As of January 4, 2017, New York State regulations regarding brokers' treatment of consumer funds, real estate course subjects and hours, as well as business card requirements, were amended. The changes are generally helpful for real estate brokers and salespersons and modernize outdated regulations.
Changes to Brokers' Receipt of Funds: The previous regulation called for brokers to deposit funds from consumers as "promptly as practicable," which had been interpreted to mean the very next business day. The new language allows deposits to be made within three business days. In addition, the new amendments require consumer funds to be safeguarded up until the time of deposit. The broker may determine what "safeguarding in a secure location" entails. Further, the new regulations change who must consent to a broker's compensation. Previously, if a broker was paid by multiple parties, all parties must have knowledge and consent to the compensation. Now, however, only the broker's client must have knowledge and consent to the arrangement.
Changes to Course Subjects and Hours Requirements: There are a number of new amendments dealing with course subjects and hours required for real estate brokers and salespersons. One amendment reduces the amount of time required for the real estate salesperson course "Property Insurance" to one hour, and adds the new, one hour course called "Licensee safety." In addition, other amended regulations reduce the minimum length for a continuing education course from three hours to one hour. Also, for all courses, "one hour" is defined as 50 minutes of instruction time and 10 minutes of break time. Breaks may not be moved to the end of the course time in order to conclude early.
Changes to Business Cards: The amendments add a new requirement for a broker's and a real estate salesperson's business cards. Now, in addition to the business address of the licensee, and the name of the real broker or real estate brokerage firm, the broker or salesperson must also include a license type.
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