If you’ve been in the real estate market long enough, you probably know that you can’t do any business without a working license.
A real estate license can get canceled or revoked if you violate the law. Cancellation is temporary and reversible if you retake the state written examination. Meanwhile, a revoked license is permanent, and you can’t get it back.
If your license is canceled, you likely didn’t comply with New York’s commission requirements, didn’t renew the license, or violated the state’s real estate laws.
In all cases, you won’t be able to conduct any business. Here’s what to do if you get your NY real estate license status canceled:
- Real estate licenses get canceled because of violations of NY’s real estate law.
- A license can get canceled if you fail to renew it within two years of its expiry date.
- You have to wait for a year to pass from the cancellation date to reinstate your license.
- The cancellation may be accompanied by a fine that doesn’t exceed $2,000.
- Why Is Your NY Real Estate License Status Canceled?
- How to Reinstate a Canceled Real Estate License in NY
- Frequently Asked Questions
- Final Thoughts
Why Is Your NY Real Estate License Status Canceled?
A license may get canceled for a number of reasons, the most common being law violations. You may also get your license canceled if you take an undisclosed commission or breach client confidentiality—it differs from one state to another.
Here are some reasons your NY real estate license may get canceled:
Although real estate brokers work and gain profit individually, they must disclose all financial information to all parties involved in the transaction. Otherwise, they’re subject to potential conflicts and law violations.
Failing to disclose financial info, like taking extra profit, commission, or fees, may lead to a canceled license. The same goes for failing to disclose relevant information that may affect the buyer’s decision, like hazards and defects. Otherwise, the real estate salespersons may find themselves facing a lawsuit.
Client confidentiality is a no-joke matter when it comes to real estate. Revealing a crucial piece of info to an agent on the other side is a good example of that, as well as any act that undermines the client’s position and breaks confidentiality.
Such as act may escalate to a canceled license if the agent gets reported to the state’s commission.
Violation of the Fair Housing Act
The Federal Fair Housing Act applies across the entire country, including New York, and it protects buyers and tenants against housing discrimination. It states that no buyer or tenant should be refused housing because of race, color, religion, sex, familial status, disability, or national origin.
If real estate brokers violate the law, they’ll likely be put under investigation, which may end with a canceled license.
Failing to Renew the License
Failing to renew a real estate broker license doesn’t necessarily mean it’ll get canceled, but you may have to pass the state written examination again.
When your license expires, you can’t conduct any business or you’ll be subject to legal questioning until the real estate license renewal. With real estate licensees, there are no grace periods, so you’ll have to renew yours before proceeding with any transaction.
If the two-year period passes from the date your license expires, and you don’t renew it, you’ll have to pass the written licensing exam again to get the license reinstated.
How to Reinstate a Canceled Real Estate License in NY
According to NY’s real estate license law, the state can revoke any real estate agent’s license for any period they deem proper, as long as the agent is found guilty of some sort of violation. The law states that the license revocation may be accompanied by a fine not exceeding $2,000. On top of that, the revoked license can’t be reinstated until a year passes from the date of revocation. When that period passes, the agent can retake the written licensing exam and apply for a new license to proceed with real estate activities.
Frequently Asked Questions
When it comes to real estate licenses, laws differ from one state to another, and that may cause some confusion. To make things clearer, here are a few frequently asked questions about NY real estate canceled licenses.
Why is my NY real estate license canceled?
Your license may get canceled because you violated the state’s real estate laws, failed to disclose important info to the buyer, or failed to renew the license within two years from its expiry date. Or because you failed to meet the licensing requirements of the state.
How do I reinstate my real estate license in NY?
To reinstate your real estate license in NY, you’ll have to wait for a whole year to pass from the date of revocation. Afterward, you may have to retake the licensing exam and pay the necessary fee to apply for a new license.
Does NY real estate license expire?
Yes; like all states, NY real estate licensees expire after two years. Three months before the license’s expiry date, you’ll receive an email or a postcard reminder to renew it. Otherwise, you may not be able to conduct any business with an expired license.
How long can a real estate license be inactive in NY?
Your license becomes inactive if you fail to renew it when it expires, and it can only be inactive for a two-year-period before you need to apply for an entirely new one.
If you fail to renew it within this period, you’ll retake the written examination and apply for a new license. However, you won’t have to fulfill the education requirement or take any education courses.
If you got your NY real estate license status canceled, you can reinstate it after one year passes from the cancellation date. The law differs from state to state, but some laws apply across the country, like the Fair Housing Act. If you violate it or show discrimination against any buyer, your license may get canceled or revoked, depending on the severity of your actions.
Although the licensing process is a hassle because you have to retake the state licensing exam, at least you get a chance to keep conducting business.