In New York, The New York State Board of Real Estate Department of State is the state agency that licenses and regulates real estate brokers. To become a real estate broker in New York, you must:
- Be at least 20 years old
- Have no felony or sex offense convictions
- Have at least two years of experience as a licensed real estate salesperson or at least three years of experience in real estate
- Complete 152 hours of real estate coursework or have a four-year college degree in real estate
- Pass a final exam
- Have a current New York State driver's license or non-driver ID
Applicants must pay a fee, meet educational requirements, and pass an exam. Attorneys in New York State only need to pay the fee. Brokers with a license in another state can apply to have their license recognized in New York.
To renew a real estate broker's license in New York State, you must complete 22.5 hours of continuing education (CE) every two years. This includes at least two hours of instruction on implicit bias awareness and cultural competency. You can complete your CE hours online through a state-approved education provider. You can skip the continuing education requirement if you're a lawyer with the New York State Bar with a real estate broker's license or have been a full-time licensed broker for at least 15 consecutive years before 2008.
Problems that Licensed New York State Real Estate Professionals May Face
The NYS Board of Real Estate DOS disciplines real estate professionals for numerous reasons, including:
- Untrustworthy conduct: The DOS can withdraw support from licensees for conduct not related to their real estate activities, such as submitting fraudulent contracts or loan applications.
- Discrimination: The DOS can revoke or suspend licenses for discriminatory behavior, such as imposing unequal standards on homebuyers of different races.
- Criminal convictions: The DOS can repudiate licensees for criminal convictions, such as sexual misconduct, rape, murder, robbery, or embezzlement.
- Other misconduct: The DOS can act against licensees for other misconduct, such as money errors, incompetence, misrepresentation, mortgage fraud, or not disclosing a relationship to a transaction.
The New York State Board of Real Estate promotes trust and transparency between real estate professionals and the public. The Board comprises a diverse group of real estate brokers, salespeople, property managers, and public representatives.
If you face threats to your New York State professional real estate license, do not try to navigate this situation alone. Talk to an experienced Lento Law Firm professional license defense attorney who can offer wise counsel and help you quickly prepare an effective strategy. Contact our Professional License Defense Team at the Lento Law Firm online or by calling 888 535-3686.
How Identity Theft Could Affect Your Professional Real Estate License?
Identity thieves have all sorts of methods for stealing identifying information from you, including credit card numbers, addresses, and Social Security Numbers. If you're a licensed New York State real estate professional and have had your identity stolen, you might be concerned about how this incident could impact your professional license. Could your license be put at risk somehow because your identity was stolen?
The NYS DOS's Division of Licensing Services can revoke, suspend, reprimand, or fine real estate license holders who violate the Real Estate License Law. The department must notify the license holder in writing at least 10 days before a hearing and allow them to be heard.
Here are some other ways New York State confronts identity theft:
- Punishes identity theft:Identity theft is a crime in New York State that can be punished by up to seven years in prison.
- Combats real estate fraud:NYS has statutes to combat real estate fraud, including the New York False Claims Act. Victims can also seek rescission of fraudulent transactions.
- Requires organizations to notify customers:NYS law requires organizations to notify customers when their private information is compromised.
- Allows consumers to freeze credit reports:NYS consumers can freeze their credit reports to prevent identity thieves from taking out new loans or credit.
New York State Investigation Process for Licensed Real Estate Professionals
The NYS Board of Real Estate sets high standards for professionalism and ethics in the real estate industry. The Board's investigation process for licensed real estate professionals is thorough and fair, involving the following steps:
- Complaint review: A regional office investigator reviews the complaint and may consult with the State board.
- Statement and document collection: If the licensee fails to respond, the investigator gathers statements and documents from witnesses.
- Assessment: The investigator determines if the matter can be resolved informally, dismissed, or referred for further action.
- Disciplinary action: If there's substantial evidence of misconduct, the Office may seek disciplinary action, such as:
- A warning letter
- A fine of up to $10,000
- License revocation
- Referral to the Attorney General for criminal prosecution
- Referral to the DOS Litigation Unit
- Formal hearing: If the investigation reveals a serious violation, the licensee may have a formal hearing to present their defense.
- Decision: The commission reaches a decision based on the hearing.
- Appeal: The licensee may appeal the decision to a higher authority or court, providing a clear path for brokers who disagree with the commission's decision.
Due Process for a New York State Real Estate Investigation
The NYS Department of State's Office of the Professions investigates and prosecutes professional misconduct, including for real estate professionals. The process for real estate license revocation typically involves due process, which includes:
- Complaint: A client, another licensee, or the real estate commission can file a complaint.
- Investigation: The commission will investigate the complaint, which may include reviewing documents, interviewing witnesses, and gathering evidence.
