NYSAR Summary of Gov. Hochul’s Proposed Budget


Thanks to:

Michael A. Ferruggia
Bruno, Gerbino, Soriano & Aitken, LLP
445 Broad Hollow Road – Suite 420
Melville, New York 11747
P: 631.390.0010 x145
F: 631.393.5497

Senate Bill S781 – Prohibiting the Sale or Rental of Illegally Converted Dwellings by Real Estate Brokers (New York)

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



An act to amend the real property law, in relation to sale or rent of
illegally converted dwellings


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


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-

Section three of the bill provides the effective date as immediate.


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.


2020: S5458A - Referred to Judiciary

2019: S5458 - Referred to Judiciary