Compliance

New Record Keeping Requirements For All New York Real Estate Brokers!!

Attention all New York real estate brokers!!! Are you aware of the new rule and regulation of the real property law, which is now in effect?

Pursuant to rule and regulation 175.23 of the Real Property Law, a New York licensed real estate broker is required to keep for 3 years all paper and electronic records, including emails, faxes and other computer generated information for every transaction concerning the sale or mortgage of 1 to 4 family dwellings, real property used or occupied, or intended to be used or occupied, wholly or partly, as the home or residence of one or more persons improved by a 1 to 4 family dwelling, or a condominium or cooperative apartments. The rule does not apply to unimproved real property upon which such dwellings are to be constructed.

Some of the records and information that should be safeguarded by New York real estate brokers are the following: (a) the names and addresses of the seller, and the buyer, or mortgagee, (b) the broker prepared purchase contract or binder, or if the purchase contract is not prepared by the broker, then the purchase price and resale price, if any, and the amount of deposit, (c) the amount of commission paid to broker, and (d) the gross profit realized by the broker if purchased by him or her for resale.

In the alternative, New York real estate brokers shall keep and maintain with respect to each transaction a copy of (1) contract of sale, (2) commission agreement, (3) closing statement, (4) statement showing disposition of proceeds of mortgage loan, (5) any document required under Article 12-A of the Real Property Law and (6) the listing agreement or commission agreement or buyer-broker agreement.

If you a New York real estate broker or Long Island real estate agent and are in need of assistance with a real estate transaction please feel free to contact the New York real estate attorneys of Bashian & Papantoniou to meet all of your legal needs.

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