NYS Board of Real Estate

The New York State Board of Real Estate was established pursuant to §442-i of the Real Property Law. The effective date of this law was January 1, 1996.

The Board consists of fifteen members:

1. The Secretary of State;
2. The Superintendent of The Department of Financial Services; and
3. Thirteen appointed members.

The appointed members are either real estate brokers or public members. A public member cannot be a real estate broker. The members of the Board are appointed by the Governor and the legislative leaders according to a specific statutory direction. See the "Appointments" section of this summary.

At least five members of the Board must be real estate brokers. To qualify, a real estate broker must be currently licensed as a real estate broker by the State of New York and must have been engaged in the real estate business in the State of New York for at least ten years.

The term of office is two years. A member may be appointed for successive terms, but no member may serve more than ten years in his or her lifetime. A member may be removed by the member's appointing authority.

In case of death or resignation, the successor shall be appointed by the person who appointed the member who has vacated his or her office.

Members of the Board receive no compensation for their service but are reimbursed for actual and necessary expenses.

Eleven members of the Board are appointed as follows:

In addition, the Senate and Assembly Minority Leaders each appoint one member; and each Minority Leader may, at his or her discretion, appoint either a real estate broker or a public member. Thus, depending on the appointments by the Minority Leaders, the Board will be composed as follows:

1. Seven real estate brokers and six public members;
2. Six real estate brokers and seven public members; or
3. Five real estate brokers and eight public members.

NEW YORK STATE REAL ESTATE BOARD

3/2/2022

Members without business addresses may be reached through the Department of State.

The Secretary of State is the Chairperson. A Vice-Chairperson and Secretary are elected from among the other members of the Board.

A quorum for the Board is a majority of the entire Board; i.e., eight members.

A majority of the members currently serving on the Board is required for the passage of any resolution or approval of any matter before the Board.

The Board shall meet no fewer than three times per year at the call of the Secretary of State or a majority of the members.

In addition, the Board shall hold public hearings each year in New York City, in Buffalo, and in Albany. The purpose of the public hearings is to solicit public comment, suggestions, and observations about real estate practice in New York.

If a member fails to attend three consecutive meetings, the member shall forfeit his or her seat on the Board unless the Secretary of State, upon the request of the member, finds that the member should be excused due to illness or death in the family.

With the exception of matters delegated specifically to the Secretary of State, the Board has general authority to promulgate rules and regulations affecting real estate brokers and salespersons in order to administer and effectuate the purposes of Article 12-A of the Real Property Law.

The Board is specifically authorized to prescribe the content of courses of study for the examination and education of real estate brokers and salespersons. In addition, the Board may advise the Secretary of State on policies governing the administration of examinations.

The Board is specifically authorized to establish rules and regulations governing the approval, by the Secretary of State, of schools to offer or conduct courses for qualifying and continuing education.

The Board shall study the operation of the laws and regulations affecting real estate brokers and shall make recommendations on related pending or proposed legislation, excepting legislation and regulations related to nonsolicitation orders and cease-and-desist orders.

The Board may advise and assist the Secretary of State in carrying out the provisions and purposes of Article 12-A and make recommendations concerning the programs and activities of the Department of State in connection with the enforcement of the provisions of Article 12-A.

Annually, the Board shall submit a report to the Senate and Assembly Judiciary Committees, which report shall contain a description of the types of complaints received, the status of cases, and the length of time from the initial complaint to any final disposition.

The Secretary of State has the duty to administer all licensing, examination, education, and compliance provisions of Article 12-A; the rules of the Board; and the rules of the Secretary of State.

In addition, the Secretary of State has specific authority to adopt rules and regulations pertaining to the following matters:

1. Commingling money of a principal;
2. Rendering of accounts to clients;
3. Managing property for a client;
4. Broker's purchase of property listed with the broker;
5. Inducing breach of contract of sale or lease;
6. Records to be maintained by licensees;
7. Handling of clients' funds;
8. Nonsolicitation orders and cease-and-desist orders; and
9. Administration and enforcement of the provisions of Article 12-A and the rules promulgated thereunder.

The Secretary of State has the authority to enforce the provisions of Article 12-A upon complaint by any person or upon his own initiative; to investigate any violation thereof; and to investigate the business, business practices, and business methods of any person applying for or holding a license as a real estate broker or salesperson. In addition, the Secretary of State has the authority to approve or deny license applications and renewals; and the Secretary of State may suspend or revoke a license, or impose a fine or reprimand, for violations of Article 12-A.