOS 93 Matter of DOS v. Huber - attorney/broker obligated to post signs §441-a[3]); not obligated to attendcontinuing education
26 DOS 93 Matter of DOS v. Stabile - attorney/broker obligated to post signs
32 DOS 93 Matter of DOS v. Mustari - acting as salesperson after expiration of license - failure to take qualifying course and to note term of license
42 DOS 93 Matter of DOS v. Larson - failure to post broker's license; failure to timely file change of association card; use of unlicensed name; refusal to show investigator requested documents; $1,000 fine; dismissal of unlicensed branch office charge (2 offices, DOS failed to show which was main office)
86 DOS 93 Matter of DOS v. Winograd - undisclosed dual agent for tenant and subtenant; failure to provide copy of sublease violates 19 NYCRR §175.1; no suspension of broker who has no knowledge at time of event or retention of proceeds, but liability for misconduct; refund unearned commission
Opinion Letter 93-19 (Thomas G. Mazzotta) - 5 member partnership of 1 attorney, 1 broker and 3 non-licensees;unlicensed persons can be members of partnership which is licensed as a real estate broker, just as unlicensed persons may be shareholders of a corporate real estate broker. However, salespersons may not be partners, just as they may not be shareholders in a corporation which is licensed as a real estate broker. Any partner who acts as a real estate broker under the name of the partnership (including the attorney) must be duly licensed as a broker
120 DOS 93 Matter of DOS v. Collins - broker fails to file timely change of association application for salesperson; violates RPL §442-b; broker fails to appear at hearing; $350 fine or three-month suspension
CRC #276 Matter of Knobel, Consent Order - payment of commission to salesperson not associated with broker violates RPL §§442 and 442-a, 19 NYCRR §175.14; $3,500 fine
128 DOS 93 Matter of DOS v. Vuksanaj - motion to conform pleadings to proof granted where (i) additional evidence wouldn't have been presented if the charge had been stated in the complaint and (ii) issue was actually litigated and was within the "broad framework of the pleadings"; broker's authorization to execute lease on behalf of landlord must be in writing to be valid (G.O.L. §5-703); no commission earned on void lease (due to lack of written authority for broker to sign for landlord); broker is undisclosed "double agent" - thus "fails to make clear" for which party he is acting (NYCRR 175.7); broker is not "managing agent" under NYC Rent Stabilization Code unless (i) broker has ownership or financial interest in property or (ii) performs managerial duties; separate escrow account (§175.1) not required when broker is not holding escrowed funds; holding funds overnight does not trigger requirement for escrow account (returned next day upon demand); unlicensed name used in commission agreement but lack of intent to mislead considered in mitigation; restitution of unearned commission
141 DOS 93 Matter of DOS v. Pozzanghera - salesperson can't own voting stock or be officer of licensed corporation (NYCRR 175.22); separate escrow account required (NYCRR 175.1); unlicensed name; illegal to claim or retain commission for services while not properly licensed; failure to pay judgment; failure to file termination of associate card; representative broker liable for illegal ads; revocation of broker's license discontinues salesperson's association per RPL §441-d
9 DOS 94 Matter of DOS v. Shane - motion for pre-hearing discovery beyond SAPA 401(6) is denied; rules re:subpoenas in administrative proceedings reiterated; proper procedure of reserving right to file post-hearing memorandum of law; MLS form listing agreements are acceptable; individual license not sufficient to allow acting as representative of corporate licensee -need affiliated license; agreements procured by individual acting under name of firm but without affiliated license are illegal and unenforceable - no brokerage fee can be claimed; misrepresentation and execution of unauthorized extension; misrepresentation of law (distinction between canceling agency authority and abiding contract rights); RPL §443 controls the disclosures required of licensees; subsequently licensed corporation not vicariously liable; failure to provide copy of agreement (19 NYCRR 175.12); inadvertence considered in determining penalty
CRC #308 Matter of DOS v. Gomez, Consent Order - failure to place deposit in escrow account (19 NYCRR 175.1); conversion of rent, security deposit and commission; breach of fiduciary duty; restitution ($1,840) and $500 fine
94 DOS 94 Matter of DOS v. Pilato - conduct of business under unlicensed name (RPL §441[1]); confusingly similar name (19 NYCRR 175.18); change of association notice required regarding change from and to licensed broker, not an unlicensed entity; failure to prove by substantial evidence that corporate broker is liable for violations, as the representative broker was not acting as the agent of the corporation when the violation occurred and the corporate broker did not retain the benefit of the wrongful act
