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In 2021, the New York State Legislature amended Sec. 442-h of the Real Property Law to require real estate brokers to institute standard operating procedures which a prospective homebuyer must meet prior to receiving services. The Legislature was concerned that homebuyers in different categories were treated differently, as disclosed by the Newsday articles about discrimination in Long Island.
The law takes effect April 20,2022 and BHS has adopted the attached policy statement:
Prior to showing a homebuyer a property or providing services:
(1) BHS does not require identification from a prospective homebuyer,
(2) BHS does not require a homebuyer to sign an exclusive brokerage agreement requiring the homebuyer to work only with BHS on all properties; and
(3) BHS does not require a pre-approval for a mortgage loan in order to show a homebuyer properties.
However, based upon the requirements of the seller, the building in which the properties is located, or others, some or all of the foregoing items may be required.
The policy will be on the BHS website and all mobile device applications . Any agent or teams websites or mobile device applications must also post the policy or provide direct link from the BHS website or mobile app. The policy will be displayed at all offices and copies will be available if buyers request it.
Please make sure you comply with this policy. If you deviate, you must have written documentation that it was requested by the seller, the building, or some other third party, and that it is not applied in an arbitrary or discriminatory manner. If a seller, a building, or others request indemnification, mortgage pre approval, or other preliminaries to seeing a property, submitting an offer, or other services, they must be applied in a uniform, non discriminatory manner for all prospective buyers of the property. The penalties for failure to comply with Sec. 442-h, as amended, are the same as for any violation of the licensing laws: revocation of license, suspension, or penalties of up to $1000