Chapter 2 - CERTAIN UNLAWFUL REAL ESTATE PRACTICES

Section 8-201

Section 8-201

  §  8-201 Declaration of policy. It is hereby declared to be the policy
of the city of New York and the purpose of this chapter to promote  fair
dealing in real estate transactions, to maintain community stability and
security, and to foster racial and social harmony.

Section 8-202

Section 8-202

  § 8-202 Definitions. As used in this chapter:
  1. "Chairperson" means the chairperson of the New York city commission
on human rights.
  2. "Commission" means the New York city commission on human rights.
  3.  "Dwelling  or  real property" means one, two, three or four family
residences, and any vacant land which is offered for sale or  lease  for
the construction or location thereon of any such residence.
  4.  "Legal notice" means publication daily for one week in a newspaper
of general circulation within the city of New York and written notice to
all real estate brokers in the area.
  5. "Real estate broker" means a  real  estate  broker  as  defined  in
article twelve-A of the real property law of the state of New York.
  6.  "Real  estate  dealer"  means  any firm, partnership, association,
corporation or person which or  who  has  within  the  preceding  twelve
months,  sold,  traded or exchanged two or more dwellings other than, in
the case of a person, such person's own residence.
  7. "Real estate office" means an office or  other  place  of  business
which  is primarily engaged in the business of selling, buying, leasing,
or renting real property; listing  real  property  for  sale,  purchase,
lease or rental; or providing brokerage services in connection with such
selling, buying, leasing, renting, or listing.
  8.  "Solicitation"  means  requesting,  inviting,  or  inducing by any
means, including, but not limited to:
  (a) going in or upon the property  of  the  person  to  be  solicited,
except when invited by such person;
  (b)  communicating with the person to be solicited by mail, telephone,
telegraph or messenger service, except when requested by such person;
  (c) canvassing in streets or other public places;
  (d) distributing handbills,  circulars,  cards  or  other  advertising
matter;
  (e)   using   loudspeakers,  soundtrucks,  or  other  voice-amplifying
equipment;
  (f)  displaying  signs,  posters,  billboards,  or  other  advertising
devices  other  than  signs  placed  upon  a  real estate office for the
purpose of identifying the  occupants  and  services  provided  therein,
provided,  however,  that  the  term  "solicitation"  shall  not include
advertising in newspapers  of  general  circulation,  magazines,  radio,
television, or telephone directories.
  9.  "Block, neighborhood or area" means any forty square blocks within
the city of New York.

Section 8-203

Section 8-203

  §  8-203  Unlawful  real estate practices. 1. It shall be unlawful for
any real estate broker or dealer or any agent  or  employee  of  a  real
estate  broker  or  dealer,  except  in  honest  reply  to an unprompted
question by a prospective buyer or seller:
  (a) to represent, for the purpose  of  inducing  or  discouraging  the
purchase, sale, or rental, or the listing for purchase, sale, or rental,
of any real property, that a change has occurred or will or may occur in
the racial or religious composition of any block, neighborhood, or area.
  (b)  to  represent,  implicitly  or  explicitly,  for  the  purpose of
inducing or discouraging the purchase, sale, or rental  or  the  listing
for purchase, sale, or rental of any real property, that the presence of
persons of any particular race, religion or ethnic background in an area
will or may result in:
  (1) a lowering of property values in the area;
  (2) change in the racial, religious or ethnic composition of the area;
  (3) an increase in criminal or anti-social behavior in the area; or
  (4) a change in the racial, religious or ethnic composition of schools
or other public facilities or services in the area.
  2.  It  shall  be unlawful for any real estate broker or dealer or any
agent or employee of a real estate broker or dealer:
  (a) to make any misrepresentation in  connection  with  the  purchase,
sale, or rental of any real property, that there will or may be physical
deterioration of dwellings in any block, neighborhood or area.
  (b)  to  refer  to  race,  color, religion or ethnic background in any
advertisement offering or seeking real property for  purchase,  sale  or
rental.
  3.   It   shall   be  unlawful  for  any  person,  firm,  partnership,
association, or corporation, to  knowingly  aid,  abet,  or  coerce  the
commission  of any act made unlawful by subdivisions one and two of this
section.

