N.Y. Real Property Law § 441-c: Revocation and suspension of licenses

§ 441-c. Revocation and suspension of licenses. 1. Powers of

department. (a) The department of state may revoke the license of a

real estate broker or salesperson or suspend the same, for such period

as the department may deem proper, or in lieu thereof may impose a fine

not exceeding two thousand dollars payable to the department of state,

provided that fifty percent of all moneys received by the department of

state for such fines shall be payable to the anti-discrimination in

housing fund established pursuant to section eighty-a of the state

finance law, or a reprimand upon conviction of the licensee of a

violation of any provision of this article, or for a violation of

subdivision four of section four hundred forty-two-h 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

salesperson, or for a violation of article fifteen of the executive law

committed in their capacity as a real estate broker or salesperson, 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 salesperson 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 salesperson shall be suspended if at the hearing, provided for

by subparagraph (ii) 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 salesperson and

addressed to the principal place of business of such broker or

salesperson, and to the complainant. All brokers' and salespersons'

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 salesperson 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

salesperson is revoked by the department, such real estate broker or

real estate salesperson shall be ineligible to be relicensed either as a

real estate broker or real estate salesperson until after the expiration

of a period of one year from the date of such revocation.