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Changes to New York State's Real Property Law in 2008

By
Real Estate Broker/Owner with DDR Realty

The Real Estate industry in the State of New York will see changes in licensing law in the year 2008. The upcoming changes to New York Real Property Law are steps in the right direction.

An increase in the number of classroom hours required to become a salesperson will better prepare future agents to function more effectively in the business. And increasing the required time a salesperson spends as an apprentice, under the guidance of a broker, will provide salespersons with more practical experience and on the job training.

Here are highlights of the changes that were made to the New York State Real Property Law, to become effective in July 2008.

  • Statutory definition of Office Manager - Must hold at least an Associate Real Estate Broker's license.
  • Educational Requirements for a Real Estate Broker's License is Now 120 hours. Formerly it was 90 hours of approved real estate courses. And the minimum age to become a Broker has been raised to twenty years of age. Formerly it was nineteen years of age.
  • A Two Year Term as Salesperson, under a Broker, will now be required. The term was formerly One year. Or Three Years of equivalent experience in general real estate business will now be required. Formerly only Two Years of equivalent experience was required.
  • Educational Requirements for a Real Estate Salesperson License is Now 75 hours. Formerly only 45 hours of approved real estate courses were required.
  • Elimination of the current exemption from continuing education requirements for those brokers licensed after the effective date (July of 2008) who do not have fifteen years of consecutive licensure by that time.
  • Real estate license identification cards shall now need to contain a photograph of the licensee.

These changes are a direct result of the passage of Bill A08053, AN ACT to amend the real property law, in relation to Real Estate Brokers and Real Estate Salespersons in New York State.

Rob Arnold
Sand Dollar Realty Group, Inc. - Altamonte Springs, FL
Metro Orlando Full Service - Investor Friendly & F

Wow, 75 hours for a salesperson and 120 hours for a broker. That is a lot of class time. Why not just require a college degree?

Hopefully some of the class time they actually teach you how to sell something.

Nov 18, 2007 03:02 AM
Keith Perry
Coldwell Banker - Hiram, GA
REALTOR - West Metro Atlanta
Sounds like a great thing you have going up there. Ours change every year now too it seems. Have a great Thanksgiving Derrick.
Nov 18, 2007 03:22 AM
DDR Realty
DDR Realty - Newburgh, NY
Orange County NY
Rob - Yes, more class time which in my opinion will be more beneficial to the agent. Maybe the degree will be the next step. Image that, a BA in Real Estate...Mmmm..sounds impressive!!
Nov 18, 2007 04:03 AM
DDR Realty
DDR Realty - Newburgh, NY
Orange County NY
Keith and Robin - I agree the changes are good ones. I do hope Robin is doing better. Happy Holidays to you both and the entire family as well.
Nov 18, 2007 04:04 AM
Barbara-Jo Roberts Berberi, MA, PSA, TRC - Greater Clearwater Florida Residential Real Estate Professional
Charles Rutenberg Realty - Clearwater, FL
Palm Harbor, Dunedin, Clearwater, Safety Harbor
I am sure other states will see changes as well! Thanks for the information!
Nov 18, 2007 01:45 PM
Simon Conway
Orlando Area Real Estate Services - Orlando, FL
These are good improvements Derrick, but I think the bar needs to be higher still - and obviously I am not just talking about New York. It is simply too easy to get into this business and it needs to be tougher.
Nov 18, 2007 02:45 PM
DDR Realty
DDR Realty - Newburgh, NY
Orange County NY
Barbara-Jo & Bill - I believe you are right about that.
Nov 19, 2007 01:49 AM
DDR Realty
DDR Realty - Newburgh, NY
Orange County NY
Simon - I could not agree with you more. NY is taking steps in the right direction and other states are following as well.
Nov 19, 2007 01:51 AM
Jennifer Fivelsdal
JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571 - Rhinebeck, NY
Mid Hudson Valley real estate connection

Derrick - Maybe this will help clean up the industry, people who get in to make a quick buck will have to invest more time , that's a good thing.

The part I really like is not exempting people from continuing education.  Their are brokers around who fail to take any classes because of the exemption; they are the ones causing some of the problems by not keeping up with the changes. 

Nov 19, 2007 08:39 PM
DDR Realty
DDR Realty - Newburgh, NY
Orange County NY
Jennifer - I feel these changes can only help to clean up the industry. Those who are not serious enough to invest the additional time to achieve the qualifications are probably not serious enough to invest the necessary effort to function correctly in the industry. The changes will serve as an initial weed out process.
Nov 20, 2007 01:08 AM
Armando Rodriguez
QUEST REALTY SERVICES - Orlando, FL
Orlando Homes 4 Sale, Real Estate Broker-GRI

WOW! I guess this is all coming about because of the recent malaise in Real Estate.

I personnally think this is not necessarily a bad thing. When the market is good everyone and their uncle gets or reactivates their license. Many of those really don't know the business and make terrible mistakes that give us all a bad name.

Good post, Derrick!

Nov 20, 2007 11:39 AM
DDR Realty
DDR Realty - Newburgh, NY
Orange County NY
Armando - Most of the seasoned agents in this area agree with you. Hopefully these steps will help to increase proficiency and improve our image over a period of time. 
Nov 20, 2007 09:09 PM
Elizabeth Weintraub Sacramento Broker
Elizabeth Anne Weintraub, Broker - Sacramento, CA
Put 40 years of experience to work for you

That's interesting, Derrick. We don't have associate broker licenses here in California. You're an associate broker (or as I prefer, broker-associate) if you work for a broker while you are a broker. It's good to see more stringent qualifications for licensing, whereas any high school dropout with a couple college classes under his / her belt can get a real estate license in California.


Dec 03, 2007 01:39 AM
DDR Realty
DDR Realty - Newburgh, NY
Orange County NY
Elizabeth - I believe more education can only help to equip agents to offer improved quality of service to clients, customers and prospect.
Dec 04, 2007 10:55 AM
Donna Yates
BHGRE - Metro Brokers - Blue Ridge, GA
Blue Ridge Mountains
Sounds like good changes for New York and we already have some of these in Georgia.  I do think new agents should be assigned a mentor and maybe even work in some sort of internship capacity for a limited time to weed out those who think it's so easy and they will get rich quick.  But, I guess in time, those agents will be weeded out anyway. 
Jan 01, 2008 02:52 AM
DDR Realty
DDR Realty - Newburgh, NY
Orange County NY
Donna - I too believe the changes are good. Good for the agent, good for the clients and good for the industry.
Jan 03, 2008 12:03 AM
Don Draughn - Mortgage Professional
High Point, NC
It seems the state is increasing requirements on all of us this year.  Loan Officers now have to be registered with NYS Banking as well.
Jan 09, 2008 12:37 AM
DDR Realty
DDR Realty - Newburgh, NY
Orange County NY
Don - I believe the additional requirements should help to bring about more professionalism to the industry.
Jan 10, 2008 01:54 AM
Laurie Mindnich
Centennial, CO
Hi, Derrick- the requirements in Denver in the '80's, as I recall, included many more hours than NY currently  requires.  When I took the NYS test,  I noticed the absence of the legal aspect in NY, which Denver included.  Hopefully, this will be included in the new course requirements, making everyone more comfortable with the process.
Jan 10, 2008 02:05 AM
DDR Realty
DDR Realty - Newburgh, NY
Orange County NY
Laurie - There is a new CE Fair Housing course requirement for license renewal. Effective this year, of the 22.5 hours of CE credit needed for license renewal, 3 hours must be devoted to Fair Housing.
Jan 10, 2008 02:22 AM