SUMMER LEGAL UPDATE: LICENSE TYPES, CORPORATE TITLES AND DOS ENFORCEMENT
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1 SUMMER LEGAL UPDATE: LICENSE TYPES, CORPORATE TITLES AND DOS ENFORCEMENT
2 Why are we Here? DOS has begun making random audits of licensee websites (unprecedented) DOS is looking for compliance with: License Types Corporate Titles
3 How Much Will It Cost Me? Since 3/28/2018 DOS has conducted 20 audits and collected over $50k in fines Fines average $1,000 per violation
4 DOS ENFORCEMENT OF WEBSITES: LICENSE TYPES AND CORPORATE TITLES
5 Advertising Regulations 19 NYCRR All types of advertising including: Print media Websites Social Media Any application
6 What is an Advertisement? Anything done by a licensee where the intent is to promote your ability to provide licensed services as a means to solicit consumers to utilize those services
7 Names 19 NYCRR (c)(3) Real estate brokers, associate real estate brokers, and real estate salespersons shall advertise using the name under which said real estate broker, associate real estate broker or real estate salesperson is licensed with the Department of State. A nickname may be used in an advertisement provided that the full licensed name is listed clearly and conspicuously.
8 Names 19 NYCRR (c)(3) Licensees may omit their middle initial or middle name so long as doing so is not misleading to the public Use of a nickname is permitted in addition to your full licensed name Last names must reflect what is printed on your license
9 Permitted Display of Nicknames Robert Bob Smith Robert (Bob) Smith Robert Bob Smith Robert Smith, Call me Bob
10 Changing Your Name The DOS does not permit a licensee to change the name that appears on their license unless they are legally permitted to use the name To change your first name, you need a court order. You can t change your license to your nickname without it. To change your last name you need to show you have the legal right to use the last name (divorce decree, marriage certificate, etc.)
11 License Type 19 NYCRR (c)(4) Advertisements shall correctly and accurately state the type of license held by the real estate broker, associate real estate broker or real estate salesperson named in the advertisement.
12 DOS Issues 3 Licenses Licensed Real Estate Broker Licensed Real Estate Associate Broker* Licensed Associate Real Estate Broker* Licensed Real Estate Salesperson *DOS permits the use of either
13 License Type DOS opinion DOS has issued opinion that the term Licensed is not required before the type of license so long as it is clear the individual is a licensed real estate broker, associate broker or salesperson. The term Licensed may be abbreviated as Lic
14 Display of Broker License Type Licensed Real Estate Broker Lic. Real Estate Broker Licensed RE Broker Lic. RE Broker RE Broker
15 Display of Associate Broker License Type Licensed Real Estate Associate Broker Lic. Real Estate Associate Broker Licensed RE Associate Broker Lic. RE Associate Broker RE Associate Broker Associate may be abbreviated as Assoc
16 Display of Associate Broker License Type Licensed Associate Real Estate Broker Lic. Associate Real Estate Broker Licensed Associate RE Broker Lic. Associate RE Broker Associate RE Broker Associate may be abbreviated as Assoc
17 Display of Salesperson License Type Licensed Real Estate Salesperson Lic. Real Estate Salesperson Licensed RE Salesperson Lic. RE Salesperson RE Salesperson
18 License Type 19 NYCRR (c)(4) Licensees may abbreviate the type of license held, provided that such abbreviation is not misleading. The use of the titles, sales associate, licensed sales agent or simply broker is prohibited.
19 License Type 19 NYCRR (c)(4) Real estate brokers, associate real estate brokers or real estate salespersons who have additional titles or designations are permitted to advertise such titles or designations* *Such titles or designations must be earned
20 Earned Designations GRI, SRES, ABR, SRS, MRP, CIPS An earned designation is one where a licensee could have attended a class, completed coursework or some other type of activity to qualify for the designation Merely writing a check for a title may not be in compliance
21 What About Premier Agent DOS is currently in the process of drafting guidance on how to comply with the advertising regulations. The use of Premier Agent will be addressed in the guidance letter. DOS will put a grace period in place for all licensees to become compliant. Somewhat suspect as it is not earned
22 Corporate Titles Real Property Law 441-b(2) prohibits associate brokers and salespersons from being a corporate officer DOS opinions 4/26/13 and 8/20/2013 clarify prohibition
23 Real Property Law 441-b(2) No license as a real estate salesperson shall be issued to any officer of a corporation nor to any manager or member of a limited liability company nor to a member of a co-partnership licensed as a real estate broker.
24 Real Property Law 440(2) however, that the practice of real estate sales and brokerage by such individual as an associate broker shall be governed exclusively by the provisions of this article as they pertain to real estate salespersons
25 But I m RE Associate Broker!! Licensed Real Estate Associate Brokers are NOT a broker for the purpose of corporate titles.
26 DOS Opinion 4/26/2013 references to salesperson, such as that found in 19 NYCRR , include by extension associate brokers who, in accordance with Real Property Law section 440(2), have elected to work under another broker s name and supervision.
27 Corporate Titles Unless you are a Licensed Real Estate Broker with the firm, you are unable to use any corporate titles. The only title that may be used is Office Manager licensed pursuant to Real Property Law 440(6)
28 What are Corporate Titles? President, Vice President, Senior Vice President, Executive Vice President, Treasurer, Secretary, Director, Managing Director, Executive Director, Manager (unless Office Manager pursuant to Real Property Law 440(6))
29 What are Corporate Titles? Any title which implies that an associate broker or real estate salesperson in involved in the management, supervision and control of the brokerage company would be prohibited. (DOS opinion 8/20/13)
30 Commercial or Team Corporate Titles There is no exception merely because the licensee practices commercial real estate or is a member of Team. Examples: Team President, Team Manager, Vice President of Team Marketing, Director of Commercial Leasing
31 Broker Liability Brokers that permit the use of improper license types/titles or corporate titles contrary to the opinion of the DOS would be subjecting themselves to liability for violating the Real Property Law.
32 NYSAR Legal Hotline Monday-Friday 9:00am-4:00pm* *Closed during NYSAR events and holidays
33 NYSAR.com Legal information Articles Webinars Videos Podcasts Sample Forms DOS Decisions
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