NYS Department of State
Volume 2, Number 1 — May 2003
Real Estate Newsletter
A Message from Secretary Daniels
The New York State Real Estate Board is a forum for an active discussion of important issues facing New York State’s real estate industry. For example, the Board is presently discussing the structure and delivery of qualifying education requirements. In conjunction with its regular meetings, the Board convenes a public hearing in order to solicit feedback on the issues before the Randy A. Daniels Board. Further, the public hearings provide anyone in Secretary of State New York State the opportunity to make comments, suggestions, and observations about real estate practice in New York. We encourage those interested to attend our meetings and in particular, the public hearing. Your input insures that we act in the best interests of the real estate industry, as well as the consumer and general public. Our country, our state, and our hometowns all face challenges that will test our energy and resolve. Despite the challenges that we currently face, we have the leadership, vision and sense of purpose that is necessary to manage our way through these current difficulties. I am profoundly optimistic about our state and our nation and look forward to working with all of you within the real estate industry on the issues of the day.
George E. Pataki Governor
Real Estate Board Members
Randy A. Daniels, Secretary of State executive@dos.state.ny.us Teresa A. Santiago Chairperson and Executive Director Consumer Protection Board connorsc@consumer.state.ny.us Edwardina D. Lodes, Vice Chair Benjamin Weinstock, Esq., Secretary bweinstock@rmfpc.com George Constantin gconstantin@helmsleyspear.com Michael Dubb DubbLand@aol.com Veronica Gargiulo info@tricrest.com James LaValley lavalley@northnet.org John R. Piper jpiper@grar.net Alan N. Rechtschaffen alan@rdcb.com Steven Spinola sspinola@rebny.com Ronald B. Steed steedre@taconic.net Merle L. Whitehead mwhitehead@realtyusa.com George K. Wonica gkwonica@wonicarealtors.com
New Carbon Monoxide Regulations
As a result of legislation passed and signed by the Governor in 2002, new regulations have been put into effect for the installation and maintenance of carbon monoxide alarms in certain residential properties. Effective on March 6, 2003, Section 1225.2 of 19 NYCRR Part 1225 requires carbon monoxide alarms to be installed in newly constructed oneand two-family dwellings, multiple single family dwellings (townhouses) and in dwelling units located in buildings of Group R-2 occupancies owned as a condominium or a cooperative. Carbon monoxide alarms are also required in these structures when they are offered for sale. At least one carbon monoxide alarm must be provided in each dwelling unit and must be installed in the immediate vicinity of a bedroom on the lowest floor level of the dwelling unit containing a bedroom. The alarms shall be listed and labeled as complying with UL 2034-2002 (Single and Multiple Station Carbon Monoxide Alarms, Second Edition, October 29, 1996 - with Revisions through and including June 28, 2002, published by Underwriters Laboratories, Inc.) and shall be installed in accordance with the manufacturer’s installation instructions. Carbon monoxide alarms are permitted to be permanently connected to the building wiring system, connected by cord or plug to the wiring system, or battery operated. Where carbon monoxide alarms are permanently installed, they shall receive their
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Real Estate Sales/Broker Exam Locations
Albany: 84 Holland Avenue Basement Binghamton: State Office Building 44 Hawley Street, 15th Floor Buffalo: State Office Building 65 Court Street Main Floor Hearing Room, Part 5 Franklin Square: VFW Hall 68 Lincoln Road Basement Hauppauge: State Office Building 250 Veterans Memorial Highway Basement Conference Room 1 Newburgh: Orange Ulster BOCES Adult Ed Ctr 471 Broadway, 2nd Floor New York City: 123 William Street 19th Floor Plattsburgh: Clinton County Community College Lake Shore Drive Route 9 South Rochester: Finger Lakes DDSO (Monroe Development Center) 620 Westfall Road Syracuse–Brokers: 333 E. Washington Street Main Floor, Hearing Room A Syracuse–Salesperson: American Postal Workers Union 407 East Taft Road North Syracuse Utica: State Office Building 207 Genesee Street 1st Floor, Room 110C Watertown: State Office Building 317 Washington Street, 11th Floor
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primary power from a lighting circuit of the building wiring system, provided
that such wiring system is served from a commercial source. Wiring shall be permanent and without a disconnecting switch other than as required for overcurrent protection. Where carbon monoxide alarms are a component of a fire/burglar/carbon monoxide system, or alarms are monitored by an approved supervising station, a distinctive alarm signal shall be used to differentiate between the carbon monoxide alarms and other alarm system functions. Activation of a carbon monoxide alarm shall not activate a fire alarm signal. Carbon monoxide alarms shall be wired such that short circuits, open circuits, or any other ground-fault will not interfere with monitoring for integrity of the fire warning system. Carbon monoxide alarms shall be maintained in conformance with the manufacturer’s instructions. Where a carbon monoxide alarm receives primary or backup power from a battery, the alarm shall emit a signal when batteries are low. Where the battery is a removable type, it shall be replaced in conformance with the manufacturer’s instructions. Carbon monoxide alarms shall not be removed or disabled, except for replacement, service or repair purposes. If you have any questions about these new regulations, contact the Department of State’s Division of Code Enforcement and Administration at 518-474-4073.
