Fair Housing

Standard Operating Procedurers

On December 21, 2021, New York Real Property Law section 442-h (rules of the Secretary of State relating to real estate brokers and salespersons) was amended to require, in part, that real estate brokers “institute standardized operating procedures for the prerequisites prospective homebuyers must meet prior to receiving any services.”

The December amendment to section 442-h was signed contingent upon an agreement the Governor reached with the legislature to revise the legislation (Governor’s Approval Memo #80). The bill signed in December required, after a notice and hearing by the Department, that regulations be created addressing, at minimum:

(i) whether prospective clients shall show identification;

(ii) whether an exclusive broker agreement is required; and

(iii) whether pre-approval for a mortgage loan is required.

The December amendment also required that every broker file a copy of such procedures with the Department.

After the December amendment was enacted, the Legislature introduced and subsequently passed the agreed upon change that, in relevant part, REMOVES the requirement that brokers file such standardized operating procedures with the Department. The changes, (S.7729, same as A.9175) passed the legislature on March 15, 2022 are available here.

Under Senate Bill S.7729, starting April 20, 2022, every real estate broker, operating within the State of New York, shall have on each publicly available website and mobile device application they maintain a list of standardized operating procedures. Additionally, each publicly available website and mobile device application operated by an associated agent or “team” of such broker, shall have posted their broker’s standardized operating procedures or a direct link to such information on their broker’s website.

Brokers must keep an archive of all standardized procedures, for as long as they are actively licensed, by having each amendment date stamped and notarized. All new procedures must be posted and made available, at each brokerage office and online, within 30 days of any changes.

Any broker or salesperson operating under a brokerage license that fails to adhere to such operating procedures shall be subject to discipline.

As of the date of this notice, the Department is not considering expanding the list of standard operating procedures.

In consideration of Governor’s Approval Memo #80 and Senate Bill S.7729, the Department will not require brokers to submit their standardized operating procedures and no discipline will be taken against any broker who failed to file such procedures after December 21, 2021. Brokers must have such procedures in place, and publicly available, no later than April 20, 2022.

New York State Housing and Anti-Discrimination Disclosure Form
Federal, State and local Fair Housing and Anti-discrimination Laws provide comprehensive protections from
discrimination in housing. It is unlawful for any property owner, landlord, property manager or other person
who sells, rents or leases housing, to discriminate based on certain protected characteristics, which include,
but are not limited to race, creed, color, national origin, sexual orientation, gender identity or
expression, military status, sex, age, disability, marital status, lawful source of income or familial
status. Real estate professionals must also comply with all Fair Housing and Anti-discrimination Laws.
Real estate brokers and real estate salespersons, and their employees and agents violate the Law if they:
• Discriminate based on any protected characteristic when negotiating a sale, rental or lease,
including representing that a property is not available when it is available.
• Negotiate discriminatory terms of sale, rental or lease, such as stating a different price because of race,
national origin or other protected characteristic.
• Discriminate based on any protected characteristic because it is the preference of a seller or landlord.
• Discriminate by “steering” which occurs when a real estate professional guides prospective buyers or
renters towards or away from certain neighborhoods, locations or buildings, based on any protected
characteristic.
• Discriminate by “blockbusting” which occurs when a real estate professional represents that a change has
occurred or may occur in future in the composition of a block, neighborhood or area, with respect to any
protected characteristics, and that the change will lead to undesirable consequences for that area, such
as lower property values, increase in crime, or decline in the quality of schools.
• Discriminate by pressuring a client or employee to violate the Law.
• Express any discrimination because of any protected characteristic by any statement, publication,
advertisement, application, inquiry or any Fair Housing Law record.
YOU HAVE THE RIGHT TO FILE A COMPLAINT
If you believe you have been the victim of housing discrimination you should file a complaint with the
New York State Division of Human Rights (DHR). Complaints may be filed by:
• Downloading a complaint form from the DHR website: www.dhr.ny.gov;
• Stop by a DHR office in person, or contact one of the Division’s offices, by telephone or by mail, to obtain
a complaint form and/or other assistance in filing a complaint. A list of office locations is available online at:
https://dhr.ny.gov/contact-us, and the Fair Housing HOTLINE at (844)-862-8703.
You may also file a complaint with the NYS Department of State, Division of Licensing Services. Complaints
may be filed by:
• Downloading a complaint form from the Department of State’s website
https://www.dos.ny.gov/licensing/complaint_links.html
• Stop by a Department’s office in person, or contact one of the Department’s offices, by telephone or by
mail, to obtain a complaint form.
• Call the Department at (518) 474-4429.
There is no fee charged to you for these services. It is unlawful for anyone to retaliate against you for filing a complaint.