Section 446-C. Contracts; fees; reporting procedures

1. Every apartment
  information vendor licensed under this article shall  furnish  customers
  with  a  contract prepared on a form approved by the secretary of state.
  Such contract shall include in plain language form a  statement  setting
  forth   the   sources   of   information  concerning  the  location  and
  availability of real property, including apartment housing, which may be
  leased, rented, shared or sublet as a private dwelling, abode, or  place
  of residence.
    1-a.  Each  listing  of  real  property  furnished  by  the  apartment
  information vendor  shall  cite  the  source  of  information  for  each
  property  in plain language form, provided, however, that the failure to
  provide such information  shall  not  constitute  a  violation  of  this
  article  but shall be grounds for license suspension pursuant to section
  four hundred forty-six-e of this article.
    2. No  apartment  information  vendor  shall  claim,  demand,  charge,
  receive,  collect  or contract for an advance fee from a customer except
  as set forth in subdivision five of this section. In no event shall  the
  fee charged to the customer or legal occupant exceed one month's rent.
    3.  Notwithstanding  the above, an apartment information vendor may at
  any time accept a fee from the current legal occupant of  real  property
  including apartment housing available to share or sublet.
    4.  Each  apartment  information  vendor shall file a quarterly report
  with the secretary containing such  information  as  the  secretary  may
  require.
    5.  (a)  An  apartment  information  vendor  may  retain not more than
  fifteen dollars out of any advance fee for administrative services.  The
  balance of any advance fee shall be placed in an account similar to that
  required  by subdivision six of section four hundred forty-six-b of this
  article, except that it need not be interest  bearing  and  moneys  from
  such  account  may  be  withdrawn  as  provided in paragraph (b) of this
  subdivision. The balance of the advance fee shall  continue  to  be  the
  property of the person paying the advance fee and shall be held in trust
  by  the  apartment  information vendor. Such balance may be mingled with
  other moneys in such account and  any  interest  thereon  shall  be  the
  property  of the apartment information vendor.  Such vendor shall notify
  in writing each person paying an advance fee giving the name and address
  of the banking organization in which the advance fee is deposited.
    (b) If the customer  pays  an  advance  fee,  the  contract  with  the
  apartment  information vendor shall contain a provision stating that the
  customer may, under the  circumstances  set  forth  in  this  paragraph,
  recover  his  advance  fee  less  the amount deducted for administrative
  services. The vendor shall be entitled to his fee when  a  customer  has
  leased or rented a private dwelling, abode or place of residence through
  the  information provided by the vendor.  Within ten days of the receipt
  by the apartment information vendor of written notice stating  that  the
  customer  paying  an  advance  fee  has  not  leased or rented a private
  dwelling, abode or place of residence through the  information  supplied
  by  the  vendor  and  does not intend to rent any such private dwelling,
  abode or place of residence, the vendor shall refund  the  advance  fee,
  less  the  fee for administrative services, to such customer. The vendor
  shall also be required to refund any  portion  of  the  advance  fee  in
  excess  of  one  month's  rent  to a customer who has leased or rented a
  private dwelling, abode or place of residence  through  the  information
  supplied by the vendor.
    (c) Notwithstanding anything in this subdivision five to the contrary,
  if  the services to be rendered by the apartment information vendor to a
  particular customer relate exclusively to acting as an apartment sharing
  agent, the vendor may retain the full advance fee, whether  or  not  the

  customer leases or rents a private dwelling, abode or place of residence
  through  the  information  provided by the vendor, and the provisions of
  paragraphs (a) and (b) of this subdivision five shall not be  applicable
  to such transaction.