2023 New York Laws › RPP - Real Property › Article 12-A - Real Estate Brokers and Real Estate Salespersons › 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.
4. (a) Each real estate broker shall institute standardized  operating
procedures  for the prerequisites prospective homebuyers must meet prior
to receiving any services. Such standardized operating procedures  shall
include but not be limited to the following:
(i) whether prospective clients shall show identification;
(ii) whether an exclusive broker agreement is required;
(iii) whether pre-approval for a mortgage loan is required; and
(iv) any other such standardized operating procedures as the secretary
of  state  shall  determine  by  regulation  and  upon notice and public
hearing.
(b) Real estate brokers shall  date  stamp,  notarize  and  post  such
standardized  operating procedures on any publicly available website and

mobile device application they maintain,  shall  make  a  copy  of  such
procedures  available  to  the  public  upon  request  at  their  office
locations, and shall maintain a  file  of  such  standardized  operating
procedures  while  the broker's license is active. Any website or mobile
device application maintained by a team or  a  real  estate  salesperson
should also have the brokers' policies posted or have a direct link from
such  website  or  mobile  device application to the brokers' website or
mobile  device  application.  If  any  alterations  are  made   to   the
standardized  operating  procedures  subsequent  to  such  posting, real
estate brokers shall date stamp, notarize and  post  such  new  standard
operating  procedures on any publicly available website or mobile device
application  they  maintain  within  thirty  days,  and   archive   such
alterations.  Any  broker  or  salesperson  operating  under a brokerage
license that fails to adhere  to  such  operating  procedures  shall  be
subject  to the penalties imposed by section four hundred forty-one-c of
this article.
(c) Any time a real estate broker is required to renew  their  license
they  must affirm to the department of state that they are in compliance
with the  requirements  of  this  subdivision  related  to  standardized
operating procedures.