Section 441-C. Revocation and suspension of licenses  


Latest version.
  • 1.  Powers  of
      department. (a) The department of state may revoke the license of a real
      estate broker or salesman or suspend the same, for such  period  as  the
      department  may  deem  proper,  or in lieu thereof may impose a fine not
      exceeding one thousand dollars payable to the department of state, or  a
      reprimand  upon  conviction  of  the  licensee  of  a  violation  of any
      provision of this  article,  or  for  a  material  misstatement  in  the
      application  for  such  license,  or if such licensee has been guilty of
      fraud  or  fraudulent  practices,  or  for   dishonest   or   misleading
      advertising,  or  has  demonstrated untrustworthiness or incompetency to
      act as a real estate broker or salesman, as the case may be. In the case
      of a real estate broker engaged in the business of a  tenant  relocator,
      untrustworthiness  or  incompetency shall include engaging in any course
      of  conduct  including,  but  not  limited  to,  the   interruption   or
      discontinuance  of  essential  building service, that interferes with or
      disturbs the peace, comfort, repose and quiet enjoyment of a tenant.
        (b)(i)  The provisions of this paragraph shall apply in all  cases  of
      licensed  broker  or  licensed salesman who have failed, after receiving
      appropriate notice, to  comply  with  a  summons,  subpoena  or  warrant
      relating  to a paternity or child support proceeding or is in arrears in
      payment of child support or combined child and spousal support  referred
      to the department by a court pursuant to the requirements of section two
      hundred  forty-four-c  of  the  domestic  relations  law  or pursuant to
      section four hundred fifty-eight-b or five hundred forty-eight-b of  the
      family court act.
        (ii)    Upon receipt of an order from the court pursuant to one of the
      foregoing provisions of law based on arrears in payment of child support
      or combined child and spousal support, the department, if it finds  such
      person  to  be  so licensed, shall within thirty days of receipt of such
      order from the court, provide notice to the licensee of, and initiate, a
      hearing which shall be held by it at least twenty days and no more  than
      thirty  days  after  the  sending  of such notice to the licensee.   The
      hearing shall be held solely for  the  purpose  of  determining  whether
      there  exists  as  of the date of the hearing proof that full payment of
      all arrears of support established by the order of the court to  be  due
      from  the  licensee  have  been paid.   Proof of such payment shall be a
      certified check showing full payment of established arrears or a  notice
      issued  by  the court, or the support collection unit where the order is
      payable to the support collection unit  designated  by  the  appropriate
      social  services district.  Such notice shall state that full payment of
      all arrears of support established by the order of the court to  be  due
      have been paid.  The licensee shall be given full opportunity to present
      such  proof  of payment from the court or support collection unit at the
      hearing in person or by counsel.  The only issue to be determined by the
      department as a result of the hearing is whether the arrears  have  been
      paid.    No  evidence  with  respect to the appropriateness of the court
      order or ability of the respondent party in arrears to comply with  such
      order shall be received or considered by the department.
        (iii)  Upon  receipt  of  an  order from the court based on failure to
      comply with a summons, subpoena, or warrant relating to a  paternity  or
      child  support proceeding, the department, if it finds such person to be
      so licensed, shall within thirty days of receipt of such order from  the
      court,  provide  notice to the licensee that his or her license shall be
      suspended within sixty days unless the conditions in subparagraph (v) of
      this section are met.
        (iv)  Notwithstanding any inconsistent provision of this article or of
      any other provision of law to the contrary, the license of a real estate
      broker or salesman shall be suspended if at the hearing, provided for by
    
      subparagraph two of this paragraph, the licensee  fails to present proof
      of payment as required by such subdivision.  Such suspension  shall  not
      be  lifted  unless  the  court or the support collection unit, where the
      court  order is payable to the support collection unit designated by the
      appropriate social services district, issues notice  to  the  department
      that  full payment of all arrears of support established by the order of
      the court to be due have been paid.
        (v)  Notwithstanding any inconsistent provision of this article or  of
      any other provision of law to the contrary, the license of a real estate
      broker  or  a  salesperson  shall  be  suspended  in accordance with the
      provisions of subparagraph (iii) of  this  paragraph  unless  the  court
      terminates   its   order  to  commence  suspension  proceedings.    Such
      suspension shall not be lifted unless the court issues an order  to  the
      department terminating its order to commence suspension proceedings.
        (vi)    The  department  shall  inform  the court of all actions taken
      hereunder as required by law.
        (vii)    This  paragraph  applies  to  paternity  and  child   support
      proceedings  commenced  under,  and support obligations paid pursuant to
      any order of child support or child and  spousal  support  issued  under
      provisions of section two hundred thirty-six or two hundred forty of the
      domestic  relations  law, or article four, five, five-A or five-B of the
      family court act.
        (viii)  Notwithstanding any inconsistent provision of this article  or
      of  any  other  provision of law to the contrary, the provisions of this
      paragraph shall apply to the exclusion of any other requirements of this
      article and to the exclusion of any other  requirement  of  law  to  the
      contrary.
        2. Determination of department. In the event that the department shall
      revoke  or  suspend any such license, or impose any fine or reprimand on
      the holder thereof, its determination shall be in writing and officially
      signed. The original of such determination, when  so  signed,  shall  be
      filed in the office of the department and copies thereof shall be served
      personally  or  by  registered  mail  upon  the  broker  or salesman and
      addressed to the principal place of business of such broker or salesman,
      and to the complainant. All brokers' and salesmen's licenses and  pocket
      cards  shall  be  returned  to  the department of state within five days
      after the receipt of notice of a revocation or suspension,  or  in  lieu
      thereof,  the  broker  or  salesman  whose  license  has been revoked or
      suspended shall make and file an affidavit in  form  prescribed  by  the
      department of state, showing that the failure to return such license and
      pocket card is due either to loss or destruction thereof.
        3.  The display of a real estate broker's license after the revocation
      or suspension thereof is prohibited.
        4. Whenever the license  of  a  real  estate  broker  or  real  estate
      salesman  is  revoked by the department, such real estate broker or real
      estate salesman shall be ineligible to be relicensed either  as  a  real
      estate  broker  or  real estate salesman until after the expiration of a
      period of one year from the date of such revocation.