Harbor Gray Real Estate LLC
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.
We at Harbor Gray Real Estate LLC and all Licensed Associate Brokers and Salespersons adhere to the following guidelines as specified by the New York Real Property Law Section 442-h.
1. Regarding clients or customers showing their identification.
a. We do not mandate any clients to show or provide any identification to see real property in relation to sales or leasing or when entering a public open house for sale or lease.
b. Clients and customers or who are applying for a residential lease will in almost all cases be required to submit an identification only when formally applying for an apartment to be accepted for the lease either directly through an agent of Harbor Gray Real Estate LLC or through a third-party agent being represented by the customer an identification will be requested with the formal rental application as supporting documentation.
2. Regarding an exclusive broker agreement.
a. We do not mandate clients or customers to enter into exclusive broker agreements.
3. Regarding pre-approval for a mortgage loan.
a. We do not require our clients or customers to have a mortgage loan pre-approval prior to receiving services.