NY Real Prop L § 442-H (2021)
2021 New York Laws RPP - Real Property Article 12-A - Real Estate Brokers and Real Estate Salesmen 442-H - Rules of the Secretary of State.

§  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.