N.Y. Real Property Law § 446-c: Contracts; fees; reporting procedures

§ 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such account may be withdrawn as provided in paragraph (b) of this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.