Section 8-204

Section 8-204

  §  8-204  Non-solicitation  areas.  1. The commission may designate an
area as a non-solicitation area for a period of  up  to  one  year  upon
making  written  findings  based on substantial evidence introduced at a
public hearing that:
  (a) practices made unlawful by section  8-203  of  this  chapter,  the
inducement  or  encouragement  by  brokers  or  dealers  of  the  use of
fraudulent mortgage applications for the purchase of dwellings,  or  the
direction  based  on race, creed, color or national origin by brokers or
dealers of prospective purchasers or  applicants  to  dwellings,  or  an
unusually  great  incidence  of  solicitation are consistently occurring
within the area, and that
  (b) such practices are causing, or  are  likely  to  cause,  residents
within the area to believe that:
  (1)  property  values  in  the area are declining, or about to decline
rapidly; or
  (2) the area is experiencing, or is about to experience:
  (i) a declining level of maintenance of its housing stock; or
  (ii) an increase in criminal behavior; or
  (iii) a change in the racial, religious or ethnic composition  of  the
schools in the area; or
  (3)  the  area  is experiencing, or is about to experience, a material
change in its racial, religious or ethnic composition; and
  (c) therefore, the temporary prohibition  in  the  area  of  the  real
estate  activities  described  in  section  8-205  of  this  chapter  is
necessary to prevent a material change in the area's  racial,  religious
or ethnic composition.
  2.  The  commission  may extend one or more times the designation of a
non-solicitation area made pursuant to subdivision one of  this  section
for  a  period  of up to one year upon making written findings, based on
substantial evidence introduced at a public hearing, that such extension
is necessary to achieve  the  designation's  purpose,  as  described  in
paragraph  (c)  of  subdivision  one of this section, provided, however,
that no extension may be  granted  which,  together  with  the  original
designation    and    all   previous   extensions,   will   maintain   a
non-solicitation area for a continuous period greater  than  two  years.
The  public  hearing on any extension shall be held not more than thirty
days before the day on which the designation  or  earlier  extension  is
scheduled to expire.
  3.  (a)  The  commission  shall promptly announce by legal notice each
designation made pursuant to subdivision one of this  section  and  each
extension  made  pursuant to subdivision two of this section, describing
the area to  which  it  applies  by  references  to  named  streets  and
landmarks.  Any designation shall take effect upon the completion of the
publication required for legal notice. Any extension shall  take  effect
at  the  time  at  which  the  designation  or  earlier  extension would
otherwise expire.
  (b)  The  commission  shall  maintain,  and  make  available  to   all
interested  persons,  a  current  listing of designated non-solicitation
areas.
  4. The commission may, at any time, terminate  the  designation  of  a
non-solicitation  area  made pursuant to subdivision one of this section
or the extension of a designation made pursuant to  subdivision  two  of
this  section  upon  making  findings,  based  on  substantial  evidence
introduced at a public hearing, that the continuation of the designation
or its extension is no longer necessary  to  achieve  the  designation's
purpose, as described in this section.

Section 8-205

Section 8-205

  §  8-205 Activities prohibited with respect to non-solicitation areas.
It shall be unlawful for any real estate broker or dealer or  any  agent
or  employee  of  a real estate broker or dealer to solicit, directly or
indirectly, the sale, purchase, or rental of any dwelling located within
a non-solicitation area.

Section 8-206

Section 8-206

  §  8-206  Hearings;  rules; enforcement. 1. The commission may conduct
investigations,  studies,  and   hearings   concerning   practices   and
activities  governed  by  this  chapter.  In  conducting  hearings,  the
commission shall have the power to subpoena witnesses, to  compel  their
attendance, to administer oaths, to examine witnesses under oath, and to
require  the  production of documents. A written record shall be made of
every such hearing.
  2. The commission shall have the authority from time to time to  make,
amend,  and  rescind  such  rules and regulations as may be necessary to
carry out the provisions of this chapter.
  3. The chairperson or his or her designated representative shall  have
the  power to enforce the provisions of this chapter by signing criminal
complaints  against  any  person,  firm,  partnership,  association,  or
corporation for violation of this chapter.
  4.  The chairperson shall report to the secretary of state of New York
all violations of this chapter by real estate brokers and salespersons.

Section 8-207

Section 8-207

  §  8-207  Violations.  Any  person, firm, partnership, association, or
corporation convicted of violating this chapter shall  be  guilty  of  a
class A misdemeanor.

Section 8-208

Section 8-208

  §  8-208  Civil  remedies.  1.  (a)  Any owner of real property who is
induced to sell his or her property through or to a real  estate  broker
or  real  estate  dealer  by  acts committed by such broker or dealer in
violation of  section  8-203  or  section  8-205  of  this  chapter  may
institute a civil action against such broker or dealer.
  (b) If, in an action instituted pursuant to this subdivision, judgment
is  rendered  in  favor of plaintiff, such plaintiff shall be awarded as
damages
  (i) the  amount  of  any  gains,  whether  in  the  form  of  profits,
commission,  or  otherwise,  realized  by defendant as the result of the
first subsequent  arm's  length  sale,  exchange,  or  transfer  of  the
property,  or,  if  defendant  acted  as  a  broker,  the  amount of any
commissions  received  by  defendant  through  the  sale,  exchange,  or
transfer  of  plaintiff's  property,  such  gains  in  all  cases  to be
calculated without regard to any expenses incurred by the defendant, and
may in addition be awarded reasonable attorneys' fees and  court  costs;
or
  (ii)  if  the  defendant has not realized any gains as defined in this
subdivision, an amount equal to the difference  between  the  price  for
which  plaintiff  sold  his or her property and the fair market value at
the time of the sale, or the fair market value of the  property  at  the
time  the  action is commenced, whichever difference is greater, and may
in addition be awarded reasonable attorneys' fees and court costs.
  2. (a) Any buyer, through or from a real estate broker or real  estate
dealer,  of real property the last owner of which, excluding such broker
or dealer, was induced to sell, exchange or transfer his or her property
by acts committed by such broker or dealer in violation of section 8-203
or section 8-205 of this chapter may institute a  civil  action  against
such broker or dealer.
  (b)  If,  in  an  action  instituted pursuant to paragraph (a) of this
subdivision, judgment is rendered in favor of plaintiff,  the  plaintiff
shall be awarded as damages the amount of any gains, whether in the form
of  profits,  commission,  or  otherwise,  realized  by defendant as the
result of such plaintiff's purchase of the property, such gains  in  all
cases  to  be  calculated without regard to any expenses incurred by the
defendant, and may in addition be awarded reasonable attorneys' fees and
court costs.
  3. With respect to the sale, exchange or transfer of any property, the
liability of a broker or dealer  created  by  subdivision  two  of  this
section  shall be independent of and additional to the liability of such
broker or dealer created by subdivision one of this section.