Standard Operating Procedure Regarding the December amendment to section 442-h which was signed contingent upon an agreement the Governor reached with the legislature to revise the legislation (Governor’s Approval Memo #80). The bill signed in December required, after a notice and hearing by the Department, that regulations be created addressing, at minimum:
(i) whether prospective clients shall show identification; (ii) whether an exclusive broker agreement is required; and (iii) whether pre-approval for a mortgage loan is required. Our Office Policy regarding these 3 items is as follows: (i) Prospective Client identification is not required unless you are closing a transaction with this client. In that case, the identification is a required document for our transaction file. (ii) An Exclusive Right To Represent Agreement is not required, unless you are planning to get paid from the Buyer. In this case, it is a required document for our transaction file. (iii) A pre-approval letter is not required for showing, but it is required if you are making an offer. The pre-approval letter should be in the amount of the offer, including matching the offer terms. It is a required document for our transaction file.