The bill establishes punishment for real estate brokers, agents and salespeople who violate the legislation as a revocation of their license.
We received the following information from Michael A. Ferruggia, Parter Bruno, Gerbino, Soriano & Aitken, LLP at our November 22, 2022 meeting.
Current Committee:Senate Judiciary
Law Section:Real Property Law
Laws Affected:Add §443-b, amd §441-c, RP L
Versions Introduced in 2019-2020 Legislative Session:S5458
BILL NUMBER: S781 SPONSOR: GOUNARDES TITLE OF BILL: An act to amend the real property law, in relation to sale or rent of illegally converted dwellings PURPOSE OR GENERAL IDEA OF BILL: This bill prohibits the listing for sale, sale and offer to sell, list- ing for rent, renting and offer to rent any illegally converted dwell- ing. The bill establishes punishment for real estate brokers, agents and salespeople who violate the legislation as a revocation of their license. SUMMARY OF PROVISIONS: Section one of the bill amends the real property law by adding a new section 443-b to prohibit real estate brokers, agents and salespeople from listing for sale, selling or offering to sell, listing for rent,
renting and offering to rent any illegally converted dwelling. An ille- gal conversion is any change to structural parts or existing facilities of any building including but the subdivision of rooms, or erection or demolition of walls, or the moving of any building from one location or position to another, in violation of any state or local law, ordinance, code or rule or regulation relating to real property, buildings or multiple dwellings. Section two of the bill adds language to paragraph (a) of subdivision 1 of section 441-c of the real property law that establishes a punishment of license revocation for any real estate broker, agent or salesperson that violates the provisions of section 1 of this bill, 443-b. In find- ing that a violation has been made by an agent, broker or salesman, the violation punishments from the department are listed: ten thousand dollars fine for 1st violation, fifty thousand fine for second violation and revocation of license for 3rd violation are issued under this arti- cle. Section three of the bill provides the effective date as immediate. JUSTIFICATION: Illegal home conversion is a systemic issue in our state and often plagues communities with vulnerable, low-income and often immigrant tenants seeking housing in an unaffordable market. Illegally converted dwellings create a safety hazard for those occupying the dwelling, their neighbors and for first responders in the event of an emergency that requires entry into the dwellings. While enforcement efforts are pursued by many law enforcement agencies in the state, the issue of illegal home conversions and the substandard conditions faced by many fearful tenants - remain. In some cases, many landlords or building owners find that the costs associated with being caught for such violations are a cost of doing business. Solving the issue of illegal dwelling occupancy requires more unconven- tional approaches which will approach the issue differently than the traditional way of fining the landlord and ordering the landlord to cease renting illegally converted units. This bill will punish and deter real estate brokers, agents and salespeople from selling or attempting to negotiate illegally converted dwellings, which will hopefully combat the swelling issue of illegal home conversions from a different legal angle and will make our communities safer. PRIOR LEGISLATIVE HISTORY: 2020: S5458A - Referred to Judiciary 2019: S5458 - Referred to Judiciary