2023 New York Laws › RPP - Real Property › Article 12-A - Real Estate Brokers and Real Estate Salespersons › 441-C - Revocation and Suspension of Licenses.

§   441-c.  Revocation  and  suspension  of  licenses.  1.  Powers  of
department.  (a) The department of state may revoke  the  license  of  a
real  estate  broker or salesperson or suspend the same, for such period
as the department may deem proper, or in lieu thereof may impose a  fine
not  exceeding  two thousand dollars payable to the department of state,
provided that fifty percent of all moneys received by the department  of
state  for  such  fines  shall  be payable to the anti-discrimination in
housing fund established pursuant  to  section  eighty-a  of  the  state
finance  law,  or  a  reprimand  upon  conviction  of  the licensee of a
violation of any provision of  this  article,  or  for  a  violation  of
subdivision four of section four hundred forty-two-h of this article, or
for  a  material misstatement in the application for such license, or if
such licensee has been guilty of fraud or fraudulent practices,  or  for
dishonest    or    misleading    advertising,    or   has   demonstrated
untrustworthiness or incompetency to act as  a  real  estate  broker  or
salesperson,  or for a violation of article fifteen of the executive law
committed in their capacity as a real estate broker or  salesperson,  as
the  case  may  be.  In  the case of a real estate broker engaged in the
business of a tenant relocator, untrustworthiness or incompetency  shall
include engaging in any course of conduct including, but not limited to,
the  interruption  or discontinuance of essential building service, that
interferes with  or  disturbs  the  peace,  comfort,  repose  and  quiet
enjoyment of a tenant.
(b)  (i)  The provisions of this paragraph shall apply in all cases of
licensed broker or licensed salesperson who have failed, after receiving
appropriate notice, to  comply  with  a  summons,  subpoena  or  warrant
relating  to a paternity or child support proceeding or is in arrears in
payment of child support or combined child and spousal support  referred
to the department by a court pursuant to the requirements of section two
hundred  forty-four-c  of  the  domestic  relations  law  or pursuant to
section four hundred fifty-eight-b or five hundred forty-eight-b of  the
family court act.
(ii)  Upon  receipt  of an order from the court pursuant to one of the
foregoing provisions of law based on arrears in payment of child support
or combined child and spousal support, the department, if it finds  such
person  to  be  so licensed, shall within thirty days of receipt of such
order from the court, provide notice to the licensee of, and initiate, a
hearing which shall be held by it at least twenty days and no more  than
thirty  days  after  the  sending  of  such  notice to the licensee. The
hearing shall be held solely for  the  purpose  of  determining  whether
there  exists  as  of the date of the hearing proof that full payment of
all arrears of support established by the order of the court to  be  due
from  the  licensee  have  been  paid.  Proof of such payment shall be a
certified check showing full payment of established arrears or a  notice
issued  by  the court, or the support collection unit where the order is
payable to the support collection unit  designated  by  the  appropriate
social  services  district. Such notice shall state that full payment of
all arrears of support established by the order of the court to  be  due
have  been paid. The licensee shall be given full opportunity to present
such proof of payment from the court or support collection unit  at  the
hearing  in person or by counsel. The only issue to be determined by the
department as a result of the hearing is whether the arrears  have  been
paid. No evidence with respect to the appropriateness of the court order
or  ability of the respondent party in arrears to comply with such order
shall be received or considered by the department.
(iii) Upon receipt of an order from the  court  based  on  failure  to
comply  with  a summons, subpoena, or warrant relating to a paternity or
child support proceeding, the department, if it finds such person to  be

so  licensed, shall within thirty days of receipt of such order from the
court, provide notice to the licensee that his or her license  shall  be
suspended within sixty days unless the conditions in subparagraph (v) of
this section are met.
(iv)  Notwithstanding any inconsistent provision of this article or of
any other provision of law to the contrary, the license of a real estate
broker or salesperson shall be suspended if at the hearing, provided for
by subparagraph (ii) of this paragraph, the licensee  fails  to  present
proof  of payment as required by such subdivision. Such suspension shall
not be lifted unless the court or the support collection unit, where the
court order is payable to the support collection unit designated by  the
appropriate  social  services  district, issues notice to the department
that full payment of all arrears of support established by the order  of
the court to be due have been paid.
(v)  Notwithstanding  any inconsistent provision of this article or of
any other provision of law to the contrary, the license of a real estate
broker or a salesperson  shall  be  suspended  in  accordance  with  the
provisions  of  subparagraph  (iii)  of  this paragraph unless the court
terminates its order to commence suspension proceedings. Such suspension
shall not be lifted unless the court issues an order to  the  department
terminating its order to commence suspension proceedings.
(vi)  The  department  shall  inform  the  court  of all actions taken
hereunder as required by law.
(vii)  This  paragraph  applies  to  paternity   and   child   support
proceedings  commenced  under,  and support obligations paid pursuant to
any order of child support or child and  spousal  support  issued  under
provisions of section two hundred thirty-six or two hundred forty of the
domestic  relations  law, or article four, five, five-A or five-B of the
family court act.
(viii) Notwithstanding any inconsistent provision of this  article  or
of  any  other  provision of law to the contrary, the provisions of this
paragraph shall apply to the exclusion of any other requirements of this
article and to the exclusion of any other  requirement  of  law  to  the
contrary.
2. Determination of department. In the event that the department shall
revoke  or  suspend any such license, or impose any fine or reprimand on
the holder thereof, its determination shall be in writing and officially
signed. The original of such determination, when  so  signed,  shall  be
filed in the office of the department and copies thereof shall be served
personally  or  by  registered  mail  upon the broker or salesperson and
addressed  to  the  principal  place  of  business  of  such  broker  or
salesperson,  and  to  the  complainant.  All brokers' and salespersons'
licenses and pocket cards shall be returned to the department  of  state
within  five  days  after  the  receipt  of  notice  of  a revocation or
suspension, or in lieu thereof, the broker or salesperson whose  license
has  been  revoked or suspended shall make and file an affidavit in form
prescribed by the department of  state,  showing  that  the  failure  to
return such license and pocket card is due either to loss or destruction
thereof.
3.  The display of a real estate broker's license after the revocation
or suspension thereof is prohibited.
4. Whenever the license  of  a  real  estate  broker  or  real  estate
salesperson  is  revoked  by  the department, such real estate broker or
real estate salesperson shall be ineligible to be relicensed either as a
real estate broker or real estate salesperson until after the expiration
of a period of one year from the date of such revocation.