New York Law Would Revoke Licenses of Real Estate Agents Who Engage in Discrimination

Buying a house is almost always a stressful event, particularly so if you are a new prospective homeowner. Your real estate agent or broker is supposed to help you along the road to becoming a homeowner, but for some, racially discriminatory practices by the few unscrupulous agents and brokers in New York has tainted the home buying experience.

In July of 2020, a newspaper investigation uncovered some serious and disturbing racially discriminatory practices going on in the Long Island housing market. These unsettling discoveries have prompted the state of New York to pass a bill in an attempt to remedy the problem as best they can and prevent future prospective buyers from becoming victims or discrimination.

The new bill will allow any real estate agent or broker to have their license revoked should they be found engaging in discriminatory behavior or otherwise violating human right laws. The new legislation was prompted after Newsday released some disturbing results about an undercover investigation which looked into housing discrimination in Long Island. The investigation, which took place in November of 2019, uncovered evidence suggesting that discriminatory practices by Long Island based Real Estate Agents were disturbingly common.

The investigation showed that some agents or brokers were requiring mortgage documentation before showing homes to non-white buyers, yet not holding white buyers to that same standard.

Furthermore, there was evidence revealing that some agents were responsible for steering particular clients towards purchasing homes in certain neighborhoods based on their race or ethnicity.

The new law comes during the wave of Black Lives Matter movements that are sweeping the country, bringing to light racial and discriminatory injustices.

What Does the New Law Cover?

Governor Andrew Cuomo signed the bill on August 3rd, which would allow revoking the license of any broker or real estate agent who is found to be in violation of the State’s human rights law.

The new law will work hand in hand with existing regulations, which authorize the Secretary of State to revoke or suspend the licenses of any agent or broker who has engaged in an unlawful or discriminatory practice.

It seems like such a law would already be in place, but up until now, the state did not retain the right to revoke licenses based upon violation of the human rights law.

While licenses could be suspended or revoked for other forms of misconduct (such as fraud or misrepresentation), the same practice was not in place for racially discriminating acts by agents or brokers.

The enactment of this legislation has the power to make fair housing regulations a deserving reality in the world of real estate.

The hope is that this new law, along with other efforts by Governor Andrew Cuomo, will hopefully help to combat discrimination that has been found to be  shockingly prevalent in the Long Island housing market.

What Else Is Being Done to Prevent Discrimination?

In addition to this new law, the New York Governor has made other attempts to reduce housing related discriminatory behavior and actions.

Back in December, Governor Cuomo brought forth new mandated regulations for real estate agents, mandating more proficient disclosure aimed at ensuring prospective home buyers, renters, sellers, and landlords are fully aware of their rights and protections under New York State law.

There have even been efforts aimed at launching a housing discrimination hotline and social media campaign, all designed to raise awareness and ensure that home buyers know their rights and are not victimized by discriminatory behaviors.

The Governor and New York State is, rightfully, taking the necessary steps in protecting minorities from being victimized by real estate agents are brokers who have poor or racially directed intentions.

It seems somewhat shocking that, up until now, there has been no law enacted to legally revoke the licenses of real estate agents or brokers who violate human rights laws against prospective buyers.

It is unfortunate that so many buyers had to become the victims of racial discrimination for a new law to be mandated, but it is better late than never. It seems that New York is taking steps in the right direction to ensure that there are no further victims of discriminatory behavior in the housing market.

For legal guidance with buying or selling a property, get in touch with a real estate attorney at Lee Scott Perres, P.C.