IMMEDIATE ACTION REQUIRED: New York State Standard Operating Procedure Law Effective April 20, 2022 Impacts all Real Estate Brokerages in the State of New York

Getty Images

April 19, 2022

By R. Michael Brown, Go Home TV Producer

The New York Assembly Bill A9175 was signed by the governor and requires real estate brokers to institute standardized operating procedures (SOP) for the prerequisites prospective homebuyers shall meet prior to receiving any services.

"This is a bill trying to get at discrimination against individuals looking to purchase a home," said Mike Kelly, director of Government Affairs for NY State Association of Realtors. "The bill says to the broker that you have to notify the prospective client your position on at least three things: identification, pre-qualification, and exclusive right to represent. The statute doesn't prescribe how you have to treat those things, whether you require them or not. It says that you have to provide that statement that says you are going to require them or not and that you have to put the SOP on a public facing website, [mobile device application they maintain], and posted in your offices."

Whatever direction you decide to go in, create the SOP form, get it notarized, and make sure you treat every client the same way.  Get a copy of the blank SOP form here.

Then make sure it's on your brokerage website and every agent's website (at least a link to it on the brokerage site) or your public facing Internet presence.

If you don't have a website, contact NY State MLS at office@NYStateMLS.com and we can create one for you including your SOP, your listings, marketing, contact information and more.

This regulation is effective April 20, 2022 so don't delay getting this up on your website; however, due to the fact that it still needs to go through the regulatory approval process, it is anticipated that the detailed regulations won't be in effect until sometime later in the year.

Brokers and agents must keep an archive of all standardized procedures, date stamped and notarized for the original SOP and updated amendments, 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 their stated operating procedures will be subject to discipline.This amendment removed the requirement for brokers to submit and file their standardized operating procedures with the Department of State. Any time a real estate broker is required to renew their license, they must affirm compliance with the Department of State that they are in compliance with these requirements for the standardized operating procedures.

For questions, NY Realtors can call the New York State Association of Realtors (NYSAR) Legal Hotline:

Monday - Friday 9:00 am - 4:00 pm

518-436-9727 or 518-43-NYSAR

See More [NY State Assembly]

See the Benefits and Join My State MLS. Become a member of the nationwide multiple Listing service.