Opinion Letter June 1, 1995 (Thomas Bailey) - DOS does not require continued use of specific, agency approved franchising and business documents. DOS will continue to require proof of right to acquire franchise name upon franchisee's application for licensure
87 DOS 95 Matter of DOS v. Desgranges, et al. - due process requires due notice; failure to obtain jurisdiction; invalid substituted service; unlicensed persons not required to advise DOS of change in location (RPL §441-a[5])
CRC #96-2757 Matter of DOS v. O’Campo, Consent Order - salesperson conducted a regulated transaction without the knowledge of her employing broker; $500 fine
1 DOS 98 Matter of DOS v. Fiumera - proper business practices; broker licensed in her individual name violates RPL §440-a when not also licensed as an associate broker while working under the name and auspices of another broker; broker not required to disgorge commission where individually licensed and additional associate broker’s license would be issued pro forma upon payment of licensing fee; broker did not engage in fraudulent practice when advised homeowner that radon report was acceptable when reasonably acted upon advice given to her by the party taking the test; broker’s offer to pay for remedial work indicates a good faith offer of settlement; $250 fine
38 DOS 98 Matter of DOS v. Hargrave - proper business practices; unlawful for real estate broker licensed in her individual name to operate under an assumed named without license under the assumed name; licensee immediately ceases to operate under assumed name upon being so advised by DOS investigator; no evidence presented of any harm to the public arising out of violation; broker reprimanded
7 DOS 00 DOS v. Flagship Marketing Group - availing of license; failure to cooperate with DOS investigation; jurisdiction; proper business practices; ex parte hearing may proceed upon proof of proper service; DOS retains jurisdiction over party not licensed at the time of the hearing where, at that time the complaint was served, the party was (i) licensed, (ii) an applicant for a license or renewal, or (iii) was eligible to automatically renew; salesperson is prohibited both from owning, directly or indirectly, singly or jointly, any shares of voting stock in and from being an officer of any licensed real estate brokerage corporation with which the salesperson is associated; representative real estate broker availed the corporate broker license to an associated salesperson where the office was operated by the salesperson without the direct supervision of the representative broker and the salesperson conducted business as a broker for his own benefit; representative real estate broker engaged in fraud by availing the corporate real estate broker license to a salesperson; representative broker’s availing of corporate broker’s license for which the corporate broker is vicariously liable; failure to provide business records constitutes failure to cooperate with DOS investigation; DOS fails to establish fraud, ignorance or negligence is not sufficient to prove mistake; pressure, regardless of how severe, is not undue influence; restitution denied where funds sought were received by an entity not named or charged in the complaint; corporate broker fined $3,000.00, representative broker’s license revoked and fined $3,000.00 and salesperson fined $5,000.00
20 DOS 00 Godbout v. DOS - proper business practices; a non-judicially dissolved corporation ceases to exist as a legal entity and is prohibited from doing business in New York except for statutorily prescribed activities; corporate broker’s application for renewal denied
CRC #98-523 Matter of DOS v. Hazor, Consent Order - default decision (122 DOS 98) re-opened upon motion to vacate; license revocation for failure to disclose in renewal applications that corporate broker had been dissolved by proclamation and continued to operate for purposes other than winding up its corporate affairs is annulled; licenses reinstated upon payment of $2,000.00 fine
3 DOS APP. 00 (95 DOS 00) Peattie v. DOS - DOS determination to require salesperson to pay restitution to non-party complainants and retain license is reversed in part and modified; engaging in regulated real estate brokerage business in an unlicensed name and at an unlicensed business address; operation of business and business procedures designed to circumvent licensing law in the name of a “consulting business”; salesperson allowed toretain payment of fees for unregulated activity and required to disgorge fees for regulated services; all licenses revoked until such time as restitution is paid
1177 DOS 08 Matter of Menesville – broker; not qualified under RPL 440-a as not citizen or lawful alien; 175.7 failure to make clear and not accept compensation from more than one party without consent; revocation; no reapplication until refund $2,356.50 plus interest