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 prerequisites prospective homebuyers must meet prior to receiving any services.” What follows are United Realty Brokerage Corp’s (“URBC”) standard operating procedures as required by this new law:
URBC does not require its clients to show identification before working with our agents. However, as independent contractors, agents are permitted to personally require this of their clients. In such case, agents electing to require identification from their clients must do so for all clients without exception, unless the client is already personally known to the agent. Agents who selectively require identification from certain clients but not all clients are in violation of company policy and are subject to discipline.
EXCLUSIVE BROKER AGREEMENTS
Agents are required to present exclusive broker agreements to all seller/landlord clients. Buyer/tenant clients are not required to sign exclusive arrangements before working with an agent. However, exclusive broker agreements are not required. If a client refuses to sign an exclusive agreement after one has been presented, agents may elect to work with the client on a non-exclusive basis.
PRE-APPROVAL FOR MORTGAGE LOANS
URBC does not require its buyer tenants to have a pre-approval letter before working with an agent. However, agents are encouraged to promote the idea of getting their clients pre-approved as early as possible in the process. Furthermore, some listings external to our office require that buyers present a pre-approval letter before a showing can be approved. In such cases, agents may relay such requirement to the client.