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:
(i) whether prospective clients shall show identification;
We do not require ID
(ii) whether an exclusive broker agreement is required;
We do not require this from homebuyers
(iii) whether pre-approval for a mortgage loan is required.
We do not require pre-approvals, but highly recommend this.