New York License Law: Real Property Law Article 12-A
New York real estate practice is governed by Real Property Law (RPL) Article 12-A and the regulations at 19 NYCRR Part 175, administered by the New York Department of State, Division of Licensing Services. This chapter covers the Department's authority and the broker credential.
The Department of State and Article 12-A
The New York Department of State, Division of Licensing Services, licenses real estate brokers and salespersons under Real Property Law Article 12-A. The Department adopts regulations in 19 NYCRR Part 175, investigates complaints, and may deny, suspend, or revoke licenses and impose fines. A person who, for compensation, lists, sells, leases, or negotiates real estate for others must be licensed unless a statutory exemption applies.
Broker Versus Salesperson
A New York real estate broker is the higher credential and requires prior experience as a licensed salesperson plus additional qualifying education before examination. A salesperson must work under a sponsoring broker and cannot operate independently or hold escrow in their own name. A broker may operate a brokerage, hold client funds, and supervise associate brokers and salespersons. New York also recognizes the associate broker, who holds a broker license but chooses to work under another broker.
Enforcement
The Department may discipline licensees for conduct such as commingling or converting client funds, substantial misrepresentation, failing to make required agency disclosures, and untrustworthy or incompetent dealing. New York maintains a real estate education and recovery mechanism for certain consumer losses. Because the exam is state-written and periodically revised, candidates should confirm current statutory citations and requirements with the Department of State.