- Hearing: If the investigation suggests a violation, the licensee can present their defense at a formal hearing.
- Decision: The commission will decide, including revoking the license, imposing a fine, or reprimanding the licensee.
- Appeal: The licensee may have the right to appeal the decision to a higher authority or court.
The DOS will notify the licensee in writing of any charges at least 10 days before the hearing. The licensee can be served with the notice in person, by certified mail, or by another method authorized by the Civil Practice Law and Rules.
Consequences of a New York State Real Estate Investigation
The consequences of an NYS Department of State investigation into a real estate broker can include:
- Reprimand: The DOS can reprimand real estate brokers.
- Fines: The DOS can impose fines on real estate brokers.
- Revocation or suspension of license: The DOS can revoke or suspend a real estate broker's license.
- Referral to the Attorney General: If the investigation reveals unlicensed business practices, the DOS can refer the case to the Attorney General for criminal or civil prosecution.
- Reputation damage: Ethical complaints can damage a real estate broker's reputation.
- Loss of ability to practice: Ethical complaints can result in a real estate broker losing the ability to practice.
The DOS is authorized to investigate real estate brokers and salespersons for numerous reasons, including:
- Violating Article 12-A of the Real Property Law (which provides for the licensing of real estate brokers and salespersons)
- Engaging in fraud or fraudulent practices
- Demonstrating untrustworthiness or incompetency
The DOS will notify the licensee of any charges and offer an opportunity to be heard before taking action.
What Happens If You Lose Your NYS Professional Real Estate License?
If the NYS Department of State suspends your real estate license, you are temporarily prohibited from conducting real estate business until you meet certain conditions:
- You must return your license and pocket card to the DOS within five days of receiving the suspension.
- You must meet the conditions that led to the suspension, such as completing the required education.
If the Board revokes your license, you permanently cannot operate as a real estate agent. To regain your license, you must wait one year, submit a petition, undergo an investigation, and meet additional requirements. Here are some examples of the potential fallout:
- Loss of income. License suspension/revocation removes your right to work immediately, with no expectation of severance or unemployment benefits. This can escalate into financial hardship, depending on your financial obligations.
- Your clients lose out. Unless you have a sound referral system, the people who rely on your real estate professional services may be suddenly left hanging, scrambling to find another broker.
- Difficulty finding other work. Sometimes, you may be able to find other employment within the real estate field that does not require a license—but having your license revoked harms your resume and damages the trust of potential employers.
- Challenges getting reinstated. The Board will require you to wait a year before applying for a reinstatement of your license. They may require you to jump through many hoops and still deny your license at the end of it. In extreme cases, a broker's license may never be reinstated.
- Inability to get licensed elsewhere. If the New York Board revokes your license, you cannot expect to get a new one in another state. Most state boards will check—and some have nationwide databases where adverse reports can be checked.
- Lasting damage to your professional reputation. Even if your license is reinstated, board disciplinary actions become a matter of public record, weakening your credibility and possibly causing you to lose clients.
A lot is at stake for your real estate career, even if you believe the complaint against you is unfounded. Hiring a Lento Law Firm professional license defense attorney can help you avoid these devastating consequences.
Why Hire a Lento Law Firm Professional License Defense Attorney
The NYS Board of Real Estate Department of State rules can be intricate, and an attorney must interpret them accurately to identify potential defenses and legal strategies. A Lento Law Firm professional license defense attorney with experience in real estate licensing matters can efficiently navigate the formal complaint process, including hearings and appeals. If the complaint involves potential license suspension or revocation, our attorneys can advocate strongly to minimize the impact on your ability to practice real estate.
Our Lento Law Firm Defense Attorneys know New York's threats to real estate professional licenses are more than just administrative matters. Our attorneys help real estate brokers who are under investigation by the NYS Board of Real Estate Department of State in several ways, including:
- Responding to a complaint:Attorneys can help brokers respond to a complaint before the deadline.
- Defending against allegations: Attorneys can help brokers defend against misconduct allegations.
- Obtaining a favorable outcome: Attorneys can aim to help brokers obtain a favorable outcome, which may be less expensive at the inquiry stage than at a formal hearing.
- Working out a resolution: The Lento Law Firm has a good working relationship with the NYS Board of Real Estate DOS and can often work out a resolution without a formal hearing. Brokers can discuss their situation with a Lento Law Firm professional license defense attorney to decide whether to obtain legal representation.
Our Lento Law Firm Professional License Defense Team Can Help You
If you face threats to your New York State professional real estate license, do not try to navigate this situation alone. Talk to an experienced Lento Law Firm professional license defense attorney who can offer wise counsel and help you quickly prepare an effective strategy. Contact our Professional License Defense Team at the Lento Law Firm online or by calling 888 535-3686.