Real Estate Board Committees — Summary of Current Issues
The New York State Real Estate Board has formed Committees in order to better focus on specific priority issues. Here is a summary of current issues. Education Committee The Education Committee has been working on legislation to allow qualifying courses to be on-line, and eliminate the need for attendance in a traditional classroom setting in all cases. The proposal will allow on-line courses as long as providers demonstrate the ability to monitor and verify participation. In addition, it allows the Department to designate that certain subjects or hours be in a classroom setting. As stated by Board member Benjamin Weinstock, the challenge of the Board is to “balance course content with course delivery”. Education Committee members approved a draft change in regulation to add basic computer skills training, instructional navigation of the world wide web, and instructional use of generic computer software to the list of topics which do not qualify for continuing education credit. This regulation change became effective on March 5, 2003, and extends the existing policy that a course must be substantially real estate-related in order to qualify for continuing education credit for real estate licensees. Trends Committee: The Trends Committee has been working on guidelines for the common practice of in-house purchases – properties purchased by someone within the firm listing the property. The Board would like to offer these as suggested guidelines for licensed brokers to consider in their practice. Total Number of Real Estate Licensees Salespersons 63,986 Brokers 48,794 Total 112,762
Figures as of December 27, 2002
Real Estate Appraiser
Board Members
D. Rex Bryce, Chair RexMaryBryce@aol.com Peter Goold, Vice Chair petergoold@hotmail.com Robert E. Galliher REGAPPR@aol.com Wilson Kimball wilson.kimball@chamber.state.ny.us Dominick S. Pompeo dvgapprs@msn.com Jack Rose roserealty@erols.com Matthew Smith svsvalue@sprynet.com
—The case is assigned to an investigator in the Enforcement Unit who conducts a field investigation of the complaint. This may include personal interviews of the complainant, the appraiser and any third parties to the complaint. The investigator may obtain guidance from both Appraisal Board members and regional advisors during the course of the investigation. The regional advisors may also be utilized as third party review appraisers. —After the investigation is completed, the Department reviews and evaluates the evidence to determine appropriate action to be taken for settlement of the matter. —If disciplinary action is recommended against the appraiser, the complaint is forwarded to the Department’s counsel to prepare for an administrative hearing. This hearing could result in either the issuance of a fine, a suspension, or a revocation of an appraiser’s license or state certification.
Overview of Real Estate Appraiser Complaint Process
The Department is planning meetings with regional advisors and Board members in an effort to improve the current complaint process. By utilizing the Board’s experience and expertise, the Department will be able to expedite the handling of future complaints. All complaints are currently received in our New York City Complaint Review Unit (CRU) and the investigation proceeds in the following manner: —The complaint is assigned a case number. A confirmation letter, including the case number, is sent to the complainant. A copy of the complaint is sent to the appraiser, who is asked to respond in writing and to provide any supporting documentation. —If a response is received, a CRU investigator reviews the information and determines if the complaint has merit or should be dismissed. —If the appraiser fails to respond, or if there are any outstanding issues or possible violations, the file is referred to the Enforcement Unit.
Real Estate Appraisers
Certified General Real Estate Appraiser Certified Residential Real Estate Appraiser Licensed Real Estate Appraiser 1,490 1,805 391
Real Estate Appraiser Assistant Total
1,963 5,649
USPAP Reminder
All real estate appraisers with a license or certification expiring on or after January 1, 2004 must have completed the seven hour national USPAP update course in order to renew their license.
Personal Safety, Risk Reduction, and Broker Liability
As real estate professionals, we are trained to promote ourselves in every imaginable way. We put our picture, our home phone number, our voice mail, and even our web site on everything from business cards to billboards. And yet, are we aware of the increased risks with this line of work? Only when another real estate professional falls victim to an attack do we think of all the close calls we’ve experienced. And, more of us are becoming victimized. There are not many professions like real estate where we are often showing properties alone. We even encourage sellers to leave the house before we arrive. And, how many willingly jump into a car with a potential buyer? Or, hand out business cards with our home phone number? The risk factors are many and need to be recognized to avoid any potential danger. One of the first steps in reducing risk of personal harm is to develop a “Business Action Plan”. The Plan should have policies and procedures that everyone should become familiar with and help establish guidelines if a situation were to arise. Some things recommended: AT THE OFFICE: – Develop an action plan specific to your area. – Know your co-workers and look out for each other. – Create a “buddy” system. – Post emergency numbers at every phone. BUSINESS SAFETY CHECKLIST: – Consider having prospects sign in and show some form of identification. –When leaving for an appointment, leave specific details with your office on where you will be going, what time the appointment is for, and how long you expect to be. – When finished with your appointment, make contact with your office as soon as possible. – Ride separately from the customer when showing property. – Dress for quick action. – Establish a “buddy” system. – Carry items to help protect you just in case. It’s also important to trust your ‘gut’ instinct. As professionals we are trained to look for the signals when someone is ready to buy. The way they move around the property, or the comments they make are good indicators. By the same token, learn to look for the signals that may be warning signs. For example, take notice if a customer is insistent upon a particular meeting time, or little time is spent talking about the property and more is spent talking about other things; while such unfocused behavior doesn’t necessarily indicate trouble, upon noting it, you should be cautious. There are only a handful of other businesses that are taught to market themselves the way we do. We need to identify the higher risk factors. Some recommended tips that should become part of your everyday business routine include: – Don’t list your home phone number on your business cards or other material. – Don’t do personal profile ads in the newspaper. – If farming an unfamiliar area, go with someone. – Use the ‘buddy’ system at open houses and when showing vacant property. – Meet the customer at the office first. – Carry pepper spray or a whistle. – Learn how to defend yourself using your everyday materials. Brokers should take aggressive action to set up a business plan for their and their agents’ safety. Additionally, information and ideas may be gleaned from a number of sources. The New York State Department of State approves continuing education courses which deal with this subject matter. You may call (518) 486-3803 for a course listing.